Microsoft® Business Solution Customer Solution Case Study Harger Lightning and Grounding Stormproofs Its Future with Microsoft Business Solutions Overview Country: United States Industry: Distribution, Electronic Components, Manufacturing Customer Profile Founded in 1960, Harger Lightning and Grounding provides solutions to the lightning protection and “Many of our internal processes have been improved since the introduction of [Microsoft Business Solutions]–Navision to Harger. The changes in our internal processes are too numerous to mention—it has helped us beyond belief.” Dala Raffauf, Former IT Manager, Harger Lightning and Grounding grounding industries. The company combines expertise and capabilities in engineering, systems design, product manufacturing, and installation. Located in Grayslake, Illinois, Harger serves an international clientele. Business Situation Harger was in desperate need of a new system to manage data for its enterprise resources and Labouring under an unreliable and labor-intensive enterprise Ed Simnick, Tech Support Manager, Allison Payment Systems, LLC resource planning system, Harger Lightning and Grounding went shopping for a better solution. They needed software that could support all the company's functions—from purchasing to sales fulfillment. operations. Their system crashed several times a day. There was no linkage between the manufacturing and accounting software. These shortcomings made it impossible to meet their goal of 24 to 48 hour turnaround on order processing. Solution Harger selected an integrated Microsoft® Business Solutions–Navision® enterprise resource planning system for its integrated functionality that would allow all company operations to communicate. They believed it would capably support the make- The selection of Microsoft Business Solutions–Navision proved a wise investment for Harger. They have been able to substantially reduce personnel costs in manufacturing, purchasing, sales, and shipping. Having more accurate inventory data has enabled Harger to reduce on-hand materials by $150,000. The time from receipt of order to shipping has been reduced to between 24 and 48 hours. to-order portion of their business. Benefits Order to shipping time reduced by 100 per cent Inventory on hand reduced by $150,000 Past due orders reduced to less than 10 per cent Labor costs significantly reduced Customer satisfaction increase The percentage of past due orders has decreased to less than 10 percent. Productivity has increased through reduction of system downtime. And…customer satisfaction has increased, due in part to the addition of the E-Ship add-on module that informs customers when their order has shipped. Situation Since 1960, Harger Lightning and Grounding has been providing solutions to the lightning protection and grounding industries. They have experience in all facets of these markets including engineering, systems design, product manufacturing and installation. Their engineering department provides design services for engineers and contractors domestically, as well as internationally. They strive to stay on the cutting edge of technology. "One of the features that we like most about Microsoft Navision is the availability to do modifications to the system." Dala Raffauf, Former IT Manager, Harger Lightning and Grounding Harger's existing accounting solution was no longer suitable to meet the demands of the electrical, industrial, construction, and telecommunications markets they served. They needed a complete manufacturing and accounting solution that could give them an overview of the status of the company at any point in time. They needed to know their inventory, work in progress, processes, and delivery. They needed flexibility to meet changes in demand and capacity. Dale Raffauf, at the time Harger's IT Manager, points out problems with the old system. "The information displayed on the screen was never accurate. We had to do cycle counting every day to try and get accurate inventory counts—the counts were still off." Solution In December of 2000, Harger's executives and enterprise resource planning stakeholders began evaluating software packages from vendors that included Fourth Shift, Made2Manage, Lily, and Microsoft® Business Solutions—Navision. Harger decided to go with the Microsoft Business Solutions— Navision® manufacturing software solution for these reasons: They believed it would provide a solution that supported all of Harger's data—for procurement, sales, manufacturing, shipping, and accounting—in a single package. The evaluation team felt that Microsoft Navision's functionality was well suited for the make-to-order segment of Harger's business. The solution would be able to support engineers who need to develop bills of material based on CAD designs sent by customers with their orders. In addition, Harger's former IT Manager, Dale Raffauf, had previous experience working with Microsoft Navision, which created the potential for reduced deployment and customization costs. Harger initially chose to partner with ICS Advantage to implement and customize their solution. ICS Advantage and Raffauf worked side by side to install, customize, and transfer existing data in just four months. Harger went through one upgrade during the implementation. Raffauf says, "One of the features that we like most about Microsoft Navision is the availability to do modifications to the system." Since the implementation, Dale Raffauf (former Harger IT Manager) who managed the Microsoft Navision implementation at Harger, has formed his own Microsoft reselling partner organization, In-Sys Solutions, Inc. and now works with Harger as well as other clients. Benefits Raffauf has this to say about Microsoft Navision. "We purchased [Microsoft] Navision to be used as a COMPLETE manufacturing and accounting solution—it has done that and more. We use almost every granule offered from [Microsoft] Navision. Our manufacturing turnaround time from order to shipping is now within 24 to 48 hours. [Microsoft] Navision has allowed us to react quicker to get the orders filled and out the door." Since the implementation, these benefits have been realized. Reduced Personnel Costs Because of the process improvements introduced by Microsoft Navision, Harger was able to reduce staff in multiple departments, saving substantial costs per year. Harger has since reduced staffing further even as the business has continued to grow. It is estimated that without the Microsoft Navision solution, Harger would have had to add six new employees. Reduced Inventory Costs "Our biggest savings is in labor cost on the shop floor. [Microsoft] Navision tells us exactly what we need to be making for customer demand. We have cut out extra labor used to manufacture items that don't need to be made now.” Dala Raffauf, Former IT Manager, Harger Lightning and Grounding More accurate inventory data has allowed Harger to reduce its raw materials in inventory by $150,000. Increased Productivity Through Reduced System Downtime With the old system, manufacturing lost three hours of productive work time due to system crashes each week. IT staff also spent time rebooting and recovering lost data. Ability to Deliver on Time The old system was labor-intensive. Each order had to be touched by several people. The integration of sales with manufacturing, along with the engineers' use of the product configurator, has reduced the percentage of orders past due to less than 10 percent. Confidence in System Information The sales force has confidence in what they see in Microsoft Navision-unlike the previous accounting package. Customer Satisfaction Customer satisfaction has been increased due to the fact we can now provide customers accurate information in a timely manner. In the E-Ship add-on product, Harger can email the customer the moment the package is shipped in Microsoft Navision with the tracking information, how many packages, and the method of shipping. Customers love these features because they are informed. Raffauf describes the benefits in terms of labor cost reduction, improved customer service, and improvements in on-time delivery. "Our biggest savings is in labor cost on the shop floor. [Microsoft] Navision tells us exactly what we need to be making for customer demand. We have cut out extra labor used to manufacture items that don't need to be made now. Our production can now be prioritized to manufacture what needs to be manufactured now. Harger prides itself on customer service and the ability to deliver products on time. [Microsoft] Navision has allowed us to live up to that philosophy," Raffauf says. One organization has estimated Harger's return on investment at 191% with a payback period of seven months. Three-year total savings are estimated at $3 million. For More Information Microsoft Business Solutions For more information about Microsoft products and services, call the Microsoft Sales Information Center at (800) 4269400. In Canada, call the Microsoft Canada Information Centre at (877) 5682495. Customers who are deaf or hard-ofhearing can reach Microsoft text telephone (TTY/TDD) services at (800) 892-5234 in the United States or (905) 568-9641 in Canada. Outside the 50 United States and Canada, please contact your local Microsoft subsidiary. To access information using the World Wide Web, go to: www.microsoft.com Microsoft Business Solutions offer integrated business applications and services that allow small and midsize organizations and divisions of large enterprises to connect employees, customers, and suppliers for improved efficiency. The financial management, customer relationship management, supply chain management, and analytics applications work with other Microsoft software, including the Microsoft Office System and the Windows operating system, to streamline processes across an entire organization. This gives businesses insight to respond rapidly, plan strategically, and execute quickly. Microsoft Business Solutions are delivered through a worldwide network of channel partners that provide specialized services and local support tailored to a company’s needs. For more information about ICS Advantage, LLC products and services, visit the Web site at: www.icsadvantage.com For more information about Harger Lightning and Grounding products and services, visit the Web site at: www.harger.com For more information about Microsoft Business Solutions, go to: www.microsoft.com/businesssolutions Software and Services © 2005 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Navision, BizTalk, PowerPoint, Windows, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation or Microsoft Business Solutions ApS in the United States and/or other countries. Microsoft Business Solutions ApS is a subsidiary of Microsoft Corporation. All other trademarks are property of their respective owners. Document published June 2005 Software and Services − Microsoft Business Solutions–Navision Solutions Products − Microsoft SQL Server 7.0 − Microsoft Business Solutions—Axapta − Microsoft Business Solutions Analytics − Microsoft Business Solutions Financial Management − Microsoft Business Solutions Supply Chain Management