“The big-time ROI comes from improving manufacturing operations, and
that’s what Trex is teeing up for.”
—Kirby Miner, CIO, Trex Company
performed to the software when Oracle came out with patches,”
says Miner. “We were still living with the same software that
came out years ago.”
BUILDING THE FUTURE
Trex answered the challenges by looking at the initiative
through the lens of business value rather than treating the
project as a straightforward technology upgrade. “What the
company did was target opportunities for improvement on a
list before starting the project,” says Jones. “It’s not just doing
the upgrade. It’s also doing the upgrade with the intention of
getting business benefits out of it.”
Working together, Trex and CSS
analyzed and redesigned 10 to 15 business processes to take advantage of tools
and functionality within JD Edwards
EnterpriseOne 8. 12. Some focused on
financial processes like the chart of
accounts and reporting. Others focused
on moving orders through the supply
chain, inventory, and replenishment.
“We examined our processes to eliminate unneeded tasks and leveraged the
software to cut out manual steps,” says
Miner. “We tried to find ways to move
orders through the system faster and
more accurately by taking out most chances for human error.”
The team built its analysis on current business drivers and
worked closely with subject matter experts within the business
units to provide several process change options that aligned
closely with strategic goals.
“CSS was able to listen to user needs, examine current processes, and give 2 or 3 choices rather than 50,” says Miner. “It’s
a very decisive leader and did a good job of helping drive home
the business requirements that had been set up.”
The team also made the decision to “go vanilla” and avoid
software customization as much as possible, a choice predicated
on the limitations imposed by the previous incarnation of ERP
software. The previous system was built around an older generation of technology, requiring Trex to customize the system
to interface with basic banking functions such as EDI and purchase cards. “It was like a guy who has a new car with an elaborate stereo system but uses a boom box in the front seat while
driving—all because he didn’t read the owner’s manual,” says
Miner. “Does he get music? Yes, but it’s cumbersome, expensive,
and redundant.”
The team decided that it was more effective to adapt processes to the software rather than vice versa, a decision reinforced by the fact that JD Edwards software is built on a deep
reservoir of collective best practices. “Oracle is expert in ERP, so
why not leverage that?” says Miner. “Why pay for it and then go
and do something else?”
Finally, the team built a physical infrastructure that enabled
Trex to move the application in-house, enabling the company
to migrate away from a hosted system environment. Trex had to
invest in hardware, but the company was able to fill an open IT
position with an expert in JD Edwards software, which enabled
it to support the application without adding to head count. “By
bringing it in-house, we ended up saving about half a million
dollars a year,” Miner says.
The implementation went smoothly—
not surprising, considering that it was
Miner’s 17th ERP implementation. The
entire project took seven months and
went live in May 2009. “The day after we
went live, I was able to attend [Oracle user
group conference] COLLABORATE—that’s
how confident I was in CSS and our team’s
ability to get things going,” says Miner.
As Trex continues to expand, Jones
sees the project as the foundation of a
broad operational overhaul. “In manufacturing, the big-time ROI comes from
improving manufacturing operations, and
that’s what Trex is teeing up for,” says
Miner. “It now has both the technical and accounting structure
in place to support that.”
Even better, Miner thinks this project will help Trex
accomplish a larger goal of removing waste from the environment. The company is one of the only in its niche that
uses primarily recyclable materials—Trex now buys about 70
percent of the nation’s recycled plastic bags and adds sawdust
to create its composite products. By analyzing consumption
and making its manufacturing processes more efficient, the
company will be able to lower its prices and increase orders.
“If we sell more Trex products, we’ll recycle more and our
competitors will be using less virgin plastic,” Miner says. “It’s
better for the environment.” <>
>>SNAPSHOT
Trex Company
Location: Winchester, Virginia
Revenue: More than US$329 million
Employees: 600
Oracle products: JD Edwards
EnterpriseOne 8. 12, including
accounts payable, accounts
receivable, general ledger, fixed
assets, electronic data interchange,
procurement, sales order processing,
and work orders
CAROL HILDEBRAND is a Massachusetts-based business and technology writer.
JD Edwards EnterpriseOne
oracle.com/goto/jdedwards
Oracle Consulting for Upgrade Services
oracle.com/consulting/upgrade-services.html
