Summary

Industry leading LED manufacturer completed a successful QAD implementation with Logan Consulting providing business process and QAD functional expertise.

The Client

This industry leading LED manufacturer builds a quality high bay LED lighting fixture. These fixtures are commonly used in warehouse applications where lighting sources generally sit 30-40 feet above ground. Replacing power hungry HID systems that came before, LED based lighting fixtures save companies money on both power consumption and maintenance costs as LED based systems last significantly longer than HID.

The Opportunity

The company was recently acquired by a Fortune 100 company due to its fit with the acquirer’s own leading LED subsidiary. This opportunity allowed the company to migrate from QuickBooks and several offline business processes, many in Microsoft Excel and Access, to a full cycle ERP solution.

The acquirer purchased the company with the intent to sell the high bay fixtures through its existing businesses. However, due to the legal arrangement with the acquirer, the business needed to maintain a separate P&L and stay at arms when transacting sales. This resulted in a large amount of overhead as (prior to the project) Sales Orders would be entered in the acquirer’s system, a Purchase Order was then manually created and sent through email to the customer service team at the other business and entered in QuickBooks.

The company was also struggling with materials planning as QuickBooks did not offer a true MRP solution. The company was reliant on a variety of spreadsheets to estimate demand. Due to the long lead times associated with LED components sourcing and short lead times forced by customer demand, this resulted in high inventory carrying costs and frequent mistakes in materials planning.

The Solution

The parent company engaged Logan Consulting to lead the implementation and minimize the overhead associated with the inter-company transactions while meeting an aggressive timeline.

In support of this goal, Logan Consulting developed an approach and plan that lead to the successful implementation of the Sales Order to Cash utilizing best practice EDI and EMT fully automating the order and shipping processes between the two businesses while maintaining an arm’s length transaction set.

Logan also implemented best practice Materials Planning through QAD’s MRP system eliminating the offline (Excel) process.

The Results

By implementing QAD SE 2010, the company was able to recognize the following results and benefits:

  • Real-time inventory visibility across a global supply chain
  • Full automation of inter-company trade, including Purchase Order / Sales Order transacting, transfer pricing, and inter-company eliminations through the use of EMT and EDI
  • Best practice business processes that are enforced and enabled through the QAD SE 2010 application
  • Fully integrated financials, including consolidations and inter-company eliminations