Sage Case Studies Schwarzkopf Sharpens Its Style With Sage 500 ERP
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Schwarzkopf Sharpens Its Style With Sage 500 ERP

Sage
Functional Applications - Enterprise Resource Planning Systems (ERP)
Consumer Goods
Sales & Marketing
Warehouse & Inventory Management
Inventory Management
Supply Chain Visibility
System Integration
Schwarzkopf, a hair care product company, was facing challenges with its mainframe system that was creating bottlenecks in order entry and processing, requiring excessive staff time, and hampering corporate growth. The company was in need of a system that was easy to use, flexible, and had the potential for future enhancements. The mainframe system was clumsy and hard to access, which led to inefficiencies in various departments including shipping, purchasing, and customer service.
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Schwarzkopf, Inc is a company that specializes in hair coloring and styling products. The company was founded in 1898 by Hans Schwarzkopf who opened a small drugstore in Berlin, where he developed a powder shampoo sold in every drugstore in the city. In 1927, he introduced the world’s first liquid shampoo and later opened the very first training center for hairdressers. He also created Onalkali, the world’s first nonalkaline shampoo, which became the prototype for all modern shampoos. Today, Schwarzkopf offers a complete line of hair care products through salons in 80 countries. Its innovative care, color, styling, and perm products are developed through partnerships with professional hairdressers and can be admired on the high-fashion catwalks of London, Paris, Milan, and New York. The company is based in Culver City, California and has two locations with a total of 75 employees.
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Schwarzkopf implemented Sage 500 ERP with financial and inventory management modules, plus integrated warehouse management system, bar coding, e-commerce, shipping, and an interface to handheld computers. Orders are now entered directly into Sage 500 ERP, either at headquarters or by sales reps in the field using handheld wireless computers. Invoices are bar coded, so picking can be done straight from the invoice. Invoices are also tied into the shipping manifest system. The purchasing department also saw efficiencies with one person now handling the workload formerly done by 2 1/2 full-time employees. Turnaround time for processing inventory has gone from four days to just a few hours, thanks to smooth integration between Sage 500 ERP and the warehouse management system.
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Receiving turnaround slashed from four days to just two hours
Order picking time reduced by 95 percent
Shipping personnel needs cut in half
Turnaround time for processing inventory reduced from four days to just a few hours
Order picking time reduced by 95 percent
Shipping personnel needs cut in half
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