EnerSys, the world leader in industrial batteries, needed to consolidate its various sales and distribution systems. IBS software was the answer.
Olle Haglund, Head of EnerSys Reserve Power Business believes IBS erp software makes the company more efficient.
Company background
EnerSys Inc., a world leader in stored energy solutions, maintains worldwide corporate headquarters in Reading, Pennsylvania (US) with divisional headquarters in Europe and Asia. EnerSys manufactures batteries for the industrial market, mainly in fork-lift trucks and for the telecom and IT markets, used in mobile telephone base stations.
EnerSys Inc. is also one of world's leading suppliers of direct current power products, systems and services providing motive power and reserve power solutions to industrial users. The company maintains its leading position by providing customers with world-class products and services, achieved through total employee involvement, teamwork and supplier partnerships.
When EnerSys was formed through mergers and acquisitions, it immediately became the largest producer of industrial batteries in the world. Today the company operates manufacturing and/or assembly facilities throughout the world. EnerSys employs over 7,000 people and had sales of EUR 811m in 2002.
Business issues
EnerSys was using 17 different Enterprise Resource Planning (ERP) systems in Europe alone, ranging from the complexity of SAP to custom-designed PC-based systems. The company quickly realised that enabling these different systems to communicate and coordinate with one another would have been time-consuming and extremely costly.
With regional head offices in Belgium and China, a management team located in several countries, and manufacturing, sales and distribution units in Europe, North America and Asia, system integration was another of EnerSys’ primary challenges.
EnerSys also wanted an ordering system that would automatically create and instantly despatch customer orders to the appropriate site. In short, a system that would minimise time and distance.
It was decided to reduce the number of ERP systems in Europe from 17 to 3 with as few modifications as possible, so that personnel throughout the group would operate a common system. Reducing the number of systems eases the process of integration. This streamlining would improve communications, reduce delivery times and ultimately give better service to EnerSys customers.
Solution and capabilities
EnerSys went through a selection process and chose IBS’ integrated supply chain management software suite, ASW. The local managers selected ASW because it had a proven track record and offered the features they need today and the flexibility they will need tomorrow.
Another reason for choosing ASW was its multi-distribution centre functionality. This module creates a dynamic and flexible product supply chain within a group, within markets and within regions. It will benefit EnerSys when they need to supply identical products or assortments from several parallel distribution centres or factories.
Another function the company has activated is EDI (Electronic Data Interchange), which establishes communication between EnerSys and its business partners. EDI functionality gives EnerSys’ customers the ability to place orders directly into the system, thus increasing the control of orders and speeding up the delivery of goods.
Implementation
ASW was one of the systems already in use at EnerSys. The plan was to use this system in all the sales and distribution facilities in the Nordic and Benelux regions. This meant ASW would be implemented in many different countries, and an international team was put together to oversee the project.
At first the change for EnerSys personnel was daunting, but as they became more familiar with ASW, they appreciated its capabilities. IBS set up special training courses for EnerSys personnel, and as each of the nine sites in six countries went live, knowledge and expertise gained from one installation was incorporated into the next.
Because most of the previous sales and distribution centres had little or no IT support on-site, IBS was asked to manage and support the systems. In a new undertaking for IBS, a European help-desk for EnerSys has been established to service the sales and distribution centres.
Benefits and value
ASW will help EnerSys to streamline its sales and distribution system, improve customer service and prepare for further growth.
EnerSys’ approach to integration means that reducing inventory and improving efficiency, flexibility and responsiveness will help to lower costs. This has enabled EnerSys to restructure the organisation, a strategic improvement for the company as a whole. EnerSys is now centralising its distribution centres at European hubs, and ASW is at the focal point of this development.
It is very difficult to measure efficiency and profitability if businesses are not using the same software platform. With ASW, EnerSys now has the system that makes it possible to measure and compare profitability and ROI with information from all possible sources.
A new team spirit has been created. Employees in different countries are talking to each other more because they all speak the same financial language and use the same system. They are asking each other questions and solving problems together. This has made for a tighter organisation with a greater sense of cooperation.
Name: EnerSys Region: Global Operation: Manufacturing and distribution Products: Industrial batteries, direct current power products, motive power and reserve power solutions Employees: +7,000 Revenue: EUR 811m Website: EnerSys
