Friedman Corporation – Soft-Lite Windows

“There’s a bonus to software that is so vertically integrated into the dimensional home products industry – often Friedman see trends emerging within our industry and adds functionality to the software to accommodate them. It’s one more way our needs are being met for the future.”

By definition, the word “efficiency” means different things to different industries. For example, window and door manufacturers are rewarded for the energy efficiency of their products. But companies in the window and door industry are also rewarded for the efficiency they achieve across their business operations in areas such as customer service, production control, finance and distribution. Efficient companies are distinguished by their reputation for quality products, on-time delivery, percent complete and a track record of customer loyalty and growth. Soft-Lite Windows, a leading manufacturer of custom make-to-order replacement windows and doors based in Streetsboro, Ohio, has long understood that the key to its efficiency is a solid technology infrastructure.

The Need

Prior to implementing Friedman’s software in 1998, Soft-Lite’s manufacturing operations at its Streetsboro, Ohio headquarters were run on a custom software package. The lack of integration of the system obstructed efficiency and information flow between departments, limiting the ability to support management decisions and generate financial reports. Seth Tomasch, information services manager at Soft-Lite Windows recalls, “We had an excellent custom package in place, but it had serious drawbacks. The package lacked support or an upgrade path. It was not robust enough to handle our existing product options, nor did it offer portability to expand the business.”

Soft-Lite’s system could not support perpetual inventory control, product costing, or provide flexible management reporting, which drove the company to carry more inventory than necessary to support their customer commitments. Customer accounts were difficult to set up and maintain, particularly for billing and accounts receivable. Without up-to-date customer account information, orders were processed for customers who exceeded their terms, causing the balance sheet to show too much capital tied up in accounts receivable.

Seeing how other companies had succeeded at integrating their operations with enterprise resource planning (ERP) software, Soft-Lite established its priorities for the functionality it required in a packaged software solution. Tomasch explains, “There are many enterprise software packages on the market, but the majority of them can be eliminated by window and door companies because they are not configuration-based - meaning they don’t deal well with dimensional products. Any system that can’t handle advanced rules right out of the box cannot provide efficiency where we need it most, configuring customer orders.”

The Solution

To narrow the package choices down to configuration-based solutions that could meet their business models, Soft-Lite put a team in place, led by Tomasch, which included the president, chief financial officer and key managers. The team knew the package had to come from a solid, established vendor that would continue to support and enhance the software for years to come. Portability was also key – with Soft-Lite’s annual growth rate of 15-20 percent the new software had to be able to scale to match its continual growth. Other selection criteria, such as hardware platform requirements, became secondary to software functionality, though Soft-Lite preferred a Windows NT-based client/ server package

Narrowing the list to three packages, the Soft-Lite team scheduled conference room pilots with each vendor and put each system through its paces. For the pilot, the vendors were asked to design an order entry screen, bill of materials, and pricing scheme for Soft-Lite’s windows. Tomasch recalls, “One of the three systems couldn’t meet the requirements of the pilot. In the end, we selected the software that demonstrated it was robust enough to handle our advanced rules and complex dimensions and options. We chose the enterprise solution from Friedman Corporation.”

To demonstrate the value of a rules-based configurator, Tomasch provides the following example, “In a typical order entry scenario for a window, an order for a certain grid type will apply to select windows of a predetermined size and color range. If one option, such as color, is changed, then the grid selection may be invalid. We found only the Friedman system could validate these orders, ensuring that all order selections could legitimately go together before manufacturing an order.”

The Implementation

To implement the system, Tomasch assembled an internal team who individually were responsible for core modules affecting their department. For example, the controller oversaw implementation of accounting modules (a critical part of the complete integration requirements); the order entry person took on the order entry and pricing modules and purchasing set up the parameters for the MRP (material resource planning) and purchasing functions.

Within a few months of purchasing the software, Soft-Lite installed the modules for purchasing, accounts payable and general ledger. This was a logical initial phase for the company, since previously manual journal entries were required. It also helped create a history for reporting down the road, and eliminated re-keying of receiving data. Automating these functions improved efficiency even before the rest of the software was implemented. Soft-Lite was fully operational on the Friedman system in November 1998, just 16 months after its initial decision to upgrade.

Soft-Lite continues to work with Friedman to regularly upgrade the software, which has further increased the company’s functionality and efficiency. Soft-Lite is satisfied that the Friedman product has not only met, but also exceeded its expectations as a long term software partner.