The Client
A small Mid-west medical manufacturing company, struggling with the limited reporting capabilities of its ERP system, while attempting to integrate a new line of business into its operations.
The Challenge
The poor reporting capabilities of an aging ERP application were hampering the client’s access to critical business information. Not only were the reporting capabilities lacking, but Tthe information being provided by this application was very limited, sometimes incorrect,, and difficult to navigate. Complicating this situation was the recent acquisition of a new business unit, which was rolled into the existing ERP application.
Day-to-day challenges included:
- Poor visibility into supply-chain requirements, which caused manufacturing delays due to unavailability of critical raw stock.
- Lack of visibility into historical purchasing activity, which limited the ability to leverage previous activity in negotiating and managing new purchasing agreements and manage purchasing costs.
- Increasing number of overstocked and out-of-stock inventory related to a lack of visibility into actual inventory levels.
- Lack of visibility into gross margins across business units, product lines, and products.
- Poor on-time shipment record due to an inability to identify critical components that were preventing the release of work orders to the shop floor.
- Poor on-time shipment record due to poor visibility into shippable orders and back orders which were delayed by missing components that had since been received into inventory.
In order to sustain its ongoing business activity, and integrate its new line of business, it was imperative for this our client to have the information necessary at all levels to better manage day-to-day operations.
Tactically, the client y needed immediate visibility into its inventory management and order processing activities. Strategically, they desired information around key performance indicators like sales volumes, shipment activity, and order lead times and fill rates.
The Haverstick Approach
Following our proven Business Intelligence methodology and leveraging our in-depth experience with operational business systems, Haverstick delivered a fully functional business intelligence system in less than 90 days.
In working with the client, Haverstick took a two-pronged approach. The first stage involved the delivery of critical tactical information, which was then followed by a second stage focused more on high-level, key performance indicators. Before commencing any work, our business consultants interviewed key individuals throughout the organization in an effort to fully understand and define the challenges being experienced on a daily basis. Once defined, the challenges were reviewed and prioritized with the client’s management. Haverstick then recommended a technical architecture and began building the data repository—the foundation of the business intelligence system. The data repository was constructed in an iterative fashion with functional data from purchasing, inventory, manufacturing, and sales being added in incremental stages. In this manner, the client was afforded rapid visibility into the business functions with the most pressing needs. Because of Haverstick’s methodology, these different “slices” of the business were presented in a cohesive manner across the organization.
Working within the client’s budgetary constraints, Haverstick was able to recommend information delivery tools that leveraged existing technology investments. At the same time, the necessary information was provided, in the proper format, to the different levels throughout the organization.
Haverstick delivered a fully functional data warehouse that served as the foundation for ourthis client’s ad-hoc and analytical reporting environment. In addition to the data warehouse. Additionally, Haverstick assisted the client inwith in selecting and deploying the business user tools tools that would be used by the client to harvest the wealth of information stored in its warehouse.
The Result
The client isThis client is enjoying the following benefits as a result of its Business Intelligence implementation:
- Purchasing has complete visibility into inventory levels and the demand that shop floor activity is placing on inventory positions.
- Purchasing activity has been altered to reduce the acquisition of slow-moving materials resulting in over $45K in delayed or canceled purchase orders.
- Manufacturing has visibility into order activityy anand activity and can rapidly identify orders that can be built and shipped without delay. Other orders that are awaiting the arrival of key components are easily identified and managed to ensure that unnecessary delays are avoided.
- Inventory levels and valuations are being actively monitored and managed.
- Lost freight charges are now being identified and captured to ensure that they are being invoiced properly.
- Gross margins are understood and steps were taken to adjust both the costing and pricing practices that were affecting gross margins.
- Performance measurements are in place to help the client more actively monitor the health of its business.
As a result of its partnership with Haverstick, ourthis client now has visibility into its most critical business measures and a solid foundation for enhanced analysis of other varied aspects of its its operations. | 
