Helpman

Shorter Lead Times and Better Inventory Control with IFS Applications.

Background

Since selecting IFS Applications in 2000, Helpman has improved its financial processes, gained better control of its inventory and shortened lead times. It has also increased its win ratio in the tendering process. This enables  Helpman to grow at an ambitious rate while continuing to deliver the high-quality products that helped make its name as an industry leader. 

Legacy System Hampered Competitiveness

Helpman is known for its specific manufacturing method, resulting in quick delivery and keen pricing. To maintain this position, Helpman wanted to shorten lead times, reduce working capital and diminish stock. In 2000 the company realized it had a problem. Helpman CEO, Lambert Bouwmeester explains, “We were getting market and production information too late or not at all, so we were unable to adjust. The existing system was in such poor shape that an upgrade to a more up-to-date environment would cost a fortune. The deliveries and the administrative process were taking too long, while the market was demanding more speed and higher quality. The solution was to purchase new enterprise software.”

Offered Local Presence, Global Support

“There were three companies on the shortlist, including IFS. We made some reference visits and then I had to decide. At a certain point, you just take a deep breath and jump. It’s a choice based on both common sense and feelings.” 

The project was given to IFS because “IFS displayed a convincing will to establish a stable base here in the Benelux countries. That was important to me, because when you choose an ERP supplier, continuity and reliability have to be guaranteed. To illustrate my point: during the implementation process of IFS, the supplier of the legacy system went bankrupt, accentuating once more that we had a lifeless system. In combination with the support they got from Sweden, this was a reason to choose IFS. We were not only dealing with a party that was trying to win market share in the Benelux, but this party was fully supported by R&D and the head office in Sweden as well. Furthermore, they were convincing, because they dared to stick their neck out. IFS was the only vendor willing to seal its promises with a guarantee,” says Bouwmeester. 

IFS has committed itself contractually to measure and, if necessary, manage the critical success factors of Helpman during the first three years. The factors are regularly  measured from within the system in relation to the situation during the system’s implementation. Bouwmeester  adds, “Of course, we are continuously measuring and taking action ourselves. But the fact that IFS has entered into these obligations too says a lot. Not only does it show confidence in its own performance, but also in Helpman’s management. That’s real commitment, not mere sales talk.”

Standardization Made Upgrade Easier

Bouwmeester comments, “The implementation was intense. Many surprises popped up, for IFS as well as Helpman’s internal organization. It became clear that we’d been too optimistic on certain issues. We’ve been working hard at it internally too. This has paid off, because last year we’ve upgraded from version 2001 to version 2004-1 SP2, and that went smoothly. It indicates that there’s a good mutual understanding. And that the first implementation went fairly well. During the initial implementation, there were so few customizations that the transition to the new version went smoothly and at acceptable costs.”

Advantages

By now three years have passed. In 2004, the agreement between Helpman and IFS was evaluated. All aims have been achieved. As Bouwmeester says, “The evaluation shows us that we made the right choice. We had defined seven critical success factors.” 

“Measuring the financial process was the easiest part. Financially, we were mainly concerned about the state of the accounts receivable. Now we really have the situation well in hand—even better than we expected. Other factors were stocks, which are under control now, quotation win ratios, lead times, and delivery reliability.” 

“With regard to lead times and delivery reliability we’ve now entered the next phase with a 3D CAD system. It’s not being supplied by IFS, but we need this kind of system for future growth. A good ICT infrastructure is a prerequisite for being able to do so.”

Future

“Of course we’re still trying hard to improve. After 3½ to 4 years we’re experiencing time and again that the system supports us in this. We’re only using 30-40% of its capacity because we don’t need more. But sometimes there are things we want to change, or there is information we need, and IFS Applications provides the support we need.”

“It’s our ambition to grow considerably in the years to come. Our target is high: more than 10% annually. With the implementation of the ERP system and the ISO-9001 certification, we’ve created the preconditions to grow  ambitiously.”