CMP Corp. Implements Lean Manufacturing Model with NetSuite to Cut Costs and Power Growth

CMP Corp.

"NetSuite has given us dramatically better data access and reporting and has been instrumental in our lean manufacturing initiative, helping us reduce cost and waste while achieving double-digit growth." CMP Corp.

Company at a Glance

Location:
Oklahoma City, Okla.
Industry:
Manufacturing/Distribution
Applications Replaced:
Infor Visual Manufacturing

Solutions

NetSuite
NetSuite Manufacturing Edition
NetSuite SuiteCommerce

Customer Success:

  • World's largest independent manufacturer of aftermarket compressor parts for refrigeration and HVAC units runs NetSuite as a core component of a lean manufacturing initiative, aimed at eliminating waste.
  • With lean manufacturing, CMP Corp. has systematically transformed its business for greater cost-efficiencies across core business processes in both aftermarket and custom-machined lines of business.
  • Through lean manufacturing, CMP has slashed crankshaft production lead time from 85 to 10 days while reducing costs 25%, with NetSuite playing a critical role.
  • Since the lean manufacturing initiative got under way in 2009, CMP has netted a 26% increase in revenue while growing the business across 95 countries.
  • NetSuite supports CMP's Kanban system for inventory optimization, resulting in a 90% reduction in back orders, worth $300,000.
  • NetSuite inventory management supplies greater visibility and control over more than 3,000 part types and supported a wholesale redesign of CMP's 160,000-square-foot manufacturing facility.
  • NetSuite's flexibility allowed CMP to work with partners, Centricity Systems and Intente, to create a unique "Compressor Configurator" enabling customers to complete entire orders online with automated order processing.
  • Introduction of B2B ecommerce capabilities with SuiteCommerce gives customers new ordering flexibility while enabling CMP to broaden business reach and speed cash flow.
  • NetSuite Manufacturing Edition enables CMP to streamline production with such capabilities as work orders, bills of material, assembly management and requirements planning.
  • NetSuite's cloud infrastructure enabled CMP to reduce its server count from 10 to two while trimming its IT staff by one full-time employee and eliminating reliance on third-party IT consultants.
  • Overall IT efficiency has improved 75%, while mobile tablets on the factory floor give personnel on-demand access to critical data on the spot.

Challenges:

  • On-premise Infor Visual Manufacturing application was costly and outdated, and lacked the flexibility and reporting features that CMP wanted.
  • From a lean manufacturing perspective, in-house infrastructure with 10 servers and IT resources was viewed as waste that could be eliminated with a move to the cloud.
  • CMP wanted to strengthen its disaster tolerance capabilities in view of a tornado that decimated its facility.

Solution:

  • NetSuite's strong manufacturing capabilities and cloud architecture were seen as an ideal combination to support a lean manufacturing initiative.
  • Cloud environment eliminates the risk of data loss from tornados or other on-site disasters.
  • Avoidance of high capital expenses for a new ERP solution enabled CMP to focus its resources on devising and implementing its highly successful lean manufacturing program.