MRP Case Study: Lawtronic Ltd
Previously, Lawtronic Ltd relied on their Sage accounting software to control stock. However, as the business changed from being a one-off manufacturer to making repetitive runs, MRP became a necessity. Managing Director Dave Tester had previous MRP experience and, after evaluating the market, selected 123Insight.
This case study, a part of our '10 Years On' series, explores the long-term benefits that Lawtronic has seen over the years, how their business has diversified, and how 123Insight has met their ever-changing needs.
Company more than doubled in size
- 123Insight helped Lawtronic deal with a changing supply chain culture
- CRM assisted with quality accreditation
- 123Insight helped Lawtronic deal with a double-dip recession
- Lawtronic more than doubled in size over a ten year period
Lawtronic, based in Kings Lynn, Norfolk, is an industry leader in the manufacturing of electrical control systems. After implementing 123Insight, the company achieved many of the benefits users see after implementation in areas such as stock control, paper usage and interfacing into their Sage accounting system the company started a period of diversification, which turn out to be extremely foresighted.
Changing business
Initially a bespoke panel shop serving many different industries, Lawtronic started to look for customers requiring larger production runs. Said Dave Tester, Managing Director; “In the last 10 years we've seen dramatic growth in that area, including some multi-nationals as well, so we've become a big player in the repeatable panel business. We've spread the portfolio across different markets and we’ve had quite a lot of success in this regard. That's been good for the business and given stability through tougher times as well.”
When the recession hit in 2009, Lawtronic did not experience the same pain as many companies, for which Dave cited two reasons; “I wouldn't say we were recession-proof, but because of our vast spread across markets you tend to find that one props up another if one industry is struggling. Also, as our systems were already in place we could manage fairly leanly from an admin staff point of view. Even as we were taking new customers on we didn't really see the need to add extra staff in that area. In fact, during the recession we took the opportunity to roll out 123Insight further across the business. We looked at efficiencies that we could achieve, with Shopfloor Data Collection (SFDC) being one of them. Up to that point we'd been booking time sheets manually and requiring a higher overhead in staff. It made much more sense using SFDC, knowing where we were on an up to the minute basis, which has worked very well for us.”
As business began to increase after the recession there was a culture shift in how distributors held stock of electronic components, but Lawtronic were well-positioned to handle this change. Noted Dave; “We have a vast range of products and needs, and have to hold stock for a multitude of reasons, covering lead times, outages, seasonal fluctuations, etc, but 123Insight copes with it. The biggest change we've seen over the last 10 years is that distributors don't hold the amount of stock that they used to anymore, which can sometimes make life very difficult but by implementing contracts where we have commitment from customers we can smooth out supply issues with long-term purchasing.”
123Insight helps our traceability without a doubt. We have a mature quality system here, and to a degree people don't even realise that they're doing it, but the traceability factors within 123Insight have assisted us on countless occasions.”
Lawtronic implemented ISO9001 back in 2001, and since then 123Insight has been the backbone of maintaining their accreditation; “It helps our traceability without a doubt. We have a mature quality system here, and to a degree people don't even realise that they're doing it, but the traceability factors within 123Insight have assisted us on countless occasions.” CRM+ was also implemented in 2009, and Dave is extremely satisfied with what it already delivers; “One of the problems we do have as a business is that everyone gets emails, and it's difficult to make information publicly available to everybody else. CRM+ has been rolled out in part and has some successes, certainly within the projects side of the business, and it has helped communication generally.”
Benefits through updates
Since going live, Lawtronic has implemented several version updates, with each one delivering further savings and the update process itself becoming even more streamlined. Dave commented; “I'm one of the early upgraders. Depending on timing, sometimes it does not suit us to do it immediately, but we've kept up with the new releases, and generally it's been an easier path in more recent times than perhaps it was a few years back. There’s been quite a few enhancements over the years that I’ve had some input towards. Advanced Serial Tracking has been a huge benefit to the business, and has ended up being an everyday operation that people don’t even have to think about. Landed costs is a relatively new introduction, but as we import significant amounts of stock from overseas the additional costs incurred from importing it makes a big impact in the overall material cost. This is an area that wasn’t being captured before, but will make our decisions a lot easier going forward.”
Growing with the business
With the company having more than doubled over the last decade, new staff have needed to learn the system, but with a combination of 123Insight training courses and in-house training they are up to speed very quickly; “If you go back to 123Insight's core values it has always been very easy for people to pick up and use. We do send people on training, but a lot of the smaller, less regular users we've trained in-house and they’ve picked it up very quickly. I still think that's a core reason to use 123Insight.”
Good support is paramount for mission-critical systems such as MRP, and Dave has been very pleased with the assistance he’s received over the years; “Support has always been very good. There’s a good team there - people that are experienced in dealing with day-to-day problems. It's a fairly slick system setup. If we report any issues staff come back to us very quickly.”
See 123Insight in action
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