Sage > Case Studies > Luzenac Produces Talc for the World With Sage 500 ERP

Luzenac Produces Talc for the World With Sage 500 ERP

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Company Size
200-1,000
Region
  • America
Country
  • Canada
  • Mexico
  • United States
Product
  • Sage 500 ERP
  • Sage Fixed Assets Accounting
  • SAP® Crystal Reports for Sage 500 ERP
  • FRx
Tech Stack
  • IBM AS400
  • PeopleSoft
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Cost Savings
  • Productivity Improvements
Technology Category
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
  • Functional Applications - Inventory Management Systems
Applicable Industries
  • Mining
Applicable Functions
  • Discrete Manufacturing
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Manufacturing System Automation
Services
  • System Integration
About The Customer
Luzenac America, Inc. is a division of the Luzenac Group, which mines more than a quarter of the talc used around the world. Luzenac America manufactures half a million tons of talc a year at plants in Canada, the U.S., and Mexico. The company has ten locations and employs 450 people. The company was using a tier-one financial system (JD Edwards, now Oracle’s PeopleSoft) on an IBM AS400 to manage its operations. However, the system was complicated and unwieldy due to numerous layered customizations. It was easy to enter data but hard to extract usable information. Plus, the system was expensive to upgrade and required dedicated IS and IT departments for support.
The Challenge
Luzenac America, a division of the Luzenac Group, was using a tier-one financial system (JD Edwards, now Oracle’s PeopleSoft) on an IBM AS400 to manage its operations. However, the system was complicated and unwieldy due to numerous layered customizations. It was easy to enter data but hard to extract usable information. Plus, the system was expensive to upgrade and required dedicated IS and IT departments for support. The company was spending too much on the system, even for a company of its size. They needed a new system that could address most of their needs out of the box, wasn't buggy, and had superior warehouse and inventory management capabilities.
The Solution
Luzenac America decided to switch to Sage 500 ERP for all core financial applications, including general ledger, sales order, receivables, payables, and cash management. A Production Information Management System (PIMS), authored by Ironware Technologies, records production data and integrates seamlessly with the Sage 500 ERP Inventory Management, Inventory Replenishment, Sales Order, Accounts Payable, and Accounts Receivable modules. Sage 500 ERP automatically records inventory production into the Inventory Management module, maintaining real-time inventory data for finished goods. The company also uses the Sage 500 ERP Multicurrency Management module for automated fund conversion, which is an important timesaver for the company’s Canadian operations. Sage Fixed Assets Accounting, the fixed assets module for Sage 500 ERP, manages about $100 million worth of Luzenac assets.
Operational Impact
  • The company has better inventory management practices and is able to make better strategic decisions.
  • The efficiencies of the Sage 500 ERP Multicurrency Management module have saved the company time.
  • Sage Fixed Assets has helped the company streamline preparation of both its internal and tax books.
  • The drill-down abilities of the new system have made reporting easier and have shaved two days off the company's month-end closing process.
Quantitative Benefit
  • Sage 500 ERP is doing the same work as the previous tier-one product, but for only 75 percent of the cost.
  • The company has done two version upgrades since implementation, and they both came in on time and within budget.

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