Manufacturer and Distributor M&A Case Study

  Single Instance ERP software system enables manufacturers and distributors to lower operating costs by improving information accuracy.

Challenge:

• Three ERP software systems that couldn’t talk to each other.
• ERPs could not support both Manufacturing and Distribution.
• Issues keeping track of Raw material and Finished goods.

Result:

• Moving to VAI single data base Integrated ERP Software.
• No Disruption of Operations in Multiple Locations during transition.
• 99.95% Inventory Accuracy and significant Reduction of Operating Expenses. 

“We went live with all acquired locations with zero interruptions in production and customer support”
VP of Technical Sales and Support 

Sid Harvey’s 100 locations’ daily sales were uploaded to the host computer at night updating its data base. If it failed, it was done the next morning. This resulted in the headquarters not having real-time information of the previous day’s activity.   

• Today Sid Harvey is running on VAI’s ERP Software cloud server host, enabling headquarters to have real-time information of inventory levels at each location. 
• VAI’s e-Commerce strategy enables Sid Harvey to show the product catalog, track buying trends, updating the headquarters’ computer with the new e-Commerce orders. 
• The VAI Software allows Sid Harvey’s Clients to add orders directly from an app on their smartphone each day, updating the host computer in real-time mode.
• “Starting a new nightshift enabled Sid Harvey’s clients, many of whom are contractors, have the ability to stop at the branch early in the morning on the way to the jobsite, pick up their e-Commerce orders from the night before while their car engines are running, and drive away within minutes.”

Russell TumSuden, Senior Vice President -Chief Financial Officer at Sid Harvey Industries, Inc.

By using smart phones Ethical Products lowers the training cycle in the warehouse when new people are hired and eliminated the need to use expensive RF devices. The warehouse S2K Mobile application enables Ethical Pet to turn orders within 24 hrs. or same day, at a 99.6% fill rate.

“Manufacturing work orders are completely flexible, allowing staff to close out when part of an order has been made – whether for 1,000 or 50,000 items – and come back to it later. Finding out standard costs is quick and painless, and old invoices or other documents can be easily retrieved at the drop of a hat. In time savings alone, I estimate the new system will save the company $100,000 a year, and it will boost productivity and reliability.”

Bruce Bove,
Information Systems Manager, Autum Harp

• We estimate that VAI’s S2K Warehouse has reaped accounting staff time savings of over 50%.
• Additionally, the combination of real-time inventory, cycle counting, and RF devices has yielded negligible inventory variances.
• We dropped from a $170,000 variance to less than $5,000 in one year.”
  • Mark Craddock, IT Director, Dorcy International

“VAI’s MRP solution provides total inventory visibility, which leads to fewer resources invested in products that sit on shelves and, ultimately, improved customer service. We use VAI’s MRP solution daily to schedule everything from manufacturing the packaging to developing the finished goods. The powerful forecasting technology has resulted in increased purchasing by as much as 25 percent in some areas so that we are able to always meet customer demand.”

Scott Miller
Vice President of Procurement at COMP Cams

Customer Quotes 

• Prior to VAI S2K Enterprise, putting together deal sheets for our customers was a very tedious, cumbersome task. 
• Now with the click of a button, we have all the information we need, including a picture that we can take and send directly to the customer in a five-second process, versus a two-minute email.”  –  Tim Pike, Purchasing Manager
• Working with the VAI team on the implementation process was smooth. The team at VAI is always knowledgeable and can relate to our problems and come up with solutions to help better our process and our systems here at Natural Choice Foods.” –  Tim Pike, Purchasing Manager
• VAI S2K Warehouse Management allows monitoring of warehouse activities in real-time, minimizing entry errors, and helping to measure the efficiency of the company’s warehouse employees. 
  • “VAI S2K has sped up our warehouse process immensely.” 
  • “We have gone from 96% fulfillment to 99.5+% accuracy on a consistent basis.”

Tony Krenselewski, Warehouse and Inventory Manager

Required Features

• Food Safety Laws
• Financial Management
• Distribution Mgmt
• Warehouse Mgmt
• Manufacturing Mgmt
• Data Analytics
• Smart Center
• Mobile WMS

Results and Benefits 

• • VAI’s advanced inventory capabilities, and processes such as S2K bulk picking, lot control, and bin replenishment, the company can process received orders the same day, even with volume up 150%. 
  • Reduced labor hours by 35% for order pickers. 
  • Despite a significant increase in sales, the company has not needed additional customer service or sales employees to manage day-today orders. 
  • With IBM’s 99.999% uptime, Seacore enjoys the stability of a system that averages less than two minutes of downtime per year. 
  • Increased its truck routing process by 50%
  • Reduced order picking time by 40%

Required Features

• Custom Order Guides 
• Route Management 
• Inventory Management (with bin allocation and lot control) 
• EDI Integration 
• Customer Accounts Receivable Holds 
• Retail POS capabilities 
• E-commerce Capabilities 
• Bulk/Wave Picking 
• Mobile Order Entry

– Sal Battaglia, VP Sales and Marketing, Seacore Seafood Inc

“With the VAI’s S2K system pricing errors have dropped by 80%. At the same time, product scanning in shipping at the packing station has enabled us to increase shipping throughput by 60% and reduce errors for an accuracy of 99.95% on order lines shipped.”

President, ADC

“With VAI’s S2K, we’ve done more than reduce costs. We’ve improved customer service and effi ciencies throughout the enterprise. VAI’s S2K has given us the tools we need to successfully compete in an extremely dynamic and highly competitive marketplace.”

Director of Information Technology, Turtle Wax

“VAI worked to fully customize S2K to meet our needs and interface with our existing modules. The solution has helped improve the company’s efficiency in warehousing and distribution operations, thus allowing us to open a third location, one of our primary goals.”

Isaac Rogers, Vice President of Operations

“Prior to working with VAI, Sheralven’s internal processes lacked the efficiency needed to manage its growing business. In implementing S2K for Distribution, VAI dedicated countless hours to testing the system and making sure it was the perfect fit for us—and all without a moment of down-time. S2K for Distribution has already proven to be a great asset to our business and our customers.”

Sandra Parmentier, Controller