How ERP Software Helped Electronics Manufacturer Reduce Operating Costs and Achieve ROI
Phoenix Logistics provides complete system development and lifecycle management of integrated data transmission and interconnects solutions to the military and aerospace markets. For over 20 years, they have provided comprehensive manufacturing solutions to the industry’s Top 100 Tier 1 and Tier 2 prime contractors. Recent applications include supplying components for NASA, the International Space Station, and multiple helicopter, fighter, and transport platforms.
In previous years, Phoenix Logistics managed their low volume batch manufacturing process with manual and paper-based systems. The company relied on nearly 40 standalone spreadsheets to track customer orders, accounting, parts traceability, inventory, shipping, and other key areas. Literally silos of information with no linking of data across the business.
A significant limitation was complying with AS9100 production requirements for lot traceability. Compliance was difficult because the company stored paper documents tracing the source of key materials in file cabinets in a large room. It took a clerk 3 to 4 days to search and pull bills of materials.
We selected Plex Online, for two main reasons: The first was the cost of ownership of the system was very competitive. The other was speed of implementation. Our first modules were live in Plex within a 6-month timeframe. All of our business processes were live within additional 6 months of implementation.
Using Plex Online, Phoenix Logistics replaced standalone manual and paper-based work processes with automated, electronic workflows. Implementation began with the accounts payable, accounts receivable, purchasing, customer orders, and shipping modules going live in 6 months. The rest of their business processes were functioning within another 6 months. Additional modules implemented include time and attendance, program management, human relations, and strategic planning.
We were able to reduce our operating costs through cycle time reduction. We were able to realize a 25% reduction across the board, and that was just from the speed of which we can process transactions instead of being based on a paper system, which we used to be.
One of the most significant achievements is paperless integrated real-time traceability. The automated system accurately tracks individual containers and pieces as they flow through the manufacturing process, isolating problems with pinpoint precision. Real time, detailed, historical information is available in seconds instead of days.
The largest benefit was the responsiveness to our customers, as time is money, especially when you’re in a competitive environment as we are. Our core process used to be a full week in order for us to respond to our customers, and with Plex Online, we now can respond within one day.
The company gained real-time visibility and can now comply with all AS9100 requirements. The Plex Online Traceability Tree automatically tracks in real-time the complete genealogy of all inventory containers, providing both an upstream and downstream trace.
We were able to achieve our ROI with Plex Online through the elimination of paperwork. We used to print 20,000 pages a month here at Phoenix Logistics for our build documentation. Plex has allowed us to reduce the time to pull bill records to a matter of minutes rather than days, through the use of their traceability tree.
These significant improvements have allowed Phoenix Logistics to continue their mission to be the premier provider of integrated data transmission solutions for worldwide military and aerospace markets. They will continue to bring unrivaled value to their customers with exceptional service, superior quality, outstanding value, and complete systems integration.
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