Schwarzkopf Sharpens Its Style With Sage 500 ERP
Company Size
11-200
Region
- America
Country
- United States
Product
- Sage 500 ERP
Tech Stack
- Wireless Internet Connection
- Bar Coding
- Handheld Computers
Implementation Scale
- Enterprise-wide Deployment
Impact Metrics
- Cost Savings
- Productivity Improvements
Technology Category
- Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Industries
- Consumer Goods
Applicable Functions
- Sales & Marketing
- Warehouse & Inventory Management
Use Cases
- Inventory Management
- Supply Chain Visibility
Services
- System Integration
About The Customer
Schwarzkopf, Inc is a company that specializes in hair coloring and styling products. The company was founded in 1898 by Hans Schwarzkopf who opened a small drugstore in Berlin, where he developed a powder shampoo sold in every drugstore in the city. In 1927, he introduced the world’s first liquid shampoo and later opened the very first training center for hairdressers. He also created Onalkali, the world’s first nonalkaline shampoo, which became the prototype for all modern shampoos. Today, Schwarzkopf offers a complete line of hair care products through salons in 80 countries. Its innovative care, color, styling, and perm products are developed through partnerships with professional hairdressers and can be admired on the high-fashion catwalks of London, Paris, Milan, and New York. The company is based in Culver City, California and has two locations with a total of 75 employees.
The Challenge
Schwarzkopf, a hair care product company, was facing challenges with its mainframe system that was creating bottlenecks in order entry and processing, requiring excessive staff time, and hampering corporate growth. The company was in need of a system that was easy to use, flexible, and had the potential for future enhancements. The mainframe system was clumsy and hard to access, which led to inefficiencies in various departments including shipping, purchasing, and customer service.
The Solution
Schwarzkopf implemented Sage 500 ERP with financial and inventory management modules, plus integrated warehouse management system, bar coding, e-commerce, shipping, and an interface to handheld computers. Orders are now entered directly into Sage 500 ERP, either at headquarters or by sales reps in the field using handheld wireless computers. Invoices are bar coded, so picking can be done straight from the invoice. Invoices are also tied into the shipping manifest system. The purchasing department also saw efficiencies with one person now handling the workload formerly done by 2 1/2 full-time employees. Turnaround time for processing inventory has gone from four days to just a few hours, thanks to smooth integration between Sage 500 ERP and the warehouse management system.
Operational Impact
Quantitative Benefit
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