Tatung collaborates with UBEXCO for global supply chain management

Taipei, 29 November 1999 - One of Taiwan's top electronic conglomerates, Tatung Company, has announced a collaboration with UBEXCO, a joint venture between Taiwan's Koos Group and Singapore-based bex.com, to establish the Tatung Global Electronic Supply Chain Management System.

Taipei, 29 November 1999 - One of Taiwan's top electronic conglomerates, Tatung Company, has announced a collaboration with UBEXCO, a joint venture between Taiwan's Koos Group and Singapore-based bex.com, to establish the Tatung Global Electronic Supply Chain Management System.

The project is the most critical part of Tatung's initiatives for its progress into the 21st century. Tatung will implement the program for its local suppliers in three phases, starting with its electronic and computer plants, which together have more than 200 suppliers. It will then be extended to Tatung's overseas suppliers leading to the establishment of its Global Electronic Supply Chain Management System.

UBEXCO will provide Tatung and its suppliers with e-commerce consultation and services, as well as assist the company in establishing its global electronic supply system. The system will run on the Internet Trading Center (ITC) software, developed by UBEXCO's joint venture partner bex.com.

Through this collaboration, Tatung will rapidly enhance the computer adaptability, management capability and trading flexibility of its suppliers to increase the level of customer satisfaction, and enhance Tatung's international competitiveness. It will also enable Tatung to service and respond to its OEM customers promptly.

Lin Weishan, general manager of Tatung Company, said that consumer and industrial electronic products used to be Tatung's main business in the early days. Through the collective efforts of its employees, customers, suppliers and manufacturing partners, Tatung has successfully transformed itself to make communication products its main business. Production bases are now managed globally in U.S.A., Canada, Mexico and Europe.

"UBEXCO is honoured to collaborate with Tatung and assist in the establishment of the Global Electronic Supply Chain Management System. Through UBEX's e-commerce services, we can provide an integrated and secure electronic trading environment to all industries of Taiwan, and assist in speeding up the transformation of companies and industries to enhance their international competitiveness," says Yong Voon Fee, president of UBEXCO, who expressed great confidence in this collaboration.

Three-phased Implementation
The Tatung Global Electronic Supply Chain Management System will be implemented in three phases. The first phase will link up the local suppliers of Tatung's computer and display plants. This will be extended in the second phase to Tatung's overseas production bases and support two-way data mapping with its suppliers' computer systems. The third phase will see the implementation of data sharing with suppliers and the training of some of its suppliers in working with ASP (Application Service Provider).

The entire programme is scheduled to be completed in 2 to 3 years, after which time Tatung should be able to reduce its global inventory levels from 2-3 weeks to 1 week, and increase its adaptability to change by 15% to 20% each month. In addition, the system will shorten financial turnaround times, enhance suppliers' management capability and achieve quick response (QR).

UBEXCO will also assist in the training of Tatung's suppliers in using the supply chain integrated system. Tatung will also send its personnel from different areas of operation to conduct in-depth training for its suppliers in sales and storage, quality control and application of information technology. By combining suppliers' use of information technology with management control, inventory levels will be reduced and customer needs reflected quickly. This will enhance the international competitiveness of the entire supply chain.

At the same time, the Tatung Global Electronic Supply Chain Management System will conform to Programme B of the Electronic Communication Industry programs initiated by Taiwan's Industrial Development Board. Tatung hopes that after the global electronic supply chain is established, its OEM customers will also be connected and the system will form the back-end support system to an integrated B2C (Business to Consumer) e-commerce system. In this way, the integration of front-end B2C with back-end B2B (Business to Business) will be the ultimate objective of Tatung's advancement into E-commerce and E-business.

Currently, the Industrial Development Board of the Ministry of Economic Affairs is aggressively pursuing its Electronic Communication Industry programmes A and B with the objective of hastening the electronic conversion of Taiwan's communications industry as it progresses into the 21st century, and use it as the model for other industries to follow. Besides collaborating with Tatung and other related industries, UBEXCO, which is the leader with advanced technology in Taiwan's B2B electronic commerce market, hopes to support the government's programmes by providing cutting-edge technology and consultation in electronic commerce so as to strengthen the industrial competitiveness of Taiwan as a whole.

About bex.com
Formed in 1996 in Singapore, bex.com is focused on creating and operating E-Marketplaces around the world through its business-to-business E-Commerce transaction engine, ITC (Internet Trading Center).

bex.com also provides a world-wide network infrastructure to link these e-marketplaces into a global business-to-business e-commerce network. These e-marketplaces are designed to help companies of all sizes reduce operation cost, achieve cash optimization and increase revenue channels. These regional e-marketplaces include ABEX (The Americas), NBEX (Japan), IBEX (Southeast Asia) and UBEX (Taiwan & Greater China).

bex.com has an international panel of shareholders, including Intel Pacific Inc., Koos Group (Taiwan), DBS Bank (Singapore), Vertex, ST Telecommunications and Temasek Holdings. bex.com also has collaborative arrangements with leading banks, including ABN-AMRO, China Trust Commercial Bank (Taiwan) and DBS Bank (Singapore). bex.com maintains its Research and Development Centers in Singapore, and in San Diego, USA called Bex Research, Inc.