Honoroad-Customer cases-Hitpoint Cloud - A Five-Star Certified Partner of NetSuite in China, and a Service Provider of Oracle NetSuite Cloud ERP Solutions.

Customer Profile

Honoroad Agricultural Products Group, established in 2000, is committed to the construction of agricultural products supply chain. After more than 20 years' development, the Group has invested and built a series of agricultural products processing and warehousing bases in Vietnam, Alashankou in Xinjiang, Wanzhou in Chongqing and other countries and regions. It is mainly engaged in the production, import and export business of various agricultural products related bulk materials - feed, fishmeal, food-grade freshwater fish oil, rice products, balsa fish flakes, cassava, soybeans, etc. The products are located in the upstream of the supply chain, and it cooperates closely with many famous brands, and the market scope covers many countries around the world.

Informatics Challenges

1.Honoroad Xinjiang factory is the production and processing base of bulk commodities, involving sunflower seeds, beans oil extraction and joint by-products feed processing and production of a variety of products;

2.The production process is complex: raw materials, cleaning machine, weighing scale, barrel silo, hulling machine, grading sieve, embryo rolling machine, steam fryer, oil press, sedimentation tank, drying cooler, cake, meal;

3.The production process involves a lot of joint by-products: raw materials are shelled sunflower seeds and soybeans, etc., the main products are sunflower oil and soybean oil, joint by-products are sunflower shells, sunflower meal, soybean meal, and the final finished products accounted for the uncertainty of the weight ratio;

4. Difficulty in apportioning production costs: in addition to the uncertainty of the weight proportion of finished products, the prices of various types of finished products (finished oil, feed meal) on the market also fluctuate, and the production costs of each joint by-product are different every month.

Solutions

1.Reconstruct the planning work order: for the characteristics of joint by-product production, customise the ‘planning work order’, associated with the disassembly of the BOM (only the theoretical production ratio, the cost-sharing ratio is empty), used for the unified collaterals, associated with the joint by-products sub-work orders and the end of the month cost-sharing;

2.‘Planning work order’ starts once a month, and automatically generates each sub-work order corresponding to joint by-products;

3.Sub-work order completion management: at the end of the month according to the joint by-products of the finished product into the warehouse to report the work, the completion of each sub-work order (generated according to the end of the previous month's price of finished goods estimated production costs);

4.Production cost adjustment: financial end of each month, according to the market price fluctuations of the joint by-products, in the ‘plan work orders’ to maintain the joint by-products accounted for by the proportion of the cost of raw materials, the automatic generation of adjustments to the diary, update the cost of each sub-work order completion;

5.Indirect cost apportionment management: Using Hitpoint's month-end indirect cost apportionment model, all kinds of indirect costs in the process of generating this month will be apportioned uniformly to each sub-work order according to the proportion of the finished product's cost in this month, so as to realise the fine accounting of all production costs.

Helping Honoroad to realise refined production management of sunflower oil co-products

Honoroad