XYZ Company is a Hong Kong based trading and manufacturing company of furniture with many sub-offices and small factories in Guangdong. The source of raw material mainly comes from South East Asia and China, and these raw material will be processed and assembled in the factories in Guandong. Recently, there is an increasing demand for high quality materials which will be imported in Canada and Australia. These new suppliers adopt supply chain management and these suppliers encourages the clients to place order electronically with a price discount. In order to minimize the cost of material and administration cost of procurement in future, and increase the competitive power, XYZ Company would like to implement their own e- procurement system and even enterprise-resources planning system (ERP). There are arguments between managers about the cost and benefits of such ERP project as the cost of implementation seems very high. On the other hand, some managers have pointed out that the current old- fashioned way of procurement has a lot of problems, and the administration cost is high and the trend is putting everything to information system. Similar to other Small and Medium sized Enterprises in Hong Kong, XYZ Company communicates with suppliers by e-mail or telephone or even fax, and following the traditional procurement lifecycle. While some overseas suppliers of XYZ Company have already established extranet and e-commerce services with their largest customers using the Electronic Data Interchange (EDI) facility to speed up the communication of purchase orders and invoices between organizations. It also demonstrates that suppliers of XYZ have a certain degree of adoption of information technology in their operation. Under the current practice of XYZ Company, the quantity of product to be manufactured by XYZ company is defined under a Master Production Plan (MPP). The MPP is derived from the estimation of annual demand of products. A minimum stock level in both finished products and also the raw material is maintained. According to some senior staff, the stock is kept to maintain the production running and to meet the order from customers. However, owing to the rapid change of demand of customers, the product life cycle time of furniture is reducing, and the customers demand for more variety and customize product. The Product XYZ Company sold 1000 or more products, and each year it creates 100 new products in order to meet the market demand and trend. One of the bestselling products of XYZ Company is Z- Bench. Under the proposed Enterprise Resource Planning System of XYZ Company, it is composed of two long legs, two short legs, one seat and one flat table surface.