Path to Success
Founded in 2011, Novaria Group is a privately held leading precision component manufacturer that delivers optimum performance and sustainable growth to the aerospace and defense markets. Since its inception, Novaria has expanded rapidly, acquiring two to three companies each year and achieving an impressive ~20% growth rate.
In 2020, as a strategic move to maintain success, Novaria appointed Tim Koeneman as Vice President of IT to implement the systems required for scaling.
He shared:
“We needed to adopt smart technology that would deliver control and visibility, allowing us to focus on building the business. Sophisticated investors expect us to demonstrate gross margin by product and profitability quarter-over-quarter—something our previous systems could not deliver.”
Koeneman further emphasized:
“Our approach is to maintain the entrepreneurial spirit of the companies we acquire. We buy a good company and then invest in talent, processes, and technology.”
A Strategic Choice
After a thorough evaluation, Novaria selected Epicor® Kinetic deployed on the Government Cloud.
Koeneman explained the decision:
“I wasn’t interested in maintaining an on-premises infrastructure. We want to focus on the business, not backing up SQL servers. Epicor Kinetic in the cloud offers aerospace manufacturing expertise and can be implemented without customizations, which was critical. Moreover, the cloud eliminates the technology obsolescence risk that many of the companies we acquire face with outdated systems.”
Currently, Novaria consists of 18 business units, of which eight companies—representing about 50% of revenue—have already migrated to Epicor Kinetic on the Government Cloud, with Epicor Automation Studio also in progress.
Implementations have been smooth, predictable, and delivered an unexpected but valuable benefit:
“Through Business Process Reengineering (BPR) combined with the Epicor rollout, we transitioned from tribal knowledge to a fully documented set of procedures,” Koeneman shared.
He added:
“Time-to-market is a big advantage with Epicor Kinetic. It’s intuitive, easy to use, and built for manufacturing, so it works right out of the box.”
Epicor Kinetic on the Government Cloud also supports around 30% of Novaria’s defense business. All U.S. defense manufacturers must comply with ITAR (International Traffic in Arms Regulations), and leveraging the Government Cloud helps Novaria meet these compliance requirements.
Precision in Action
Koeneman’s goal is to move as many Novaria companies as possible onto the platform:
“Epicor provides an unprecedented level of transparency across our operations, enabling us to adopt a shared-services model. Novaria companies on Epicor can share accounting functions, AR/AP processes, and operate with a standardized language.”
One of the greatest benefits has been improved clarity and control over pricing, enabling Novaria to adopt an actual costing method.
“Epicor helps us make more informed decisions, which has been especially important during the recent inflationary period,” Koeneman noted.
Additionally, Novaria has strengthened its negotiating power with suppliers by consolidating total purchasing volume across the group, rather than by individual companies.
Data Points the Way
Another measurable benefit has been a significant reduction in financial auditing costs. Companies that have migrated to Epicor follow standardized, repeatable processes, streamlining audits.
Koeneman revealed:
“The eight companies on Epicor can now be audited as one, effectively cutting the audit workload nearly in half.”
As a result, audit costs have remained stable even as Novaria continues acquiring new companies. At the same time, access to real-time data provides the leadership team with deeper insights and enables data-driven decision-making.
Koeneman stressed:
“Epicor Professional Services has been a critical factor in our success. They are a high-quality team, working with passion and humility.”
Currently, Koeneman is also evaluating Epicor Grow to replace Power BI. This low-code, cloud-based business intelligence solution will provide Novaria with a standardized, company-wide dashboard.
He shared:
“Epicor Grow is ERP-agnostic, so even our companies not yet on Epicor Kinetic can be integrated. This will allow us to easily monitor daily performance across the entire group.”
Redefining Insights
The confidence to continue rolling out Epicor and additional modules stems largely from the positive experience with Epicor Professional Services.
Koeneman acknowledged:
“Not only are they experts in Epicor, but they also bring best practices from across the industry. Epicor consultants have been instrumental in enabling us to move quickly and achieve outstanding results.”
3S Software Co., Ltd.
To successfully upgrade a business, businesses need an experienced and trusted partner. 3S will be a partner accompanying businesses on their path of development, helping businesses become more comprehensive and increase productivity at lower costs. Along with compliance with the Epicor Signature Project Implementation Methodology, it will help businesses increase production efficiency and improve profits at a very reasonable cost. 3S believes that it will always bring the most satisfaction to customers.
The 5 main solutions of 3S include:
Epicor ERP – Enterprise Resource Planning
Epicor MES – Manufacturing Execution System
BPM XSOL Solution – Business Modeling Solution
ECM DOCSTAR Solution – Digital Content Management Software
Epicor CADLINK solution – The solution allows transferring information from CAD drawings such as AutoCAD, Solidworks to Epicor ERP
More references: EFLA BOOSTS EFFICIENCY WITH EPICOR KINETIC CLOUD
