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QTG ERP Software Case Study

Tubular Solutions / Bromont, QC
Rapid growth and changing company structures meant QTG needed an ERP system that could connect all of their internal divisions. Genius ERP not only improved QTG’s internal communications, Genius also helped them optimize their operations, refine their estimation processes, speed up their inventory-taking, and improve their job costing.
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The company

About

QTG Tubular Solutions (2020) specializes in transforming mechanical and structural steel tubing, support columns, finished and semi-finished products, and made-to-measure products.

Founded in Montreal in 1929 by two Talarico brothers, this century-old, fourth-generation company now has 200 employees and two manufacturing units. With offices in Bromont and Granby, QC, the company offers integrated services and provides world-class manufacturing solutions to their customers. 

Industry

QTG creates custom, high-quality tubing solutions for structural design needs. Services include saw cutting, laser cutting of steel tubes, as well as bending, assembly, packaging, welding, and powder painting. 

QTG's products and services contribute to many large-scale projects, predominantly within Canada’s agricultural and construction industries.

Genius ERP Highlight

“We can now process five times more quotes than before, and our estimation process is two- to three times faster."
— Alexandre Ledentu, Technical Estimator

Key features

Integration of Excel estimation spreadsheets 

The seamless integration of Excel sheets into Genius ERP has enabled QTG to perform quoting and estimating tasks quickly with fewer errors. QTG can now handle up to five times more submissions than before.

Real-time inventory management 

QTG saves three hours of labor per week by having real-time access to inventory. Genius ERP helps them better manage their inventory and assign items to specific jobs, allowing them to know what and when to order stock.

Cost price analysis 

Genius ERP lets QTG better calculate their job costs and prices. QTG is now able to take into consideration the true costs of producing and distributing their material, which has allowed them to create more accurate estimates, and to adjust to customer changes quickly.


The challenge

Formerly known as Quali-T-Groupe, Quali-T-Tube, and Quali-T-Fab, in 2020, the company rebranded as QTG with a focus on steel product processing. Restructuring the company led to many changes and issues — and highlighted the need for an ERP system that could connect operations between different divisions. “In 2020, we abandoned the activities of the tube division to focus on the fab division, which made our processes a bit laborious,” says Maude Morissette, Controller, QTG. At the same time, QTG also grew their business, entered into new markets, increased the volume of internal projects, and built a new factory.

 

To handle their growth and overcome bottlenecks due to this rapid growth and change, QTG needed a connected system that could quickly provide real-time information about their inventory levels, accurately generate job costs, and increase the speed at which QTG could create estimates and quotes.

Inventory, for example, was a major challenge as no system connected the internal divisions. Inventory had to be done manually, meaning QTG had to shut down production for hours at a time every week.

Their estimating and quoting processes were also outdated. Before they had Genius in place, QTG relied only on Excel spreadsheets. “Before Genius, we used Excel spreadsheets that everyone had access to — and could edit — meaning they sometimes included errors. Not only did this cost us time, but it also led to problems with our estimates,” admits Alexandre Ledentu, Technical Estimator at QTG.

"Between the moment a client made a request to us, to us being able to give an answer, it could take up to a week,” says Hervé Poupard, Finance Director at QTG. “Often, clients would make changes along the way, so the work had to be redone, and we could only process a small number of estimates per day,” continues Poupard. Frequently, QTG would end up doing two complete quotes per client — depending on the project’s complexity — slowing everything down.

Job costing was also a problem due to the complexity of their clients’ orders, often taking the QTG team hours, or even days, to process data and create accurate job cost reports. “When we did job costing before Genius, it was arduous because we didn't have a system in place to do this work, ”adds Poupard.

Top requirements

Real-time inventory

Taking physical inventory was a time-consuming process. QTG needed a system that would give real-time access to inventory levels across their divisions.

Reduce errors and delays in quotes

Errors in Excel spreadsheets caused extended response times to clients for quotes. QTG needed accurate estimation data quickly to create quotes in a timely manner.

Increase margins with more precise job costs

With no ERP system in place, whole days were devoted to job cost analysis. QTG had to find a better way to understand job costs throughout their entire organization.

“When we analyzed jobs, it took us a whole day to do this work. Now [with Genius], in less than an hour, everything is done. Numbers are entered once, standards are entered once, then everything is calculated correctly. There is no mistake — it is a big change for us.”

Hervé Poupard
Director of Finance & Administration

The solution

To help them continue to build on their rapid growth and manage their structural changes, QTG chose Genius ERP. Genius has helped QTG connect their internal systems and facilitated their transition to a reliable and efficient internal structure.

Genius ERP provides real-time access to QTG's entire current inventory, eliminating the need to halt production for inventory counts. With Genius ERP in place, QTG has saved 156 hours of labor, as they no longer need to take a physical inventory count. “We no longer need to do a physical inventory every week or month. We used to set aside at least three hours a week in terms of inventory taking. Now we have access to our inventory in real-time, so we just have to select the item, and we know exactly what's going on,” says Morissette.

Real-time inventory also allows QTG to keep only the stock necessary for production on-hand, reducing the company's warehousing costs. “Genius gives us the quantities and tells us the exact moment when stock is needed for production. We have all the information we need now to be able to reduce our inventory,” Morissette adds.

With a better overview of costs and real-time inventory levels, QTG can also provide better estimates to customers. “I can know how much my inventory costs. (..) so I can therefore give our customers better prices,” says Ledentu.

As a result, quotes provided to customers are more precise and are processed more efficiently. “We can now process five times more quotes than before, and our estimation process is two- to three times faster,” remarks Ledentu.

“The client, between the time he made a request versus when we gave him an answer, he could wait a week. Today, in 24 hours, we are able to meet customer needs, and that makes a big difference,” adds Poupard.

Genius simplifies the entire process and allows QTG to deal with customer changes efficiently — a common situation in QTG’s line of work. “Customers often make changes along the way, and so the work had to be redone, and then you could only do a minimal number per day. So it was one or two submissions, depending on the complexity. Today, complexity is no longer a challenge,” Poupard says, making the bid evaluation process no longer cumbersome.

Job costing, which also used to take a whole day, is now done in less than an hour, thanks to the precision and accuracy of the data within Genius ERP. Standards are better calculated, reducing the errors associated with the Excel files used by QTG.

“When we analyzed jobs, we had to take an entire day to do this work. Today, in less than an hour, everything is done. Numbers entered once, standards entered once, then everything is calculated correctly. There is no mistake —it's a big change,” Poupard states.

Now with Genius ERP, QTG is well equipped to continue to grow and meet the changing needs of their customers. “Genius brings us a lot of gains. We can understand our costs much more precisely, by activity and by order. What this brings us is in terms of improving our productivity is huge. Today it's so easy — it's even fun, it's interesting!” says Poupard. 

“We now have a 2021 tool: We are able to react quickly when there are price changes, then all of that can be done in less than three or four hours. It's a very user-friendly system that is excellent for SME companies in the manufacturing industry like us,” continues Poupard. “It looks like it was built for us,” he adds.

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