abas-User Report:
Böhm GmbH
Kirchenlamitz (D)
www.boehmtec.com

ERP system bolsters company restructuring

Only sound companies can survive over time on the construction industry. In this harsh environment, only enterprises that have their costs under control, deliver quality and service, and adjust their services to keep in line with a dynamic market can survive. ERP (Enterprise Resource Planning) systems, which serve as controlling and tax tools, play a major roll in achieving this goal. PVC tubing manufacturer Boehm is a shining example of this: the financially struggling company successfully completed its restructuring with the help of abas Business Software.

The Boehm GmbH was founded more than 30 years ago near the border to the Czech Republic. Located in the Fichtelgebirge (Spruce Mountains), the plastics processing operation specializes in the manufacture of PVC tubing systems. The company's product line includes PVC tubing for underground projects (canals, drainage and cable protection), environmental protection and a program for pneumatic delivery systems, which are currently experiencing a comeback. Boehm has an excellent reputation as a reliable manufacturer and supplier in the construction market, and they are international leaders in pneumatic delivery systems. Radical changes in the company's structure, and restructuring of their business processes were necessary to get the company back on its feet. The new management, with support from a sophisticated IT system, was able to complete the restructuring within a few months. The key to their success was the introduction of abas Business Software, which supports business processes in production planning, warehouse management, materials and stock control, as well as finance and administration.

A new beginning

Upon reaching its low-point in 2000, the company was sold to Peter Soell, investor and owner of the Soell Group. His goal was to turn the floundering enterprise into a competitive and profitable company. To accomplish this he installed a new management team; a five-member team of movers and shakers, and young, dynamic leaders. Not only did he entrust his new company to this team, he also provided the necessary financial resources. The team took over the struggling industrial operation in the summer of 2000 and within a few months had already delivered its first successes.

Looking back

The new management team was already familiar with abas Business Software ERP system before taking over at Boehm. It had already experienced all that abas had to offer and was impressed with the software's flexibility. "Working with another company in 1996, we had already addressed the issue of choosing and introducing ERP software," recalls IT director Markus Messerschmidt. Back then, he, and Michael Bittermann, head of purchasing and organization, were members of a project group that compiled a list of ERP requirements for their former employer. After an initial selection process, an interesting team established itself as the leading candidate: the ERP system - abas Business Software, from ABAS Software AG in Karlsruhe, Germany, and interaktiv - its regional partner in Wuerzburg, Germany, which was responsible for the design, implementation and customer support.

They were especially impressed with the software's, which became apparent during the presentation: "interaktiv's second presentation was similar to a workshop in which we already addressed concrete subjects. We were impressed at how easily interaktiv had already added simple structures to the system and also immediately executed minor adjustments," recalls Bittermann. One of the key factors in our decision was investment security: it was at this point that ABAS (which already had 15 years experience in the market) separated itself from the field. They boasted solid growth and could point to many satisfied customers as references. A solid customer base with more than 1,200 installations worldwide speaks for itself. You could be sure that you had found the ideal tool with abas Business Software, and the ideal partner with interaktiv, headed by CEO Walter H. Koelbl. The following weeks brought with them intense inventory control and analysis of business processes which needed to be optimized. The company placed great value in data management.
"An ERP system can only provide support if it is properly implemented. You first have to do your organizational homework with an integrated solution," explains Koelbl. Successfully finishing the project on-time, and the following positive experiences that were gained with abas Business Software, reinforced the team's belief that they had chosen the right partner. Processing times, from order receipt to delivery, were shortened and stock-keeping was considerably reduced. And: a strong period of double-digit growth was easily mastered without additional administrative personnel.

A new challenge

It came as no surprise then, that Boehm's new management turned to a proven partner for their new challenge. However, an essential ingredient had changed: abas Business Software was intended to support the old company during a period of strong growth as a controlling and tax tool. But at Boehm, it was needed to restructure business processes. Boehm's new management faced a daunting challenge when they took over: within the near future, they had to completely turn around a company that had its back to the wall. "We had to entirely restructure and re-organize the company. We also had to make many unpopular decisions," emphasizes Bittermann.

Luckily, the team was able to call upon proven structures. "We were using one of our own creations in IT. However, it came no where near satisfying the demands of ERP. It was clear that something had to be done as well, if we were to work efficiently," adds Messerschmidt. To this point in time, only the sales department was supported by IT, the other areas were still using obsolete systems. One thing that they all had in common, though, was a mountain of paper. Despite their positive experience with abas Business Software, Messerschmidt and Bittermann probed the ERP market with the knowledge that ABAS' standard software was still state-of-the-art. "Our circumstances were a definite challenge: we needed to find a system that could be up and running in less than two months on a budget that allowed only 25 working days. This could only work with our current partners," reports Messerschmidt. This required precise preparatory work, such as preparing data and streamlining our business processes.

Intensive preparation

Data from our previous system was transferred to the abas Business Software relatively problem-free at the end of 2000. This followed a period of intense data management, which improved the quality of our data. Boehm employees, who were understandably less than enthusiastic, conducted their user training parallel to the data migration. After all, "their company" was given a new management, they were threatened with the loss of jobs, and an unknown IT system was expected to replace the trusted one. The intensive training, conducted over five days, provided the 20 employees all the information they would need to work with the new ERP software. Because of its simplicity, negative thoughts quickly disappeared. "With the understanding that abas Business Software simplified their daily work, employee resistance to the conversion diminished," recalls Messerschmidt. A fringe benefit: during the learning period, the "new managers" became colleagues, and a new Boehm team emerged. The system went live on January 1, 2001, replacing the current IT system.

Exchanging documents at the speed of light

Along with abas Business Software, the introduction of EDI (Electronic Data Interface) technology played a large part in increasing competitiveness. The standard for electronically exchanging formatted documents (orders, packing slips, invoices, etc.) is more and more taking hold in industry and trade. With help from ABAS, Boehm will be able to quickly, securely and efficiently exchange data with its customers. The era of faxes and snail mail, as well as the related cost and run times will soon be a thing of the past. "Some of our customers already have EDI installed and it has proven to be a good investment. The major advantage is that both sides can accept the data transferred via a specified interface - directly into the ERP or warehouse management system," reports Messerschmidt with a bit of pride. He would like to connect even more customers per EDI in 2002. The next project is already in the starting blocks: Boehm will soon be using the eBusiness module of abas Business Software to expand their business dealings with customers and suppliers.

Surviving the crisis

The introduction of abas Business Software at Boehm was quickly and positively noticeable. Synergic effects took hold, yielding savings throughout the company. Purchasing employees previously wasted time with procurement, comparing and filing price lists, delivery terms and numerous other documents, which are all now available online. The transparency that the system offers, significantly improved scheduling. The new system also easily met the high demands in sales, whose pricing is dependent on the fluctuating price of raw materials and an increasingly competitive environment. Prices, or quotes, are often re-done every month.

Only detailed knowledge of procurement prices and quantities, production times and stock quantities prevent ruinous competition in this branch. Walking this tightrope was made easier thanks to reliable and current data from abas Business Software. Adhering to delivery dates was also significantly improved for customers expecting overnight delivery. The basis for this is the high degree of flexibility in production and stock keeping, which would not have been possible without current data. Parameters, which effect the entire company, can be instantly adjusted. Boehm can react immediately if a production order was not processed in time, or if product delivery is delayed. The Boehm management has almost completely exhausted all the advantages of an up-to-date, optimized ERP system connected to a modern organizational infrastructure. Boehm now has more reliable deliveries, can plan better, and, as a result, can react more efficiently. Its customers can verify this.