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Discrete and Process Manufacturing Success with Sage ERP X3

By August 12, 2013Sage X3

chocolate 8-12Learn why one company switched from a proprietary system to Sage ERP X3 to handle their combination of discrete and process manufacturing. Discover how their overall efficiency has improved while they have continued to maintain their exceptional standards for quality.

Here is their story:

Ganong Bros. Limited (Ganong) produces some of the finest chocolate and confectioneries in Canada. As the oldest candy company in Canada, the Ganong family has been putting its heart and soul into its sweet treats since 1873. Operating from three locations across the country, Ganong chocolates are shipped to mass merchandisers, drug stores, and grocery chains including: National Grocers, Sobeys, Shoppers Drug Mart, Wal-Mart, Safeway, A&P, and London Drugs. The company has been voted one of Canada’s 50 Best-Managed Companies.

From the back office to the production floor, Ganong invests in the technology that keeps this century-old company firmly in the twenty-first century. At the heart of that technology is Sage ERP X3.

The company wanted to build an information system that would:

  • Deliver timely information about the financial health of the company
  • Promote improved order processing
  • Support the company’s mixed-mode manufacturing style—a combination of discrete and process manufacturing.

To accomplish this goal, Ganong switched from its proprietary MAP 3000 application to Sage ERP X3 in 2002.

“Sage ERP X3 has most definitely lived up to our expectations,” says Marc Lefebvre, vice president and chief information officer for Ganong. “Over the years we have expanded our use of the software and we continually derive new value and benefits from the system.”

Ganong has seen dramatic improvement in the accuracy of its manufacturing capacity planning through the tools provided by Sage ERP X3. “We are able to analyze our capacity in ways we could not before,” says Lefebvre. “We can look at demand for several months out and factor in sales forecasts to see the load these factors place on our resources. If we are short on resources, we can work to spread the load around, or ramp up with additional resources to meet demand—far in advance of when they are needed.”

Lefebvre says the ready access to this information has improved the overall efficiency of Ganong’s manufacturing operation, enabling it to efficiently meet the demand for its products.

Another benefit of the software is the access to information about the profitability of the company’s customers and products.

“Calculating profit involves more than determining cost and selling price—we want to get to the net contribution amount,” explains Lefebvre. “In our organization, the various discounts and promotions that we offer our customers impact that number.”

Maintaining its exceptional standards of quality has always been a priority for Ganong, and Sage ERP X3 adds a level of control that supports those standards.

“We used to manage our quality control processes entirely outside of the software, but with Sage ERP X3, it now is an integral part of our manufacturing process,” Lefebvre says.

To keep the process moving efficiently, the software sends a message to the quality control staff when raw materials are received, including the product number, lot number, and warehouse location.

“Raw materials received here go first into a quality-hold queue until they are tested,” says Lefebvre. “Only after testing is complete can a particular lot of material be released for use.”

“We made the right decision,” concludes Lefebvre. “Sage ERP X3 is a dynamic product that continues to improve. We achieved a full return on investment by the end of the first year, through labor savings and improved accuracy. The investment continues to benefit us as each new release introduces more functionality that helps us to hone our efficiency and maintain our standards of excellence.”

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 Image courtesy of Grant Cochrane / FreeDigitalPhotos.net

SWK Technologies, Inc.