For Empire Candle, a Kansas City, KS-based maker of candles and car fresheners, rapid growth had created challenges.
The company was unable to scale up its operations in order to meet the growing needs of the organization. From supply chain to production to transportation, there were too many inefficiencies and errors.
Things changed when the company realized it could do more with its Sage X3 enterprise resource planning (ERP) platform. NexTec Group provided the guidance and recommendations that prompted a transformation for Empire Candle.
See how Empire Candle cut costs, reduced inefficiencies with help from NexTec. The dramatic results illustrate the power of a robust ERP solution and an experienced partner to maximize the technology.
A candlemaker’s challenges
For more than 6 decades, Empire Candle has provided products that light up their customers’ lives. As the company grew through acquisitions and market share, it began to identify some inefficiencies in its manufacturing and operations. Among the challenges were:
- Inaccurate inventory counting that led to inaccuracies in the purchasing and supply chain functions.
- Overextended production issues that resulted in excessive detention penalties and chargebacks
- Relying on temporary production help and running two or three shifts during times of peak production
- A lack of forecasting capabilities resulting in overproduction, overbuying and excess product
The company has installed the Sage Enterprise Management manufacturing ERP software solution several years earlier. However, the software had not been configured to maximize the powerful capabilities of the leading ERP product. That’s when Empire Candle turned to NexTec.
Shining light on Sage X3
NexTec’s expertise as a leading Sage X3 partner had an immediate impact. NexTec developed a clear understanding of the company’s business, its needs and its challenges. Working with NexTec’s consultants and advisors, Empire Candle was able to begin leveraging the Sage X3 features and functionality, using best practices to get the most out of the product.
The impact was striking. Optimization began to reshape processes and transform the company. Among the results were:
- Improved supply chain management and more accurate inventory management that resulted in a $400,000 annual savings by eliminating a warehouse used for overflow.
- A 30 percent reduction in production costs. NexTec advised the company on how to use Sage X3 to flatten bills of material, make material picking and staging more efficient, and assosted with other process improvements.
- Reduced labor costs with a full-time workforce and a single-shift operation.
- Reduced raw material inventory
- Decreased production lead times
- Increased on-time and completed shipment rates
The company recently scored a 94 out of 100 on a Good Manufacturing Practice audit, a powerful indicator to potential customers of the company’s efficiency and reliability.
NexTec and Sage continue to help Empire Candle improve operations. Among the planned enhancements are the use of Sage Enterprise Intelligence to gain better business insights and make better strategic decisions with real-time data. The company also plans to use advanced lot control, recall management and lot traceability features.
The Empire Candle story is one of many at NexTec, which helps companies with business solutions that improve performance and deliver results. See how NexTec can tailor your Sage X3 to your needs.