How Air Bearings Ltd. achieved 20% improvement in on-time deliveries and significant inventory cost reduction with Priority ERP

ABL partnered with Priority Software and Medatech to implement a comprehensive ERP system tailored to their precision manufacturing requirements. The project began with a thorough needs analysis to pinpoint specific problem areas in ABL's manufacturing workflow, followed by detailed examination of administrative and manufacturing processes to recommend the optimal module configuration.

• Priority's manufacturing module implementation: The solution included Priority's comprehensive manufacturing module with native support for complete inventory management, dynamic replenishment, warehouse management, production planning, and costing and financial accounting, addressing all of ABL's identified pain points in a single integrated platform.
• Best practices-driven implementation: Priority's proven best practices dramatically shortened the implementation timeline, leveraging established methodologies refined across thousands of manufacturing installations to avoid common pitfalls and accelerate deployment.
• Advanced data migration: Priority's sophisticated data migration tools eliminated errors when transferring ABL's historical data from legacy Excel systems, ensuring data integrity and continuity during the transition.
• Rapid user adoption: The system was designed for over 40 Priority users across ABL's operations. “Implementation and integration were quick and easy with minimal downtime. Our staff of over 40 Priority users was up and running in no time. Even learning the system was a breeze – more than user-friendly, we just caught on fast,” recalls Durrant.
• System openness and flexibility: Priority's open architecture, interoperability, and flexibility facilitated a fast learning curve, easy operation, and the ability to generate reports measuring and monitoring ABL's operational effectiveness across all departments.
• Ongoing evolution: More recently, to keep pace with growing business demands, ABL upgraded their Priority ERP implementation, adding new modules and functionality to their manufacturing processes to remain competitive in today's market.

Priority ERP's implementation delivered immediate, measurable improvements across ABL's operations, transforming the company's ability to compete and serve customers effectively. Within the early months following Priority implementation, ABL managers observed dramatic operational improvements. The company achieved a 20% improvement in on-time deliveries while simultaneously reducing inventory levels significantly, generating considerable cost savings across the organization. For the first time, ABL gained accurate costing data and complete visibility into all business aspects, enabling data-driven decision-making that enhanced efficiency and profitability. The successful implementation of over 40 users with minimal downtime and a fast learning curve demonstrated both the system's usability and the effectiveness of the Priority-Medatech partnership.

Detailed performance improvements: On-time delivery improved by 20%

ABL achieved a 20% improvement in on-time deliveries within the early months of Priority implementation, representing:

• Enhanced customer satisfaction: More reliable delivery performance strengthens customer relationships and repeat business
• Competitive advantage: Superior delivery reliability differentiates ABL in the precision air bearings market
• Reduced expediting costs: Fewer late deliveries mean less emergency shipping and rush processing
• Improved reputation: Consistent on-time performance supports ABL's three Queen's Awards for excellence
• Revenue protection: Reliable delivery performance prevents customer defection and order cancellations

For a £6M revenue manufacturer, even modest improvements in on-time delivery can prevent significant revenue loss and enhance profitability. The 20% improvement suggests that if ABL previously achieved 75% on-time delivery, they now operate at 90%+ performance – a world-class standard.

Inventory reduction: Significant cost savings

Priority's integrated inventory management and dynamic replenishment capabilities enabled ABL to reduce inventory levels significantly:

• Working capital freed: Lower inventory levels release cash for strategic investments and operations
• Reduced carrying costs: Less inventory means lower warehousing, insurance, and handling expenses
• Decreased obsolescence risk: Leaner inventory reduces exposure to product changes and outdated stock
• Improved cash flow: Reduced inventory investment accelerates cash conversion cycles
• Space optimization: Lower inventory volumes free valuable manufacturing floor space

For a manufacturer of ABL's size, inventory typically represents 20-30% of revenues, suggesting inventory investment of £1.2M-£1.8M. Even a 15-20% inventory reduction would free £180K-£360K in working capital while reducing annual carrying costs (typically 20-25% of inventory value) by £36K-£90K annually.

Accurate costing data: Foundation for profitability

“Priority gave us the tools we needed to really manage and control every aspect of our business. For the first time, we had accurate costing data at our fingertips,” stated Gary Durrant. This transformation delivered:

• Precise product profitability: Understanding true costs enables informed pricing and product mix decisions
• Quote accuracy: Reliable costing data improves quote competitiveness while protecting margins
• Make-vs-buy decisions: Accurate cost information supports strategic sourcing decisions
• Process improvement identification: Detailed cost visibility highlights opportunities for efficiency gains
• Financial planning accuracy: Better cost data improves budgeting and forecasting

Previously unable to generate accurate costs from Excel spreadsheets, ABL now has real-time visibility into product costs, enabling strategic decisions that directly impact profitability.

Rapid implementation and user adoption: 40+ users deployed efficiently

The implementation's success is measured not just in functional improvements but in deployment efficiency:

• Minimal downtime: Business continuity maintained throughout implementation
• Fast user adoption: Over 40 users became productive quickly, minimizing the learning curve impact
• No productivity loss: “Our staff was up and running in no time” suggests negligible transition disruption
• User-friendly interface: “More than user-friendly, we just caught on fast” indicates intuitive design
• Training efficiency: Rapid adoption reduced training costs and time investment\

Bill of materials (BOM) and work order management led to operational excellence

Priority resolved ABL's critical challenges in generating viable bills of materials and work orders:

• Automated BOM generation: Eliminated manual compilation and associated errors
• Accurate work orders: Ensured production teams receive correct information for each job
• Materials requirement planning: Automated purchase list creation based on production schedules
• Version control: Maintained accurate BOMs as products evolved
• Engineering change management: Streamlined updates across all affected products and orders

These improvements directly contributed to the 20% on-time delivery enhancement by ensuring production had correct materials and information.

Raw materials management improved speed and efficiency

Priority transformed ABL's slow and cumbersome raw materials management:

• Dynamic replenishment: Automated reordering based on actual consumption and production schedules
• Supplier integration: Streamlined purchasing processes and supplier communication
• Lead time management: Better visibility enabled proactive materials planning
• Receiving efficiency: Integrated warehouse management accelerated materials receipt
• Traceability: Complete visibility from raw materials through finished goods

Integrated reporting and visibility

Priority's reporting capabilities provided ABL with tools to measure and monitor operational effectiveness:

• Real-time dashboards: Management visibility into key performance indicators
• Cross-functional integration: Data flows seamlessly from sales through production to finance
• Performance measurement: Quantifiable metrics track improvements and identify opportunities
• Decision-making speed: Instant access to accurate data enables rapid response to issues
• Strategic planning support: Comprehensive data supports long-term business planning

Return on investment (ROI) indicators

While complete financial details aren't disclosed, the documented improvements suggest substantial ROI:

• Inventory reduction savings: £36K-£90K annually in carrying cost reductions
• On-time delivery improvement: Revenue protection and customer retention worth potentially £200K+ annually
• Efficiency gains: Reduced manual work in BOM creation, work orders, and materials management
• Training cost savings: £12K-£40K through rapid user adoption
• Cost accuracy: Improved profitability through better pricing and product mix decisions
• Scalability: Infrastructure supports growth without proportional system investment

Long-term partnership and evolution

ABL's continued investment in Priority, including recent upgrades with new modules and functionality, demonstrates sustained value:

• System scalability: Priority grows with ABL's expanding business needs
• Continuous improvement: New modules add capability without system replacement
• Future-ready: Ongoing updates keep ABL competitive in evolving markets
• Partnership approach: Medatech and Priority provide ongoing support beyond initial implementation

Competitive positioning

The Priority implementation strengthened ABL's position as a leading air bearings manufacturer:

• Operational excellence: Lean operations and efficiency support competitive pricing
• Reliability: 20% on-time delivery improvement reinforces reputation for dependability
• Scalability: System supports growth as ABL expands under Via Mechanics ownership
• Market responsiveness: Real-time data enables quick response to customer needs and market changes
• Quality maintenance: Integrated quality management supports continuation of Queen's Award standards

Gary Durrant's enthusiastic endorsement captures the overall impact: “Would we recommend Priority ERP to our colleagues in the industry? Without a doubt!” This strong recommendation, combined with ABL's decision to upgrade and expand their Priority implementation, demonstrates that the system delivered and continues to deliver exceptional value.

Priority transformed ABL from a company constrained by Excel spreadsheets into a data-driven, efficient manufacturer with the operational foundation needed to succeed under Via Mechanics' ownership and compete effectively in the growing UK manufacturing sector. As Durrant concluded, “This is where business efficiency starts, and Medatech and Priority helped us get there.”