Stentor Music finds a perfect pitch with IBS modules for Financials, Distribution and Business Intelligence
After 23 years using the same bespoke system, it would take something special to make Stentor Music change its software tune. But with faster lead times, greater supply chain visibility and lower resource costs, IBS has already added more strings to the company's bow.
Company background
Stentor is one of the world's leading manufacturers of orchestral stringed musical instruments. The company has its global distribution center in Reigate, UK as well as a 100% owned manufacturing facility in China.
In addition, the group of companies includes Touchstone Tonewoods, which distributes tools and materials for instrument-makers and repairers and Ozark, a major brand of acoustic guitars and other folk instruments.
Stentor's customers include music shops, instrument makers and repairers and distributors. Robert Bogin is a Director of Stentor Music and he explains the company's decision to implement IBS ENTERPRISE modules for Financials, Distribution and Business Intelligence.
"We had been using a system developed specifically for us since 1982. It has since run on a range of IBM mainframes and it has always been very reliable. However, after such a long time it was becoming much harder and more expensive to support and we felt it was time to bring the systems up to date with a modern ERP solution."
Easy choice
The reliability of the IBM systems encouraged Stentor to continue with that hardware platform. Mr Bogin continues, "We looked at a number of software applications, including Sage and SAP, but were particularly impressed with IBS because of the strength of its supply chain execution capabilities. Other ERP systems were essentially standard financial applications with extra functionality tagged on," says Bogin. "However, increasing the efficiency and profitability of our supply chain was really what we were looking for, which made IBS the clear and obvious choice."
Staffing issues solved Stentor went live on IBS ENTERPRISE in May 2005 and quickly started to feel the benefits of increased visibility, accuracy and speed. "Our busiest time of the year by far is the period between September and November.
In the past, because of the lack of visibility in our supply chain, we have always had to make a decision between employing and training new staff to meet demand, or trying to cope with the staff we have in order to avoid carrying these costs through the rest of the year," he says.
Bogin also points out Stentor's accounts department is now so streamlined that natural attrition has brought about a reduction in personnel. "Thanks to IBS, we are now simply able to take on temporary staff to cover our busy periods. In addition, our accounts department is now so streamlined that natural wastage has brought about a reduction in personnel."
IBS ENTERPRISE has significantly speeded up our supply chain processes, allowing us to generate faster, more reliable and more accurate deliveries. This has had a positive effect on our customer relations.
Robert Bogin
Director
Stentor Music
Unique challenges
Stentor's business creates a number of unusual challenges for many software systems. "A violin is like a living creature – every one is different," says Mr Bogin, adding, "Instruments are individually graded, based on the quality of the wood and the craftsmanship.
However, from manufacturing in the Far East to delivery here in the UK, that grade could change – up or down! This is a very difficult concept for a software system to handle, but IBS has shown the flexibility to be able to do it."
He continues, "In fairness, other manufacturers said they could also do the things that IBS can, but they would be extra and this would be reflected in the cost. IBS seemed to have a commitment to making sure the system delivered what we needed for our benefit, not theirs."
The system went live exactly one month before Stentor's year-end. "We shut down the old system and did the year end on IBS software. All I can say is that it worked. It all went very smoothly," he says.
Increased supply chain visibility
"From the very start we felt that IBS was going to be a good company to work with. The product could clearly deliver everything we needed and the consultants have been really committed to ensuring we achieve our objectives with the system," he says.
"IBS ENTERPRISE has created a consistency throughout our supply chain that means we are no longer reliant on individual people for important information. We have significantly speeded up our supply chain processes, allowing us to generate faster, more reliable and more accurate deliveries. This has had a hugely positive effect on our customer relations."
In order to eliminate the possibility of picking errors and to maintain the integrity of the stock holding, Stentor is now looking to enhance its order processing through the use of barcode scanning in the company's warehouse operation.
Real-time information
Thanks to additional functionality, such as the creation of a Virtual Private Network, Stentor's staff can now read, access and enter information into IBS ENTERPRISE from remote locations using a wireless connection.
"From the warehouse in Reigate to a taxi on the streets of Shanghai, we are able to access real-time information on any aspect of our supply chain. It is this level of practical functionality that has really helped us increase efficiency and reduce operational costs in our business."
Looking to the future, Stentor is working on a forecasting system that will help further increase efficiency in the supply chain. "The forecasting system in IBS Enterprise tends to rely on suppliers supplying on time, not something we can ever rely on in our industry. However, IBS has the flexibility to help us to develop a better way to deal with uncertain deliveries, and virtually anything else we can throw at it. This has been the main advantage of IBS. Whatever the process, whatever the issue, IBS can find a way to handle it," concludes Robert Bogin.
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