Helkama Velox has a smoother ride with inventory control software

Customer Story

Optimized inventory control has improved since Helkama Velox installed IBS inventory software. Efficiency gains are essential in the bicycle manufacturing industry.

Facing tough competition, such as mass-produced bikes from China, Finnish bicycle manufacturer Helkama has to improve its efficiency each year. One important factor is to keep stock levels to a minimum, without loosing flexibility.

Since IBS inventory software was implemented at Helkama in June 2003, the control over input and output in the supply chain has become noticeably better. The goal is to reduce inventory levels by 20 to 30 percent, and Helkama management also sees more business opportunities now that administration has become more efficient.

“When bicycle dealers call us to order stock, it is very hard to know exactly what their needs will be in advance. We have a few thousand bikes in stock, but also have to make new ones if necessary, often on very short notice. Flexibility is very important to our company,” says Jarkko Pohjonen, CEO at Helkama.

“This is the future. It’s hard to tell how much more revenue we can generate with a new computer system, but without it I don’t think we’d be able to do any business at all in the long run”, says Jarkko Pohjonen, CEO at Helkama.

Reliable results

Pohjonen explains that the new inventory control system is able to handle the same tasks as the legacy application did, only much faster and with more reliable results. “The IBS software is more logical, and the search functions work fast,” says Pohjonen.

“A secretary who gets a request by phone is now able to give a direct answer regarding whether the product is available or not. Before, it took a long time to manually find the right products and article numbers,” Pohjonen points out.

Similarly, with the new inventory management software, a production manager can easily get an overview of available parts before promising delivery of a bike within a certain time. In order to keep up with competition, it shouldn’t take more than a week to produce a handmade bicycle, according to Pohjonen. “We can’t afford to produce half-assembled bikes. We lose customers if we call the retailer and tell him that we are missing parts and have to wait six weeks for a delivery to arrive from Taiwan,” he says.

Handles the works

Helkama is a relatively small manufacturing company, but it still has the same needs as a big operation. It was therefore important to find a business solution that could handle everything from ordering, purchasing and production, to sales and marketing – without being too complicated. In addition to this, IBS e-business software, which will enable retailers to buy bikes and after-sales parts on the Internet, is being installed.

Pohjonen says, “This is the future. It’s hard to tell how much more revenue we can generate with a new computer system, but without it I don’t think we’d be able to do any business at all in the long run.”

IBS stuck by its word

According to Pohjonen, IBS has kept its promises. The implementation was completed ahead of schedule, and work in the manufacturing plant continued to run smoothly throughout the process of changing the IT solution.

“It’s typical for Finnish people not to mention something that’s positive, but as long as they are not complaining, it is a sign of great satisfaction,” he says smiling, referring to his managers’ evaluation of IBS inventory software. He praises IBS for not letting go, once the implementation was completed.

Helkama wants a long-lasting relationship with its IT partner, and favors upgrades of IBS inventory control softwarein the future, rather than having to change systems again.

“To do business with a new IT partner is like a marriage. You have to get to know each other well – and it is very expensive and difficult to divorce,” concludes Pohjonen.

Contact IBS for more information. »