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Hemco Industries ERP Case Study

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Industry

Energy, Oil & Gas

Challenge

Hemco Industries faced significant operational challenges stemming from an outdated and rigid ERP system that lacked comprehensive data integration. The absence of real-time inventory management and precise job costing created inefficiencies and led to frequent discrepancies in financial reporting. Additionally, poor integration between their accounting and ERP systems caused fluctuating financial data, making it difficult to maintain accurate records, optimize labor and make informed decisions.

Results

With Global Shop Solutions, Hemco Industries gained real-time visibility and accuracy across all manufacturing operations. The company achieved dramatic improvements in job costing precision, production efficiency and financial reporting. Notably, book closing time was reduced to just four days, production times were significantly shortened, inventory adjustment costs minimized and labor forecasting became more reliable. The ability to leverage real-time dashboards further empowered leadership to make data-driven decisions, control costs and support continuous improvement.

Key Applications

Inventory, Shop Floor Data Collection, Job Costing Accounting, Accounting, Bill of Materials, BOM Compare, CRM, Dashboards, Order Management

www.hemcoind.com/
75%
Reduction Month-End Close Time
66%
Inventory Adjustments Eliminated
1
Centralized System

Global Shop Solutions is a very thorough ERP system. It gives us many different options when building the BOMs and work orders, as well as the ability to see and control production standards before releasing the work orders to the shop floor. Whatever we need to know, we can quickly access it in just a few keystrokes.

Shelly Llavore

Production Manager

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About Hemco Industries

Founded in 1956 and headquartered in Houston, Texas, Hemco Industries designs and manufactures custom access and fall protection solutions for the petrochemical, cement, pharmaceutical and food service industries. Their clients include major Fortune 500 companies such as Exxon, Valero, Chevron and Coca-Cola.

The Challenge

Hemco Industries encountered mounting inefficiencies due to a legacy ERP system. The lack of full data integration left them without accurate, real-time inventory tracking and job costing, leading to unreliable financial reporting and operational bottlenecks. Incomplete visibility into production and labor utilization made it challenging to optimize resources and reliably forecast demand - compromising both cost control and delivery performance.

The Solution

Recognizing the need for a robust and flexible manufacturing ERP, Hemco Industries evaluated alternatives and selected Global Shop Solutions for its fully integrated approach to inventory management, job costing and real-time business intelligence. The adaptability of the ERP was a decisive factor. As Owner Rich Bevis noted, "Global Shop Solutions is much easier to use, and the system is very flexible. It lets us adapt the software to our business rather than forcing us to adapt to it." Implementation introduced advanced features such as barcode scanning for labor time entry, real-time dashboard and comprehensive Bill of Materials management. Vice President of Finance Stephen Nunes highlighted, "Global Shop Solutions also makes it easy to capture labor time. Workers use the barcode scanners to log on and off jobs and the system automatically tracks their time. This helps with the accurate job costing, and also allows us to forecast our labor utilization for the next day and staff accordingly." The user-friendly dashboards became a daily tool for operational oversight: "The dashboards provide great summary overviews of key areas of the business. We use them daily to chart our progress and make important decisions regarding labor utilization, resource deployment and other areas that impact production," Nunes added. 

The Results

After implementing Global Shop Solutions ERP, Hemco Industries realized measurable improvements across key manufacturing metrics. Book closing time was accelerated to just four days, freeing leadership to focus on strategic initiatives. Production times were significantly reduced, enhancing throughput and on-time delivery. Inventory adjustment costs were minimized, protecting margins and reducing waste. The accuracy of labor forecasting improved, enabling more effective staffing and resource allocation. Real-time dashboards empowered the management team to make informed, data-driven decisions in all areas of manufacturing. These advancements resulted in reduced operational costs, improved productivity and greater confidence in financial and operational reporting.

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