The famous brand name of Elizabeth Shaw is synonymous with the production of chocolate confectionery for distribution in the UK and Europe. Elizabeth Shaw previously owned by Leaf UK Ltd, was formed following a management buy-out in 2000.
Elizabeth Shaw was in the middle of a complex ERP software deployment in February 2000 when its parent company, Leaf UK Ltd, announced that it was putting the world famous UK chocolate manufacturer up for sale.
Three months later, following a management buyout, Elizabeth Shaw was left with a factory workforce and office space but no administrative or IT infrastructure. Worse still, the company's backers insisted that Elizabeth Shaw be able to invoice customers from day one as a condition of their financing.
The management team was faced with the choice of continuing with the deployment of Leaf's BPCS manufacturing software to its 150 Bristol-based employees, or building a new system from scratch. Whichever option was chosen, the solution needed to be live within two months and eventually support a host of core business processes from order processing and accounting to manufacturing control and distribution.
"The main aim was to rapidly create the infrastructure to support a new business, explains Malachy McReynolds, managing director of Elizabeth Shaw". Although we had inherited a business, it wasn't a fully functioning unit and we didn't have basic things like a sales and marketing team." It was essential, therefore, to find a system that could be easily deployed and managed while the managers focused on recruiting and other essential needs of the fledging business.
The Leaf-backed BPCS system, running on IBM AS/400x, had been deployed in some areas of the business, but it was complex and expensive to maintain. Elizabeth Shaw turned to Exel Computer Systems, a specialist provider of manufacturing software it discovered whilst browsing the Internet. After due consideration Elizabeth Shaw eventually settled on EFACS software thanks to its greater ease of use and faster implementation times. "Although BPCS was partially deployed, it made more sense to abandon it", says Phil Richardson, Marketing Manager, Exel Computer Systems. However, it did mean that while we were installing EFACS, the staff could use BPCS as well."
Exel Computer Systems provides specialist ERP and business systems for manufacturing organisations. The UK-based company, which was founded in 1985, employs 90 people in Nottingham and Lichfield. The company's other customers include Imperial Tobacco, and Royal Crown Derby.
The EFACS solution offers product definition, sales and ordering support, manufacturing planning, material and production control, accounting and costing functionality.
Elizabeth Shaw required all of these features in its new IT system, making EFACS a good fit, explains Richardson. "It was important to be able to set up accounts form day one, but Elizabeth Shaw were also looking for all the other business functions in the manufacturing cycle."
EFACS is also simpler to use, a fact that translated into lower training and support costs. "The main benefit for us was the fact that EFACS, with its comprehensive functionality, could take over all the core business processes, including order handling and invoicing, production planning and inventory control", says McReynolds.
In the 12 months since development, McReynolds estimates that the company has saved in excess of £75,000.
A further major benefit for Elizabeth Shaw was the speed of implementation. The accounting package took less than three weeks to configure and deploy, allowing the company to start trading immediately following the management buyout. Over the following months, Exel Computer Systems deployed additional modules, including manufacturing planning and control. Within 12 months, all the elements of the EFACS solutions were live.
Maintenance of the new system is far more efficient thanks to the high levels of integration, McReynolds says. "If we compare everything, hardware, software and operating system, then the total cost of ownership is 50% lower than the previous BPCS system", he says. This was particularly vital given the company's history. "The business plan wasn't to particularly win new customers, but to serve the existing ones at a far lower cost - and we have achieved that".
At present, improved access to information has cut bottom line costs significantly. "For example, sales staff using the software can access order information and customer history data that is timely and in a familiar Windows environment", says McReynolds. "That improves customer service, makes us more responsive, and has increased our customer retention and conversion rates."