Category: Automotive Manufacturing, Medical Device Manufacturing, General Manufacturing, Inventory
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Manufacturer Sees a 25% Reduction of Raw Materials with ERP Software
Sussex Wire Incorporated serves a variety of global customers in the medical, electronics, automobile, transportation, appliance, semiconductors, and glass-to-metal seal industries from their HQ in Easton, Pennsylvania. Their products include cold-headed leads and pins, cold-headed button and cap parts, glass-to-metal/hermetic seals, mini/micro fasteners, electrical contacts and terminals, micro medical and valve parts, and miniature electronic parts.
Prior to installing Global Shop Solutions ERP software, Sussex Wire operated the business using an assortment of manual spreadsheets and unrelated software applications. Inventory was tracked in an Access database. Hand-written work orders and traveling tickets were used to guide workflow through the shop. To improve visibility of data and drive leaner operations, the company invested in ERP software.
Improved Job Costing and Quoting
In the past, getting a handle on job costs was hit or miss at Sussex Wire. Now, managers can determine the cost for each job with remarkable accuracy.
With accurate job costing comes more accurate estimating and quoting. To improve these processes, Sussex Wire uses Global Shop Solutions ERP software to build a “shell” router that includes every chargeable labor line involved in making a product. They also use historical data within their ERP software to analyze past experience when making similar items with the same size wire. Having all the historical data so easily accessible enables Sussex Wire to quote new products faster and more accurately.
25% Reduction on Raw Materials Inventory
Management of finished goods inventory has also improved by leaps and bounds. When shipping, workers previously had to track down the right spreadsheet and manually remove the part from finished goods. Assigning raw materials to a job required the same cumbersome process, leading to consistently inaccurate inventory counts. With their ERP software, all that has changed.
“When a work order goes to a department responsible for completing WIP to finished goods transactions, all they have to do is scan the work order and the data is instantly recorded. We can rely on the transaction being accurate, and we no longer have to worry about someone forgetting to update the spreadsheet.”Candace Kelly, Controller at Sussex Wire
Their ERP software has also helped reduce raw material inventory levels by 25% and the use of barcoded labels upon receipt of incoming materials and when issuing raw materials to the job has created a leaner inventory management process.
Faster, More Accurate Financials
As Controller, Kelly handles all of the accounting and generates all of the company’s financial statements through their ERP software, cutting in half the time it takes to close the books at month’s end.
Closing the books used to take seven days, in large part because the inventory valuation alone took up to five days to complete. With their ERP software, Kelly now receives those reports as soon as she decides the cutoff date for AP receipts and closes all the books in only two days.
Fast, Efficient Implementation
Having worked with other ERP systems at different companies, Kelly knows the initial implementation process can easily get off track. Thanks to the hard work of her team and the experienced Global Shop Solutions Consultants, the Sussex Wire implementation went remarkably well.
“We made sure everyone received enough scheduled training on the modules that would impact their jobs,” she says. “We also encouraged people to ask questions so they wouldn’t repeat mistakes. Overall, the implementation went amazingly well.”
To learn more about Sussex Wire benefits from ERP software, download their full case study.