Case Studies > SYSPRO Case Study TELEMARK

SYSPRO Case Study TELEMARK

Customer Company Size

SME

Region

America

Country

United States

Product

SYSPRO ERP
SYSPRO Product Configurator
SYSPRO STARS Implementation Methodology

Tech Stack

Microsoft Windows NT
HP Pentium 3

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Customer Satisfaction
Cost Savings

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Functional Applications - Product Data Management Systems

Applicable Industries

Paper & Pulp

Applicable Functions

Business Operation
Quality Assurance

Use Cases

Inventory Management
Process Control & Optimization

Services

System Integration
Software Design & Engineering Services

About The Customer

Telemark Corporation, the nation’s leading provider of custom printed ATM receipts, POS rolls, parking tickets, note/scratch pads, and direct mailers, is a privately held corporation located in Sturgis, Michigan, with annual revenues of approximately $9 million. Telemark offers 30 different product lines, with the majority of the firm’s business being the printing of automatic teller receipts. The next biggest market for the company is the printing of parking tickets. Each order is a custom order because every individual form must be imprinted with the logo of a bank, municipality, or institution. The company fills approximately 900–1,000 orders per month, and the average order size is less than $1,000. With the abundance of small orders, the burden of accurately tracking each order is vital. Because Telemark sells through a network of resellers, the company also has to be able to respond to numerous order status inquiries.

The Challenge

The company had been using a broad-based ERP system, but decided to go with an industry-specific software package that addressed full quoting, accounting, material planning and shop floor data collection. Unfortunately, the system never delivered as promised. It became necessary to verify the accuracy of quotes, and there were long delays before a “good” receivables report could be obtained and month-end closes could be executed. “Our accounting staff ballooned to nine persons, and it still took two and one-half to three months to do a month-end close. Plus, all of my employees were demoralized, overworked and completely ‘gun-shy’ of anything having to do with computers,” said Tom Thomasma. Telemark subsequently took the software vendor to court and won, but the settlement included full surrender of the software after three months. In desperation, Thomasma contacted Automation Plus, a local software reseller and openly pleaded, “Find me a new system.” During the initial discussion, John Wiedlea, Automation Plus President, asked Thomasma to outline his “vision” of how the new computer solution should interact with the various segments of his business. Wiedlea also questioned Thomasma on his expectations regarding costs, productivity and length of implementation. Wiedlea also insisted that the two draft a written plan, replete with milestones and which would also contain a look into the future to assess the ability of the system to handle anticipated growth.

The Solution

Automation Plus recommended a solution consisting of SYSPRO ERP software running on top of Microsoft Windows NT on an HP Pentium 3 computer. The fact that SYSPRO software offered a choice of integrated, scalable accounting, manufacturing, and distribution modules was a big plus. In addition, SYSPRO also offered a comprehensive implementation strategy, one that would enable Telemark to streamline various business processes during the implementation cycle. According to Automation Plus Vice President, Anne Wiedlea, “We determined that Telemark needed a system that would allow the company to take and hold a large number of order specifications vital to order accuracy. We worked closely with the Telemark team to make sure the SYSPRO Product Configurator would hold all specifications needed. Once this was confirmed, we knew SYSPRO was the system to address Telemark’s specific needs, allow growth and, most importantly, address Tom’s vision of what he wanted his company to be able to do for his customers, both now and in the future.” The first phase of the SYSPRO implementation addressed accounting. With the use of the SYSPRO STARS Implementation Methodology, Automation Plus was able to get the Telemark team converted from the old industry-specific package to a solid foundation of SYSPRO within the three months period granted to Telemark by the courts. “After the initial implementation, we addressed a second phase, which included the SYSPRO Product Configurator and Work in Process tracking,” says Wiedlea.

Operational Impact

Thomasma says getting rid of the old system was like “getting rid of a bad toothache.” Describing the implementation of the new system, which, today, is utilized by 24 employees, he notes, “There were no financial surprises, and, in fact, the cost of the implementation has more than been offset by an increase in productivity.”
When we switched to SYSPRO, we were doing the same volume with 104 full-time employees. Now, we’re doing basically the same volume with half the number of employees. We close on a Friday, and by the following Monday at 10 a.m., we’re into the new month.
The new system has also helped Telemark become more lean by adjusting the inventory levels of blank forms. While the company used to ‘guesstimate’ stock levels, the historical records provided by the new system enable it to gauge future orders and adjust inventory levels accordingly.
Most importantly, prior to the implementation of the system, Telemark had been experiencing financial problems. “Now, we’re profitable,” says Thomasma. “The system helped us get there.”
In fact, in a follow-up letter to Automation Plus, he states, “Please let your people know how pleased I am with the SYSPRO solution. In fact, our satisfaction is best summarized by my accountant who simply says, ‘I love this system.’”

Quantitative Benefit

Telemark’s inventory turns went from three to nine per year.
Receivables have been slashed to 21 days.
The cost of the implementation has more than been offset by an increase in productivity.
The company is now doing the same volume with half the number of employees.