Tyco Thermal Controls turns up the heat
When Tyco Thermal Controls chose IBS software for its European operations, its primary demands were ease of installation and system management, and a flexible system set-up.
Company background
Tyco Thermal Controls (TTC) is part of Tyco International, a vast, US-based, multinational organization. TTC manufactures and distributes products and services for heat management, leak detection, wiring and temperature measurement in industrial and construction markets.
TTC employs 2,000 people worldwide and some 400 people in Europe. The company's turnover runs between $400-$700 million depending on the size of its project-based business.
Business issues
Tyco Thermal Controls needed a new business system for its growing European operations.
The company wanted to link ten sales offices to its distribution facilities in Belgium and Sweden and its production facilities in the UK and Germany.
Major restructuring had taken place since Tyco International took the company over from Raychem. This change, combined with several acquisitions and the resulting rapid growth, heightened the need to replace a legacy system with new business software.
Each European installation needed to be implemented quickly and efficiently, while ensuring compliance with European business practices and laws, along with multi-currency and multi-lingual requirements. Simple and efficient user training was vital to adhere to short time-frames and to keep the business running without interruption.
Solution and capabilities
Even though the US operation was using a rival software system, TTC Europe decided to go with IBS' integrated supply chain management solution. IBS software had been successfully implemented in Scandinavia previously. The effectiveness and efficiency of the solution promoted the choice of IBS software as the new European IT solution to serve some 230 users.
TTC benefits from IBS' intelligent functionality. The multiple distribution concept provides the ability to ship orders to any customer from any TTC distribution center in Europe, with automatic inter-company transactions and accounting, in local language and currency.
The introduction of back-to-back sales and purchase orders with outside suppliers alleviates paperwork and human error. Furthermore, IBS software for product configuration enables TTC to link sales orders to manufacturing orders for made-to-order products.
The warehouse management module, with bar code scanning, radio frequency transmission of locations and products, automatic bin location and batch management has allowed TTC to optimize its warehousing operations.
Tyco Thermal Controls uses IBS' project module to manage its service business, where the company delivers not only the required products, but also carries out the installation.
Installation projects are much simpler using IBS software for project management thanks to the integrated nature of IBS software.
The transparency of the system means that information related to accounting, inventory, shipments, lead-times, manufacturing schedules, etc. specifically related to each installation, are all sourced at the push of a button. The project module is used by TTC companies across Europe.
To address TTC's specialized business requirements, customizations for a separate packing module to enhance the pick/pack capabilities for shipments, a cutting algorithm to help reduce the cost of scrapping unsellable cable reel lengths and the addition of product characteristics and test results to the batch information records were made.
Implementation
The installation and testing of the IBS solution was completed quickly. All of Tyco Thermal Control's European units are live with IBS software. Each implementation took just three months with a further three months of after-care service. For sales only units, implementation was accomplished in a mere month.
IBS consultants trained three functional business transaction specialists from TTC.
These specialists configured the system, defined how business processes were mapped in IBS software and trained the users. The users find the IBS solution easy to use and understand.
Benefits and value
TTC found IBS ENTERPRISE to be solid and reliable, while covering operations across Europe.
IBS software ensures that stock count discrepancies are minimized and shipping is flawless. Errors in the warehouse have disappeared resulting in increased customer satisfaction. Simultaneously, staff numbers have reduced while the overall business volume has grown.
IBS' project management module allows for tighter controls in managing the customer satisfaction and profitability of the turnkey project.
TTC's legacy system was so cumbersome that staff in the financial department were overworked and stressed. IBS software allows the staff to spend less Time processing and checking transactions, and instead concentrate on the business at hand, while eliminating overtime.
With the implementation of IBS software across Europe, Tyco Thermal Controls has been able to reduce staffing levels in the warehouses, improve customer service, planning and finance, and increase the number of transactions without increasing head count.
One of the great benefits of the integrated IBS solution is that the hardware platform is located in IBS' data center in Sweden.
This allows IBS personnel to provide support and maintenance, thereby reducing TTC's overall IT costs.
The fast pace of implementation has guaranteed Tyco Thermal Controls an accelerated Return on Investment.
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