Plex Systems > Case Studies > Plex Cloud ERP Improves Wolverine’s Quality 20 Percent, Reduces Inventory 30 Percent

Plex Cloud ERP Improves Wolverine’s Quality 20 Percent, Reduces Inventory 30 Percent

Customer Company Size

Large Corporate

Region

America
Europe

Country

United States
Germany

Product

Plex Manufacturing Cloud ERP

Tech Stack

Cloud ERP

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Productivity Improvements
Cost Savings
Customer Satisfaction

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)

Applicable Industries

Automotive

Use Cases

Inventory Management
Process Control & Optimization

Services

System Integration

About The Customer

Wolverine Advanced Materials is a supplier of vibration damping and sealing materials. The company experienced a significant increase in sales, growing by 10 to 13 percent over a two-year period. This growth overwhelmed their existing manual systems for managing raw material orders, inventories, shipping, and scheduling. Wolverine operates manufacturing facilities in Virginia, Florida, and Germany, and sought to implement a manufacturing-based ERP system to support their operations. The company aimed to transition to lean, demand-driven manufacturing to improve competitiveness, particularly against offshore competitors targeting their high-margin parts. Wolverine's complex operations involve a seven- to eight-layer bill of material with multiple processes and exit points, requiring careful sequencing of orders to optimize production.

The Challenge

Wolverine Advanced Materials faced significant challenges as their sales grew by 10 to 13 percent over a two-year period. Their existing manual systems for managing raw material orders, inventories, shipping, and scheduling could not keep up with the increased demand, leading to extended lead times of up to 10 weeks. The company needed to transition to a lean, demand-driven manufacturing model to remain competitive, especially against offshore competitors targeting their high-margin parts. Previous attempts to implement ERP systems had failed, partly due to resistance from mature employees unfamiliar with computers. The company required a solution that could streamline operations, improve inventory accuracy, and reduce lead times.

The Solution

Wolverine Advanced Materials implemented the Plex Manufacturing Cloud ERP system to address their operational challenges. The ERP system was deployed across their manufacturing facilities in Virginia, Florida, and Germany. The implementation began with the Purchasing function, focusing on raw material ordering and inventory management to ensure the right materials were available at the right time. This was followed by the Production Control and Scheduling functions. The Plex system provided real-time data entry at all workcenters on the shop floor, eliminating paper handling and improving efficiency. Employees, initially resistant to change, embraced the user-friendly Plex screens, facilitating a smoother transition. The ERP system enabled Wolverine to achieve accurate perpetual inventory, reduce lead times to five weeks, and double their aftermarket business. The system also allowed for efficient grouping of customer orders by material, improving productivity and reducing costs. The packaging process was customized to ensure accurate piece counts, reducing overages and allowing for the redeployment of staff.

Operational Impact

Wolverine achieved extremely accurate perpetual inventory, significantly improving their inventory management processes.
The implementation of Plex Cloud ERP reduced lead times from 10 weeks to five weeks, enhancing their ability to meet customer demand.
The company more than doubled its aftermarket business, indicating a significant improvement in operational efficiency and market competitiveness.
The ERP system enabled Wolverine to accurately determine cost and profitability by part, enhancing their competitive edge against offshore competitors.
The user-friendly interface of Plex screens facilitated employee adoption, overcoming initial resistance to the new system.

Quantitative Benefit

First-pass quality improved by 15 to 20 percent.
Raw materials and work-in-process inventory reduced by more than 30 percent.
Overtime reduced by 60 percent, leading to significant cost savings.
The inventory process now requires less than one shift and fewer than 30 people, compared to two full shifts and up to 70 employees previously.