Strong brand brings ERP solution up to standard
New growth objectives called for a new IT platform. With a full-featured, flexible and upgradeable ERP system from Jeeves, Tylö has become a much more productive and cost-effective company.
Tylö is the world’s leading manufacturer of sauna, shower and steam bath systems, with a strong brand name. Tylö’s success is a result of the very high quality products and services the company offers. Tylö has a strong entrepreneurial culture and has been family owned since the 1940’s.
Exports account for just over 75 percent of Tylö’s total production. Sales are conducted in more than 80 countries in every part of the world. The company’s focus on growth was sharply boosted when a new board was appointed at Tylö in 2004. Since then, the company has maintained a goal-oriented focus on production and product development. However, new growth objectives called for a new ERP solution based on a flexible IT platform. That is when Jeeves ERP entered the picture.
SOLUTION FOR A GROWING COMPANY
Today, Tylö generates growth using a completely new method. This method requires that the organization has an IT-based operational support. So, two years ago, Tylö replaced its old ERP system with Jeeves ERP in order to work with a comprehensive system that was both flexible and upgradable. Four alternatives were assessed: Movex, Jeeves, Axapta and an upgrade of ASW, before Tylö chose Jeeves ERP.
“With Jeeves, Tylö is significantly more productive and cost-effective,” said Emil Tambolas, IT manager at Tylö. ”We can now accelerate our organic growth through more efficient order processing control, and we also gain support in product development through various processes inherent to the system.”
“In the two years that we have had Jeeves, many new functions have been introduced to better support users in their daily work,” he added. “We have also advanced the development of the system to suit our operations as we have grown and evolved.”
Tylö believes it has benefited more from Jeeves ERP in two years, than it did from its previous system in six years. Tylö’s sales have risen from 28 million EUR to 36 million EUR in the first two years of using Jeeves ERP.
In the past, Tylö’s backlog of orders stretched 12-16 weeks into the future. Today, it is just 1–3 weeks; everything is delivered on time and the heightened efficiency has increased sales by 10–15 percent per year.
Jeeves ERP’s functionality also has made it possible for Tylö to achieve enhanced control of inventories, manufacturing and planning. The employees now have an overview of what to prioritize and when to do it. “We can always give customers correct delivery information, and we have nearly everything in stock,” said Tambolas.
Tylö uses most of the functionality the Jeeves ERP system offers, including production, order processing, inventory control, invoicing, service and project management.
E-COMMERCE LAUNCH IN RECORD TIME
With the Jeeves ERP solution, Tylö has also been extremely active in product development, launching products at a pace not previously possible. In conjunction with a B2B project, online trading was initiated. The e-commerce module took just about a month to launch. “It’s totally amazing. With our previous system, it was totally inconceivable to complete such a comprehensive project in such a short time,” said Tambolas. ”But the Jeeves ERP solution helped us achieve it.”
COMPLEXITY SETS TOUGH DEMANDS
Manufacturing of Tylö products takes place in a factory in Halmstad, Sweden, and another in Finland. Historically, the company’s philosophy has always been to manufacture its products in-house. Its products, therefore, involve a high degree of processing, the majority of which is performed in Tylö’s own factories. This sets tough demands on logistics, planning and purchasing. Tylö needed a system that could be used in all parts of its operation. “Our system support for the business used to be poor and our large inventories used to tie up a lot of capital,” explained Tambolas.
The company developed its functionality with Jeeves and is now waiting for the next version. “But to us it feels like we are constantly upgraded,” Tambolas added.
Tylö is the global market leader in manufacturing stimulating surroundings within sauna, shower, and steam bath systems for both private and professional customers. The company’s highly successful concept is built on offering products of high quality which promote relaxation, enjoyment and the pleasure of bathing. The Tylö factory is located in a modern industrial area close to the centre of Halmstad, Sweden. The factory has been extended more than a dozen times since 1959. Tylö has subsidiaries in Norway and Finland. In other countries, Tylö is represented through Tylö Exclusive Distributers.