We certainly didn’t have months to get this done. We had to get it up and running within about 30 to 45 days.”
- Greg Anderson, Global IT Manager, PIAB
ERP Systems Do Not Talk
When the Swedish company PIAB decided to implement a global just-in-time inventory model, it had to find a way to integrate its various ERP (enterprise resource planning) systems which were unable to communicate with each other. “We have offices in about 18 different countries, and each of them have individual ERP systems,” said Greg Anderson, Global IT Manager for PIAB. “The biggest issue we had is the amount of double-entry that was required once an order was placed. In the UK, for instance, there was a lot of manual work being done to process an order through the local ERP system and into our main system in Sweden, and also to transfer the information back.” The new model required a more efficient approach to order processing.
Based in Taby, Sweden, PIAB provides industrial vacuum solutions for material handling and factory automation. It serves a variety of industries including food and consumer products, automotive and electronics.
The purpose of the just-in-time inventory model was to streamline PIAB’s supply chain, reduce costs and improve customer service. “We were changing our warehouse model to go from smaller supply at local offices to centralized supply and faster delivery to the customer. So instead of having large bulk orders, we were changing to smaller, direct-ship customer orders,” said Anderson. To handle this larger volume of orders, PIAB needed to automate its order processing more fully.
The different ERP systems in its country offices were the result of organic growth and development. As the company grew and opened offices in new geographies, the local teams put in place business systems to meet their local requirements. Over time this led to a patchwork of ERP systems, many of which could not communicate with each other or with headquarters.
When the directive came down from the company’s board to integrate the ERP systems, the IT department was immediately under time pressure to complete the project. “We certainly didn’t have months to get this done. We had to get it up and running within about 30 to 45 days,” he said.
IBM WebSphere Cast Iron Cloud Integration
PIAB evaluated multiple integration technologies and vendors before choosing IBM WebSphere Cast Iron Cloud integration. It considered EDI (electronic data interchange), but found these solutions were relatively difficult and costly to implement for its environment. Other technologies tended to specialize in a single application or process, such as a technology that integrated very well with Salesforce CRM, but lacked open and flexible connections in other areas. “Cast Iron seemed to have the most connectors. They advertise quite well on their website to show how open the connectivity is. And the biggest thing is, we were under a deadline to put this system in place. Cast Iron had the tagline of ‘integrate in days,’ which was basically how much time I had,” said Anderson.
For the initial phase of the project, PIAB integrated its ERP systems in the UK and France with its headquarters in Sweden. It used an IBM Cast Iron Physical Appliance that performs the translation between the systems. “It is a complicated process that we have – checking stock, classifying orders as to whether they need further handling, how people are notified about what to do, whether an order is valid in a particular location. The appliance handles quite a bit of logic,” said Anderson. “We brought in a technical consultant from Cast Iron to work with us here. We wrote the integration project in about two weeks. There was a little delay when one of the local developers was writing the web services interface at the end point level. But everything went really well. The surprising part was how well it worked and how well it has run since then, considering how fast we had to implement it.”
ROI in Nine Months
Anderson is pleased with the outcome: “We saw a nine-month ROI on this particular project.” Cost savings came from fewer hours spent entering data, less inventory in the supply chain and reduced local warehousing and office space. Customers benefit from faster delivery. The speed of implementation was especially important in this case. “It could easily have taken nine months to a year to try to program something internally, which would have slowed down our process of adopting this model.”
“I’m confident of how reliable Cast Iron is. I don’t have to worry about it failing, which is good because I don’t want to get a call at three in the morning, waking me up in the middle of the night because things are not working in Europe.”
Since the initial project, PIAB has rolled out additional integrations with WebSphere Cast Iron Cloud integration, such as connecting Salesforce CRM with the ERP system for its office in Germany. Now sales personnel can see all of a customer’s history and detail within a single tool. These follow-on projects have an even faster ROI because the integration appliance is already in place and PIAB has gained skills in creating integrations using Cast Iron.
“So we have continued to see benefit from Cast Iron, even more than our ERP systems. I’m really happy with the choice we made,” said Anderson.
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