CIO Spotlight

Flama Integrates Systems To Increase Manufacturing Efficiency and Drive Global Growth With NetSuite

Flama Welding Equipment Manufacture Co. Ltd. is one of the leading welding machine companies in China. It boasts a team of more than 300 people at its production facility in Shanghai, where it produces 250,000 units per year. Flama distributes its products globally, with two-thirds of its business now generated from overseas sales.

The manufacturer was running its business on a legacy ERP solution, but as its international business took off, the outdated system started to hold the company back. Financial, inventory, and manufacturing data was trapped in three separate, incompatible systems, meaning leaders were making key business decisions, such as which products performed best in which markets, without up-to-date insights or performance data.

To overcome these challenges, Flama implemented NetSuite four years ago. By integrating CRM, inventory management (including WMS), manufacturing (MES), and financial management into one business management solution, Flama has taken control of its data. The switch to a more powerful and adaptable system has supported its expanding operations and helped leaders make better-informed decisions while ensuring taxation adherence and legal compliance with its increasingly global operations.

We spoke to Flama's CIO, Janson Zhang, to discover what it takes for today’s CIO to solve problems with technology and successfully grow a complex manufacturing business.

Q&A

Describe your role at Flama?

Janson Zhang: As CIO, I work with various departments to solve their problems, using technology to achieve company goals.

Which stakeholders do you work closest with?

Zhang: Almost all departments; my role requires cross-departmental collaboration.

Do you have specific targets or goals set by the business?

Zhang: My personal goals are closely related to the goals of the business. The aim is to build systems for other employees so that they’re empowered to create value for the business.

How do you serve your company, customers and colleagues?

Zhang: My main priority is business transformation, which is challenging and takes time. It’s important to start small and drive incremental change, step by step. I serve the organisation by creating the roadmap and persevering every day.

What skills are most important for your role?

Zhang: The ability to learn continuously in this role is very important. Then, once you have an understanding of how everything works, persistence is a key soft skill to help you implement your strategy for the business. Finally, patience is paramount when delivering technology solutions—play the long game and don’t rush.

How has the role of CIOs evolved in the past 10 years?

Zhang: I have been in this industry for 10 years and the development of the role has been extremely fast. It’s now broader than ever with greater business impact. However, at its core, the role of a CIO is still to find problems and use tools to solve them.

What do you think are the biggest reasons for these changes?

Zhang: The technology has developed, efficiency has improved, and the turnover of people and logistics has increased significantly.

Has understanding how a business operates has become more important for CIOs?

Zhang: Yes. You must understand the pain points or know where the fundamental problems are; then you can find the right way to solve them.

Do you think collaboration has become a central part of the role of today’s CIO?

Zhang: I consider collaboration to be a daily project. It’s definitely a central focus of the role today.

Do you think today’s CIO needs to be a strong communicator in a way that wasn’t as important in the past?

Zhang: Communication is always important to understand the problem fundamentally, so that it can be solved effectively.

Can you describe the process of selecting NetSuite?

Zhang: Before NetSuite, we used Kingdee and Yonyou. The different systems couldn’t communicate with each other and couldn’t be scaled. Therefore, digital upgrades were required to optimise the process. Choosing new technology, such as an ERP system, is a process of uncovering business problems and finding solutions for the organisation. To do this, all business leaders and relevant departments are consulted.

What three things are most important for a CIO to consider when choosing new technology?

Zhang: The technology must be in line with business development needs, comprehensive and efficient, and be the right tool to effectively solve the problems faced.

How does NetSuite help you succeed as CIO?

Zhang: NetSuite is a powerful tool that helps me increase efficiency and optimise processes for the business.

What were the top reasons for you/your business choosing NetSuite?

Zhang: NetSuite provides comprehensive business function support, including the entire production process, sales, research and development, finance, and logistics. It provides the best business and financial integration platform for global business expansion, as it’s highly flexible, fast, and integrates seamlessly with other systems.

What are the advantages of having an open system like NetSuite?

Zhang: Oracle NetSuite is fantastic for manufacturing enterprises. Its CRM allows for multi-channel selling and WMS guarantees good and accurate specifications. MES can sense abnormal output in real time, and quality can be traced. It means ease of financial and taxation adherence, legal compliance, risk prevention, and a basis for corporate data-driven decision-making.

What are the biggest benefits of being in the cloud vs on-premises?

Zhang: A cloud-based system is light, flexible, and employees can access it anywhere, any time.

What would you say to a CIO who was contemplating switching to NetSuite from on-premises or legacy systems?

Zhang: NetSuite is a flexible and comprehensive platform that can realize business and financial integration, reduce costs and increase efficiency.

What advice would you give to aspiring CIOs?

Zhang: Always be hopeful and try to do the right thing at the right time.

What skills (hard or soft) do you predict will become more important for CIOs to develop in the future?

Zhang: It will always be necessary to learn continuously and accumulate professional knowledge. As the role grows, I also think it’s important to remain down-to-earth and approachable - communication skills will always be key.

Do you think the role of CIOs will continue to evolve?

Zhang: Some aspects of the role will change, while others will remain the same. Technology is always evolving, but CIOs are continually learning and solving problems.