Plex Systems > Case Studies > Hausbeck Pickles and Peppers Transforms Operations with Cloud-Based ERP for Enhanced Inventory Management

Hausbeck Pickles and Peppers Transforms Operations with Cloud-Based ERP for Enhanced Inventory Management

Customer Company Size

Mid-size Company

Region

America

Country

United States

Product

Plex Smart Manufacturing Platform

Tech Stack

Cloud-based ERP

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Customer Satisfaction
Productivity Improvements

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Platform as a Service (PaaS) - Data Management Platforms

Applicable Industries

Food & Beverage

Applicable Functions

Quality Assurance
Warehouse & Inventory Management

Use Cases

Inventory Management
Predictive Quality Analytics
Process Control & Optimization

Services

Cloud Planning, Design & Implementation Services
System Integration

About The Customer

Hausbeck Pickles and Peppers is a prominent player in the food and beverage industry, specializing in the production of pickles and peppers. The company supplies its products to major fast-food chains such as Subway, Burger King, Sonic, Domino’s Pizza, Papa John’s, Pizza Hut, Taco Bell, and KFC. Located in Saginaw, Michigan, Hausbeck Pickles and Peppers operates a factory that produces an impressive volume of products daily. On average, the factory produces 400,000 pounds of pickles or peppers each day, amounting to approximately 10 billion pickle slices, 20 million pounds of banana peppers, and 13 million pounds of jalapeños annually. Despite its success, the company faced challenges in managing its business processes, particularly in inventory management and production tracking. With no dedicated IT department or expertise in ERP systems, Hausbeck sought a solution to streamline its operations and improve efficiency.

The Challenge

Hausbeck Pickles and Peppers faced significant challenges in managing their inventory and production processes. The company relied heavily on paper-based processes, which limited visibility into their largest asset, inventory. This lack of visibility made it difficult to manage inventory costs effectively throughout the production process. The situation was exacerbated by a failed mock audit, highlighting the need for better control over ingredient tracking and traceability. The CFO realized that the data from their accounting system was not aligning with actual inventory costs, leading to discrepancies and missing inventory. The company used QuickBooks for accounting and another system for inventory, but these systems lacked integration and costing capabilities. Additionally, tracking and tracing ingredients through production was cumbersome and time-consuming, relying on multiple spreadsheets and manual processes.

The Solution

To address the challenges faced by Hausbeck Pickles and Peppers, the company decided to implement a cloud-based ERP system. Recognizing the need for a consolidated solution, they hired Russ Edwards as the ERP Manager and Cost Accountant to lead the initiative. Edwards evaluated various ERP systems and determined that a cloud-based solution would be ideal, given the company's limited resources and budget constraints. After careful consideration, Hausbeck chose the Plex Smart Manufacturing Platform for its comprehensive traceability capabilities. The implementation process was smooth, with the team relying heavily on Plex's Customer Success and Support (CSS) experts. The implementation was completed in six months, and the company benefited from not having to transition from an existing ERP system. The new system allowed for real-time production tracking, eliminating the delays and manual processes previously involved. Employees, even those with limited technological skills, found the system easy to use, enhancing overall efficiency.

Operational Impact

The implementation of the Plex Smart Manufacturing Platform significantly improved inventory accuracy for Hausbeck Pickles and Peppers. The company achieved a remarkable 99.6% inventory accuracy, a substantial increase from the previous 70%.
The new system provided tighter controls and visibility, resulting in $500,000 in inventory write-off savings. This improvement in inventory management was crucial for the company's financial health.
Quality management processes were digitized, allowing for comprehensive traceability and compliance with customer specifications. This was particularly important for maintaining strong relationships with major clients like Subway.
The ERP system enabled real-time production tracking, capturing production data as it happened. This was a significant improvement over the previous method, where production was recorded days later and manually entered into spreadsheets.
The ability to access traceability information quickly and efficiently was demonstrated during a mock recall, where the company could identify ingredients within minutes, showcasing the system's effectiveness in audit situations.

Quantitative Benefit