Although Hagler Systems has approximately tripled its overall staff in the last eight years, the administration department has barely grown. In 2009, Hagler Systems had thirty employees, including four administrative staff. Today, Hagler employs nearly ninety and has expanded its 60,000-square-foot manufacturing facility by 50 percent to support larger machines and increased business in the dredging, oil sands, mining and nuclear industries. Yet, Hagler still has only five administrative staff. Within the last few years, Hagler has transformed from a small, family-owned company to a midsized company with multinational customers. Hagler’s commitment to streamlined and efficient business processes rivals that of global corporations with billions in revenue while maintaining their same original core values.

With an individually customized business management software system configured by several technology expert consultants who specialized in industrial equipment manufacturing, Hagler tripled its engineering and production employees without adding much administrative overhead.

A FAMILY AFFAIR

The three teenaged Hagler brothers—Bob, David, and Ben—worked in the foundry at Georgia Iron Works (GIW), a business run by their grandfather and later their dad. After college, they returned to GIW and learned about the slurry pump business both domestically and abroad. In 1996, the three brothers founded Hagler Systems, Inc. as a pump and hose reseller. The company started briskly, but the brothers soon recognized that they would need to enhance product value for success in the long run. They worked to expand their product offering and capabilities. Today, Hagler is a full-service mining and dredging equipment company that designs, manufactures and sells engineered-to-order slurry pump systems for use in phosphate fields, oil sands, on dredging barges, in potash mines and quarries. Its list of customers includes Royal Dutch Shell, PotashCorp, Suncor Energy, and Great Lakes Dredge & Dock.

FAST GROWTH LEADS TO ADDITIONAL OVERHEAD, MANUAL PROCESSES

Hagler quickly increased their overhead and manual processes when the company began to grow rapidly. This accelerated growth created significant problems, unnecessary complexity and layers of administrative frustration. Employees relied on extensive paperwork, did not use part numbers or a systemized parts labeling operation, had no way to track labor hours or deadlines, could not efficiently and effectively manage inventory, and had no manner to anticipate demand accurately. It was chaos.

In 2009, Hagler decided to invest in Microsoft Dynamics AX. It is an enterprise resource planning (ERP) system that helps large businesses manage inventory, accounting, revenue streams, workflow plans and more. Then they immediately perceived that this ERP system needed much more than a routine installation to maximize its capabilities. It required a team to customize the solution to the business, train employees on how to use it and continually implement system updates. With sales growing 30 percent during 2009 – 2012, it further demanded the need to streamline business processes to serve the company's rapid growth.

For the Dynamics AX solution to be more than profitably favorable, Hagler hired numerous IT specialists, including Prakash Viswanathan, an industrial engineer. Commencing in 2012, he worked with Hagler’s IT team and outside consultants from AX-Solutions, LLC, a professional services firm that specializes in Microsoft Dynamics implementation, technology, and advisory services, to customize Dynamics to fit Hagler’s unique business model.

SCALABLE PROCESSES, FASTER DELIVERY

“AX-Solutions has deep expertise in Dynamics 365 and Dynamics AX for industrial equipment manufacturing and configured the Microsoft product specifically for Hagler. Consultants there helped us master the system and maximize its capabilities. Equally important, they worked at our pace and within our budget,” says Prakash. “They didn’t try to push us when we needed to take a step back. They emphasized that there isn’t a standard Dynamics AX procedure, so we had to identify what made the most sense given our industry, specific business, and diverse needs of our customers.”

Prakash says that, before the AX implementation, Hagler’s employees relied almost exclusively on ‘tribal knowledge’ without universal or documented business processes. Now, he runs Dynamics training sessions with each new employee to ensure that select staff members at every level—from the shop floor to the executive suite—have a high-level comprehension of the software's capabilities and how to use its basic functions.

“Before AX-Solutions designed a configured solution, we had all of our business insights and data points on pieces of paper,” says Prakash. “With Dynamics, we don’t have to worry about losing or keeping track of that. We can make reliable production estimates, track every detail and design change, effectively manage our inventory, anticipate demand and compete with larger competitors.”

Ben Hagler agrees. “Dynamics AX helped us develop scalable processes and deliver products to our customers much faster. It also ensures that employees spend more time doing what they do best—designing and manufacturing,” he says. “AX-Solutions immediately understood our vision and taught us what we needed to know so that we could run with the system moving forward. That’s invaluable.”

REDUCE INVENTORY BY ONE-THIRD

John Leibach, Hagler’s controller, says that Microsoft Dynamics AX allowed the company to divide expenses into dimensions, recognize the source to order strategically. He emphasized the system’s impact on inventory. Before Dynamics, the company had a lot of old and unused inventory on the shelves with no manner to track it. As a result of everyone’s joint effort, the company went from zero part item numbers to 10,000+ in less than eleven months, which enabled better tracking. Since implementation, Hagler reduced its inventory by one-third and can use the extra money to grow the business.

“AX-Solutions showed us that Dynamics AX creates a culture of transparency since every employee can see what we’re spending and how much we’re bringing in,” remarks Prakash. “That’s moving away from the traditional top-down culture that creates friction for a lot of family-owned businesses.”

To ensure success, the consultants at AX-Solutions also extensively discussed with Hagler on AX's best practices to optimize Hagler’s business.

“We train people in the process before we train them on the software and stress the importance of planning—across every aspect of a project,” says Prakash, before continuing, “We’ve seen a remarkable degree of acceptance from everyone here. There’s a huge appreciation for eliminating roadblocks and being open to new processes and ways of managing workflows.”

John Leibach said it’s smart to “include everyone in the process since the best improvements and ideas often come from guys on the shop floor. You can’t rely solely on the insights of executives—you’ll miss the big picture. Successful implementation of AX relies on setting realistic goals and breaking the process into small steps so that everyone feels a sense of accomplishment.”

COMMITMENT TO CULTIVATING HOMEGROWN TALENT

Hagler Systems pride themselves on hiring local—but often inexperienced—talent right out of college and helping them expand their initial skill set. The company’s action demonstrates their commitment to their mission "to reach beyond good and inspire greatness."

“We have employees who now perform tasks they never realized they were capable of performing when they first walked through our doors,” states Ben Hagler insightfully. “We encourage them to study the business and never apologize for asking questions. Then we empower them to take risks, find their niche and ultimately flourish.”

Hagler shows no sign of slowing down with sales on the rise and increasing customer demand. Shortly, the company plans to implement advanced asset tracking technology into its pump systems that will alert employees of reports. Now, notifications are immediate when a system is down or when it needs monitoring or maintenance. This additional service allows the company to provide continual value long after the initial product sale.

Pointing to the company’s nondescript manufacturing facility on Georgia’s Sand Bar Ferry Road, Prakash says, “Most people would have written us off and never thought our tiny business could make such a successful product. But like many things in life, it’s important not to be deceived by external appearances. It was a bold move for a company of our size to invest in Microsoft Dynamics AX—but the risk definitely paid off.”

Pausing, he added, “Hagler is unique. It has the values, passion and unmatched work ethic of a family-owned company but now features the precision and mindset of a well-oiled corporation. It’s an unstoppable combination.” 

Additional Information

Hagler Systems has subsequently upgraded to Dynamics 365.

In 1996, Georgia Tech graduates Bob, David and Ben Hagler founded Hagler Systems, Inc. Collectively, they have 100+ years of experience providing solutions for mining, dredging, and municipal pumping requirements globally. For more information, visit haglersystems.com or call 803.278.2728.

Also of interest: 

• Dynamics AX Lends a Personal Touch to Hagler Systems by Umran Hasan

Image courtesy of Modern Pumping Today.