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Kaufman Container Reduces Overhead Costs by 30%

8/3/2017

When you see a product, the first thing you will notice is the packaging. Sometimes you are more impressed with the packaging than the product itself. Packaging makes you say "wow" when it's attractive to the eye. And so, our customer Kaufman Container has been a leader for 100 years in the North American market in providing quality and innovative packaging components. Kaufman’s capabilities are endless, offering a variety of products including glass, plastic, aluminum, and metal containers, tubes, closures dispensing systems, celon bands, and more. However the company encountered some challenges with business processes due to running several non-integrated systems. For example, if inventory was needed for a job and one of the systems stated there was inventory on hand, there was no trust in any system of reference, and so, the material was manually verified to be there. Kaufman Container Reduces Overhead Costs by 30%

Issues that affected the consistency of the day to day operations were:

  1.  Users were working on Excel sheets for days to manage stock because there was no visibility for purchasing decisions
  2.  Inconsistent gross margin calculations
  3.  Difficult to assess the business performance
Kaufman initially implemented Epicor ERP to work as closely as possible to existing business processes, as followed with their legacy ERP. Larry Keilin, Kaufman IT director commented, "The transition from our old system to our new system was less painful than I expected—for many employees, the day you switch from an old system to a new system is the day they love the old system." Keilin added, "A large number of our employees got on the Epicor bandwagon and became excited about all the work they can now do that they couldn’t do before."

Once Epicor ERP was implemented to different areas such as engineering, production, inventory, purchasing, costing, and accounting, employees saw the benefits. There was a high return on investment and overhead costs decreased by 30%. Time phase report provided true visibility into when parts must be purchased. Additionally, product location for issuing to jobs or shipping was quicker and easier.

Keilin explained, "We are truly seeing the benefits, for example for the purchasing department, the Buyers Workbench is such a useful tool that it really stands out, and our customer service department really loves the way they can take an old order, copy it, and create a new one—it’s a huge time saver for them."

To read their full story click here

 

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