Sjogren Industries, Inc. ERP Case Study
Industry
Make-to-Order
Challenge
Sjogren faced significant limitations with their previous proprietary software, which was unable to track labor hours or provide accurate, real-time job costing. This created challenges in understanding true manufacturing costs, hindered operational visibility and resulted in time-consuming manual accounting processes. The lack of integrated data also made it difficult to manage and optimize workflows, leading to inefficiencies across the organization.
Results
By implementing Global Shop Solutions ERP software, Sjogren gained real-time visibility into labor and job costs, automated data collection and the ability to close monthly books within just two hours. This transition reduced accounting department overhead by over $100,000 annually, decreased lead times from 3-4 weeks to just five days and increased production capacity by 200%. The unified system eliminated redundant software, improved decision-making and positioned Sjogren for scalable growth.
Key Applications
Inventory, Shop Floor Data Collection, Job Costing Accounting, Accounting, Document Control
The biggest benefit is having all the information integrated into one system for easy data collection. Whether it’s labor hours or purchasing or accounting, being able to access it all from one system is huge. Everything we need is right there in Global Shop Solutions.
James McCleery
General Manager
About Sjogren
Sjogren, founded in 1927, is a family-owned business specializing in the design and manufacture of wire tooling products for ferrous, alloy and stainless steel wire industries. Based in Worcester, Massachusetts, their products are distributed globally and used in industries ranging from tire manufacturing to bridge construction.The Challenge
Before adopting Global Shop Solutions, Sjogren struggled with operational inefficiencies and limited financial oversight. Their existing proprietary software could not track labor hours or accurately calculate job costs, making it impossible to determine true manufacturing expenses or allocate costs properly. Manual accounting was slow and labor-intensive, consuming valuable resources and delaying critical business decisions. The absence of a centralized, integrated system hindered Sjogren’s ability to optimize workflows, manage capacity and plan for growth.
The Solution
Seeking to modernize and automate their operations, Sjogren evaluated alternatives and selected Global Shop Solutions ERP for its powerful integration, real-time data collection and robust job costing capabilities. According to James McCleery, General Manager at Sjogren, "We needed to do a better job of understanding and controlling our manufacturing costs and the system couldn’t even collect labor hours, much less build costs into jobs. We switched to Global Shop Solutions for a lot of reasons, but primarily for its ability to gather and report on all costs related to a job – in real time." By implementing the ERP solution, Sjogren automated labor data capture, integrated purchasing and accounting and consolidated all operational data into a single system. This unified approach enabled accurate cost allocation, streamlined process management and provided the foundation for data-driven growth strategies.
The Results
The impact of Global Shop Solutions ERP was immediate and substantial. Sjogren reduced accounting department overhead by more than $100,000 per year, closing monthly books within two hours of month-end - down from weeks previously. "Our costs are as accurate as we can make them and we can produce statements within two hours of ending the month. More important, we reduced accounting department overhead from $130,000 a year to less than $30,000. Add that up over 10 years and we’re close to a million dollars in savings as a result of Global Shop Solutions!" shared McCleery. Production lead times dropped from 3–4 weeks to just five days and the company achieved a 200% increase in capacity. These measurable outcomes empowered Sjogren to eliminate redundant software, optimize workflows and position themselves for continued innovation and growth in the global manufacturing sector.