Hong Kong firm e-commerce Logistics (ecL), has found success in the mainland applying its award-winning warehousing information technology (IT) system.

"We developed our Internet warehouse management system (WMS) and have also managed physical warehousing, so we know what the actual requirements are. Now we are setting up this ecL 'WMS' and logistics flows in a number of warehouses in China including Zhuhai, Guangzhou and Shanghai," says Edmon Fung, the company's chief operating officer.

The proprietary Web-based system which uses IBM hardware, is designed to be accessed with passwords by warehouse staff, off-site personnel, suppliers, customers and even a customer's customers as needed.

Though electronic filing of trade documentation was not a priority back in 1999 when the software was first developed, Mr Fung emphasises that the Hong Kong government's requirements under its Digital Trade and Transportation Network System will catch most small companies off guard.

"Hong Kong, Shenzhen and Shanghai all have their own electronic trade filing requirements. Our system can be modified to suit their needs," he says.

The executive acknowledges that most customers are not ready for e-commerce.

"Even if the goods are labelled with a bar code, they might not have a bar-code reader. Many warehouse companies do not even understand the significance of a SKU (stock keeping unit) number and what it can do for them," he says.

The Hong Kong Vocational Training Council has seized on this issue of computer literacy among warehouse staff, but the bottleneck is often among the senior management.

"Top officials are very often determined to protect information. They want an intranet and do not understand the advantage of the Web-based system," says Mr Fung.

Concerns about data protection on the Internet are why he is using an IBM, AS 400 I-series server, a popular system in the finance market for its security, integrity.

"There are other systems in the market place, but you will have concerns with either security or you need highly technical staff to operate the system. What we have is very user friendly," he says.

There are some 196 possible features of the software. It can generate up to 60 reports on topics such as daily activity, inventory status, customer order behaviour, replenishment and completed order status.

The system runs in English and in simplified and traditional Chinese characters.

The next system is a transport management system for interacting with freight forwarders.

The root of this activity is ecL's history of bringing its own warehousing online. It won the Application Gold Award for its WMS at the Hong Kong IT Excellence Awards 2002 in February.

Last year, the company signed up one of the biggest logistics companies of the United States as an anchor tenant in its 200,000 square foot logistics centre in Taipei. As part of a mainland logistics network, a 100,000-square foot logistics centre in Guangzhou opened this month. In total, ecL manages more than 600,000 square feet of warehousing space in Greater China.

The biggest China deal to date is with Huaxin Group, one of the mainland's biggest distributors of consumer products, to help run its two million square feet of warehouse space.