WHITE PAPER: How a company in crisis avoided a rout

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Do you want to know how to squeeze six months’ work into four?

Onsrud Cutter of Libertyville, Illinois, has been in router bit manufacturing since Oscar Onsrud invented the router in 1920. It supplies standard and custom-designed high-speed steel, carbide tip, solid carbide and diamond router tooling to manufacturers of aircraft, boats, furniture, cabinetry worldwide.

Company in crisis
When the company was dropped by its application service provider, it faced the problem of finding a new source for manufacturing software in a very short time.

And as if that challenge was not daunting enough, it decided to replace its entire enterprise information system at the same time. It wanted a system that would be quick to install, yet have the scalability and flexibility to support company growth.

Hitting the problem
The problem was that, with most enterprise software, high flexibility and quick installation are mutually exclusive.

The company assessed its needs, evaluated software packages, tested demos, and made onsite visits. It wanted software that would:
• produce customized reports for better-informed decision-making
• supply real-time information for customer service reps
• offer enhanced e-business capabilities.

Finding the answer
The answer was Adonix X3. “Adonix X3 is a powerful, flexible system that we won’t outgrow,” said Robert Ostroga, president of Onsrud Cutter.

“Onsrud uses much more functionality in every area of its operations – from shop floor to warehouse to sales – than most midsize companies,” said Rich Burns, Adonix vice president, North American Development. “Most companies this size focus their IT efforts on one specific area, such as sales or manufacturing.”

Automatic discounting
For example, the company uses complex pricing formulas, differentiating prices for its nearly 1,800 standard products by customer, territory and tool type. Adonix X3 gives midsize companies advanced pricing customization capabilities. A company can, for instance, automatically discount an order involving multiple variables, where most enterprise management systems make users manually re-price each item or even enter multiple orders.

Price breaks
The Adonix system gives Onsrud the flexibility to give a customer a price break based on the number of items purchased from a broad category, e.g., solid carbide cutters, or based on the total value of an order for different items within a category. Traditional systems can process discounts only for a specific item.

Adonix X3 is an all-new, highly functional system of integrated business applications including:
• sales order management
• customer relationship management
• purchasing and inventory control
• warehousing and quality control
• manufacturing planning and execution
• finance, budgeting and analytical accounting.

“Adonix X3 balances flexibility and ease of implementation,” said Burns. “It gives a midsize company an ability to fine-tune the business processes that give it competitive advantage equal to or greater than that of packages designed for large corporations – but without the complexity that can make implementations drag on forever.”

Need to drill down
Reporting capabilities were also an important factor in the choice. “We didn’t want standard reports and inquiries,” said Ostroga. “We wanted to be able to generate any kind of report we need and to drill down into the data from any point.”

Every report and inquiry was ready to go at system cutover. Users can track an order from any point in the data stream. For example, sales and service representatives, credit managers, shop floor personnel and billing can all view a customer’s sales order and any related information at any point in the order-to-cash cycle. The system automatically updates account information to reflect sales revenues, costs, and receivables. For example, a manager can start in the general ledger and tunnel back to source documents such as inventory reports, purchasing orders, and raw material invoices to track costs

The customer never knew
“We began installation in late August,” said Ostroga, “and on January 2 we were checking stock, shipping product, and issuing invoices with the new system. Customers never knew the difference.”

Import/export templates simplified the installation. They enabled the systems integrator, Business Technology Partners, to convert every key master file and open transaction from Onsrud’s previous system to Adonix X3, which minimized re-keying and cut significant time from the implementation schedule.

Squeezing six months into four
“We understood that it was a challenge to squeeze what would, in the best case, have been a six-month project into four, but we have extremely technically competent managers, and the people from the systems integrator and Adonix were top-notch,” said Ostroga.

The company plans to have a complete e-commerce channel within a year, enabling customers to place orders, check stock, and review their payment histories online.

Adonix X3 will support the e-commerce initiative with a number of easy-to-use features:
• a fully integrated, easily customized Intranet and Extranet
• flexible APIs to facilitate enhanced customer interactivity via storefronts
• workflow management via the Internet
• a decision-support tool that provides quick access to data company-wide.

The solution is suited for discrete, process and mixed-mode manufacturers and distributors. It is especially designed for make-to-order, configure-to-order, assemble-to-order, make-to-stock and batch manufacturing environments. It gives midsize companies ($10 million to $500 million in sales) the functionality and technology that large corporations require – without the complexity and at an attractive price.

Adonix’s North American headquarters are in Pittsburgh, Pennsylvania, with a satellite office in Tarrytown, New York, US. Its corporate headquarters are in Paris, France.



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