Precision Parts is a manufacturer and exporter of automotive components. Its principle product is the harmonic balancer, a small device that reduces vibrations in a car’s crankshaft to enhance performance.
Precision Parts’ harmonic balancers account for 85% of all such devices sold in the “after market” for replacement parts. The company also has substantial overseas market share, with 50% of its revenue derived from exports to the USA and new markets in Europe, the Middle East and South Africa in the company’s sites.
To assist that international expansion, Precision Parts has acquired Epicor’s Vantage ERP manufacturing software solution and selected Cogita to implement the software.
With the new software in place the company now has the infrastructure to boost its exports and has become measurably more productive.
Fierce competition:
While Precision Parts performs strongly in Australia, the company faces a competitive environment.
Locally, the company must contend with issues such as the recent management buyout of Repco, Australia’s leading automotive parts distributor and retailer. Globally, the company competes with suppliers from around the world.
Precision Parts recognises that technology is an important tool to help it compete, especially as some of its US clients insist on electronic transactions.
In 2006, that attitude led to the realisation the company’s existing manufacturing management software was incapable of supporting future growth.
“We had gone as far as we could with the old system,” says Daryl Day, Precision Parts’ Managing Director. “The old system was stunting our ability to grow. We tried to get the system to help us know what to make and in what amounts but it just could not deliver.”
Those difficulties were an obstacle to growth because Day knew that any export venture cannot succeed if cash-flow is unpredictable.
Underperforming software was therefore a barrier to growth and the company therefore researched the market for alternative solutions that met its requirements and offered greater growth potential.
Why vantage?
Precision Parts eventually selected Epicor’s Vantage ERP manufacturing software suite to power its export drive.
“We liked the Customer Connect online ordering capability,” Day explains. “That was important to provide online access for our smaller customers.”
“Our very large overseas clients have demanded we implement the Vantage EDI capability so its presence was important. The Advanced Planning and Scheduling module was visually more powerful than other offerings we looked at and we also liked the engineering workbench with its depth and the way of building up the method of manufacture.”
The software’s .NET interface was another appealing feature
Benefits:
Precision Parts’ new ERP manufacturing software quickly helped the company to improve its operations.
“It’s saving time and money,” Day says.
“Pricing suggestions made by Vantage ERP software are definitely saving time with the purchasing of products from China,” he says, adding that the time he has gained is now spent working on the Balanced score card the software also provides.
Other staffs are also finding the software makes them more efficient.
“Our front office people are starting to look for work,” Day says. “And the Product Managers are enjoying it too. All the people in the business are now using the system day to day.”
Swift implementation and flexible operation:
Day also praised the software’s ease of configuration.
“During the implementation we needed to build inventory for our USA market push and also added a new USA warehouse. This meant that we had to change the setups we used at the start of the implementation! That was a bit of a challenge for the team, but the Vantage ERP manufacturing software system changed easily.”
The software’s flexibility has also impressed.
“The best bit is that if people suggest improvements our answer is ‘YES,” Day says. “We always feel like we can make it happen.”
The Future:
Precision Parts’ export drive is now under way and will see the company open a warehouse and establish a sales team in the USA, with Vantage much a part of these plans.
“We are working on producing our catalogue directly from Vantage,” Day says.
“We have to keep the part number, the OEM part number, the part dimensions and the setup – they can all be different – for different countries. It will be wonderful to just do it once.”
“The next thing will be work on consignment notes and we also plan to use the tracking function in Vantage Shipping so we can search for a container number, for say a DHL bag, sent from Wagga to Russia.”
That kind of ability is not something Day could have contemplated before the company adopted Vantage ERP manufacturing software, which he credits with having given the company a new way to think about its business.
“Our people now think constantly about how to work smarter and get the best from their Vantage ERP software,” he says. “Our potential to work smarter and is now unlimited.”