Friday, November 02, 2007
Otto Roth and IFS—the right connection
Otto Roth Group, a German distributor of fasteners and manufacturer of assembly elements, has selected IFS Applications to provide comprehensive ERP support that enhances agility and communication throughout the units and divisions that make up the group. The solution will be implemented step by step, beginning in January 2008. The agreement is valued at SKr 10 million.
Otto Roth has a wholesale business for standard parts, stocking more than 60,000 articles from mechanical fasteners to tubing lines. Assembly elements and ready-to-install assembly groups for the hydraulics industry are manufactured and mounted in a separate plant.
The company, which currently uses a homegrown IT system, required modern ERP software with the agility to adapt to its business processes. The new ERP solution from IFS includes components that support the company’s critical processes such as human resource, financials, manufacturing, supply chain management, maintenance, and sales and marketing. The aim is to automate business processes by reducing the need of manual input and to become more agile by using business software that supports change. Moreover, implementing standards-based business software makes the company less vulnerable and less dependent on internal IT staff.
The procurement process was conducted in collaboration with a consultant and concluded with a workshop in which IFS and two domestic vendors participated.
Rainer Grässle, managing director at Otto Roth said, “We chose IFS for two reasons. First, IFS Applications covers all our critical business processes without being too complicated. That is important. We are a midsize company with employees that have a wide spectrum of assignments, and they want a system that is easy to use. Second, the IFS consultants understood our business and challenges, and showed that they really wanted us as a customer.”
Industrial manufacturing is one of IFS’ seven targeted market segments. IFS has a broad customer base in the industry, focusing on medium to large-sized manufacturers that need support for complex order-driven and mixed-mode manufacturing across the extended enterprise. With strong support for project management, engineering, constraint-based scheduling, product configuration, and after-sales support, IFS’ component-based business solutions are designed to help companies improve quality, contain costs, and improve their competitive position in manufacturing industry segments such as machinery, defence, fabricated metal products, and plastics. Industrial manufacturing companies also benefit from IFS’ lifecycle management solution, which goes beyond product lifecycle management (PLM) to provide better integration and management of three critical business areas—products, customers, and resources—throughout their lifecycles. IFS Industrial Manufacturing customers include Aeromatic-Fielder, Star Cutter, J&H Machine Tools, Kongskilde, Nolato Group, Bombardier, PartnerTech, Mechanik Center Erlangen GmbH, Völkl and Tour & Andersson.
IFS (OMX STO: IFS), the global enterprise applications company, provides ERP solutions which enable organizations to respond quickly to market changes. The solutions allow resources to be used in a more agile way to achieve better business performance and competitive advantage.Founded in 1983, IFS has 2,600 employees worldwide. With IFS Applications™, now in its seventh generation, IFS has pioneered component-based ERP software. The component architecture provides solutions that are easier to implement, run and upgrade. IFS Applications is available in 54 countries in 22 languages.IFS has over 600,000 users across seven key vertical sectors: aerospace & defense; automotive; manufacturing; process industries; construction, contracting & service management; retail & wholesale distribution, and utilities & telecom. IFS Applications provide extended ERP functionality, including CRM, SCM, PLM, CPM, enterprise asset management, and MRO capabilities.