Contract manufacturer Metalia MS takes control of inventory with ERP system from Global Shop Solutions

Dozens of CNC laser cutting machines can be found inside Metalia’s nearly 97,000-sq.-ft. facility in Monterrey.

Situation

Based in Monterrey, Mexico, Metalia MS is a contract manufacturer that provides precision sheet metal fabrication for customers in Mexico and around the globe. Using hot- and cold-rolled steel, stainless steel, galvanized steel, and aluminum, the family-owned company makes a variety of internal and external parts mainly for the electrical equipment industry, as well as automotive, lighting, HVAC, mining, oil and gas, and aerospace. Founded in 1981, the ISO 9001:2008-certified company employs about 850 people and operates production plants in three separate locations.

More than a decade ago, the manufacturer designed and built its own ERP system to help manage the growing business. While the system worked well for a number of years, the company eventually outgrew its limited capabilities. Project Manager Patricio Narro was assigned the task of researching outside ERP systems.

“We looked at several different systems, big and small,” Narro recalled, “but most systems were too generalized and did not meet our requirements.”

Resolution

After a lengthy search, the company settled on Global Shop Solutions ERP software, choosing all the standard modules at implementation. After several months of learning the basics of the system, initial training, and preparing to transfer the data from its previous system, Metalia went live with the software.

With a large workforce to train on the software and more than 15,000 products requiring accurate routers and bills of material, Metalia had to work out some of the kinks that inevitably occur with any new software launch. Fortunately, Narro assembled a strong implementation team that took the responsibility seriously and worked hand-in-hand with the Global Shop Solutions implementation consultants.

“We have much better control over all aspects of inventory, including raw materials, WIP [work-in-process], and finished goods,” said Narro. “We’re miles ahead of where we were with our old system. We have less WIP, fewer raw materials, and more finished goods going out the door.” Narro also credits the software with helping to improve communication and coordination throughout the business.

“Global Shop Solutions is simpler and better than what we had before, especially the user interfaces,” he said. “Instead of having to deal with all the workarounds and patches on our old system, everything is now standardized. People can quickly find the data they need to perform their jobs. And we can count on the data being accurate and consistent throughout the system. As a result, everyone speaks the same language and we’re all working off the same page.”

Using the software has even improved the appearance of the shop floor. Where it used to have pallets, products, and unfinished work scattered around, the shop floor now looks virtually spotless, with everything where it belongs. “We used to have inventory lying around all over the place,” noted Narro. “Now, everything gets put in its proper place and we know where to find it with close to 100% accuracy.

“One of the real strengths of [the system] is the ability to adapt it to the way we do business,” he continued. “In addition to making it easy to customize screens, reports, and dashboards, they also have an application store with more than a thousand custom programs that have already been implemented by other customers.”