Indigo targets Asia Pacific with Hong Kong subsidiary
May 3, 2016
Warehouse management software company Indigo Software has formed a wholly owned subsidiary in Hong Kong to sell across the Asia Pacific region.
Called Indigo APac, it will be headed by Mike Hill, who has more than 35 years’ experience in the software development industry, with over 25 years spent in the Asia Pacific region. He has previously held senior management positions with Infor, Amber Road and EcVision, where he worked across a broad range of industries.
As Asian economies continue to mature, human resource costs have increased. The reliance by manufacturers in all sectors on technology to manage their supply chain operations is becoming more widespread. Indigo’s expansion will enable local manufacturers responsible for producing European and US brands to have access to proven warehouse management software and, in turn, benefit from the cost savings associated with efficient, accurate and technologically advanced warehouse operations.
UK-based Indigo already has a number of existing customers using its WMS in the Asia Pacific region, including Bunzl and Wesfarmers in Australia and New Zealand. The company intends to bring to Asia its expertise in managing warehouse operations in sectors such as apparel and footwear manufacturing. This is where large volumes of items are now produced by an ever-expanding number of mid sized manufacturing operations, many of which still rely on paper based processes to run their warehouses.
China represents an interesting market for Indigo. The higher cost of products produced in China, fuelled by the increase in wages, the high value of the yuen and high worker turnover has led to an increase in demand for warehouse management software to help achieve the same operational efficiencies that European companies have relied upon for decades. In addition, as a result of the Trans Pacific Partnership (TPP) agreement, emerging Asian economies such as Vietnam’s are expected to boom, with up to 28 per cent higher exports, again signalling high future demand for warehouse management.
“Proven software such Indigo’s represents an ideal option for Asian manufacturers in established markets such as China, plus new emerging trade zones like the Philippines, Vietnam and Indonesia,” said Peter McLane, managing director of Indigo Software. “The large installed base of leading UK manufacturers gives potential customers the reassurance of a high quality solution and with the local support infrastructure of a new Asia Pacific office we can implement quickly and efficiently, with minimal business disruption.”
Hill added: “China is no longer a low wage economy and manufacturers need to identify ways to improve cost efficiency, which is creating a large demand for proven technology. Elsewhere, the TPP agreement represents an excellent opportunity for emerging countries to begin outsourced manufacturing for big brands, especially in Vietnam, where apparel and footwear are tipped to grow by 50 per cent. We are very optimistic about future growth prospects.”