ERP Analysis

Executive Summary

A manufacturer of specialty chemicals dramatically improved operational performance through careful evaluation of requirements and selection of the best-match ERP solution.

Case Background

Industry: Process manufacturing, specialty chemicals
Company: A 100-year-old manufacturer with 600 employees and sales over $100M in 25 countries.

Key Challenges and Goals

The company operates in highly competitive global markets, and its core functions relied on an ERP system selected 15 years earlier. Market conditions had changed over time to demand more flexible manufacturing practices, requiring smaller lot sizes and leaner inventories. The legacy ERP system no longer adequately supported the company's requirements for current operations, as well as its plans for future growth. Specific shortcomings included lack of product lifecycle management for the company's 250 unique products, lack of reporting capabilities, and inadequate supply chain management functions.

Affinity's Approach and Solutions

Affinity met with more than 20 client executives, managers, and subject-matter experts. We identified how the company's employees used existing systems and also explored specifics and causal factors behind the current ERP system's inability to fulfill their needs.

We translated these findings into solution criteria, identifying business impact areas and desired improvements. We also created cost/benefit models and best-practice benchmarking studies against industry peers to test and confirm recommendations and validate business benefits.

Based on this work the company implemented an ERP system from Oracle.

Results

The client achieved a 28% reduction in cycle time and a 60% increase in forecast accuracy. Combined with better hardware efficiency, these improvements resulted in an annualized cost savings of $12.6M.

User community satisfaction increased 81% compared with the previous system and processes.

Project Snapshot

Technology: Oracle ERP software

Affinity expertise applied:
- Business process management
- Business and technical strategy/alignment
- IT/technical strategy
- Change management
- Enterprise, client and service management
- Project management

Project Duration: Six to eight months

Cost Range: $250K to $500K