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Vehicle Components - case study

The Situation

Vehicle Components in Geebung, Qld designs, manufactures and distributes premium quality products for caravans, camper trailers, and multi-purpose trailers domestically and internationally.

The turnover is around 12M PA and they have 42 staff on premises.

When Opto Software began to talk with VC, they were already a few years into an ERP implementation but were using that software as a Sales Order mechanism only. At this point, they did not feel confident they would be able to roll out the manufacturing component of their ERP system because of the complexity of the operation. There was poor user acceptance of the software and there was still a growing need to get their inventory management under control and improve the visibility of the manufacturing process.

In our preliminary discussions, VC identified the following for them to achieve their goals:

* A new software system must be user friendly

* Locally supported

* Provide visibility of inventory and manufacturing operations

* Scalable

* Implementation must be achievable in a 6-month time frame

The Solution

Opto advised that the goals could be achieved by using the Opto Enterprise software system coupled with MYOB accounting software (which was currently present in the business). The functionality of the system was explained in terms that VC understood and from the VC perspective they felt they were getting a tailored solution for their business. Some additional modifications were developed during the journey that improved productivity but they were minor with the key being an understanding of the processes and desired outcome.

In  terms of business results, General Manager Mathew Claringbold has provided the following

* Revenue has grown by 24% since implementation – a combination of efficiencies gained and an increase in sales revenue.

* Factory implementation of the system was completed in half the estimated 6 months

* Output of some individual work centers has increased by 50%

* User acceptance was great with very little change reluctance from the majority

* Visibility of the stock holdings improved considerably

Key learnings

Mathew advised that the Opto team has implemented their software over 200 times – listen to them and use their experience and don’t create work arounds – be open to accepting change.

Mathew Claringbold - General Manager

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