Zwilling J.A. Henckels – A cutting-edge supply chain management solution delivered by IBS
By utilizing IBS software, fine cutlery firm J.A. Henckels has a complete, integrated solution, where systems use the same language and data.
Company background
For over 270 years, Zwilling J.A. Henckels of Germany has been a manufacturer and distributor of kitchen tools, flatware and fine cutlery, where it is also the worldwide leader.
New York-based J.A. Henckels USA is its largest foreign subsidiary and assembles and distributes products to the US market. The company's knives are of the highest quality and are preferred by many professional chefs as well as 'serious home cooks.'
J.A. Henckels USA employs 110 of the Group's more than 1,600 employees worldwide.
Business issues
J.A. Henckels products are sold in over 100 countries around the world. The company operates from a single location in the US with about 1,800 accounts representing over 10,000 shipping retail locations. With 2,400 order lines per day, the volume of information is staggering. J.A. Henckels needed to ensure that any new IT solution could easily and instantaneously handle this immense data volume.
The company lacked access to a sharp view of its daily financial results and it could take up to several days to run the appropriate reports.
With a business that handles such large volumes, this was an unacceptable situation.
For audit purposes, it was important to register the details behind each order.
Every transaction needed tracing from order processing, through warehousing and dispatch all the way to the customer. Tracking products was also of vital importance to the company's warehouse operation. Information regarding purchase orders, goods acceptance, bin location and customer orders was tedious at best.
In order to remain cutting-edge and operate a successful business, J.A. Henckels needed to find a completely integrated and comprehensive software solution.
We need tools and a good infrastructure to be successful. IBS software is part of that infrastructure. Without it, we could not operate as a business.
John Henckel
CFO and VP Logistics
Zwilling J.A. Henckels
Solution and capabilities
After an extensive, six-month search, J.A. Henckels finally selected IBS' integrated supply chain management solution – IBS ENTERPRISE. IBS had the edge over its competitors and ENTERPRISE was the right tool for the job.
There were three key factors in J.A. Henckels choice. The intelligent functionality of the IBS solution was a good match for J.A. Henckels' consumer durables business. J.A. Henckels was most impressed with IBS' comprehensive implementation plan and thirdly, the post implementation support offering was second to none. IBS was a perfect fit.
Consumer durables distributors like J.A. Henckels have to keep ahead of competitors in a sector where Time is valuable and where inventory levels and delivery times need to be kept to a minimum. Moreover, they must drive down distribution and handling costs to maintain profits. The alternatives cost time – and the goodwill of the retailers who depend on them. In this business, Time is literally money.
IBS software for e-business, financial management, distribution, warehouse management with radio frequency support and production control were chosen to reduce costs, shorten lead-times, improve customer service, provide greater efficiency in internal and external processes, and make available excellent management information.
IBS software for distribution supports time axis planning – an invaluable and efficient tool used extensively by J.A. Henckels.
When processing an order, the system indicates what is 'available to promise' for an item, per warehouse, on a daily, weekly or monthly basis. Each sales order line is automatically checked against the time axis.
The Internet connection functionality of IBS NetStore allows J.A. Henckels' sales representatives to enter orders, gain instant access to product information, stock availability, order status and accounts receivable details.
Benefits and value
A direct benefit of using IBS software is the resultant increase in order-taking efficiency.
The company has doubled the size of its business in the last five years, without needing to increase the number of sales support staff. Order entry personnel are now able to work as customer support agents, with a better focus on sales rather than on administrative chores.
customer service has dramatically improved. One recent example is where a new product was introduced and sales demand was exceeding production capacity.
Thanks to IBS, J.A. Henckels' accounts can now find out what is available to ship on a daily or weekly basis. This has, in turn, allowed the company's customers to better plan their inventory orders and distribution – an example of excellent supply chain collaboration.
IBS' time axis feature has further benefited J.A. Henckels, enabling the company to enhance and maximize customer service through keeping its delivery promises.
Even with the large volumes being processed, J.A. Henckels can now see a perfect audit trail for every transaction created, on a daily basis. This integration allows the company to view its entire business on-line – an essential element for a consumer durables business.
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