The Excellent solution for remarkable growth at the electric vehicle market
Sung Jae Lee CFO, Shinheung SEC
“We have implemented YoungLimWon Soft Lab(YLW) ERP because KPMG Accounting Firm, an auditor of Shinheung SEC, recommended that its overall management tool such as cost calculation was excellent.”
It has been very helpful in all aspects of management such as efficient process inventory management, systemization of actual organizational management system, etc.
As the demand for electric and hybrid vehicles increases, companies that produce domestic secondary battery parts are attracting attention. This is because the sales are growing rapidly, and the entry into the overseas market as well as the domestic market is increasing. Shinheung SEC Co., Ltd. ( Man Yong Hwang, Ki Rin Kim CEO), a primary partner of Samsung SDI, is a representative example. The growth is so clear that sales has more than doubled for two years.
The background of this growth is supported by the remarkable growth of the electric vehicle market. Sung Jae Lee(CFO), managing director of Shinheung SEC’s business support division, cited YLW’s enterprise resource planning (ERP) ‘K-System’ as one of the growth factors of the company. After the introduction of ERP in 2012, there was also an internal evaluation that it systemized organizational management systemized and enabled efficient process inventory management. In an interview, Lee said, “Shinheung SEC’s goal is to become a global leading company in the field of secondary battery parts. CFO Sung Jae Lee talked about the impact ERP had on Shinheung SEC in an interview.
The biggest reason Shinheung SEC decided to introduce ERP is to secure the reliability of its accounting books and prepare for listing on the KOSDAQ market.
What kind of company is Shinheung SEC?
Shinheung SEC is a first-tier supplier of Samsung SDI, a company that produces mid-to-large prismatic battery parts for electric vehicles, hybrids, and plug-in hybrid vehicles. It also produces small round battery parts for power tools and vacuum cleaners. Especially, it carries out the battery pack module business used in energy storage devices, and it is considered as the best specialized company in the country for battery parts.
It possesses actual precision mold manufacturing, polymer composite material technology, dissimilar material bonding technology, and automated equipment manufacturing technology. Thanks to this technology, the company established in 1979 celebrated its 40th anniversary this year. The company’s headquarters are in Osan, with a factory in Yangsan, Gyeongsangnam-do. It is also steadily advancing into overseas markets. In 2014, it established a Malaysian subsidiary to respond to the Asian market, and from 2015 to 2016, it established subsidiaries in Xi’an and Tianjin to enter the Chinese market. In 2017, it established a subsidiary in Hungary for European market entry.
What is the effect of ERP implementation?
He evaluated that the company’s growth was driven by the growth of the electric vehicle market, but the ERP system also played an important role. Executive Vice President Lee cited the biggest effect as the systemization of organizational management with the implementation of ERP. It is efficient to manage human resources/salary/accounting, etc. through system link, and computerization of the logistics process that was managed with Excel before the implementation of ERP enabled efficient process inventory management and systematic cost calculation for each process. In addition, an ERP system was established for overseas subsidiaries so that the headquarters can manage all subsidiaries.
Sung Jae Lee said, “The ERP operation has become the basis for the timely implementation of the financial supervisory branch’s quarterly disclosures by securing the reliability of the accounting books and establishing a consolidation system.”
ERP upgrade project linked with smart factory
What is noteworthy in the process of implementing Shinheung SEC ERP is the ERP upgrade project that started at the end of 2016 and finished in 2017. This is because it was intertwined with the establishment of a smart factory, which is attracting attention as the foundation of the 4th industrial revolution.
Shinheung SEC’s ERP advancement project is evaluated as a case that can change some perspectives that ‘smart factory and ERP will be separate’. This is a case that suggests that the ERP advancement project can be an exquisite move to complete a smart factory.
Before this project, the actual operation process and the ERP process were different. In this project, the business process is redesigned, reorganized, and supplemented from the perspective of the customer and the market to synchronize the value chain between companies. It also advanced the ERP according to the company’s business process and has built a system to flexibly respond to the rapidly changing business environment.
The CFO said, “We have established a culture of working with processes and systems and have increased sales and improved profits through activities such as synchronization of production, stabilization of quality, timely delivery, improvement of yield, and reduction of loss.”
After the implementation of ERP by YLW, Shinheung SEC was able to systematize organizational management and execute efficient process inventory management.
What is Shinheung SEC’s vision?
Shinheung SEC’s biggest vision is to become a global leading company in the secondary battery parts field. It has already entered the Asian, Chinese, and European markets as well as domestic markets. It is also seeking to enter the American market, a larger market centered on the U.S. Shinheung SEC will continue to invest in ERP systems to complete this vision.
Seong Jae Lee said, “We expect to achieve sales of KRW 500 billion in the near future. We will build an advanced system through the upgrade of YLW ERP in line with the sales growth.”
