Specialist automotive supplier Polytec Holden expects to reduce inventory by a full 25% while also improving its cost controls, manufacturing planning and delivery times to its vehicle OEMs – all as a result of a new ERP system, currently being implemented.
The Hereford-based company, which manufacturers automotive trim panels such as bumpers and spoilers, went for QAD Global Enterprise Edition (GXE) because, it says, it was convinced the system could deal with its key issue of fluctuating demand from its OEM and Tier One automotive supplier customers.
The demand for car customisation, particularly among premier marques like Volvo, Mercedes-Benz McLaren, Aston Martin, Jaguar and Bentley, puts pressure on automotive suppliers to respond quickly to OEMs’ changing requirements – without carrying high levels of safety stock.
That’s even more acute for Polytec which also builds for lower volume models like the Ford Focus ST and Mercedes SLR McLaren. And then there’s the different methods OEMs use to submit orders: some transmit update orders once a day by EDI; others update once a week by fax.
“This implementation is the most important project we have undertaken in the past five years,” says Mike Collinson, commercial director at Polytec. “So competition to find the right partner was extremely intense… We drew up an extensive shortlist of suppliers including Sage, QAD, SAP, Infor, Axapta and IFS. We went through a rigorous process and chose QAD because of its pedigree in the automotive arena and because QAD’s solution is a well proven product with very strong core manufacturing capabilities.”
Polytec’s ERP installation began in February and is expected to be complete in October 2006.