CUSTOMER INNOVATION STUDY Dab Pumps boosts global productivity with Infor LN, Infor ION, and other Infor solutions Speed is not just marketing. It s something real with Infor. Infor has the best solution to support our critical processes efficiently. Enrico Pana Global IT Manager, Dab Pumps + infor.com/customers
Table of Contents 3 Facts at a glance 4 Executive overview 5 Situation analysis Wanted: Flexible ERP for complex manufacturing mix 6 Innovation strategy Infor simulated real business cases with Dab Pumps own data 8 Results Faster response time, happier customers 9 Looking ahead Future roadmap 10 Learn more
Facts at a glance HEADQUARTERS Veneto, Italy INDUSTRY Equipment/ Industrial Machinery EMPLOYEES 1,200+ REVENUE 370 Million WEBSITE www.dabpumps.com INFOR PRODUCTS AND SERVICES Infor 10x, Infor LN, Infor ION Customer Innovation Study: Dab Pumps 3
Executive overview Situation analysis Standardize systems and processes as part of a two-tier ERP strategy. Enable the profitable shift from a make-to-stock (MTS) to a make-to-order (MTO) and engineer-to-order (ETO) strategy. Support expansion to emerging markets and support local business practices and regulations. Innovation strategy Needed a partner who could simulate real business cases and process flows using Dab Pumps own data during the evaluation period. Selected Infor for greater manufacturing and sales flexibility, a faster implementation, and lower total cost of ownership. Built IT foundation for rapid growth into developing markets such as China. Results Rapidly rolled out a complex, multi-site implementation covering 11 countries. Gained a system that manages the complexities of multinational MTO manufacturing. High-level impact 20 % reduction in average fulfillment time 52 % faster approval of supplier invoices, from 5 days to 2.4 97 % server capacity reached 71 % faster payment to suppliers, from 7 days to 2 Standardized and automated business processes worldwide, while meeting the specific needs of large and small sites. Retired legacy applications, customizations, and interfaces to increase business process speed, flexibility, and agility. Built a platform for growth with a vertically focused ERP system that provides a single instance environment, along with multi-company, multi-site, multi-currency, and multilanguage capabilities. Customer Innovation Study: Dab Pumps 4
SITUATION ANALYSIS Wanted: Flexible ERP for complex manufacturing mix Change was essential Successful global companies thrive on innovation and doing things differently. This held true when Dab Pumps, a division of the $3.6 billion pump manufacturer Grundfos, selected Infor for its enterprise resource planning (ERP) software because Dab Pumps requirements are different than its parent company. While Grundfos operates mainly on a make-to-stock (MTS) model, Dab Pumps requirements are more complex, with approximately 40% of its water pumps created via made to order (MTO), and another 20% via engineer to order (ETO) for a diverse mix of customers. Dab Pumps is a leading provider of pumps to residential services and municipalities, irrigation services, firefighting teams, and a range of industries. But in order to continue to meet its business needs and grow globally, Dab Pumps had to move beyond its existing, legacy IBM i-based system, which was a heterogeneous, highly customized, siloed environment that couldn t keep pace with industry changes. In particular, Dab Pumps MTO and ETO environment required a system that provided a more detailed understanding of cost and profitability. And with vast international growth on the horizon in emerging markets like China and South Africa, Dab Pumps executives knew that change was essential. Customer Innovation Study: Dab Pumps 5
INNOVATION STRATEGY Infor simulated real business cases with Dab Pumps own data A tough challenge successfully met Dab Pumps assembled a long list of global ERP providers and gradually pared down the candidates to a short list that included Infor. Dab Pumps liked Infor s vertical focus in planning, manufacturing, and distribution, and was most impressed with Infor s acceptance of Dab Pumps challenge to simulate seven or eight real business cases and process flows from order to delivery, using Dab Pumps own data. Speed, flexibility win out Ultimately, Dab Pumps chose Infor because it could provide greater manufacturing and sales functionality, a faster implementation, and a lower total cost of ownership. The synchronized business system from Infor is also helping Dab Pumps move from forecast management to a more accurate and proactive planning management system based on real-time data. With a highly complex environment, we needed an ERP solution flexible enough to manage all our different manufacturing needs. Using a mix of MTS, MTO, and ETO, our business is more complex and has greater need for flexibility. Enrico Pana Global IT Manager, Dab Pumps Customer Innovation Study: Dab Pumps 6
XXX XXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXX XXXXXXXXXXXXXXXXXX Value realized Without significant customization, Dab Pumps has instilled standardized best business practices across its global operations backed by automation. The combined power of Infor LN and Infor ION were used to create an innovative process dashboard that could identify potential bottlenecks. This has helped improve the way Dab handles, processes, and tracks orders, while monitoring pricing deviations to provide consistency across all operations. By eliminating bottlenecks and manual processes, Dab Pumps is providing its products to its customers in local markets within five hours a nearly 20% reduction in average fulfillment time. With the newfound visibility that Infor solutions provide, Dab Pumps end users are doing a better job of promising customers faster delivery dates, and fulfilling those promises because the production information in the system is accurate. Customer Innovation Study: Dab Pumps 7
RESULTS Faster response time, happier customers Business synchronized With implementations in Italy, as well as sites in the US, China, Germany, Hungary, South Africa, and Spain, Dab Pumps has an efficient two-tier ERP system that provides a single instance environment, along with multi-company, multi-site, multicurrency, and multi-language capabilities. The company has streamlined financial consolidation and closes books faster, uses production planning to better synchronize processes and material flows, shortened lead times, and improved customer service. In addition, it has improved communication by updating any changes to the customer order as well as any supply-related issues in real time within the system, so that the information is available to all who need it. Detailed impact Average monthly improvement in service levels 60,000 invoices processed annually Faster payment from customers 2 of biggest customers now linked to order entry system for faster service 15 quality improvement projects based on the new system s capabilities Customer Innovation Study: Dab Pumps 8
LOOKING AHEAD Future roadmap Dab Pumps also plans to deploy Infor EAM Enterprise, Infor Expense Management, Infor Human Resource Management, and electronic data interchange (EDI). Infor Ming.le will be steadily rolled out to deliver new levels of collaboration and workflow, particularly for exception management. It will be the key engine for helping users share, escalate, and resolve issues without the need for numerous emails and phone calls. In addition, Dab will continue to move to the cloud. Already all 750 of Dab Pumps users can access a single, on-premise instance of all the data that resides in the head office in Padova, Italy. Data is backed up in the cloud for disaster recovery purposes. Dab Pumps is also moving to the cloud for document management and sharing purposes. With Infor Ming.le, each user will be just one click away from someone else s environment. That s powerful. We can make that work really well for our customer satisfaction around the world. Enrico Pana Global IT Manager, Dab Pumps Customer Innovation Study: Dab Pumps 9
Learn more Dab Pumps, a global leader annually producing three million motor-driven water pumps, has completed a global deployment of Infor 10x in addition to Infor LN, Infor ION, and Infor Enterprise Performance Management (EPM) across 15 sites. 3:40 Dab Pumps video Dab Group completes Infor 10x global deployment The water pump manufacturer experienced vast benefits with Infor s integrated application suite. Read more 15 sites in 11 countries: Dab Group rolls out Infor 10x The next step for Dab Pumps will be to move its IT systems to the cloud by 2016. Read more Customer Innovation Study: Dab Pumps 10
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