SYSPRO Case Study

• Functional Applications - Enterprise Resource Planning Systems (ERP)
• Functional Applications - Inventory Management Systems
• Analytics & Modeling - Predictive Analytics

• Automotive

• Warehouse & Inventory Management
• Quality Assurance
• Business Operation

• Inventory Management
• Predictive Replenishment
• Process Control & Optimization

• Software Design & Engineering Services
• System Integration

The company had been utilizing a database package from RealWorld, and while it served basic needs, it lacked a manufacturing module with inventory tracking capabilities. With more than 5,000 individual part numbers in stock, forecasting and inventory control are vitally important to XRP’s ability to fill orders on a timely basis. In addition, to inventory capabilities, XRP had to take cost into consideration. As a relatively small business of just over 30 employees, the company needed to go with an ERP solution that could bring world-class results for the long run but within a small-business budget.

XRP, based in South Gate, California, manufactures high performance fittings and adapters for the racing market. According to Jarrod Barker, XRP IT Manager, “XRP’s products consist of fluid transfer components that transport fuels and oils from point ‘a’ to point ‘b’ in auto, boat and other racing engines.” Founded in 1989, XRP has steadily grown thanks to an outstanding reputation for price competitiveness and “aerospace type” product quality. Today, the company fills an average of 300 orders per month. While some are one time only orders, the bulk represents repeat business from US and international dealers.

After an extensive software search that lasted 18 months, XRP settled on SYSPRO software in 2002. “We liked the whole package,” says Barker. “SYSPRO was the best fit…It offered a lot.” He also liked the fact that SYSPRO USA was headquartered just “down the road” in Costa Mesa. Today, more than half of the full-time employees at XRP use SYSPRO software on a full-time basis. When, in late 2005, SYSPRO announced a new Forecasting module as part of its new Inventory Optimization solution, XRP was one of the first companies to go for the module. The SYSPRO Forecasting module performs forecasting at the item/warehouse level as well as aggregations of forecasting to higher levels as defined by Groupings and Families. It enables the use of a variety of forecasting algorithms, including predefined algorithms or a competition method where the system will use the mathematical formula best suited to an item’s historical sales. The SYSPRO Forecasting module takes into account seasonality and also removes outliers and anomalies. Module users have the ability to define calendars, forecast horizons, monthly or weekly time buckets and to override forecasts to accommodate market intelligence. The module stores three or more years of history and facilitates dynamic analyses with tabular and graphical reports.

• After using the SYSPRO Forecasting module, Barker gives it “two thumbs up.” “With our former software package, our inventory would often go negative. However, SYSPRO software has given us superlative inventory management, among many other pluses.” Barker explains that the make to stock company forecasts three months out, and here the SYSPRO Forecasting module plays a key role. “The module looks at past year sales, using a forecasting algorithm that factors in a growth figure of ten percent. It really works.”
• Additional benefits that XRP reaps from its boosted inventory control are improved quality control and, thus, customer service. By having increased and accurate visibility into their inventory, XRP is able to better manage their strict quality control processes. In turn, the company is able to continue to provide customers with an exceptional product in a shorter time frame.
• Summarizing XRP’s experience with SYSPRO, Barker simply says, “SYSPRO has enabled us to speed order turnaround by bringing greater efficiencies to order management, forecasting and the manufacturing process itself.”

• The company fills an average of 300 orders per month.
• The forecasting algorithm factors in a growth figure of ten percent.