Enterprise Resource Planning System Won't Be Outgrown

When Onsrud Cutter (Libertyville, Illinois) was dropped by its application service provider, it faced the problem of finding a new source for manufacturing software in a short time. Onsrud, a leader in router bit manufacturing since 1920, made the challenge even more daunting by deciding to replace its entire enterprise information system in that same time. It wanted a system that would be quick to install, yet have the scalability and flexibility to support company growth. The problem was that, with most enterprise software, high flexibility and quick installation are mutually exclusive.

Onsrud conducted a thorough needs assessment, evaluated software packages, tested demos and made on-site visits. The company wanted software that would produce timely, customized reports to facilitate more informed business decisions; supply real-time information, particularly for customer service representatives; and offer enhanced e-business capabilities. Onsrud eventually selected Adonix X3 software from Adonix because it is a powerful, flexible system.

Adonix X3 is a highly functional system of integrated business applications including sales order management, customer relationship management, purchasing and inventory control, warehousing and quality control, manufacturing planning and execution, finance, budgeting and analytical accounting. "Adonix X3 successfully balances flexibility and ease of implementation," says Rich Burns, Adonix vice president of North American Development. "Its level of parameterization gives a midsize company like Onsrud an ability to fine-tune the business processes that give it a competitive advantage equal to or greater than that of packages designed for large corporations—but without the complexity that can make implementations drag on forever."

Onsrud supplies standard and custom-designed high speed steel, carbide tip, solid carbide and diamond router tooling to manufacturers of aircraft, boats, furniture, cabinetry and other plastic, wood and composite products worldwide. "Onsrud uses much more functionality in every area of its operations, from the shop floor to the warehouse to sales, than most midsize companies," says Mr. Burns "Most companies its size focus their IT efforts on one specific area, such as sales or manufacturing."

For example, the company uses complex pricing formulas, differentiating prices for its nearly 1,800 standard products by customer, territory and tool type. Adonix X3 gives midsize companies advanced pricing customization capabilities. With this system a company can automatically discount an order involving multiple variables. Most enterprise management systems make users manually re-price each item or even enter multiple orders. The Adonix system's extensive parameterization gives Onsrud the flexibility to give a customer a price break based on the number of items purchased from a broad category or based on the total value of an order for different items within a category.

Reporting capabilities were also an important factor. "We didn't want standard reports and inquiries," says Robert Ostroga, president of Onsrud Cutter. "We wanted to be able to generate any kind of report we need and to drill down into the data from any point." Because Adonix has tightly integrated Crystal Reports with its software, each of Onsrud's key reports and inquiries were ready to go at system cutover.

Adonix X3 users can track an order from any point in the data stream. For example, sales and service representatives, credit managers, shopfloor personnel and billing can all view a sales order and any related information at any point in the order-to-cash cycle. The system automatically updates account information to reflect sales revenues, costs and receivables.

Adonix's import/export templates simplified the installation. They enabled the systems integrator to convert every key master file and open transaction from Onsrud's previous system to Adonix X3, which minimized re-keying and cut significant time from the implementation schedule.

Onsrud plans to have a complete e-commerce channel within a year, enabling customers to place orders, check stock and review their payment histories online. Adonix X3 will support Onsrud's e-commerce initiative with a number of easy-to-use features: a fully integrated, easily customized intranet and extranet; flexible APIs to facilitate enhanced customer interactivity via storefronts; workflow management via the Internet; and an efficient decision-support tool that provides quick access to data company-wide.

Adonix X3 is suited for discrete, process and mixed-mode manufacturers and distributors. It is especially designed for make-to-order, configure-to-order, assemble-to-order, make-to-stock and batch manufacturing environments. Adonix X3 gives midsize companies ($10 million to $500 million in sales) the functionality and technology that large corporations require—without the complexity.