Array Metal (M) SDN. BERHAD

Asia Pacific

Array Metal's Digital Transformation: From Manual Processes to Integrated ERPNext ERP

About

Array Metal (M) SDN. BERHAD

Array Metal (M) SDN. BERHAD is a leading mid-sized manufacturing company specializing in metal and materials production based in Malaysia.

Apps implemented

ERPNext

Industry

Manufacturing

modules implemented

Help people to use our tools

We believe our tools like ERPNext can help organizations reduce waste and complexity. Frappe + ERPNext has the potential to be a “full stack” replacement for not only ERP (SAP/Oracle) but also the entire enterprise stack (Java/.NET). With this scope, we should help organizations by providing products and services to help them manage their technology platforms.

Why ERPNext over SAP B1 / Oracle

100% FOSS

Customizable

Future-ready

Challenges

Financial management: manual bank reconciliation took 8-10 hours/month, accounting and inventory records needed manual reconciliation, no real-time P&L or cash flow visibility, multi-currency transactions handled via spreadsheets without automated exchange rates, manual asset depreciation tracking, and manual invoicing non-compliant with Malaysia's e-invoice mandate.
Inventory and stock: no cross-warehouse visibility across three locations, manual stock counting took 2-3 days/month, inconsistent valuation methods, weight-based coil tracking done outside the system, untracked inter-warehouse transfers causing discrepancies, and no batch/serial traceability.
Procurement: purchase orders created in disconnected formats with no systematic workflow, no quality inspection process before stock acceptance, manual paper-based 3-way invoice matching, inaccurate landed cost allocation distorting product costs, untracked subcontracting materials, and no centralized supplier database or performance tracking.
Sales operations: manual quotations and orders in disconnected formats, no real-time visibility into customer credit or outstanding dues, advance payments not linked to orders, fragmented delivery tracking between in-house and third-party logistics, no sales analytics, and difficulty managing diverse payment terms.
Manufacturing and production: BOMs only partially maintained, manual production planning without capacity consideration, no capacity or downtime tracking across 135+ machines, paper-based work orders and job cards, no real-time production visibility, ad-hoc quality inspections, and untracked scrap distorting profitability.
HR and payroll: employee data scattered across spreadsheets, email and paper, manual and error-prone attendance tracking, spreadsheet-based leave management, manual payroll calculation without automated compliance checks, no integration between attendance, leave and payroll, and Malaysian statutory calculations (EPF, SOCSO, EIS, HRDF, PCB) handled externally with compliance risk.
Cross-module integration: no single source of truth, decisions based on outdated or incomplete information, weak audit trails, reporting took weeks to compile manually, no scalability without process redesign, and unclear true profitability across products and customers.

Benefits

Financial management: automated Malaysian e-Invoice submission with IRB validation, perpetual inventory accounting syncing stock and ledgers in real time, multi-currency support (MYR, USD, AUD, SGD), bank reconciliation cut from 8-10 hours to 30 minutes, instant financial reporting, automated fixed asset depreciation, and post-dated cheque tracking.
Inventory and stock management: multi-warehouse visibility across three locations, FIFO-based valuation, automatic UOM conversion (KG to sheets/coils to PCS), batch/serial traceability, automated reorder triggers, weight-based and partial delivery handling, mandatory quality inspection before stock acceptance, and real-time stock reports.
Procurement: standardized workflow from material request through purchase invoice with full audit trail, centralized supplier database with performance tracking, automated quality inspection gating stock acceptance, multi-level approval routing, landed cost allocation across purchased items, and subcontracting workflow support.
Sales and order management: full cycle automation from quotation to payment, structured customer database with credit limits and payment terms, automatic product variant generation, partial delivery and advance payment handling, automated receivables aging and payment reconciliation, and sales analytics by territory and product.
Manufacturing and production: multi-level BOM automation including scrap tracking, centralized production planning pulling from sales orders, 135+ workstations tracked for capacity and downtime, job cards linked to operators with barcode scanning, quality inspection tied to work orders, automatic WIP-to-finished-goods conversion, and real-time production KPIs.
HR and payroll: centralized employee database with compliance documentation, multi-method attendance tracking under the 45-hour week rule, statutory leave management covering medical, annual, maternity, paternity and compensatory leave, automated EPF/SOCSO/EIS/HRDF/PCB deductions, three-level payroll approval, automatic bank transfer file generation, automated final settlement calculations, and a self-service portal for payslips and leave.
Dashboards and analytics: real-time executive dashboard covering cash flow, inventory, production and payroll, role-based access control with approval hierarchies and activity logging, and a reporting engine with 50+ standard reports plus custom and scheduled reporting.

Impact

Successful on-time ERPNext go-live

Increased sales order to cash

Increased inventory turnover

Manual data entry: cut from 40+ hours/week to 5-8 hours/week (80% reduction), freeing HR, finance and operations staff for strategic work.
Financial reconciliation: cut from 8-10 hours/month to 30 minutes (95% faster), improving cash flow visibility and working capital management.
Stock reconciliation: eliminated 2-3 days/month of manual counting, replaced by real-time continuous accuracy across all warehouses.
Payroll processing: cut from 3-4 days to 4-6 hours (90% faster), reducing admin burden, speeding payment, and ensuring full statutory compliance.
Purchase order cycle: cut from 3-5 days to 1 day (70% shorter), enabling faster vendor engagement and procurement.
Sales order to invoice cycle: cut from 5-7 days to 2-3 days (60% faster), improving cash flow and customer satisfaction.
Production planning: shifted from manual scheduling to real-time automated optimization, improving on-time delivery and machine utilization.
e-Invoice compliance: automated Malaysia e-invoice generation and IRB submission achieved 100% regulatory compliance and audit readiness.
Inventory management: real-time visibility delivered 100% stock accuracy, eliminating write-offs and optimizing working capital.
Production efficiency: real-time job tracking enabled bottleneck identification, better delivery and resource utilization.
Quality assurance: systematic inspection integration replaced ad-hoc checks, improving product quality and issue detection.
Compliance readiness: automatic statutory tracking created audit-ready records, cutting regulatory risk.
Strategic benefits: better cash flow management, accurate cost control via landed costs and scrap tracking, fewer manual errors, optimized working capital, scalable modular architecture, real-time data-driven decisions, and faster order-to-delivery cycles improving competitiveness.

Matiyas understood each module deeply, understood our local regulatory landscape, and adapted as they learned our manufacturing process. That's what let us finally digitally transform Array Metal turning 30 years of manufacturing into real traceability, visibility, and a system that lets us scale.

Kai Xuan

Operations Manager

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Implemented by

Matiyas Solutions LLP

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