Canfor USA Case Study
Framing an end-to-end business management solution.
Canfor USA is the United States subsidiary of the Canadian corporation Canfor - the largest producer of softwood lumber in Canada, including oriented strand board (OSB), plywood, remanufactured lumber products and specialized wood products. Canfor USA relies on Microsoft Dynamics NAV (formerly Navision) and ICS Support as its end-to-end business management solution - a solution that’s proven reliable, flexible, and highly cost-effective.
Time for a New Solution
“We had been using our parent company’s custom software for inventory, sales and shipping, and Microsoft Excel for our production tracking,” recalls Kitti McCallum, controller at Canfor USA. “Corporate had no financial system in place, nor did we. We both needed something new.”
McCallum began her own search for a solution that would meet their accounting and manufacturing needs. She quickly singled out the Microsoft Dynamics NAV solution for its ability to be easily configured and customized. “I knew we’d need some unique functionality to handle lumber calculations,” she notes.
Meanwhile, the corporate office pursued an Oracle database solution. “They wanted us to look at Oracle as well - but it was very expensive. When I showed corporate what I could get with Microsoft Dynamics NAV for less than $100,000 - they gave us the go ahead.”
Saves More Than $160,000
Integrated Computer Systems Support provided professional implementation services and comprehensive staff training for Canfor USA. The company implemented a broad suite of modules, including manufacturing, distribution, fixed asset tracking, and core financials. Microsoft Dynamics NAV is credited with saving Canfor USA more than $160,000 to date.
The company performs monthly cycle counts, bringing staff in on the weekend to accomplish the task. The task used to require three or four people. “Data entry was so time consuming with the old software, and we had so many discrepancies, that these routine physical counts took way too much time,” explains McCallum. “Now, we’re done in one-quarter of the time, and we only need 2 people instead of the four. This alone saves us at least $12,000 every year.”
McCallum determined that at the company’s rate of growth, it would have been necessary to hire at least one additional person to keep up with the data entry tasks required by the busy manufacturer. However, due to the efficiencies and intuitive interface provided by Microsoft Dynamics NAV, Canfor USA has grown revenues by over $200 million in the past four years, without hiring any additional data entry personnel. “It’s easily saving a $40,000 yearly salary,” McCallum says, “In the four years we’ve been using Microsoft Dynamics NAV, that’s $160,000 in real savings. It is obviously a major contributor to efficiency here at Canfor USA.”
Flexibility Is Key
Microsoft Dynamics NAV provides enormous customization and configuration capabilities, and Canfor USA is putting them to good use. McCallum says she’s been able to customize reports and forms and add new data fields to screens to better support Canfor USA’s operations. “It absolutely works for us,” she says. “We’re able to make most of the changes ourselves. It’s easy to integrate with other software, and we’ve been able to add new modules and functionality as we’ve grown.”
Data from Microsoft Dynamics NAV is extracted using Jet Reports into Excel, where McCallum has created a sophisticated sales forecasting tool. “I’m able to get real-time data such as quantities on hand, past sales, and on-order figures while I’m working in the spreadsheet,” she says.
Information Brings Insight
Microsoft Dynamics NAV delivers fully integrated cost analysis capabilities. With a better understanding of the relationship between its raw materials and finished goods, Canfor USA uses this additional information to boost production efficiency. “We know what raw materials we have on hand and what it takes to produce each of our finished goods,” explains McCallum. “If we don’t have enough to produce a particular item, we’re able to see what other items use the same raw materials, and shift production to that item.”
Through reporting tools and inquiries, management is able to study seasonal trends and identify slow moving items within its product offerings. “We have information available now that allows us to make informed business decisions,” McCallum explains.
Valued Partnership
ICS Support recently upgraded Canfor USA to the most current version of Microsoft Dynamics NAV. “I’d been reluctant to upgrade,” McCallum says, “I’d been through major upgrades before, and they were always disruptive and painful.” ICS Support developed clear procedures and a process for the upgrade, which was accomplished without incident on a Saturday. “It was truly painless,” McCallum adds. “We were up and running Monday morning without interruption.”
“Integrated Computer Systems Support was very instrumental in getting us started on the right path. The implementation went very well, and the training they provided was excellent. They have a great support team! I can’t praise them enough, they are absolutely the best. I highly recommend them.”
- Kitti McCallum, Controller, Canfor USA