A brilliant British innovation, a fifty-year old family business - and a frustrating inability to deal with an operation bursting at its supply chain seams.

A scenario not unfamiliar among post-war companies which have flourished and then found that success outstripped antiquated and unresponsive paper-based business systems.

This is what confronted H K Wentworth of Wargrave in Berkshire in the late ‘seventies. The company, established in 1950, had enjoyed steady growth based on the effectiveness of a simple contact lubricant, Electrotube, which prevented dangerous arcing between electrical components.

By 1980, a computerised business solution was deployed to grapple with H K Wentworth’s business management problems, although it was essentially a financial system, enhanced to cope with some manufacturing elements of the business.

Acceptable at the time, by modern standards it was heavily reliant on manipulation, and it did not offer the robust stock replenishment facilities required, causing constant software under-performance. Although the business continues successful growth, the software held the company back and did not let H K Wentworth offer their customers the levels of service expected in the new millennium.

Just over two years ago, the Board decided to restructure the company and conducted an IT study. This soon highlighted that the original business system had come to the end of its useful life – the major inefficiencies of the system showed that there was no batch control or physical location for stock, for example.

It was cumbersome to use and reported stocks were frequently inaccurate – with 500 different manufactured lines each with potentially 10 ingredients, this was a major concern. The study confirmed the long held notion that an effective stock control system was urgently needed. It was clearly time for new computer software and hardware to help focus the business. Main requirements were identified as business systems, logistics, warehouse management and financials.

The Process of Change

After the recommendations of the IT study group were considered, an H K Wentworth Project Team was formed to manage the implementation of the new business system. The main criteria of the system were that it had to be Progress based, and it needed to be implemented with year end (May) in mind.

Ron Jakeman was appointed as new Group Logistics / IT Director and the IT / Logistics Division was formed at Swadlincote in Derbyshire.

Business procedures and company culture changes were already taking place and new hardware was being purchased to create a much-needed new IT infrastructure.

H K Wentworth has chosen several integrated elements of OpenLogistix, including Inventory Management, Sales and Purchase Order Processing, MRP, Works Order Processing, Bill of Materials and Product/Job costing. In addition, the open architecture of the new supply chain system has made for ‘particularly easy integration’ with warehouse and accounts systems.

Implementation of both warehouse and supply chain systems “has been fine, the OpenLogistix Systems installation was great”, However, transferring data from the old, Cobol based business system has proved “very painful”.

“OpenLogistix Systems is very responsive and even though we have had the usual implementation glitches they continue to respond to crack the job quickly and efficiently”

Stocks of finished goods and ingredients can be kept at the level necessary to supply stock items within the required lead time and ensure that made to order products are manufactured and delivered within the advertised lead times. The sales forecast, a rolling 12 month forecast of expected sales has formed the basis for the MRP requirement.

In addition there is a sophisticated shortfall processing system that guarantees that all sales orders are covered by a manufacturing order and that all manufacturing orders with insufficient raw materials are covered by a purchase order.

“In the very short time that OpenLogistix has been installed we have gained many benefits from the effects of efficient planning and stock replenishments. We see OpenLogistix Systems providing the capability we require to achieve double our current turnover within five years”

“H K Wentworth have exciting new products and markets to attack, which are being developed in conjunction with our R & D departments. The market potential out there is massive” commented Jakeman “Customers mostly now use fax, EDI, email and post, but we see the way forward as eCommerce and customers will determine the rate of take up. But we now have the IT systems to support that”