Chris Stone, Inc. Achieves a Big Company Solution Without a Big Company Price

Microsoft® Business Solution Customer Solution Case Study

Chris Stone, Inc. Achieves a “Big Company” Solution Without a Big Company Price

Overview “Microsoft Business Solutions–Axapta allows us to Country or Region: United States do the same things as many of the bigger Industry: Apparel and Textiles Customer Profile products–but without the big company price”. Headquarted in Vernon, California, Chris Naomi Bongolan-Burchardt, IT Manager, Chris Stone, Inc. Stone, Inc. (CSI) is a vertical manufacturer for home furnishing fabrics. Along with their partner company, Pacific Fabric Finishing Ed Simnick, Tech Support Manager, Allison Payment Systems, LLC (PFF), they produce fabrics for many well- Chris Stone, Incorporated (CSI) is a vertical manufacturer for known companies. They have annual sales of $20 million and 200 employees. home furnishing fabrics headquartered in Vernon, California. Business Situation The company has been in business for over 25 years and has Chris Stone, Inc. originally went looking for a new solution because their Unix system annual revenues of approximately $20 million (USD). Pacific wasn’t Y2K compliant. They wanted a Fabric Finishing (PFF) dyes and prints fabrics for CSI and is system that would be able to improve financial visibility and inventory accuracy for closely affiliated with them. Since implementation of Microsoft both CSI and PFF; they wanted a system Business Solutions—Axapta, management is now able to view that would integrate a wireless bar code scanner as part of the solution. timely and accurate financial information for both companies. Solution On-time shipping of the correct products and quantities from CSI With assistance from Microsoft reselling partner, Columbus IT Partner, Chris Stone, has increased to 85 percent. They have experienced a 75 Inc. implemented Microsoft® Business percent increase in customer satisfaction due to improvements Solutions—Axapta® and added a wireless bar code system. Customizations were also in inventory accuracy and visibility. Staff time for inter-company added to automate sales commissions. billing has been reduced by 50 percent. Benefits  Increased inventory accuracy  Increased customer satisfaction  Improved financial visibility of both CSI and PFF  Increased on-time shipping  Reduced labor for inter-company billing Situation to 30 yards a minute, or with a slower, but Chris Stone, Inc. (CSI) is a vertical more precise, flatbed printer (buser). As the manufacturer for home furnishing fabrics fabric moves through various stages of located in Vernon, California. The company production and as it moves between has 200 employees and 50 users and has warehouses, it must be monitored so it can been in business for over 25 years. be located when needed for the next stage of production or marketing. CSI is affiliated with Pacific Fabric Finishing (PFF); PFF dyes and prints the fabric that Prior to implementation, CSI was on their CSI markets for use in home furnishings, third computer system in about 20 years. RVs, boats, and outdoor furniture. The As Y2K approached, they knew their Unix fabric produced is soft enough to be used system was not compliant. CSI also wanted for quilting and apparel, including baby a system that would accommodate their clothing. other needs, as well as those of their partner company, PFF. The company operates markets in High Point, North Carolina and New York City Naomi Bongolan-Burchardt, IT Manager, where customers view and order fabric. began her search by going through Other than manufacturing industry magazines to seasonal and identify computer solutions that would be fast moving able to meet the needs of CSI. She also patterns, most developed a flow chart to explain the CSI fabrics are processes of CSI and PFF to potential ‘made-to- vendors. order,' so their production Solution schedule is Ultimately, CSI selected Microsoft® determined by Business Solutions–Axapta® for its solution orders taken and is operating it on a Compaq 8000. The rotary printer at Chris Stone, Inc. prints fabric at approximately Implementation began with the Financial the speed of 20 to 30 yards per minute. four to six Management and the Supply Chain weeks prior to Management modules and they later added delivery. CSI also uses commissioned Production modules. Microsoft reselling sales people to sell their fabric. partner, Columbus IT Partner, has added customizations enhancing the functionality When greige (raw goods) come into CSI, with wireless bar code inventory tracking they move to PFF for bleaching, cleaning, and automated commission adjustments. and to have the impurities removed in water reaching 180 to 200 degrees The wireless bar code customization allows Farenheit. After this preparation, the fabric CSI to track in-transit product throughout is stored in a warehouse until it is the 56, 70 square feet of warehouse scheduled for printing. The fabric is printed space–from the time it enters one of the with a rotary screen printer at a speed of 20 four warehouses, until it is shipped to a customer. Previously, CSI conducted a factors and adjusts payments to sales semi-annual inventory. The warehouse had people accordingly. to be physically shut down for two days and Another improvement since implementation employees were paid overtime costing the is the ability to estimate production due company in excess of $7000 each time the dates more accurately. Employees can inventory was completed. easily identify where fabric is in the production process. They can tell if the With the help of their new bar code product is in the process of being dyed, solution, cycle counts are done daily, five to printed, or ready for cutting and/or ten bins at a time. Employees are now able shipping. to view inventory quantities and locations on the computer. A worker with a pick list is Previously, two employees had to manually directed to the appropriate warehouse bin input information to do inter-company to select fabric for shipping. The scanner billing between CSI and PFF. With bar indicates when they have selected the code facilitated bill of material (BOM) correct fabric and then asks them if they tracking and reporting, CSI has been able want to cut (if there is an excess amount) to consolidate these functions to one or ship the product. employee saving the company over $50,000 annually. The second customization added to Benefits Microsoft Axapta by Columbus IT Partner Despite an economic downturn and major enables CSI to automatically make price, price increases for the natural gas used to sales, and commission adjustments. CSI run their fabric dryers, CSI has maintained has independent salespeople (responsible profitability. for a specific territory) who receive commissions and company salespeople Inventory Accuracy who receive both a salary and CSI and PFF combined have 56,700 commissions. square feet of warehouse space. Since a The rotary printer at Chris Stone, Inc. prints large part of CSI's fabric is made-to-order, fabric at the speed of 20 to 30 yards per they don't carry many assets. Inventory and minute. the location of the inventory change These commissions frequently. Following implementation of vary based on tier Microsoft Axapta and the wireless bar code pricing (dependent solution, CSI performs daily cycle counts. on the type of the They can now easily locate fabric customer) and throughout the four warehouses; they can contract letters also identify the fabric to move it through (dependent on the the production process and to fill orders. size of the order). Microsoft Axapta Increased Customer Satisfaction Rolls of fabric in the finishing warehouse are differentiates Bongolan-Burchardt credits Microsoft ready for shipping from Chris Stone, Inc. between these Axapta with a 75 percent improvement in customer satisfaction. Employees now For More Information easily access information about customer Since implementation, this billing is done For more information about Microsoft orders and are able to provide accurate by one employee for a 50 percent reduction products and services, call the Microsoft responses to questions. in staff time. Implementation has also Sales Information Center at (800) 426- resulted in a 60 percent reduction in the 9400. In Canada, call the Microsoft Rolls of fabric in the finishing warehouse amount of time employees spend looking Canada Information Centre at (877) 568- are ready for shipping from Chris Stone, through the warehouse for fabric. 2495. Customers who are deaf or hard- Inc. of-hearing can reach Microsoft text telephone (TTY/TDD) services at (800) Improved Ability to View Both 892-5234 in the United States or (905) Companies 568-9641 in Canada. Outside the 50 Management now has the ability to view United States and Canada, please financial information for both CSI and PFF. contact your local Microsoft subsidiary. While the operations of CSI were To access information using the World computerized, PFF information had Wide Web, go to: www.microsoft.com previously been manually entered.

For more information Columbus IT Increased On-Time Shipments Partner products and services, visit the Following implementation, CSI has Web site at: improved their on-time shipping for the www.columbusit.com correct products and quantities to 85 percent. The remaining 15 percent are For more information about Chris Stone, typically delayed due to reorders, lack of Inc. products and services, visit the Web availability of greige goods, or delayed site at: delivery of greige goods. Prior to www.chrisstone.biz automation, workers had to manually look through warehouses to locate rolls of fabric for dyeing and printing. Increased Adjustability of Commissions Microsoft Business Solutions Sales people affiliated with CSI have Microsoft Business Solutions offer varying rates of commissions based on integrated business applications and their position, size of the company they are services that allow small and midsize selling to, and the amount of fabric sold. organizations and divisions of large Since implementing Microsoft Axapta, enterprises to connect employees, these rates are entered into the computer customers, and suppliers for improved for automatic adjustments and calculations. efficiency. The financial management, customer relationship management, supply Time Savings chain management, and analytics Inter-company billing between CSI and applications work with other Microsoft PFF required two full-time employees prior software, including the Microsoft Office to implementation of the new solution. System and the Windows operating

Software and Services − Microsoft Business Solutions–Axapta © 2005 Microsoft Corporation. All rights reserved. This case  Solutions study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft, Axapta, Navision, BizTalk, and Windows Server System are either registered trademarks or trademarks of Microsoft Corporation or Microsoft Business Solutions ApS in the United States and/or other countries. Microsoft Business Solutions ApS is a subsidiary of Microsoft Corporation. All other trademarks are property of their respective owners.

Document published June 2005 system, to streamline processes across an entire organization. This gives businesses insight to respond rapidly, plan strategically, and execute quickly. Microsoft Business Solutions are delivered through a worldwide network of channel partners that provide specialized services and local support tailored to a company’s needs.

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