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Plex Systems > Case Studies > FloraCraft's Transition to Plex Manufacturing Cloud Enhances Operational Efficiency and Revenue Growth

FloraCraft's Transition to Plex Manufacturing Cloud Enhances Operational Efficiency and Revenue Growth

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Customer Company Size
Mid-size Company
Region
  • America
Country
  • United States
Product
  • Plex Manufacturing Cloud
  • WHSe-LINK
  • MXP ERP
Tech Stack
  • Cloud Computing
  • ERP Systems
Implementation Scale
  • Enterprise-wide Deployment
Impact Metrics
  • Productivity Improvements
  • Revenue Growth
  • Customer Satisfaction
Technology Category
  • Platform as a Service (PaaS) - Data Management Platforms
  • Functional Applications - Enterprise Resource Planning Systems (ERP)
Applicable Functions
  • Business Operation
  • Warehouse & Inventory Management
Use Cases
  • Inventory Management
  • Process Control & Optimization
  • Supply Chain Visibility
Services
  • Cloud Planning, Design & Implementation Services
  • Training
About The Customer
FloraCraft, based in Ludington, Michigan, is a family-owned business that has been operating for 70 years. Initially serving the floral arrangements sector, the company expanded into the craft market, producing children's products and educational items. FloraCraft has built a reputation for quality and innovation, which has allowed it to reinvent itself and focus on mass-market production. This strategic shift has led to a significant increase in inventory and product lines, securing additional shelf space with large-scale retailers. With a portfolio of 3,500 SKUs, FloraCraft has fortified its logistics and supply chain capabilities to meet the demands of its expanded operations. The company views IT as a core component of its business strategy, aiming to leverage technology to improve processes, create competitive differentiation, and drive business growth.
The Challenge
FloraCraft faced challenges with its legacy ERP system, which was unable to keep up with the company's growing needs. The existing system, MXP ERP, provided limited visibility into operational capabilities and financial status, and the warehouse management system, WHSe-LINK, had a lag time in data updates. The company needed a more integrated and real-time solution to manage its expanded product lines and increased lead times for overseas manufacturing operations. Additionally, the manual verification process for universal product codes (UPCs) was prone to errors, which was a significant issue given the company's 3,500 SKUs.
The Solution
FloraCraft implemented the Plex Manufacturing Cloud, a true cloud solution that provides always-current functionality without version control issues. This transition allowed FloraCraft to eliminate the need for managing additional servers and software, reducing overhead and simplifying ERP licensing management. The company designed a comprehensive testing and training plan to ensure a seamless cutover and protect production integrity. Intensive training was provided to the plant floor workforce, enabling them to effectively use the new system despite initial concerns about their IT skills. The Plex Manufacturing Cloud introduced automated scanning and verification of UPC codes, eliminating manual errors and ensuring 100% accuracy. The system also provided real-time data and insights, allowing FloraCraft to make informed decisions about product development and operational efficiency.
Operational Impact
  • FloraCraft's transition to the Plex Manufacturing Cloud resulted in significant operational efficiency improvements, leading to the company being named Walmart's Supplier of the Year in 2014.
  • The implementation of the Plex system allowed FloraCraft to maintain a six-day lead time with Walmart, ensuring timely order fulfillment and inventory management.
  • The real-time data and insights provided by Plex enabled FloraCraft to make better and faster decisions about product development and operational strategies.
  • The automated verification process for UPC codes eliminated manual errors, ensuring 100% accuracy across FloraCraft's 3,500 SKUs.
  • The Plex Manufacturing Cloud facilitated the creation of production dashboards, motivating staff with real-time data on rates per hour, fill rates, and shipping metrics.
Quantitative Benefit
  • Revenue increased by 60% with no increase in labor hours.
  • SKU placement with Walmart increased by 60%.
  • Financial reporting accuracy improved, allowing cost pinning to one tenth of a cent.

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