Johnstown Wire Survives and Thrives After It Separates From Bethlehem Steel—With a Little Help From AXIS and AXIOM

Profile
Formerly a division of Bethlehem Steel, Johnstown Wire Technologies split off and set out on its own in 1993 as the industrial giant collapsed. Suddenly cut loose from Bethlehem’s extensive corporate support and systems, Johnstown chose AXIOM ERP from AXIS to quickly establish an infrastructure in its Pennsylvania-based facility, which manufactures steel wire for the automotive, construction and utility industries. Since establishing itself as an independent entity, the company has grown to employ 262 people, produce up to 13,000 tons of wire per month and generate more than $115 million in annual revenue.

Challenge
Breaking away from its corporate parent was a mixed blessing for Johnstown Wire. While it was forced to quickly establish its own IT resources, the company was also free to implement a system that would better serve its needs and enhance productivity. The legacy corporate mainframe inhibited growth with disconnected applications, slow response times and inadequate functionality. The replacement system would have to be integrated, responsive and include better functionality for quality, tag control, lot tracing, scheduling and cost management.

Why AXIS?
Being able to meet customer specifications for quality and provide documentation of test results are critical requirements in the steel industry, and Johnstown searched for a partner that focused on those types of demands. “We needed a package that was geared specifically to the metals industry,” said IT Manager Jolene Kmett. “And we wanted an integrated, high-quality system. We also felt that AXIS was a company that we could partner with.” This confidence has been reaffirmed with the successful implementation of AXIOM ERP—on time and on budget—as well as the continuing support and cooperation of the AXIS team. “We have found AXIS to be very responsive,” said Kmett. “They are quite willing to add features to the system that support our industry.”

Results
Getting the system installed and running was not an option for Johnstown; it was a necessity. Fortunately, Johnstown built a solid infrastructure that has allowed the business to grow without adding additional staff. Prior to teaming with AXIS, the average shipments per month ranged from seven to eight thousand tons. Enhanced means of measuring and evaluating scrap control, cost containment and margin analysis have also greatly improved profitability. The Johnstown plant is now ISO 9000 certified and A2LA accredited as well, thanks in no small part to AXIOM ERP.

Perhaps most significantly, the system actually helps get product out to customers quickly, rather than inhibiting it, as the old system did. “We never have a day when we can’t plan and load every scheduled truck and ship all product,” said Kmett. “We’ve never had the system delay us.”

Quality testing and documentation are another important part of production, as all quality inspections must be completed and passed before the lot can be shipped. The AXIOM solution helps manage that process effectively. “The flow of information in AXIOM ERP is imperative to getting our product out the door,” said Kmett.

At Johnstown, incoming materials come from many sources, some offshore. Prior to the company’s implementation of AXIOM ERP, labeling was inconsistent, unreadable and often did not carry the appropriate part number. Today, each lot is now relabeled consistently and completely, preventing errors and making life easier for the truck drivers and forklift operators. The same is true for finished product, which must also be tagged to meet customer requirements. This coordinates nicely with the quality data as well.

Thanks to superior inventory control and traceability, Johnstown has also been able to reduce its physical inventory to one count per year (previously it had to count everything three or four times each year). The Johnstown team now knows costs for each process and part. Being able to e-mail advance ship notices, certifications and invoices directly from the system is another boost to customer service and a real time-saver.

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