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Radio Flyer Improves Customer Service and Gains Manufacturing
Efficiencies with Friedman Corporation Integrated Enterprise System
Radio Flyer Inc. is an American classic - a simple, enduring enterprise
that has been reinterpreted with each new generation, creating
toys that inspire the imagination. An American icon introduced
over 80 years ago; millions of people can fondly recall the Radio
Flyer wagons of their youth.
With an eye for innovation even in its early days, Radio Flyer
took inspiration from the auto industry and used metal-stamping
technology to produce its wagons. The baby boom prompted a population
migration to the suburbs, so Radio Flyer introduced lawn and garden
items, such as garden carts and wheelbarrows, to satisfy consumer
demand for quality, safety, and service —attributes the company
still embodies today.
The Chicago, IL-based company has grown to be the world's leading
producer of toy wagons, with retailers across the U.S. and in South
America, Asia, and Europe carrying its popular products. However,
the technology infrastructure Radio Flyer employed had become an
impediment to properly servicing its customers. The company relied
on home grown applications running on an IBM AS/400 using System
3 technology. Order entry representatives could not provide a timely
response to customer calls because, with the confines of a batch
system, there was no opportunity for online access; day old reports
were all they could muster. Other snags in the system occurred
with field sizes being too small, resulting in the inability to
process orders for one million units without developing a work
around, for example.
Uncovering the Solution That Meets Critical
Needs
Radio Flyer sought a solution to stay competitive. The company
needed online access to improve customer call handling that would
satisfy myriad customer inquiries; a method for electronic order
processing that many large retailers using EDI demanded; and
a system to accommodate the looming year 2000 changeover. The company
embarked on a search for a technology solution that could satisfy
these critical needs and more.
From the outset Radio Flyer determined its infrastructure would
be best served by either the AS/400 or Unix platform. With
the help of an outside consultant, the company conducted a search
of
enterprise solutions and eventually narrowed the field to two
vendors on each platform. Upon completion of systems demonstrations
Radio
Flyer turned to Friedman Corporation to implement its enterprise
solution on the AS/400.
Of the systems evaluated, Radio Flyer was convinced that Friedman's
fully integrated solution would best fulfill its needs. According
to Linda Gillig, Radio Flyer data processing manager, "We
felt Friedman was more willing to work with us for a successful
implementation, plus they offered extensive training programs
to get users educated and comfortable with the system."
Implementation was executed in six-month phases, with a Friedman
consultant on hand to help convert over to the new system and
create solutions to issues. The motivation to initially address
the order
entry and customer service aspects of the business fueled phase
one: implementation of the order entry and accounts receivable
modules. The second phase largely addressed financial applications,
including integrating a general ledger product from Friedman's
business partner, Global. Phase three culminated with the manufacturing,
accounts payable and purchasing modules.
System Testing Ensure New Processes Work Before the system went live, running multiple pilots was de
rigeuer to make sure the results of upfront planning sessions
were on
target. Piloting the applications allowed Radio Flyer to
test the success
of its plans. Gillig notes, "Friedman is a strong proponent
of pilots, and as a result, it's rare for us to come across
a situation that we didn't experience in the planning stages."
Radio Flyer took advantage of the time after its busy season
to change over its manufacturing operations to the Friedman
system.
The company engaged employees in hands-on activities such
as preparing data for a new bill of materials, customer master
files, and routings,
keying in open orders, letting users become familiar with
the
new screens, and completing training sessions.
Gillig says, "Friedman helped us implement at our own pace
and, at the same time, got to know our business and challenged
us to improve our processes. When certain things are done
the same way for 30 or 40 years you can get in a rut. Friedman
suggested
new ways to do things that made sense."
Critical Needs
Met with Measurable Success
Completion of the Radio Flyer system implementation took
about 15 months and, as a result, the company gained
online access
to customer orders, the ability to more economically
implement new
EDI partners and transactions, and a system that will
move them effortlessly into the next century. Order entry representatives
can now tell customers whether items they request are
in
stock or when they are scheduled for completion. The
company also
can
better forecast demand and prioritize and change production
schedules based on orders received. Order entry efficiency has greatly improved, according to
Gillig. "We
are able to take on more business by having links we never
had before between order entry, accounting and production.
The Friedman
order entry system enables us to handle twice as many orders
in a day, and accounts receivable have the facts at hand
to check when orders ship."
Looking ahead, the manufacturing efficiencies gained by Radio
Flyer coupled with customer service improvements will have
a dramatic
benefit for the company. When customers find it easy to
do business with Radio Flyer, they are inclined to increase
the lines they
carry. Clearly, the Friedman enterprise system is the foundation
that will enable Radio Flyer to introduce more new products
with speed and ease never experienced before. |
