SunSystems Goes on Display at Kesslers

For leading point of purchase design and manufacturer, Kesslers International, core business expansion and the development of successful subsidiary operations has been driven by a strong commitment to leading-edge IT implementations. However, expensive migration to new financial software has not been required. Kesslers’ investment in SunSystems in 1989 continues to deliver benefits today.

 

Working with financial systems provider, Eclipse Computing, Kesslers has created a streamlined financial infrastructure that provides both improved efficiency and reduced costs, while meeting the diverse reporting requirements of the point of purchase, distribution and property management businesses, that is required to sustain ambitious growth. Freelance journalist, Emma Mansell-Lewis, discovers

 

KESSLERS INTERNATIONAL

With a history stretching back to 1893, Kesslers International is now one of Europe’s leading designers and manufacturers of point of purchase display and merchandising. Based in London, the family-run firm employs 270 people and works with major brands such as Christian Dior, Clarins, Gillette and Swatch.

 

Kesslers International has a turnover of just under £20 million, 25% of which is generated through the export of products to Europe, the Middle East and North America.

 

In addition to the point of purchase business, the Kessler group also includes a distribution company and a property operation, both of which are growing rapidly. The warehousing, picking, packing and distribution of goods, primarily fragrance and cosmetics, to retailers has grown tenfold over the last decade, with the company now handling goods worth in excess of £100 million annually. Meanwhile the property arm owns and manages two business parks close to its London location.

 

LEAN OPERATION

The high cost base Kesslers experiences at its London offices has prompted the company’s strong focus on the use of technology to attain greater efficiency. Andrew Cochrane, Financial Director, Kesslers International, explains, “With a head office and manufacturing site in East London, the cost of operations, is higher than that of our competitors who are primarily located in the midlands. As a result, Kesslers is a strong advocate on the use of technology to deliver efficiencies and remain competitive.”

 

Indeed, the company has a long history of production innovation and is currently carrying out implementation of a major lean manufacturing programme with

the University of Cardiff’s Lean Institute. “Kesslers’ philosophy of close integration from design to manufacture has been one of the main factors contributing to success and growth. Excellence in creative design, supported by extensive use of IT, CAD/CAM and sustained investment has led to continuity and success,” he says.

 

This integrated, streamlined approach extends to the finance department where proactive financial management, with constant analysis of cost and profitability at a granular level, is a key element of the business process.

 

STREAMLINED FINANCE

Kesslers implemented SunSystems in 1989, as a result of a recommendation from the Chartered Institute of Accountants, which was endorsed by its auditors. SunSystems replaced an outdated mini-computer based system with dumb terminals and provided the company with the multi-currency

functionality and ease of information sharing required to streamline operations.


Cochrane explains, “Kesslers had clear opportunities for improved business efficiencies within the accounts department. In addition to reducing costs and improving processes, we also wanted a system that could deliver excellent information to the business to support our ambitious growth plans.”

 

The implementation of SunSystems was carried out by financial systems provider, Eclipse Computing in a two day process that minimised business disruption. Eclipse also delivered SunSystems training to the department – a process that is continually replicated for any new recruits free of charge, as part of Kesslers’ support and maintenance agreement with Eclipse. He says, “Eclipse’s training programme is excellent and ensures new employees become productive far more quickly than just relying on ‘on the job’ training.”

 

Commenting on the length of relationship with Eclipse, Cochrane says, “We have been working with Eclipse for the last 15 years and have always found their service to be excellent. Eclipse have continued to support our use of SunSystems software as our business needs have evolved, and it is very reassuring to have a product and business partner that can support our continued business expansion over a long period.”   

 

Within the first three years of SunSystems adoption, Kesslers had reduced its admin burden by fifty percent – a figure that has been sustained despite the huge business growth experienced across the group over the past decade. This efficiency gain has been achieved by integrating corporate information, such as payroll, directly into SunSystems, removing the need for time consuming and potentially error ridden re-keying of data.

 

During that time the company has remained at the forefront of technology adoption, implementing SunSystems upgrades that include a platform for unified invoice generation – a process the organisation has found difficult to manage in the past due to its multiple business operations.

 

FINANCIAL CONTROL

The software’s flexibility also enables the accounts department to meet the different reporting requirements of each business. “SunSystems’ ability to analyse information in different ways, supplemented by the excellent drill down technology, has enabled us to deliver improved information across every aspect of the Kessler group,” says Cochrane.

 

Within the distribution business, Kesslers is able to analyse performance across each location, balancing the costs of warehousing, picking, packing and distributing goods against revenue. Using drill down, the company can take this analysis to a client level, ascertaining the profitability of each client to the business. 

 

Within the point of purchase design and production process, profitability can be assessed at both client and individual job level through detailed analysis of design and manufacture costs. “With a batch production process that produces quantities of 25 to 10,000, it is essential to keep a close control over our costs. Some 60% of our products each year are new designs, so accurate information is essential to support profitable growth,” he says.

 

With management accounts available within six working days of month end, the accounts department uses SunSystems to provide tailored financial information views across the company to meet specific business needs. Furthermore information is available to Line Manager on demand to facilitate improved departmental cost analysis.

 

Within the property business, the information is used to provide cost analysis on a site by site basis. “In addition to analysing the profitability of rented premises, we also use the information in SunSystems to account to tenants the spend relating to their Service Charge,” he says.

The company also uses direct access to SunSystems for interactive troubleshooting sessions with senior management, exploiting the drill down functionality to ascertain the cause of specific problems. “This is a very powerful tool that supports Kesslers’ problem resolution process,” Cochrane confirms.

Looking ahead, the company plans to further enhance its reporting functionality by adopting SunSystem’s Vision reporting tool, which delivers dynamic analysis and will improve the company’s insight into business trends.

 

SUPPORTING GROWTH

Over the past 15 years, Kesslers International has grown significantly. It has won major awards for its efficient manufacturing and design processes and continues to invest in IT to drive further business expansion. Throughout this time, SunSystems has continually enhanced the product, broadening functionality and improving integration with other systems.

 

“SunSystems continues to support Kesslers’ business needs as we expand, endorsing the original investment decision,” Cochrane concludes. “Technology underpins the success of this organisation and our use of SunSystems has enabled the streamlining of processes, improved efficiency and enhanced reporting that is required to drive the business forward.”

 

ABOUT ECLIPSE

Established in 1986, Eclipse Computing is a financial Systems Solutions provider specialising in the provision and implementation of international business management software within national and multi- national organisations and corporations . Operating from a network of offices in Europe and North America, Eclipse is able to provide truly global support and already has over 2,000 customer organisations in more than 70 countries.

 

Eclipse Specialises in implementing best of breed software and professional consulting services to deliver strategic business systems across the following areas: Financial and management accounting, business intelligence, reporting/ consolidation, project accounting and professional services automation (PSA).

 

Eclipse has established  Long-term business relationships with major software vendors including : Infor, Microsoft Business Solutions, Cognos and Citrix. These Strategic business partnerships, combined with Eclipse’s Commitment to providing the very highest levels of consulting, support and training services, ensure strong and long lasting customer relationships.