RTO Lighting: Elevating Custom High-End Lighting
RTO Lighting, a premier custom lighting manufacturer based in Philadelphia, began as a side project in 2002 under the leadership of Robert Ogden. Starting from humble beginnings in his garage, the company has undergone remarkable growth over the years, establishing itself as a significant player in the high-end lighting industry.
A Strategic Expansion: Acquiring Lostine
In 2008, Robert and his wife expanded their portfolio by acquiring Lostine, a home furnishing brand where both had previously worked as designers. Like RTO Lighting, Lostine has gained recognition in the upscale home furnishings market. While operating as independent brands, the two companies often collaborate to design and produce mutual products.
Growth and Workforce Development
Driven by a commitment to high-quality, domestically crafted products, both RTO Lighting and Lostine have grown from a dedicated team of seven to nearly 60 employees. This workforce expansion reflects a desire to meet the increasing demand for their premium offerings.
Challenges of Operating Dual Businesses
Managing two interlinked brands came with its own set of challenges. Historically, Robert and his wife relied on various spreadsheets for costing and production planning. However, as their businesses expanded, this disjointed approach quickly became inefficient. “We initially used a stock management system but quickly realized it couldn’t track manufacturing time or labor expenses essential for our operations,” Robert recalls.
The Need for an Integrated Solution
Recognizing the limitations of their existing system, Robert sought a comprehensive solution that could streamline inventory management, labor tracking, and production scheduling.
Discovery and Decision: Implementing MRPeasy
The journey to finding a more robust solution began when Robert learned about MRP (Manufacturing Resource Planning) systems through a helpful salesperson at a CRM software firm. He was particularly impressed by MRPeasy’s user-friendly interface and efficient production scheduling functionalities. “The ease of manipulating the production calendar in MRPeasy was exactly what we needed,” he noted.
Key Features of MRPeasy:
- Accurate Labor Tracking: Essential for manufacturing.
- Cost and Lead Time Estimating: Facilitates margin analysis.
- Integration with QuickBooks: Seamless accounting support.
Simultaneous Implementation for Dual Operations
To achieve maximum efficiency, Robert decided to implement MRPeasy across both companies at the same time. This strategy minimized the learning curve for both teams and ensured a smoother transition, taking approximately eight months. The first four months involved parallel testing with the old systems, supported by part-time staff.
Reflecting on the journey, Robert commented, “In hindsight, deploying two full-time resources from the start would have been advantageous; the task turned out to be more substantial than we anticipated, but the benefits have far outweighed the challenges.”
Transforming Operations with Enhanced Efficiency
Since integrating MRPeasy in Spring 2023, both RTO Lighting and Lostine have experienced significant operational improvements. Enhanced labor tracking and real-time inventory management have led to more accurate cost calculations and shortened lead times. “MRPeasy is a vital tool for our manufacturing process. It’s like having a forklift—once you have it, you can’t imagine operating without it!” Robert emphasized.
Key Takeaways for Manufacturers
Reflecting on their journey, Robert highlighted some vital lessons for other manufacturers aiming to scale:
- Resource Assessment: One of the biggest pitfalls is underestimating the resources needed for MRP implementation.
- Consultant Support: Partnering with experienced consultants can accelerate the implementation process and provide valuable insights.
Robert’s closing advice to manufacturers is simple: “Always keep the big picture in mind when selecting manufacturing software. Accurate data leads to better decisions. Understanding profit margins and material usage has allowed us to optimize our operations effectively. Choosing the right system and personnel to implement it has been transformative for us.”
For further insights, explore more about manufacturing resource planning here.
