Manufacturing Innovation in Atlantic Canada Executive Contents Summary

Manufacturing Innovation In Atlantic Canada Executive Contents Summary

3 Manufacturing in Atlantic Canada Manufacturing Innova- tion In Atlantic Canada 4 SYSPRO in Atlantic Canada investigates manufacturing trends, government 5 Local Insight, Flexible Software, incentives, academic Global Results and private alliances and growth with a collection of SYSPRO customer stories, 6 Incentives and Innovation local insights and future predictions. 7 Innovation in Action: Customers Stories With over 500 manufactur- 7 Innovation in Action: ing and wholesale custom- SYSPRO and Crosby Molasses ers in the region, SYSPRO, a leading provider of en- 8 Innovation in Action: terprise resource planning SYSPRO and BioVectra software and services, has been at the frontline of the 9 Innovation in Action: evolving manufacturing SYSPRO and SureShot Dispensing Systems sector in Atlantic Canada for more than 15 years. 10 Innovation in Action: John Fahey, SYSPRO and SABIAN Cymbals President SYSPRO CANADA 11 Future of Atlantic Canada Manufacturing

12 About the Author – John Fahey

12 About SYSPRO

2 Manufacturing Innovation In Atlantic Canada | www.syspro.com Manufacturing in Atlantic Canada

Traditional industries continue to evolve and thrive.

Oil, gas and hydroelectric resources remain evident in Newfoundland and Labrador. Agricultural success continues in Prince Edward Island (P.E.I.). Nova Scotia, often referred to as ‘the gateway to Canada,’ continues to produce and invest in world-class shipbuilding. New Brunswick, Canada’s only official bi-lingual province, remains an important area for forestry, food processing and fishing.

Against a backdrop of traditional industries – new, innovative manufac- Atlantic Canada’s coasts, turing companies have also emerged natural resources and to serve local, national and global culture have made it markets. an important part of Canada’s history and Atlantic Canada continues to breed development. manufacturers and businesses that withstand the test of time including family businesses that transcend mul- tiple generations.

Manufacturing Innovation In Atlan- tic Canada, features four businesses that are redefining the manufacturing landscape. All of the businesses are local success stories. Each company is a global market leader. Every company profiled relies on SYSPRO software to run its business.

Our customer spotlights include:

 BioVectra, a supplier to the pharmaceutical and biotechnical industries  Family-owned and operated molasses manufacturer, Crosby’s  Dispensing pioneer, SureShot Dispensing Systems, and  Cymbal designer and manufacturer, SABIAN

www.syspro.com | Manufacturing Innovation In Atlantic Canada 3 SYSPRO in Atlantic Canada

A global leader in Enterprise Resource Planning tinual focus to service a mid-market manufacturing (ERP) software and solutions, SYSPRO is an indepen- and wholesale distribution customer base has al- dent company with 35 years’ experience helping lowed SYSPRO to develop software that truly makes small and mid-sized manufacturing and wholesale sense for smaller companies – we’ve focused on companies simplify success by improving control building a simple, scalable solution from day one,” and operational efficiency. said John Fahey, President of SYSPRO Canada.

With more than 500 Atlantic Canadian custom- “We know that small and mid-sized companies gain ers, SYSPRO and its Halifax-based team have been competitive advantage from speed and flexibility. integral to the success of manufacturing in the region for nearly 20 years. With more than 500 Atlantic Canadian customers, SYSPRO and its Halifax-based team have been integral to the success Richard Dyke who leads of manufacturing in the region for nearly 20 years. SYSPRO in Atlantic Cana- da explains, “you would be hard pressed to go anywhere in the region that isn’t serviced by the SYSPRO supply chain. Our customer base is diverse - a real mixed bag.”

With customers in aero- space, co-operatives, electronics, emergency vehicles, fish and food processing, furniture, gambling, health applications, industrial distribution, machinery, pharmaceuticals and telecommunications – SYSPRO’s ERP software is The ability for our customers to add, upgrade and flexible and therefore frequently tailored and inte- adopt functionality as they need it, not before, is a grated with many different mission-critical applica- strategic advantage. tions across accounting, manufacturing and distribution. SYSPRO’s open architecture is in stark contrast with the closed architecture of many of our ERP com- “Our flexible, open architecture software allows us petitors. It’s important for companies to understand to individually partner with each of our customers as that closed architectures will negatively impact, if we help them extract and create value. Our con- not eliminate agility,” continued Fahey.

4 Manufacturing Innovation In Atlantic Canada | www.syspro.com Local Insight, Flexible Software, Global Results

Four years prior to becoming a SYSPRO partner in tirelessly to understand our customers’ businesses, 1988, I was working with my colleagues in Halifax challenges and opportunities. to help manufacturing and distribution companies in Atlantic Canada run their businesses better We embrace being local and continually invest in through custom software solutions and consulting our understanding of businesses, industries, families services. We then became aware of a packaged and culture. Atlantic Canadians are fiercely inde- solution from SYSPRO which worked very well for pendent. We see this independence ring true with us and also suited the growing diversity of our cus- many of our jack-of-all-trades customers. tomer base here in Atlantic Canada. My team and I will continue to roll-up our sleeves With such a mosaic of Atlantic Canadian custom- with new potential clients. We create value and ers across industries we needed to meet the needs of a huge range of companies. Increasingly, we recommended SYSPRO as the ERP platform of With such a mosaic of Atlantic choice. Canadian customers across industries we needed to meet In 1988, we took the opportunity to strengthen our the needs of a huge range of ties with SYSPRO and gain exclusivity in Atlantic companies. Increasingly, we Canada – becoming a value-added reseller (VAR). recommended SYSPRO In 2006 we became a wholly-owned subsidiary as the ERP platform of of SYSPRO. It was clear to us that SYSPRO values choice. quality over quantity of its partners and it invests Richard Dyke, resources and effort to make its partnerships suc- Vice-President and General Manager cessful. SYSPRO Business Solutions Inc.

Twenty years on, our customer relationships continue to grow – working as the sales and services insight by working in partnership with our custom- arm of SYSPRO in the Atlantic region, our 500-strong ers – from the shop floor to the management and customer base has retention rates of 98%. executive level.

In 2014, our ‘20-year class of customers’ will come Working as a relatively small player in the global forward. 20-year customer relationships are impres- software market, we love to help our clients punch sive in any industry, but it’s fair to say that length of above their weight – as we also continue to bat- relationship is particularly impressive in the software tle in situations and markets where we’re not sup- business. posed to win.

We attribute our continued success, which we thank our customers for, to truly understanding lo- Richard Dyke, cal market dynamics and being able to build re- Vice-President and General Manager, lationships with our customers over time. We work SYSPRO Business Solutions Inc.

www.syspro.com | Manufacturing Innovation In Atlantic Canada 5 Incentives and Innovation in Atlantic Canada

Many manufacturers in Atlantic Canada have “Our Government is committed taken advantage of government incentives to helping innovators in to modernize, improve and grow their busi- Atlantic Canada Succeed.” nesses including many technology-led initia- tives. Stephen Harper, Prime Minister

Since 2006, The Atlantic Innovation Fund (AIF), which is designed to help Canadians compete in the global economy, has invested over $500 million in commercial and institu- tional projects.

Peter Mackay Member of Parliament for Cen- tral Nova and Minister of Justice and Attorney General in the Cabinet of Canada explains the goal of the AIF, “our Government is committed to helping Atlantic Canada’s businesses to move innovative ideas from the lab to the marketplace.” Support from the AIF has included resources to aid the development of two SYSPRO customers have also benefitted from the generic drugs by SYSPRO customer BioVectra. federal Digital Technology Adoption Pilot Program (DTAPP).

Provincial opportunities Specifically focused on increasing the productiv- also exist ity growth of small and medium-sized enterprises (SMEs), DTAPP is part of the Government of Cana- In Nova Scotia, the Productivity & Innovation da’s Digital Economy Strategy. The program is de- Voucher Program continues to provide small busi- signed for incorporated firms with 500 employees or nesses with less than 100 employees funding op- fewer that are interested in speeding up their rate portunities to acquire direct assistance from Nova of digital technology adoption and skills develop- Scotia universities and colleges. ment.

The vouchers “SYSPRO applauds the Canadian Government’s effort to “As Canadian are designed support innovation through technology and continuous business lead- to drive in- improvement such as partnerships between the private ers increasingly novation and sector and academic institutions.” compete on a p r o d u c t i v i t y global scale, it through servic- should be their es and advice in areas such as applied research, duty to investigate and integrate funding, resources engineering services, field-testing, product evalu- and opportunities as they build their businesses and ation, prototyping, product design and feasibility enhance local communities across the country,” studies. said John Fahey, President of SYSPRO Canada.

6 Manufacturing Innovation In Atlantic Canada | www.syspro.com Innovation in Action: Customers Stories

‘Simplifying information, workflow and decision-making through technology doesn’t have to require a multi-million dollar investment. Each year about a third of SYSPRO’s revenue in Can- ada comes from referrals because we truly understand the needs of mid-sized manufacturers and wholesale distributors and offer solutions they can afford.” John Fahey, President, SYSPRO Canada

Innovation in Action: SYSPRO and CROSBY’s

Crosby’s cheons filled with “liquid gold” – times more cost effective,” said also known as fancy molasses. Kelly Moore, Comptroller at Cros- by Molasses Company Limited. In 1879, at the age of 20, Lorenzo In 1897, Crosby Molasses relocat- George Crosby opened a gro- ed to Saint John, New Brunswick, “It was important for us to have cery business in the bustling port where the business remains to this a local team just down the road town of Yarmouth, Nova Scotia. day. in Halifax when we selected our An enterprising youth, L.G. quickly ERP partner. We have had noth- established himself in the import 125 years later, operating as an ing but good dealings with SYS- export scene – transporting Mari- independently owned family PRO management and staff – time fish and lumber to the West business, Crosby’s supplies molas- from top to bottom,” continued Indies and returning with pun- ses and sweeteners to retail and Moore. industrial markets under the di- rection of Jim Crosby – a fourth- Crosby’s relies on SYSPRO to stay generation molasses purveyor. competitive in the highly regulat- ed food and beverage industry. While molasses continues to be the mainstay of the business, “Since partially implementing Crosby’s also has an expanding SYSPRO’s traceability module, line of dry-sugar-based prod- we have reduced the average ucts and syrups. Sold across the trace time by 50% from 16 hours country, the New England states down to 8 hours – and we have and other international loca- set a goal of significantly further tions including Korea and Ice- reducing trace time down to one land, Crosby’s imports over 6,000 hour,” explains Moore. tonnes of molasses a year. SYSPRO and Crosby’s work to- SYSPRO & gether to tailor the software.

Crosby’s “Flexibility is very important for our users. SYSPRO ERP software works “Shortly after I joined for us providing information. Un- Crosby’s in 2010, we un- like other similar software solu- dertook a review of the tions, we don’t have to sweat to ‘big ERP’ vendors only to get the information out,” finishes find that SYSPRO was 5-10 Moore.

www.syspro.com | Manufacturing Innovation In Atlantic Canada 7 Innovation in Action: SYSPRO and BIOVECTRA SYSPRO and BioVectra

“The transition to the SYSPRO requisi- tion and purchase approval system from paper based five or six years ago was a great timer save for us. It was the technology step change that we needed to evolve from a 14 to 40 million dollar company,” said BioVectra Controller Darren MacGregor.

A customer since 2000, BioVectra tailored SYSPRO for a diverse range of users. By effectively bridging chemistry and BioVectra biotechnology, BioVectra offers drug “Some people only use the software development companies a unique once or twice a day whereas others Recognized as one of the most mix of skills applied to molecules re- are working with it eight hours a day innovative companies in Atlantic quiring more than one processing – creating a single screen view has Canada, BioVectra is the oldest and technique, while serving as a full-ser- made it very easy for us to train peo- largest biotechnology company in vice, drug development partner. ple and manage,” said MacGregor. Prince Edward Island. Founded by distinguished scientist and entrepre- BioVectra has a unique business With such an instilled innovation culture, BioVectra employees across neur Dr. Regis Duffy as Diagnostic model. Chemicals Limited in 1970, it evolved the company are encouraged to use the SYSPRO system to learn from into a stand-alone operation in 2008. Not strictly a product manufactur- the information and data it holds. ing company, service contractor, or MacGregor confirms, “SYSPRO has A dynamic and innovative player in development company, it combines helped us create a self-service cul- the global biotechnology and phar- a variety of skills and resources to ture.” maceutical industries, BioVectra has assist pharmaceutical compa- active supply and partnership re- nies with their development and When BioVectra updgraded to lationships with most of the world’s manufacturing needs in extraction, SYSPRO 6.0 it realized significant major pharmaceutical and biotech chemical synthesis, and biological reporting benefits. giants. applications. “The implementation of expiry date reports for raw materials combined with regular meetings resulted in en- hanced decision making capabili- ties surrounding valuation, retesting versus discarding – and if, and when, to use raw materials in production,” explains MacGregor.

Operating in the pharmaceutical industry, materials traceability is of par- amount importance for BioVectra. SYSPRO is also used to help BioVectra meet its strict customer demand and to satisfy government and safety regulations in Canada, USA and in- ternationally.

8 Manufacturing Innovation In Atlantic Canada | www.syspro.com Innovation in Action: SYSPRO and SURESHOT SureShot Embraced by market-leading quick enhance food safety while reducing service restaurants and coffee costs. Dispensing purveyors, SureShot Dispensing System Systems has developed a reputation for knowing the coffee industry inside SYSPRO and out, and developing products that From Lower Sackville, Nova both beverage retailers and their SureShot Scotia, A.C. Dispensing Equipment customers rely on to make that per- Inc. (SureShot Dispensing Systems®) fect cup of coffee. Dispensing markets, designs, engineers, manu- factures and services equipment With a solid commitment to R&D, “SYSPRO plays a key role in our ongo- used by many of the leading quick innovation, market knowledge and ing productivity and continuous im- service restaurant chains throughout consumer trends, SureShot continues North America. to raise the bar in the industry. provement efforts. It is critical for us to remain competitive in our market- SureShot Dispensing Systems has Its innovative technology in dispens- place and SYSPRO helps us in doing transformed the coffee industry in ing liquids, granulated powders, so,” said Ian Tramble, Vice President, North America with its revolutionary flavourings and whipped topping, “SureShot” precise portion control has significantly helped its custom- Finance & Administration at SureShot dairy dispenser. ers increase speed of service and Dispensing Systems.

www.syspro.com | Manufacturing Innovation In Atlantic Canada 9 Innovation in Action: SYSPRO and SABIAN CYMBALS

bered with an original, eye-catching worked extensively with the SYSPRO SABIAN graphic and packaged in a deluxe Halifax office, and with other 3rd par- custom bag with certificate of au- ties, to write custom software. The SABIAN Limited is one of the world’s thenticity. beauty of SYSPRO is its flexibility – we foremost cymbal manufacturers. can leverage our investment without The cymbals, well-known to fans affecting the core reliability of the Founded in 1981 in Meductic, of Rush and the Red Hot Chili Pep- software.” New Brunswick by Robert Zild- pers alike – received a huge burst of jian, the SABIAN brand was fan attention during both the Rush Before SYSPRO, says Hartt, SABIAN created by combining the first two ‘Clockwork Angels’ and the Red Hot had no way to track its products letters of his children’s names: Sally, Chili Peppers ‘I’m With You’ Tours. through the manufacturing process. Billy, and Andy. “We didn’t know how much cop- Today, SABIAN employs 125 people in SYSPRO & SABIAN per or tin we had on hand, or how nine offices, and distributes cymbals, many uniroll blanks we had – and percussion instruments, stands and SABIAN chose SYSPRO in 1997 after a those have a 20-week delivery time. accessories to 120 countries across detailed search of product reviews, SYSPRO allows us to track the move- the globe. reference checks, and a thorough ment of product throughout the evaluation. production and customer lifecycle. The company’s basic cymbals are It allows us to be more proactive, formed from brass “uniroll” blanks. “Our priority was to purchase a sys- which gives us a definite competitive The premium “cast metal” cymbals tem that could be highly tailored and advantage.” are forged from an ancient family conform to our business processes. formula in the SABIAN foundry. SYSPRO was exactly what we were SABIAN also worked with SYSPRO to looking for. Our initial investment was fine-tune barcoding and author a When the metal is molten it’s poured approximately $100,000. Half of that custom packaging module. into discus-shaped ingots, which are was spent on software and the other cooled and allowed to rest before half on consultants. It was the best “When I joined SABIAN in 1997 the being subjected to a lengthy manu- $100,000 we ever spent,” said Greg company was selling about 480,000 facturing process including hand- Hartt, Manager of Information Sys- cymbals a year. Fifteen years later crafted procedures. tems for Sabian we have doubled the number to 900,000 cymbals sold each year. SABIAN’s manufacturing process in- Over the years, says Hartt, SA- During all that growth we only hired cludes rolling, shaping, cut- BIAN has pushed the one additional person in an ting, hammering, two boundaries of administrative capacity. That’s twice stages of testing, and what SYSPRO the volume with only one more a period of matu- can do. body, and that would not have ration in the “ We ’ v e been possible without SYSPRO ERP,” SABIAN Vault. concludes Hartt.

SABIAN on occasion has p r o d u c e d graphic cymbals for high- profile artist tours and special events, but until the summer of 2013 the custom cymbals have not been available for consumers to purchase.

As the result of huge demand for its Neil Peart 22” Paragon Steampunk Ride and the Chad Smith 19” RHCP- Edition, SABIAN produced a limited run of 300 each – each hand-num-

10 Manufacturing Innovation In Atlantic Canada | www.syspro.com Future of Atlantic Canada Manufacturing

Investing in SYSPRO will strive to deliver on our promises to be experts, talent individual, smart, reliable, tenacious and responsive – six values that are instilled across our business. development Six values we’ll continue to embrace as we roll up our sleeves to support and truly understand “SYSPRO will remain committed our customers in Atlantic Canada. to working with post-secondary institutions in Atlantic Canada John Fahey, President, SYSPRO Canada to expand knowledge, skills and us run our courses at the pace of business – preparing best practices to support the our students for their transition from university. growing demand for qualified professionals in the fields of production and distribution management,” said John “Through the use of SYSPRO ERP we’ve sparked our Fahey, President SYSPRO Canada. students’ interest in the power of software including a recently completed undergraduate research thesis In Atlantic Canada, SYSPRO’s Academic Alliance pro- project on Forecasting Technology,” said Hosein Marzi, gram includes Department of Information Systems at St. Associate Professor, Department of Information Systems, Francis Xavier University with specializations in Enterprise at St. Francis Xavier University Systems (ES) and Information Technology Management (ITM), New Brunswick Community College’s Logistics & Over the past four years, the strength of the Canadian Supply Chain Management program and College of dollar relative to the American dollar has forced Cana- the North Atlantic’s Mechanical Engineering Technol- dian manufacturers to become increasingly efficient. ogy program. SYSPRO currently works with six academic partners across Canada. Our Atlantic Canadian customers have shown an uncanny ability to ‘get closer to their customers and Systematic success at supply chain partners’ as specialists to withstand the test of time. Crosby’s is a prime example with a fourth St. Francis Xavier generation Crosby currently leading the business.

The courses in the program of Information Systems at St. Continued specialism within Atlantic Canadian manu- Francis Xavier initially describe enterprise processes in in- facturing businesses will continue to breed a diverse dividual departments of organizations and explore fun- cross-section of manufacturers. Customization of pro- damentals of decision-making. They then focus on Soft- duction, delivery and integrated service are likely to be ware Systems such as SYSPRO that collectively provide the focus for innovation. a foundation for collaboration between departments. Students learn in practice how the SYSPRO ERP System Advances in wireless connectivity, mobile devices and helps performance-based decision-making. adoption of cloud computing are combining to create the potential for workflow advances and new types of “It’s the third year we’ve participated in SYSPRO’s Alli- data-driven analysis and planning. Increasingly intelli- ance Program. This partnership allows us to integrate gent planning and decision-making tools such as pre- SYSPRO into our program curriculum and benefit from dictive analytics will become more common. However technical support from SYSPRO for the installation, up- as Atlantic Canadian manufacturers introduce new grading and troubleshooting of the software. The ability technology, the ability to efficiently integrate with, and for our students to have exposure to SYSPRO and their complement existing foundational systems will define questions answered or issues resolved immediately helps success.

www.syspro.com | Manufacturing Innovation In Atlantic Canada 11 About the Author John Fahey

John Fahey is President of SYSPRO Canada. Hired in 1996, Fahey has guided the company to what is now a 45-strong team and supported the development of a proven partner network that services over 1,500 businesses across the country.

Fahey believes that customer retention stems from having a dedicated focus on one’s target market, being responsive, nimble and having the capacity to truly understand customer requirements and fit within diverse company cultures. This approach has consistently impressed the Canadian market – with a third of an- nual revenue originating from customer referrals.

Skeptical of the need for customers to understand the jargon-fueled approach of many technology companies, Fahey is passionate about simply helping customers become more competitive, cutting costs, driving increased revenue and enabling tighter operational controls for greater productivity. His team and dedicated partners tirelessly service customers by deploying SYSPRO software in partnership with customers while staying ahead of manufacturing and distribution trends across provincial, national and international markets.

Fahey started his career in a combined manufacturing & construction business in Montreal before moving to Vancouver as a partner in a contracting business.

Fahey currently lives with his wife and three kids in Port Moody and when not cheer- ing on the kids at their sports events he enjoys hockey and skiing during the winter and boating in summer.

About SYSPRO

SYSPRO has a proven track record, with 35 years’ experience in enterprise resource planning (ERP), of managed sustainable growth and is operational in over 60 countries, across six continents with over 1,500 channel and support partners. Backed by a dedicated and professional team, SYSPRO provides software solutions and services to thousands of customers in vertical markets within manufacturing and distribution. SYSPRO is one of the longest standing independent, international vendors of business software solutions and services.

1-888-259-6666 www.syspro.com [email protected]

12 Manufacturing Innovation In Atlantic Canada | www.syspro.com