Business Case Studies.
Significant Payoffs for Pragmatek Clients
We are a Strategic Partner to Each of Our Clients
Pragmatek has been helping our clients achieve significant payoffs over the past 30+ years: increases in revenue, net profit margin, earnings, productivity, on-time delivery, and more. In all cases, business process improvement has been the foundation for solving problems and driving results across the supply chain.
Read the case studies of the results we’ve achieved for other companies – and consider how you and your company will benefit from partnering with Pragmatek’s leadership.
Tito’s Handmade Vodka is a Manufacturing company of Vodka that distributes globally. They were founded by Tito Beveridge in 1997 in Austin, Texas – specializing in vodka made from yellow corn, rather than potatoes or wheat. It is distilled 6 times and is unaged.
Pain Points & Challenges
- Numerous disparate systems that do not ‘talk’ to each other, requiring data extractions and manipulation via Excel spreadsheets, i.e., very time-consuming and prone to error
- Organization is expanding at a tremendous rate and has outgrown their current ERP
- Current ERP allows for many broken processes within the organization resulting in a lack of confidence in data integrity
- Many manual processes are “pen and paper” and require high maintenance, e.g., full inventory counts on a daily basis
Pragmatek Solutions
Implemented IFS resulting in:
- Replacing legacy systems with a best-in-class ERP solution
- Interfacing with systems that are unique to the business
- Providing real-time shop floor data via an IFS partner interface (Novacura) ensuring business decisions can be expedited for efficiency
- Implementing an ERP solution that is scalable for continued growth
- Executed business process reengineering to provide and document best practice processes across the organization ensuring confidence in data integrity
- Trained the organization on how to configure and maintain the ERP for future independence
Blue Ridge Power is a leading developer and construction company providing turnkey services for the construction of commercial solar generation facilities.
Pain Points & Challenges
- Exponential growth with rising costs was putting pressure on the need for a more advanced ERP system:
- Need for improved real-time visibility for monitoring construction project revenue, cost, and schedule against desired performance targets
- Improved sales taxation management to reduce regional and local tax liabilities
- Need to monitor and improve site construction productivity to increase capacity
- Need to improve the capture of timely and accurate field information
Pragmatek Solutions
- Completed operational process assessment to understand major gaps in performance due to current process deficiencies
- Defined future state process needs and aligned with the appropriate IFS functionality/modules and features
- Developed a rational migration path to implement the IFS solution in a manner addressing most critical performance issues in earlier releases
- Assembled a team of experienced implementation consultants to drive a rapid solution deployment in a highly constrained resource environment
The Payoffs
- Deployed the foundational IFS ERP solution first garnered major benefits without causing serious disruptions to the business
- Provided active knowledge transfer to the client for effective system maintenance to reduce long-term costs
- Cost-effective IFS implementation vs. higher cost of other ERP systems
- Developed a clear performance management tracking process that provides a preventative viewpoint vs. after-the-fact reporting
- Deployed best practices for the construction industry using a solution with a strong construction industry vertical solution
- Fully integrated solution synced with the company’s PM software
Shaw Development LLC (Shaw) is a global engineered solutions provider, providing innovative component and system-level solutions to original equipment manufacturers (OEM) within the commercial and military heavy-duty ground vehicle markets. They are both a Tier 1 and Tier 2 supplier to these industries. The company was founded as a New York-based machine shop in 1944 supporting the military and the emerging aerospace market.
Pain Points & Challenges
- Collection of multiple, non-integrated systems which have resulted in inefficient or constrained processes in key areas
- Islands of independent information, i.e., hundreds of Excel spreadsheets
- Lack of process automation within company workflows
- Lack of visibility of orders and supply chain within planning capabilities
- Lean staffing complicated by turnover and Covid
- Multiple “sources of truth”
Pragmatek Solutions
Implemented IFS resulting in:
- Replaced legacy systems with IFS best-in-class ERP solution
- Single Source of Truth – Ensure all information is going to be in IFS to eliminate islands of independent information, i.e., Excel spreadsheets
- Designed rules-based workflows that drive organizational discipline and include electronic alerts/event notifications
- Design various levels of dashboards, ensure the ability to manage by exception
- Automate current manual forms where possible and include them in workflows
- Augmented staff during system build-out to keep schedule on track
- Trained Shaw SME’s on configuration and maintenance of ERP system enabling organizational control over the system
Winnebago Industries is a provider of products and services that enhance outdoor lifestyles. The Company manufacturers motorized RVs, towable trailers including fifth-wheel and lightweight camping trailers. The company’s icon brand was recently enhanced through the acquisitions of Grand Design Fifth-Wheel and Chris Craft Boats.
Pain Points & Challenges
- Need to revitalize the company due to slipping market share, industry consolidations and new competitors
- Manufacturing and assembly processes and systems needed updating
- Need for component consolidation and design standardization to reduce costs and deliver new product designs
Pragmatek Solutions
- Helped Winnebago become the first company in their industry to use advanced LEAN manufacturing concepts
- Deployed LEAN material handling and scheduling systems
- Re-engineered core operating systems and processes to reduce cost and waste including procure-to-pay and invoice-to-cash processes
- Developed the framework for component standardization to reduce assembly complexity, inventory, and cost
- Helped start up new manufacturing operations in Junction City Oregon and established a supply chain to source critical materials to the new plant
The Payoffs
- Conducted a key operational assessment that identified $17M in operational savings opportunities
- Significantly decreased production backlog and WIP from 137 units average per week to under 50 units
- Reduced damaged and missing parts/component issues by 60%+ eliminating costly production downtime
- Significantly reduced component part count thru standardization for2 popular RV models, resulting in significant cost savings
Starkey is a manufacturer and distributor of high-quality hearing aid products serving the professional audiologist and consumer markets.
Pain Points & Challenges
- Competitive need to develop an Ecommerce direct to consumer business segment for entry level products
- Need to craft and design effective business processes for the Ecommerce market segment
- Utilize best practices
- Need low cost and streamlined processes
- Need quick process cycle times
- Desire to upsell consumers needing more sophisticated products to professional audiologists
- Desire to outsource fulfillment and logistics to a reputable 3PL
Pragmatek Solutions
- Served as best practice process advisor guiding client team to develop next generation of Ecommerce supporting processes
- Brought our in-depth knowledge of leading Ecommerce process models
- Designed and carefully documented new process flows with critical process requirements for rapid deployment
- Advised Starkey on the selection of qualified 3PL partners to consider in outsourcing decisions
The Payoffs
- Discovered all of the root causes of control system failures
- Attacked and corrected the root causes of product defects
- Implemented a sustainable and pre-emptive failure analysis process the client is using to obtain six sigma standards for all products – less than 3.4 Parts Per Million defect rates
- Reduced recurring rework costs by $13 Million in the first six months after project deployment
Client Testimonials
Toro is a leading worldwide provider of innovative turf, landscape, rental & construction equipment, and irrigation and outdoor lighting solutions serving the needs of golf courses, sports fields, public green spaces, agricultural, commercial and residential properties.
Pain Points & Challenges
- Complex supply base with growing material costs
- Challenges in maintaining gross margins and shrinking profit after tax
- Growing and diverse product portfolio with increasing warranty liability
- Need to improve synergy and integration with recent acquisitions
Pragmatek Solutions
- Applied Supply Chain Operations Reference (SCOR) model best practices to realign business processes
- Delivered a focused portfolio of hard-hitting ROI-based improvement projects to drive productivity
- Standardized processes and implemented tools to facilitate the integration of acquisitions
- Implemented strategic sourcing, material rationalization, and quality to drive cost reduction.
- Streamlined SAP Order-to-Cash process to improve overall cycle time and improve Cash-to-Cash Cycle
The Payoffs
- $162M Supply Chain Savings over 3 Years
- 37 Days Improvement in Cash-to-Cash Cycle
- $7M Reduction in warranty costs
- 5% Improvement in Profit After Tax within 3 years
Lube-Tech is the Midwest’s largest blender, packager, and distributor of advanced lubricants and fuels for automotive, industrial, fleet, and small-engine customers. Lube-Tech ships specialty small-engine lubricants to thousands of dealers across 70 countries worldwide.
Pain Points & Challenges
- Company growth outpaced the capacity of the leadership team
- Difficulty meeting operating profit targets initially due to production downtime and late shipments after a new warehouse management system was put in place
- Lack of standardized processes across the organization
- Poor data quality along with a non-scalable ERP system resulted in many workarounds
Pragmatek Solutions
- Provided executive leadership to accelerate profitability and growth
- Analyzed and drove savings in 3 key operational areas (Scheduling, Production, and Warehouse)
- Led strategic sourcing project reducing costs by nearly $1M
- Addressed system integration issues, restoring service levels to 98%
- Implemented Lean 6 Sigma tools and techniques focused on continuous improvement
- DOUBLED equipment up-time
- Utilized Business Process and Technology Alignment (BPTA) to select a new ERP technology
The Payoffs
- 4x REVENUE growth 2003-2013
- 92% REDUCTION in late shipments
- 150% INCREASE in production output
- 42% INCREASE in inventory turns
Faribault Foods is a Producer of Canned Goods including 8 company-owned brands and over 32 contracted private-label brands. With operations in Faribault, Minnesota, the company had grown to become the world’s largest canning operation for organic soups. In addition to canning operations, the company provides full turnkey services for private label clients including Storage, Distribution, and Direct Store Delivery (DSD).
Pain Points & Challenges
- Faribault Foods expanded operations to include the canning and distribution of contracted private-label brands
- The Company needed help in defining the processes and systems to provide end-to-end supply chain services including DSD services
Pragmatek Solutions
- Developed and improved supply chain processes for production and distribution to enable effective DSD strategies that help Faribault Foods gain new private label customers
- Identified $1.3M in excess inventory and developed a strategy that eliminated the excess inventory
- Improved inventory planning processes to increase inventory turns by 35%
- Identified and adjusted planning practices to reduce stock-outs and minimized lost revenue impact
- Identified and recommended ERP system updates to improve information flow, and data analysis and to provide visibility to downstream retailer requirements for efficient replenishment
Snap-on Inc. is a leading global innovator, manufacturer and marketer of tools, equipment, diagnostics, repair information and systems solutions for professional users performing critical tasks. Products and services are sold through the company’s franchisee, company-direct, distributor and internet channels.
Pain Points & Challenges
- Company Poor Material Planning and Distribution Network, causing:
- Excess Inventory / Warehouse Congestion / Inefficient Receiving and Material Handling
- Ineffective management of annual load counts for in-bound freight resulting in excessive transportation spend
- Excessive material and transportation costs
Pragmatek Solutions
Established and Managed Program Office for Supply Chain, Transportation, and Logistics Improvement:
- Implemented Strategic Sourcing Program and Vendor performance reporting to improve Purchase Price Variance and improve On-Time shipment
- Led SKU Rationalization, S&OP, and Enhanced Planning teams to improve material availability and flow.
- Designed and implemented Hub and Spoke Network for improved transportation efficiencies.
- Decreased Cost per Hundred Weight through 3rd Party Logistics partner
Introduced Collaborative Planning, Forecasting, and Replenishment (CPFR)
The Payoffs
- 4x INCREASED Earnings Per Share 2003-2013
- $18M REDUCTION in Transportation Spend
- $11M SAVINGS Contribution from Strategic Sourcing
- $20M Additional Cost SAVINGS in Logistics and Production
Gold’n Plump (GNP) is a family-owned company that is the largest integrated producer of fresh chicken products in the upper Midwest. Founded in 1926 as a seasonal hatchery, GNP Company provides wholesome, naturally nutritious chicken products to customers and consumers domestically and for export internationally.
Pain Points & Challenges
- Gold’n Plump entered into a national agreement to provide direct store delivery of fresh perishable packaged chicken (variety of cuts) to Super Target Stores
- This required supply chain delivery process redesign to ensure GNP could meet customer delivery and stocking requirements while managing the outbound transportation more efficiently to improve margins
- Integrated Super Target point of sale information for daily upload to GNP for analysis to drive a restocking strategy called Efficient Customer Replenishment (ECR)
Pragmatek Solutions
- Implemented a best practice supply chain delivery model to ensure optimization of restocking within customers’ Service Level Agreements (SLAs) and to reduce inefficiencies in outbound transportation processes resulting in:
- Identification and removal of $1.3 Million in delivery costs due to inefficient delivery routes:
- Elimination of empty backhaul costs for refrigerated trailers by coordination of inbound supply deliveries for goods that could be carried dry in refrigerated trucks
- Outsourcing of some delivery routes to lower-cost carriers under proven delivery SLAs
- Identification and removal of $1.3 Million in delivery costs due to inefficient delivery routes:
- Increased shelf space allocation from Super Target by fine-tuning the forecasting and replenishment model using Target-provided daily POS data to ensure the right product SKU in correct volumes lining up with local demand variation due to seasonal and promotional events. For example:
- A specific set of stores in St. Louis MO experienced a surge in demand for whole barbequed chickens during the month of July due to local trends
- By shipping more whole chickens vs. cuts, Target realizes more sales, GNP gets a track record of strong product sales/turnover, and Target rewards GNP with additional space allocation
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