Executive Summary
A leading Polish producer of construction chemicals, operating since 1991, successfully completed a strategic upgrade of its long-standing integrated ERP software. The primary objective was to strengthen competitive positioning by enhancing customer experience, which required significant modernization of internal operations.
This overhaul focused heavily on the IFS Manufacturing module, resulting in marked improvements in warehouse management and shop floor communication. The deployment centralized control over material flow, production execution, and shipment scheduling.
Key outcomes included the introduction of a task-oriented workflow management approach leveraging the IFS pallet-handling system, the elimination of manual paperwork, and the establishment of immediate, online reporting via wireless QR code terminals. This technological leap streamlined operations, allowing production alterations based on real-time sales data, ultimately improving overall shipment efficiency and output metrics.
30
Vehicles/Day Peak
210
Employees
500
Trade Partners
10%
Market Share
Key Business Outcomes
Enhanced Logistical Performance and Throughput
Shipment efficiency significantly improved, leading to the company sending out 30 vehicles a day during peak season, which is noted as being more than before the solution deployment. This efficiency was supported by new scheduling processes and the accurate verification of pallets prior to shipment.
Major Warehouse Management and Inventory Control Gains
Warehouse operations saw crucial improvement through the shift to online reporting, which included the immediate logging of manufactured items, benefiting shipment scheduling. The introduction of a "pallet" unit and associated reporting processes helps accurately reflect inventory, reduces the risk of taking items from an incorrect batch or location, and leads to more organized warehouse work.
Improved Financial Metrics and Stock Efficiency
The upgrade delivered tangible financial benefits, including a reduction of stock, improved availability of funds, and better space allocation alongside improved stock rotation.
Accelerated Internal Communication and Workflow Integration
The upgrade resulted in faster communication in the production area. Manufacturing requirements were streamlined, enabling production schedules to be altered as soon as data is processed in sales, ensuring a responsive manufacturing process.
Increased Workflow Efficiency and Customer Service
The implementation increased the overall efficiency of workflows and improved customer service through the deployment of a B2B solution for inventory browsing and ordering, and the introduction of paper-free documentation processing for commercial terms requests.
Background & Challenges
The Company, a specialist in elevation systems and construction chemicals, has maintained a strong market presence in Poland since 1991, holding approximately 10% of the market share for thermal insulation solutions and collaborating with nearly 500 trade partners. Employing about 210 people, the organization relied on the integrated ERP suite (IFS) for management since 2001.
Despite this history with the system, the board recognized a pressing need to upgrade to a newer version of the solution. The core drivers centered on maintaining high quality and competitive pricing, and crucially, enhancing customer experience.
Legacy ERP Constraints
The company had been operating on an older version of the IFS ERP system implemented in 2001. The legacy environment lacked modern capabilities such as real-time analytics, mobile accessibility, and integration with advanced warehouse technologies. As a result, operational efficiency was constrained, and the system could not fully support the company's growing need for agility and continuous process optimization.
Warehouse Inefficiencies
Warehouse operations were heavily dependent on manual data entry and outdated processes, resulting in limited visibility into material movements and stock levels. This created challenges in maintaining compliance with FEFO (First Expired, First Out) rules—critical for managing materials with expiration dates. Inaccurate or delayed updates often led to discrepancies between physical and system inventories.
Shop Floor Communication Gaps
Communication between the shop floor and central management systems relied on manual reporting, which delayed the flow of production data. Operators recorded key metrics such as material usage, production completion, and downtime on paper or through basic spreadsheets before transferring the information into the ERP. This lag disrupted real-time visibility and decision-making.
Need for Enhanced Customer Experience
In a competitive market, maintaining product quality and price competitiveness was no longer sufficient—the company needed to deliver a superior customer experience. Clients increasingly expected faster response times, more accurate order tracking, and consistent delivery performance. Process inefficiencies in warehouse and production workflows created bottlenecks that directly impacted customer satisfaction.
Solution & Approach
The selected solution involved a comprehensive upgrade to a new version of the integrated ERP system (IFS), retaining original system functionality where possible. To ensure a successful transition, the project prioritized strategic changes within the IFS Manufacturing and Distribution modules.
The first crucial step was remodeling existing business workflows, followed by the re-implementation of the application tailored to these new processes. A task-oriented workflow management approach was deployed, specifically utilizing the specialized IFS pallet-handling system functionality.
Workflow Remodeling
Established standardized rules for warehouse operations and defined necessary changes to manufacturing reporting procedures.
Pallet-Handling System
Deployed task-oriented workflow management using specialized IFS pallet-handling functionality for accurate material tracking with a new "pallet" unit.
FEFO Compliance
Mandated shipments to adhere strictly to FEFO (First Expired, First Out) rule to standardize material outbound flow and maintain product quality.
Real-Time Digital Framework
Established framework for digital, real-time handling of warehouse activities, material movements, and production reporting for effective MRP.
Implementation by Department
The implementation focused on achieving full digitalization and integrating the physical flow of materials with the core manufacturing system, providing real-time data crucial for MRP, Shop Orders, and Production Scheduling.
Warehouse & Logistics
- Deployment of wireless QR code reader terminals for improved online reporting of warehousing tasks
- Data input shifted from typing to entry via terminals by warehouse workers
- New "pallet" unit and reporting processes for all pallet transfers introduced
- Request system for terminal operators implemented to reduce downtime
- Pallets now verified before being sent out
Manufacturing
- Materials delivered to specific, designated warehouse locations for respective departments
- Products received from manufacturing on the spot and immediately moved to locations
- Actual time for specific tasks logged and compared against established standards
- Communication streamlined, allowing production alterations as soon as sales data is processed
Sales
- Introduction of "on-the-fly" valuation process
- Paper-free documentation processing and approval of commercial terms requests
- Field sales representatives involved in both drafting and executing customer orders
Customer/B2B
- B2B online web portal enabling customers to browse inventory and place orders
- Portal allows customers to track order/shipment status
- Easy access to information on issued invoices and processed payments
Subsidiary (Ukraine)
- Solution implemented in the company's subsidiary in Ukraine
- Covering financials and distribution modules
Results & Metrics
The system upgrade yielded numerous benefits centered around efficiency, accuracy, and operational control:
Efficiency
Shipment efficiency improved, resulting in the company sending out 30 vehicles a day during peak season, more than before deployment.
Data Accuracy & Accountability
Paperwork eliminated. Immediate logging improved shipment scheduling. Reduced risk of taking items from incorrect batch. Management can analyze worker efficiency.
Warehouse Metrics
Operations notably improved through online reporting. Accurate pallet tracking makes it easier to find the right item. Operations became more organized.
Business Impact
Reduction of stock, improved customer service, improved availability of funds, and improved efficiency of sales representatives.
Management Control
The Ukrainian subsidiary implementation enabled management to gain full transparency into, and control over, business processes across all locations.
Best Practices
The successful implementation highlighted several key best practices for warehouse management transformation:
Prioritize Workflow Remodelling
Before re-implementing the core application, remodeling business workflows facilitated smoother system integration.
Embrace Task-Oriented Workflows
Implementing task-oriented systems like pallet handling and request systems reduces downtime and shifts responsibilities appropriately.
Digitalize Immediately
Moving to online reporting via terminals and QR codes eliminates paperwork and ensures immediate data logging.
Integrate Sales and Production
Streamlining communication so production can be altered as soon as sales data is processed significantly improves responsiveness.
About ESS
Enterprise Software Solutions Inc. (ESS) is a premier enterprise resource management (ERP) implementation and support company, recognized for delivering successful projects across manufacturing, distribution, and service verticals for over 15 years.
As a dedicated IFS Gold Partner, ESS specializes in comprehensive ERP implementation and migration services across manufacturing, construction, and service sectors. With over 50 years of combined team experience, ESS has successfully implemented and customized ERP systems for industries including service, engineering, manufacturing, and distribution.
Core Services
- Full-cycle ERP implementation
- Post-implementation support
- Third-party integration
- Data migration solutions
Technical Proficiency
- Legacy to modern ERP bridging
- RESTful APIs & IFS customization
- Microsoft, SAP, BAAN integrations
- Predictive maintenance enablement