“SYSPRO ERP has made a huge difference for us. We have set up forecasting and usage algorithms that are tailor-made to our business performance needs and goals. We now more accurately forecast where we are going to be, and we can respond much more opportunistically to changing circumstances.”
– Melody Kaaua, Performance Machine IT Manager
Customer Profile
Performance Machine has been the leading aftermarket manufacturer of motorcycle wheels, brakes and controls since 1970. High quality, innovative, functional products are the company’s passion, resulting in Performance Machine’s reputation for exacting engineering and testing that exceeds all Department of Transportation (DOT) guidelines. The company is part of Motorsport Aftermarket Group (MAG) and is based in LA Palma, CA.
The Challenges
Dual challenges hampered Performance Machine: a lack of visibility into many key operational areas, such as sales forecasting and warehouse management; plus inefficiencies, time lags and inaccurate reporting put Performance Machine at a competitive disadvantage. The company felt it increasingly difficult to keep promises to customers on shipments and wanted to keep customer satisfaction at the highest possible levels.
The Solution
SYSPRO installed a full MRP suite at Performance Machine in 1992. Since then, the company has added many additional ERP components such as integrated forecasting, which the company says are very useful for a recent distribution company change to its business model.
300,000+ Wheels, Tens of Thousands of Part Replacements…Via SYSPRO
Motorcycle riders, like the renowned Harley Davidson crowd, cycle through parts – a lot of them! And that’s because motorcycles and the accompanying aftermarket – are big business. According to Statista, in 2015, U.S. consumers alone purchased well over 500,000 motorcycles; and this figure reflects a 3.55 percent increase in total U.S. motorcycle sales over the previous year.
As with cars or any other machine, wear and tear on more expensive equipment like automobiles, motorcycles, boats and other power equipment, leads to a sizable replacement opportunity for aftermarket manufacturers. Performance Machine is in the business of manufacturing and supplying aftermarket motorcycle wheels, brakes and controls since 1970 – it has a huge following of loyal customers. Serving those customers with a high degree of both engineering and shipment accuracy is a high priority for the company. The company estimates it has shipped over 300,000 wheels alone using SYSPRO and many tens of thousands of parts and accessories.
Support for New Business Model Change
While SYSPRO has given Performance Machine a relatively smooth ERP ride, making the company more efficient on many levels, Performance Machine’s IT Manager Melody Kaaua believes that SYSPRO’s forecasting capabilities have been a real game changer.
“SYSPRO ERP has made a huge difference for us. We have set up forecasting and usage algorithms that are tailor-made to our business performance needs and goals, “she says. “We now more accurately forecast where we are going to be, and we can respond much more opportunistically to changing circumstances.”
Additionally, the easy customization capabilities of SYSPRO ERP have allowed Performance Machine to navigate fairly seamlessly through a major business model change when MAG acquired a distribution company. “We now channel Performance Machine sales to the new company,” Kaaua explains. “So now we suggest which products they stock in their warehouses based on our own performance history, which provides historical accuracy. We can also stay responsive and pivot what we’re doing based on performance. SYSPRO tells us what we need to know. We can do anything we want to with SYSPRO – it’s so easy to customize!”
The Outcome
Performance Machine has navigated a number of changes within its industry, its company and to its business model. The company’s operations are performing so smoothly that both its parent company, MAG, as well as one of MAG’s additional business lines, Vance & Hines of Santa Fe Springs CA, have additionally adopted SYSPRO as their ERP backbone. Vance went live on SYSPRO in January 2016.
