ETEL has cut inventory by nearly 25% after moving its core operations to Epicor Kinetic, following a four-year rise in manufacturing activity at the New Zealand transformer maker.
Based in Auckland, with a production facility in Jakarta, ETEL used the cloud-based enterprise resource planning system to replace manual purchasing and stock processes. Automated Material Requirements Planning removed its reliance on spreadsheets and improved visibility across the supply chain.
The manufacturer produces distribution transformers for electricity networks, industrial operations, and mining projects across the region. Managing stock and purchasing across multiple sites had put pressure on working capital and increased operational risk.
ETEL had used Epicor software for more than 12 years before moving its core systems to the cloud in mid-2024. The rollout also introduced continuous cycle counting through Material Requirements Planning tools, replacing large physical stocktakes with an ongoing process.
Operational shift
The move was designed to address longstanding manufacturing issues: excess inventory tying up cash, manual stock control, and spreadsheet-based purchasing decisions. By shifting to automated purchasing recommendations based on real-time data, ETEL reduced stock levels while keeping operations aligned across sites.
ETEL also linked the cloud migration to stronger data protection and lower internal IT overheads. Off-premise systems meant the company no longer needed to manage the same level of infrastructure itself, while keeping operational data accessible across the business.
Cross-border consistency was another part of the project. ETEL extended the platform to its Jakarta facility, enabling the business to use the same operational data and processes across its international footprint.
James Grieve, Group Information Systems Manager at ETEL, described the impact of the move.
"The cloud move has opened a 'Pandora's box' of untapped potential for the business, transforming everything from data security to day-to-day stock management. From a security standpoint, being off-premise gives us peace of mind, knowing our data is protected without the overhead of managing that ourselves," Grieve said.
Supply chain focus
Inventory reduction is a key measure for manufacturers because excess stock can lock up cash and mask weaknesses in forecasting and purchasing. ETEL said the near-quarter reduction eased financial pressure and released working capital, while automated cycle counting reduced disruption for staff.
The case also reflects a broader shift among industrial companies in Australia and New Zealand towards cloud software for core back-office and factory planning functions. Manufacturers facing supply chain volatility and uneven demand have increasingly focused on tighter stock control and standardised processes across sites.
Epicor said ETEL's project showed how manufacturers are using cloud systems to modernise routine planning and procurement tasks. The software supplier has a long history in manufacturing and distribution software in the region, and ETEL's implementation adds to a series of projects focused on replacing manual processes.
Graeme Evans, Regional Vice President at Epicor, said the project had changed how ETEL managed its operations.
"ETEL is redefining what efficiency looks like in modern manufacturing. By embracing Epicor Kinetic, they've streamlined operations, strengthened supply chain performance, and built the foundation for future automation and AI. Their momentum is exactly what today's manufacturers need to stay competitive, and we're excited to help fuel it," Evans said.
For ETEL, the project appears to be part of a broader operational overhaul rather than a single software upgrade. Grieve said the company valued Epicor's manufacturing expertise as it configured the system and reviewed business processes.
"One of the things we value most is Epicor's deep manufacturing expertise. Their consultants understand our industry and work closely with us to configure the system effectively and guide us on how best to optimise our processes as we continue to grow," Grieve said.