New Hoong Fatt (NHF), a Malaysian automotive parts manufacturer, is overhauling its enterprise resource planning (ERP) system to tackle long-standing inefficiencies and position itself for regional growth. The company had been constrained by outdated processes that lacked scalability, automation, and integrated analytics: capabilities it sees as vital for competing in a data-driven manufacturing environment.
“There were several critical limitations in our previous system, which constrained our ability to fully leverage cloud-based technology such as greater scalability, automation of manual processes, and improved cross-functional collaboration through real-time data access,” noted Chin Jit Sin, Managing Director, NHF.
The company’s earlier system also lacked built-in analytics and AI tools, both of which are increasingly necessary for faster and more informed decision-making.
In search of a partner
Starting out as a trading company serving Malaysia’s automotive replacement market, NHF has grown into a major distributor of genuine and alternative replacement car body parts, supplying more than 1,000 wholesalers and retailers across the country. It now also manufactures metal and plastic replacement parts, including doors, hoods, fenders, bumpers, grilles, and lamps, exporting to over 50 countries.
As part of its ERP overhaul, NHF defined four objectives:
- Enhance operational efficiency through automation and seamless system integration.
- Improve real-time visibility and data accuracy to enable more agile and informed decision-making.
- Strengthen internal controls and regulatory compliance.
- Establish a scalable digital foundation to support regional expansion and long-term business growth.
The company chose Microsoft Dynamics 365 ERP for the upgrade and appointed Wild Tech Malaysia to carry out the deployment.
“We based our choice on their track record as a Microsoft Solutions Partner and their experience with Dynamics 365 deployments,” Chin explained. “Their knowledge of manufacturing operations and compliance requirements was also a key factor in our decision.”
He explained that the rollout will take place in two phases. The first will focus on implementing finance and supply chain modules across NHF’s local operations and its business in Indonesia.
The second phase will extend the system to the company’s operations in China and introduce additional enhancements to support wider business requirements.
“This phased approach allows our teams to adapt to the new system while maintaining operational continuity. The overall project is expected to take 12 to 18 months. Each phase will cover activities such as requirements gathering and process mapping, system configuration and customisation, data migration and validation, user training and change management, testing and quality assurance, and post-implementation support,” Chin said.
Further transformation
Beyond ERP, NHF is pursuing several digital initiatives to improve efficiency and customer engagement.
“A key initiative has been the development of our proprietary E-Platform (EP), an online sales order system launched in 2021. Designed to serve both wholesale and retail customers across Malaysia and Indonesia, the EP streamlines the sales ordering process by offering a more efficient and user-friendly interface,” Chin said.
The platform has since gained wide adoption, with the majority of sales orders in both markets now processed through the system.
The company is also investing in process automation and advanced robotics on the shop floor as part of its shift toward smart manufacturing.
“This ongoing initiative is focused on reducing manual tasks, enhancing accuracy, and boosting overall operational efficiency. Key manufacturing processes have already been automated, and we continue to explore new opportunities to integrate smart technologies, including real-time data systems into our production environment,” Chin said.
Industry makeover
Chin pointed to broader changes reshaping the automotive parts industry, with AI, IoT, and advanced robotics emerging as defining forces.
“These innovations are enabling smarter, safer, and more connected vehicles, with autonomous driving technologies steadily advancing,” he observed.
He also noted that sustainable manufacturing is gaining traction, with companies adopting energy efficiency measures, waste reduction practices, and circular economy principles to meet environmental targets while improving cost-effectiveness.
“Alongside these shifting patterns, we are closely monitoring the accelerating shift toward electric vehicles. In response, we are actively adapting our business strategies, diversifying our product offerings, and exploring new opportunities across the aftermarket value chain that align with technological advancements and the expanding EV ecosystem,” Chin said.
