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Motrec ERP Software Case Study

Transportation / Sherbrooke, QC
Motrec needed an ERP solution that could not only streamline their business processes but could be the foundation for their ambitious growth plans. In Genius ERP they found a long-term partner that has helped them increase efficiencies and reduce costs — and will help them grow their production by 150% in a single year.
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The company

About

Motrec is an industry leader in the design and manufacturing of custom electrical industrial vehicles. Their vehicles can be found in manufacturing facilities across the globe and they are known for their unmatched reliability, ruggedness, agility, and value.

Founded in 1988 and headquartered in Sherbrooke, Quebec, Motrec has 100 employees and has recently moved into a new 70,000 square foot state-of-the-art manufacturing facility.

Industry

Motrec is a manufacturer of innovative and fully customizable electric industrial vehicles for the transportation of people and goods. Motrec vehicles are used in manufacturing facilities and other industrial sites around the globe to transport resources from one end of a plant to another.

Genius ERP Highlight

“Today we build around 120 to 130 vehicles per month, and [with Genius ERP] we will go up to 300 in less than one year.”

— Alain Turgeon, Director, R&D, Continuous Improvement, and IT

The challenge

Known for their quality, reliability, and inventiveness, Motrec vehicles are found in industrial and manufacturing facilities around the world. With demand for their vehicles high — and a recent move into a 70,000 square foot state-of-the-art manufacturing facility — Motrec has big plans to grow their operation to produce more vehicles, create new features and options, and move into more markets across the globe.


But Motrec was finding they had a disconnect between the shop floor and the front office, and that they were struggling with efficiencies in terms of inventory, purchasing, and engineering.


“A couple of years ago when I came in I realized that all of the operations were centralized in the office and that nobody was accountable on the floor,” says Alain Turgeon, Director, R&D, Continuous Improvement, and IT. “So I decided to make sure that people on the floor are accountable and are part of the solution.”


Turgeon further explains some of the difficulties that they were having with some of their business processes. In terms of inventory, with no proper system in place, they were spending too much time and money on inventory — and didn’t have an accurate count. Their engineering department was also overloaded with reviewing orders and configuring vehicles, and needed a solution that could help speed up these processes and give their engineers more time to design and develop new features and vehicles.


He continues, “we used to do all of the purchasing outside of Genius, with different tools — an Excel spreadsheet or little notes everywhere. So instead of buying the right stuff at the right time, we were a little bit like a squirrel, so we would put a bit more on the shelf to make sure that we will have all the goods at the right time.”


Motrec needed an ERP system that could give them greater visibility throughout their organization, connect their shop floor to their front office, help them improve their processes, track their inventory, and increase the efficiency of their engineering department — as well as support their long-term growth.

Top requirements

Increase inventory accuracy and reduce costs

Motrec needed a system that would streamline their inventory taking process to save them time and money, and help them create a more accurate inventory count

Streamline purchasing

Disparate purchasing systems and processes meant that Motrec was spending too much time on purchasing and was buying too much inventory — a better, more streamlined system was needed

Maximize engineering efficiency

The highly customizable-nature of their vehicles means that every order needs to be reviewed by the engineering department, so Motrec needed a solution that could help them automate this process and make their engineering department more efficient

“We don’t take any inventory except the cycle count. Doing so the inventory is now 95% accurate instead of 72%.”

Alain Turgeon
Director, R&D, Continuous Improvement, and IT

The solution

Genius ERP has been essential to streamlining Motrec’s operations and underpinning their growth. “Today, with what we did, everything is centralized in Genius, everyone is accountable for every task, so it’s quite easy with a customer to start the discussion and to convince them that Motrec can give a better service than anyone else,” says Turgeon.


“The biggest change that we have made, I think, is the inventory. We used to shut down for almost three days to take the old inventories. And it cost more than 400 thousand dollars to do so. [Now] we have implemented cycle count. Since six months, we don’t take any inventory except the cycle count. Doing so the inventory is now 95% accurate instead of 72%,” explains Turgeon.


Motrec has also seen big improvements in terms of purchasing and engineering efficiency.


“Since we have [put] everything into Genius, we are able to use the tools of Genius — to use the forecast — to make sure that we do purchasing the right way. We have the minimum, the maximum set up into Genius, and the economic quantity also, and it takes 25 minutes to do the purchasing everyday, and that’s it. And also, we have lowered the inventory [on-hand] by 30%,” states Turgeon.


The highly customizable and innovative nature of Motrec’s vehicles means a lot of engineering time is needed on every order. “Every order, every vehicle must be seen by somebody in the engineering department to make sure that the configuration is good,” explains Turgeon.


“With the new bill of materials, with the new configurator, we will gain about 65% manpower in the engineering department, because the order will be configured automatically and will go into the planning department right away. Using the configurator, we will be able to have more time to develop new vehicles, and new options for the customer — and also maybe going into another market.”


Genius ERP has been fundamental to improving Motrec’s business processes, saving them time and money, and also giving them the ability to meet their ambitious goals: “Today we build around 120 to 130 vehicles per month, and we will go up to 300 in less than one year,” says Turgeon.


Adds Anthony Isabella, Senior Business Analyst & Solutions Architect, “the ERP solution that we’re implementing is part of the solution for growth for now, and obviously for the next 5 to 10 years from now.”

Key features

Product Configurator

With the product configurator and other tools included in Genius ERP’s Product Engineering module, Motrec is able to gain back 65% of their engineering department’s time — allowing their engineers to focus their time on developing new options, features, and products

Cycle Inventory Count

By using the cycle inventory count in Genius ERP’s Inventory module, Motrec has not only saved the 400 thousand dollars and three days time it took to do their old inventory counts, they have increased their inventory accuracy from 72% to 95%

Purchasing

Motrec uses Genius ERP to complete all of their purchasing tasks, and now only spends 25 minutes a day on purchasing — and because they only purchase what they need, they have reduced their on-hand inventory and associated carry costs by 30%

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