ERP Implementation brings increased profitability to KLN Family Brands: Case Study


Directing diverse and highly variable production among multiple mediums is a highly complicated task for any manufacturer. Are spreadsheets is not enough for it? Pet food and snack manufacturer KLN family brands use a new ERP system for transforming their scheduling capacity, efficiency in production, cost control, and traceability.KLN is a prestigious brand that has an everlasting need to be fully top on inventory management, manufacturing, processing, cost &quality control of course regulatory compliance requirements.

KLN always operating a business with fair and they believe that their business system is important to meet customers demanding expectations with the continuity they expect from KLN.KLN follows a complex and ever-changing production line They manufacture a wide range of products with a wide range of batch sizes. Based on the demand from the consumer their production line changeover from one product to another ie, multiple changes over happens in a single day. For specific products they changing handling requirements not only recipes. In the case of the production of organic products, they make fully cleaning before they start. From different production, line profitability shows variations. A niche or premium product with a small run and of course lower-priced product with a long run might be highly profitable.

Before the implementation of the new ERP system, they used Excel for their requirements. Now they use IFS so they get a huge efficiency and literally they have more production uptime. Better ERP means better efficiency. Through ERP system jobs perform more quickly, forecast future requirements, and also working directly with customers.ERP not only for company efficiency it also helps customers be more efficient too.

In the case of production efficiency, KLN achieves a reduction in stocks of finished goods. Now KLN able to produce product lines in the quantities demanded by the customers. KLN’s new ERP provider has a wide range of integrated products available including the shop floor workbench. With the help of this tool, they can identify the labor costs that existed in the manufacturing stage of each product.KLN also refines its pricing to consumers for the purpose of ensuring profitability for smaller production runs.ERP helped a lot with the improvement in traceability and transparency of ingredients. Now materials used in production are in their control plan this helps to provide appropriate information and in ERP system attached certificate of analysis. According to the company, audit traceability is very crucial to maintain customers’ trust and for lesser administration cost.

KLN values improve within a short span of time after the implementation of ERP. Owners of this achievement are also a staff of KLN ie, they adopt a very quick ERP system in their workplace and get maximum gains. System customization helps to encourage people to involve. adding the custom field will help the people to control their environment and achieve real efficiency gains. Custom fields help to meet the field definition of requirements of the warehouse management system. According to KLN this type of internal improvements cut down the consulting costs.

KLN’s movement to the new ERP system help to get more granular over the production process. Within a short span of time company achieves tangible financial benefits so this will proves KLN’s new ERP implementation is the right decision.


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