Himmel Industries Inc.

[Admin]

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Company’s Humble Beginnings

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Three decades ago, twenty kilometers east of Manila in Barrio Santolan, Pasig, among cast areas of rice fields, stood a wooden house protected by a fence of old, rusty galvanized sheets. This was the humble beginning of HIMMEL INDUSTRIES, INC. On hindsight, HIMMEL, a German word for sky or heaven, is prophetic as witnessed by the meteoric rise of its founder, MR. LUCIO TAN, to the top of the business world.

In the start, flavoring compounds and aromas were manufactured. Later, it expanded to include trading in various industrial chemicals. Machineries that have been used for 2 years in a procured old plant resulted in the production of the only USP grade refined Glycerine in the country. For fifteen years, the plant supplied local pharmaceutical industries. Under the leadership of MR. DOMINGO CHUA, Glycerine was exported to Asian countries and the United States. Menthol Crystal, steel drum fabrication, aromatic divisions compounding, flavors and fragrances and printing inks were also started.

At present, the company supplies to almost all industries such as Paper, Adhesives, Glue, Food, Feeds, Pharmaceutical, Leather, Paint, Printing Ink, Plastic, Polyurethane Foam, Rubber, PVC, Cement, Ceramic, Tiles, Textile, Tobacco and etc.

In this time where the entire world has become an information superhighway, it has always been an irony that many large organizations have a lot of useful data in them, but they always fail to realize it. But HIMMEL INDUSTRIES, INC, with its compliance and adherence to the Knowledge Management Cycle, is otherwise. The company has a strong conviction that such data could be transformed into useful information that has the power to mobilize the company towards success. So it is only fitting that they follow a strict rule principle in managing it, this is where Knowledge Management comes into the company’s picture.

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Knowledge Management Cycle

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In most traditional organizations, knowledge tends to flow in a linear passion that is along organizational lines, from top to down or left to right depending on the organization was structured. But this kind of setting seldom transforms knowledge into something beneficial, nor does it make it available in a timely fashion and where it is needed the most. But HIMMEL INDUSTRIES, INC goes beyond the conventional and traditional organizations out there, one great distinction are has over its competitor is its adherence and compliance to the KM Cycle.


The KM Cycle depicted in the picture above explains how the company uses KM Cycle.

Under Find/Create, knowledge is gained through a variety of means, including publications, conferences and meetings, project experiences, research, and industry expertise. In the next step in the cycle, Organize, knowledge is filtered and catalogued, and links to the outside are created. Then the information is shared for wide availability, making use of high-tech computer tools such as the Internet and other techniques such as conferences, journal articles, and the natural communication channels created in a collaborative work environment. This is how Share is implemented.

The final stage of the knowledge management cycle, Use/Reuse, involves both informal contacts and access to reports, good practices, success stories, and other forms of communication, including exhibits, demonstrations, and training sessions. Much of this knowledge can be made available to a wide audience through the Internet (the company has its own website http://www.himmel.com.ph). This is the step in which knowledge is applied and reapplied to solve real-world issues, such as developing better products, providing efficient services, and improving and innovating standards. Ultimately, these results are then captured as part of the knowledge acquired for use as the knowledge cycle repeats itself.

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Knowledge Management Solution and Best Practices

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The company is using an Inventory Management System which is integrated with the sales, and accounting module. It functions just like how other IMS work, once an order has been enter, the warehouse can print a Delivery Report (DR) and deliver the goods to its respective client. After which the warehouse will confirm and authenticate the DR and the Accounting Department can now print the Sales Invoice. The Inventory automatically updates itself once all these processes are carried out, the accounts receivable in the accounting module will be updated once the invoice is printed.

The company is in import and wholesale business, they always asked their suppliers for a Certificate of Analysis for each shipment that they do to ensure the stocks quality. Since they are into a trading business, the quality assurance of their product is their top priority. In line with that, they also comply with the appropriate specification that their clients ask them. There of course cases in which a product does not conform to the clients’ standard, and the customer rejects it and complain, they always resolve it in a win-win solution and does not compromise income for customer satisfaction. They set up a website to in which their clients can read a description of their available products and even inquire with it. However, it does not support online buying of products, it is only limited in providing information.

The company is big, has a lot of stockholders that are financially credible and stable. When it comes to availability of the products, a big warehouse could import big volumes which could cater small or big companies. Finally is the good labor and management relation, in addition to the valued client’s relation.

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As A Learning Organization

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One good reason why learning should be facilitated in an organization is that the world as we know is very competitive, it has always been a very vicious circle out there, and if one is to cope up, they should at least be abreast with day to day information. And in this coping up, learning is one of the best tools if not yet the best so far.

Not only does HIMMEL INDUSTRIES, INC makes their employees updated with what is happening around them by introducing them to everything that is the latest in their respective fields, but it also allows them to grow and excel, especially in the areas that they are weak by sending them on trainings, seminars and study courses related to their job. Every employee is encouraged to share ideas and suggestions and the top level management accepts it after thorough evaluation and if they see it fit for the organization.

Learning inside the company does not end when one’s seminar or training is completed, it is continuous process, and learning takes the form of each member correctly identifying their individual weakness and helping themselves find viable ways to solve or strengthen it. It helps them sharpen their decision making skill which is without a doubt a crucial skill that fosters organizational improvement and development.

HIMMEL INDUSTRIES, INC realizes that there is no royal road the success of their business, but there are no insurmountable ways to it either, if all members participate in the facilitation of learning within themselves and eventually to their fellows, nothing is impossible.


Important Reminders:
Post a reply about any comments or insights you have about the company. This could be a suggestion on how the company can improve their overall management and strategy with the use of the competitive technologies.

When posting a reply please add the following information:
- Full Name
- Institution that you belong to (School or Company).

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[joseph.eugenio]

I think it is better if the company's website is not only capable of providing information of their available products but also allows customers to immediately purchase/order all the products that they are interested with. I personally believe that clients with bank accounts and credit card will find this feature very useful as they are able to purchase products in a convenient manner.

Since it is the company's primary goal is to provide a hassle-free environment for their customers, strict security measures should also be enforced when purchasing products online.


Joseph Eugenio
BsCoE
PUP Mabini Campus.

[kobe]

This will actually help other organizations to improve their products and services.
It's amazing how knowledge management can create such ideas. good job!

delos santos
MIT-Makati

[DanielFelipe]

I agree with Mr. Santos' proposal that a more quick and hassle-free order function should be made. Using the contact form for such matters is a bit tedious for a typical online consumer. Online sales are one of the fastest growing revenue producing outputs today. It will be too bad the company with such promise would fail to take note of this.

It looks like this is another job for the WAMP architecture. Users can send their credit card account numbers, then validate and process their orders with a simple serverside script, then the architecture should send the purchasing details to the Main office for further processing and send delivery details to their warehouses.

Just a thought.

Daniel Felipe
Technical Officer, Webmaster's Guild
MIT-Makati

[denaval]

I really do appreciate the recognition of Himmel Industries to the fastly growing technology that we have right now. Especially that right now, success is directly proportional to the amount of information one possesses. Providing information about the product, expedient inquiry function are at best appreciated. But in the midst of operationalizing these things, I think they might have overlooked the possibility of integrating an online order function. Although the web might be capricious, with all the crap and the hacking stuff that you have there, I think the company must not be stingy. Instead of bypassing, it might as well prove its prowess in terms of protecting consumer interests, and one way to do that is to provide security on transactions done over the internet. I think what makes successful companies different, not only that they offer stable vertical power structure, but essentially they keep their customers more than satisfied. And this is a good idea that works in concert with the primary goal of any business, to provide exemplary service to consumers. This mutually benefits both parties since it is a good way of gaining investor confidence as well. From a lay person like me.


Jayson Naval
BSME, Mapua Debate Corps
MIT-Intramuros

[hikaru14]

^Gotta agree with Jayson. Definitely, it is an excellent idea to integrate the principle of online transactions, but then it would be a complete waste of time if they'll be unable to safeguard the interests of the consumers and the company as well..

Anyway, it's great to see students applying the aspects of Knowledge Management unto these types of medium. Keep it up!

Yuri Mangahas
BSIT - UE Manila
President, UE Litratista

[ginotypic]

I think it is better if the company's website is not only capable of providing information of their available products but also allows customers to immediately purchase/order all the products that they are interested with. I personally believe that clients with bank accounts and credit card will find this feature very useful as they are able to purchase products in a convenient manner.

Since it is the company's primary goal is to provide a hassle-free environment for their customers, strict security measures should also be enforced when purchasing products online.


Joseph Eugenio
BsCoE
PUP Mabini Campus.

+1 for a good comment!

[ginotypic]

I really do appreciate the recognition of Himmel Industries to the fastly growing technology that we have right now. Especially that right now, success is directly proportional to the amount of information one possesses. Providing information about the product, expedient inquiry function are at best appreciated. But in the midst of operationalizing these things, I think they might have overlooked the possibility of integrating an online order function. Although the web might be capricious, with all the crap and the hacking stuff that you have there, I think the company must not be stingy. Instead of bypassing, it might as well prove its prowess in terms of protecting consumer interests, and one way to do that is to provide security on transactions done over the internet. I think what makes successful companies different, not only that they offer stable vertical power structure, but essentially they keep their customers more than satisfied. And this is a good idea that works in concert with the primary goal of any business, to provide exemplary service to consumers. This mutually benefits both parties since it is a good way of gaining investor confidence as well. From a lay person like me.


Jayson Naval
BSME, Mapua Debate Corps
MIT-Intramuros

couldn't agree more!

[carlpatricknavarrete]

I appreciate how Himmel Industries Inc. take advantage of the existing technologies that they believe are helpful in their operations and processes. With the help of these technologies today, it can be a leverage for the company. They do not limit theirselves to old processes that they know but incorporate it to new ones.

In regards to what they have right now, it would be better to study first the whole operations and processes first if time and resources would permit them to do such study and analysis. It would be better to be sure before implementing something so that it would not be a loss for the company.

Carl Patrick A. Navarrete
BSIT
MIT Makati

[allyvanh22]

While it is the company's primary goals to give exemplary services to their clients and keep them satisfied all of the time,
it should, in return give something to the society which plays a vital role in ensuring their success.

The idea of integrating the company's knowledge management solution to fulfill their Corporate Social Responsibility, is sensible notion that should not be ignored. The company, for example could provide a learning module in their website in areas they specialized with, or even a simple information dissemination in their site would be suffice.

Ivan D. Reyes
BS-IT
Mapua - Makati

[allyvanh22]

I agree with Mr. Santos' proposal that a more quick and hassle-free order function should be made. Using the contact form for such matters is a bit tedious for a typical online consumer. Online sales are one of the fastest growing revenue producing outputs today. It will be too bad the company with such promise would fail to take note of this.

...

Daniel Felipe
Technical Officer, Webmaster's Guild
MIT-Makati

I believe its Mr. Eugenio's idea, and not Mr. Santos.

[ginotypic]

Kudos to Himmel Industries, Inc. for utilizing the technologies we have now. Although the KM cycle seems puzzling to people. I am suprised how Himmel Industries Inc. was able to put into practice those four cycles. Also, +1 for the company because when it comes to sharing of ideas, they do not limit it to what they currently know, they allow other people to share whatever they have in mind.

Well, as for integration of the different processes within their organization, I believe an investment in terms of research prior to deployment must be done. Nowadays, I believe that time and money should be of concern. The eagerness to deploy such without research would just lead to a waste of effort.

Gino V. Mendoza
BS - IT
Mapua Institute of Technology - Makati

[ginotypic]

I appreciate how Himmel Industries Inc. take advantage of the existing technologies that they believe are helpful in their operations and processes. With the help of these technologies today, it can be a leverage for the company. They do not limit theirselves to old processes that they know but incorporate it to new ones.

In regards to what they have right now, it would be better to study first the whole operations and processes first if time and resources would permit them to do such study and analysis. It would be better to be sure before implementing something so that it would not be a loss for the company.

Carl Patrick A. Navarrete
BSIT
MIT Makati

Hi Patrick, i agree with your statement: "It would be better to be sure before implementing something so that it would not be a loss for the company". Lack of study and analysis on their part would be risky.

[hikaru14]

I appreciate how Himmel Industries Inc. take advantage of the existing technologies that they believe are helpful in their operations and processes. With the help of these technologies today, it can be a leverage for the company. They do not limit theirselves to old processes that they know but incorporate it to new ones.

In regards to what they have right now, it would be better to study first the whole operations and processes first if time and resources would permit them to do such study and analysis. It would be better to be sure before implementing something so that it would not be a loss for the company.

Carl Patrick A. Navarrete
BSIT
MIT Makati

Couldn't agree more. Amen to that.

[ohdryz]

I appreciate with what Himmel Industries is doing. Continuous seminars is an effective way to learn and develop. Through the teams effort and by their two-way communication, they are able to come up with new developments and implement it. Their IMS is really good because they do not need to worry about their inventories during the end of the fiscal / annual year. They have a good eye on what asset they are going to have.

For a big company like Himmel, i really suggest that they pay attention to the online consumers not only by the other big / small companies who has a direct connections with them. Online product / service selling is one of the fastest way to generate revenue. Internet has a really big impact to the consumers nowadays and if you are selling a good product don't just feed them with information but give them ways on how they could avail of the product.

A good marketing strategy is always ties-up with good marketing implementation.

Marian Nanit
BSBA
MIT-Makati Alum '09

[ginotypic]

I appreciate how Himmel Industries Inc. take advantage of the existing technologies that they believe are helpful in their operations and processes. With the help of these technologies today, it can be a leverage for the company. They do not limit theirselves to old processes that they know but incorporate it to new ones.

In regards to what they have right now, it would be better to study first the whole operations and processes first if time and resources would permit them to do such study and analysis. It would be better to be sure before implementing something so that it would not be a loss for the company.

Carl Patrick A. Navarrete
BSIT
MIT Makati

Couldn't agree more. Amen to that.

You bet!

[KenChan]

The most striking idea of the company was resolving a customer issue with a “win- win solution” which as have been stated it “does not compromise income for customer satisfaction”. It means that the main focus of the company is on how to make their customers happy. As we all know it is the customers who put income to companies. If one is preety much statisfied there is what we called “referrals” where in this certain customer could introduce the company to a new one or at the same time they can be a permanent buyer and can even increase their order which equates to more profit.

Going to their knowledgement management cycle I guess for now it would still be the best because with that kind of idea every data and information are properly managed and florish. Knowing the fact that they have a connection outside their company means that they are not limited only within themselves that ideas may come from different sources which only tells that they have the outmost resources on how to improve more their products and services.

Bacani, Kendrick Noel S.
BSIT
MIT - MKT

[rachelletan]

When the quality of being convenient is the concern on having an online transaction in their website, I can agree with Sir Joseph Eugenio’s personal view. Having such feature will reduce support costs. The corporation would spend far more on rent for a real office and need more equipment and furniture plus more support staff. We know that Online Marketing is far easier, cheaper and more effective than the old ways such as the mail, telephone or fax.

In view of the fact that the firm has only few commodities, why would they invest for such? The company doesn’t give people as many ordering options as possible. Accepting credit cards, checks, money orders and other forms of electronic payments would be reasonable but taking orders by phone, e-mail, fax, mail, etc. And I suppose Himmel Industries’ reason for not having online transactions as the online credit card fraud is still a serious issue. The corporation just want to avoid being subject to bank ‘charge-backs’ or constantly arranging refunds for fraudulent transactions.

Here are ways that is effective for any business:
• Eliminate the risk with an unconditional money back guarantee.
• Provide reassurance with testimonials from satisfied customers.
• Direct Communication with the customer will increase the company's credibility.Firm's will only get calls from serious prospects who want the reassurance of dealing with a real person.




Tan, Rachelle Anne S.
BS-INFORMATION OF TECHNOLOGY
MAPUA (MAKATI)

[seansean]

The online purchasing concept is good because like what on the first reply said, it is "Hassle-free" for the customers, so i just would like to suggest on how will the company improve more.

Here are some useful tips that I learned during my management subject:
(I'll summarized it for you. )

To start of, the most important thing you will be doing when you're running a company is focusing on your Customers Satisfaction. "THE CUSTOMER SHOULD BE YOUR 1ST PRIORITY"
*Enhance customer satisfaction by ensuring that customer requirements are being identified.
*Enhance customer satisfaction by ensuring that customer requirements are being met.
*Review your customers' product requirements.
*Maintain a record of your product requirement reviews.
*Control changes in customers' product requirements.
*Identify the requirements that your customers want you to comply with.

- I think it is better for the company to know what are the customers wants and needs, or simply what improvement/innovation do the customers wants from their certain product. The company can provide a suggestion box, or maybe include it on their website. This will help the company to improve their products and to satisfy their customers more.

- I just would like to add that it is important for the company to established a connection/communication with their respective customers.

The company should also do the following:
*Benchmarking
*Evaluate improvement opportunities.
*Assess the need to make changes.
*Maintain a record of your management reviews.
*Identify the infrastructure that your organization needs in order to ensure that product requirements are met.
*Provide the infrastructure that your organization needs "" ""
*Maintain the infrastructure that your organization needs "' ""
*Identify the work environment that your organization needs
*Manage the work environment that your organization needs

- I don't know what to add more, I think these simple things will help the company to improve more although it's already a good company. Let's just say that in every company, it is really important to "Continually Improve".

Sean Cabungcal
BS - CS
MIT - Makati

[kimrrivera]

Well, simply looking at the KM Cycle Himmel Industries use, we can clearly identify how effectively they manage not only the processes inside the business but also the products and services they offer. It is very smart of the organization to incorporate the current trends in technologies with the kinds of products and services they offer; thus widening the scope of their company. I see this as a very good competitive advantage over other competing industries in their line mainly because the strategy does not only yield to a bigger scope of products but also to a larger scale of business.

Also, I would like to commend on how they take risks in building their business. We can see this also in the KC Cycle shown above. From simple ideas, they tend to create bigger things from them and incorporating the current technologies available without thinking much about other external factors. In short, they take risks as to what could happen with the current project they have. But of course, they do not only deploy these ideas without any preparations. It's a very simple, yet big thing to do. It's how the business works - No risk, no profit.

Kim R. Rivera
IT-3
MIT-Makati

[yesow05]

Well, simply looking at the KM Cycle Himmel Industries use, we can clearly identify how effectively they manage not only the processes inside the business but also the products and services they offer. It is very smart of the organization to incorporate the current trends in technologies with the kinds of products and services they offer; thus widening the scope of their company. I see this as a very good competitive advantage over other competing industries in their line mainly because the strategy does not only yield to a bigger scope of products but also to a larger scale of business.

Also, I would like to commend on how they take risks in building their business. We can see this also in the KC Cycle shown above. From simple ideas, they tend to create bigger things from them and incorporating the current technologies available without thinking much about other external factors. In short, they take risks as to what could happen with the current project they have. But of course, they do not only deploy these ideas without any preparations. It's a very simple, yet big thing to do. It's how the business works - No risk, no profit.

Kim R. Rivera
IT-3
MIT-Makati

No risk, no profit. Excellent!

[IvanLendl]

Himmel has effectively managed Knowledge Cycle with in its premises, one can see that just by looking through their progress from their humble beginning up to their successful stand to the Pharmaceutical Industry nowadays. The company has taken technology to their own advantage, thus giving them profit in return.
Also, the company's passion to give their customers satisfaction is a key to their success. Giving satisfaction to customers builds integrity, thus giving their customers the guarantee to quality.

I agree with what Kim have just said.. No risk.. No profit. Business is a gamble. And since you know its a gamble the best way to handle it is to be prepared for every scenario your business will be facing in the future for the only thing that is sure in this world is change. That is why Himmel has become a learning organization where they continue to cope up with technology and embrace things that would make their company more productive and qualitative giving mutual benefits to them and their clients.

Ivan Lendl V. Dugenio
BS-IT
MIT MAKATI

[jojobrady]

Himmel Industries, Inc is one of the successful trading business as they supply almost all industries for three decades to present. But in the search of competitive advantage and to develop the company's branding strategy, it should be improved with today's technology. I agree with Joseph Eugenio's suggestion which is the Online Transaction. As an Advertiser and Graphic/Web Designer, i admit that every trading company websites we make needs online transactions/purchasing. It's important to keep improving it to boost revenue, pump up conversion rates, simplify navigation, and make it easy for the company's site visitors to find what they are looking for.

Another thing, social networking sites such as Facebook, Friendster, Twitter, etc. can improve trading business like this since its the most hot topic in internet circles in today's high speed society. Social networking sites are not only a place to have fun or keep in touch with friends and family, but also one of the great places to get the word out about the company. These are the best place to promote the company's products and services without having to spend money. Taking advantage with today's technology, is a must.

Hope this helps.

Joanna Brady
Graphic/Web Designer
University of the Philippines, Diliman
www.jojobrady.com

[brentd]

I agree that having an Online ordering subsystem to their website will be beneficial to their company. They can even go as far as making this subsystem as abstracted as possible so that other third party vendors can integrate with their subsystem and sell Himmel's product in another site. Also, adding Forums and Feedback Forms to their website would also be a great way to reach out to customers and know what they think of Himmel's product line.

Nowadays, documentation would also be better off written in something like Wikis rather than stand alone word processing applications so that it is easier to find and search. This will also allow documents to be page ranked which is used by search engines such as Google, Yahoo and Bing to crawl to their web pages, maximizing access and availability to vital product information. Having said all of that, migrating such information will be a cumbersome task. A well laid out plan to do this should be defined.

Brent P. De Vela, Software Developer
Diva Corporation,
Tokyo, Japan

[yesow05]

First of all, HIMMEL has integrated good business process with regards to knowledge management. It's really amazing how knowledge management cycle aided successful companies ,like HIMMEL, to become competitive in the global market. More of that, the customer satisfaction of the company is highly prioritized and maintained which is a must for every company that aspires continuous profit-gaining and good company stability. Lastly, I also agree that an online buying system would result to a hassle-free purchasing of items which will greatly increased the customer satisfaction.


James Bastes
BS - IT
MIT Makati

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