IT distributor Tech Pacific Group has halted a multimillion-dollar e-commerce project throughout the Asia-Pacific region because of the slowdown in IT spending.
New Zealand was to have been the first of the eight Tech Pacific countries to install Movex enterprise software by Swedish company Intentia under a two-year contract.
The implementation was to have followed in the footsteps of a $138 million (Euro 70 million) deal done by Tech Pacific’s Dutch parent company Hagemeyer, which signed a contract with Intentia for the creation of a global business-to-business distribution system.
Hagemeyer said in January that the implementation was intended to streamline distribution, reduce processing costs in the supply chain and offer an increased level of service to customers.
The Asia-Pacific component, which was funded out of Tech Pacific Group’s own profits, was to have been piloted in New Zealand and then rolled out to 2700 users across Australia, Hong Kong, India, Malaysia, the Philippines, Singapore and Thailand. The New Zealand pilot was to have gone live in September followed closely in Australia by year-end.
But Tech Pacific called off the project last month, just as it reached the design and implementation stage, citing the effects of the global down turn in IT spending.
“As you can imagine it was going to be very expensive,” says Tech Pacific NZ commercial manager Bruce Pain. “Before spending this money the Tech Pacific Group requested a halt as our profits were not of the magnitude that we had expected two years ago.
Basically we could no longer afford it.”
He says Tech Pacific will continue to use its legacy ERP system and will continue to develop it in-house.
Movex, developed from a traditional ERP (enterprise resource planning) system, includes applications for customer relationship management and supply chain planning.