Company background
Carl Kammerling International (CKI) was founded in Germany in 1790. From day one it has specialized in top quality hand tools and over the years has built up a unique reputation for engineering and customer service excellence over eight generations. In 1954, the company relocated to the UK.
CKI finds 80 percent of its market in the European Union, serviced by regional offices in Germany and Ireland - in addition to its UK headquarters. CKI’s products are available in over 40 countries worldwide, at over 20,000 outlets. This global expertise has earned CKI membership in the club of companies who successfully trade across national boundaries.
CKI employs 125 people in Europe and had sales in excess of EUR 40m in 2002.
Business issues
When CKI decided to expand its business, the move to new headquarters was carefully planned and orchestrated. The main reason for moving was to improve logistics, as well as to solve many practical physical plant problems.
A study undertaken as part of the planning revealed that CKI’s old logistics system was not totally integrated and would be unable to handle increased demand after expansion. Faced with an inevitable overhaul of its logistics systems, CKI saw an opportunity to upgrade its supply chain business model and set out to find the best solution for its customers.
Industrial supplies distributors face daily operational challenges. They need accurate demand forecasts for pricing and purchasing, and sales tools that help attract and retain customers. Above all, CKI needed a logistics software solution to help reduce stock, increase order fulfilment and increase turnover resulting in the all-important increase in profit.
Planning for production was another area in need of improvement. All production planning was performed manually, often resulting in bottlenecks or out-of-stock situations. It was also difficult to calculate real production costs. This scenario was completely unacceptable and needed to be resolved.
Solution and capabilities
After considering a number of software suppliers, CKI decided that IBS integrated supply chain software offered the right tools for the job.
There were three key factors in CKI’s choice of IBS logistics software. The IBS supply chain solution was tailored specially for industrial supplies distributors like CKI. Moreover, the company felt that the price was right and the personal chemistry between the IBS consultants and CKI’s employees was excellent. No other vendor could match the IBS offering.
IBS enterprise software is developed to enhance customers’ profitability by increasing sales, reducing costs, shortening lead-times, improving customer service, realising greater efficiency in internal and external processes and excellent visibility of management information.
IBS manufacturing software, warehouse software, distribution software and financial software were chosen to update CKI’s legacy IT logistics systems.
IBS logistics software and the new business premises gave CKI a rare opportunity for a root and branch replacement of outdated working methods. In order to satisfy customer demand, IBS supply chain software for industrial manufacturing has allowed synchronisation of CKI’s production schedules.
Designed to enhance efficiency, IBS manufacturing software provides operational tools for controlled capital and lean production. It allows for production planning on several levels and with different time frames, but can also be streamlined for less advanced manufacturing processes. This enables CKI to make the right planning and operational decisions at every stage.
Implementation
Standard IBS project methodology - Implementation Control Process (ICP) - enables both customers and IBS to implement a thoroughly tested business system on time and within budget.
ICP helped CKI develop clear objectives in terms of time, cost and quality. IBS consultants worked with CKI to refine project goals, defining why the system was being implemented and what the company wanted to accomplish with IBS software. The ICP model is continuously developed and refined. Project milestones are regularly reviewed, enabling know-how and experience to proliferate throughout the company.
CKI wanted the complete solution up and running within six months. Despite the tight timescales, the project was accomplished successfully within the planned timeline.
Benefits and value
After IBS logistics software went live, one of the biggest benefits for CKI was a vast improvement in the packing process. The IBS supply chain solution has allowed the packing lines to be planned carefully, with labor costs accounted for and controlled. This has led to a decrease in overhead expenses, together with a more flexible and responsive operation that offers improved stock availability.
Customer service has dramatically improved. Without holding surplus inventory, CKI can obtain detailed cost information almost instantaneously. The original goals have been achieved; stock has been reduced by 15 percent, while order fulfillment has risen to over 97 percent on-time. Furthermore, sales have increased by 25 percent in the first two years after implementation.
The business performance, together with the level of operational and financial control achieved with IBS logistics software, gave the CKI board the confidence to integrate all of its European distribution operations at the UK site.
Using IBS logistics software, CKI has hit the nail on the head by achieving Return on Investment (ROI) within the first twelve months.
