Plex Systems > Case Studies > Taking Control: Integrated ERP Solution Helps Automotive Supplier Cut Costs, Improve Productivity

Taking Control: Integrated ERP Solution Helps Automotive Supplier Cut Costs, Improve Productivity

Customer Company Size

Large Corporate

Region

America
Asia

Country

United States
Japan

Product

Plex Manufacturing Cloud
Production Control Panel
Core Quality

Tech Stack

Cloud ERP
Electronic Data Interchange (EDI)

Implementation Scale

Enterprise-wide Deployment

Impact Metrics

Cost Savings
Productivity Improvements
Customer Satisfaction

Technology Category

Functional Applications - Enterprise Resource Planning Systems (ERP)
Application Infrastructure & Middleware - Data Exchange & Integration

Applicable Industries

Automotive

Applicable Functions

Business Operation
Quality Assurance

Use Cases

Inventory Management
Process Control & Optimization
Predictive Maintenance

Services

Cloud Planning, Design & Implementation Services
System Integration

About The Customer

Kamco Industries, Inc., is a prominent injection molder supplying the automotive industry with a range of components, including interior, underbody, and exterior parts. As a subsidiary of Kumi Kasei Co., Ltd., headquartered in Tokyo, Japan, Kamco serves primarily tier I and II suppliers to a major global automotive OEM. The company is known for its innovative processes, such as in-line fabric molding and thermoforming sheet extrusion, which are used to produce various automotive components. Kamco also offers custom assembly services, further enhancing its value proposition to customers. With a significant portion of its operations dedicated to serving the automotive sector, Kamco is a key player in the industry, providing high-quality components and services to its clients.

The Challenge

Kamco Industries faced significant challenges with their existing IT infrastructure, which consisted of a variety of stand-alone systems and spreadsheets for managing business and production operations. These systems did not interface efficiently, leading to manual processing and double data entry, which was time-consuming and prone to errors. The manual inventory management methods were particularly problematic, as they required nearly six days per month for tracking and data entry, often resulting in overtime. This led to significant material cost discrepancies, with up to 20 percent of inventory unaccounted for at the end of each month. Additionally, Kamco struggled with production inefficiencies, as full-time associates had to maintain manual spreadsheets for daily production schedules, leading to machine downtime and inaccurate work-in-progress tracking.

The Solution

To address the challenges, Kamco Industries partnered with Plex Systems to implement the Plex Manufacturing Cloud, a cloud-based ERP system designed specifically for manufacturing. This integrated solution aimed to standardize operations across production, inventory, shipping, quality, accounting, and HR functions. The implementation included several key features, such as the Production Control Panel for 85 workcenters, core quality control plans, and electronic document approval workflows. The cloud ERP system provided real-time visibility and control over the entire enterprise, streamlining processes and reducing the need for manual data entry. By centralizing operations on Plex's servers, Kamco eliminated the need for multiple stand-alone systems, reducing overhead costs and improving system reliability. The cloud-based nature of the ERP system also minimized downtime and eliminated the need for server maintenance and software upgrades.

Operational Impact

The implementation of the Plex Manufacturing Cloud significantly reduced the time required for manual inventory management from six days to just a few hours per month, freeing up staff for more valuable tasks.
Kamco achieved improved visibility of raw material consumption on the shop floor, leading to more stable inventory levels and reduced labor costs.
The automated generation of line-side labels at production workcenters improved label accuracy by more than 95 percent, enhancing overall operational efficiency.
The integration of real-time data with customer shipping EDI requirements eliminated the need for full-time data entry clerks, streamlining operations and reducing labor costs.
Kamco received a Superior Delivery Performance Award after achieving a 78 percent improvement in delivery performance within a year of implementing the ERP system.

Quantitative Benefit

Kamco improved monthly material cost discrepancies by more than 92 percent.
The company achieved a 78 percent improvement in delivery performance in less than a year.
Line-side label accuracy improved by more than 95 percent.