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Client Success Story:

Congoleum Corporation

A Consumer Products (CP) Company

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130+ Years of Progress in the Flooring, Tile, and Plank Market Despite Daunting Challenges

Mercerville, NJ-based Congoleum is clearly a pioneer in the production, delivery and
installation of highly durable vinyl flooring, tile and plank products. After more than 130
years in business, they’ve not only been a lasting leader in this industry; Congoleum
overcame major hurdles to remain in business and re-emerge from bankruptcy filings.

It wasn’t until 2020 that Congoleum successfully got back on track – remarkably just as a
global pandemic hit the world. The company not only managed its way back to a healthy
balance sheet again, it improved service levels and other functions while significantly
cutting costs.

It’s a turnaround story of relatively epic proportions. Learn how they did it.

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On the Right Track with SAP Business ByDesign

Before: Challenges and Opportunities

  • Asbestos litigation leads to bankruptcy proceedings that took their toll over the course of 17 years
  • Constraints range from home-grown MRP system to outdated approach to financial management
  • Private equity firm ultimately purchases the company, and supports the move in 2016 to divest dozens of legacy systems while standardizing and consolidating on a single platform

Why SAP and Navigator

  • Seeking solution to not only support the stabilization of the company but also growth plans and need for long-term innovation platform as well as capabilities enabling ongoing customer service excellence
  • SAP Gold Partner Navigator stood out to Congoleum as “top integrator” specifically for supporting SAP Business ByDesign implementation as well as SAP Warehouse Management System integration

After: Value-Driven Results

  • Plant operations and headquarters standardized on SAP, healthy overall balance sheet
  • Able to improve service levels and other functions with more than 50% reduction in staffing
  • Efficient, much faster inventory management processes based on best practices SAP instills
  • Optimized reporting without reliance on lean IT resources needed for other aspects of the business
  • Secure remote access to SAP Business ByDesign critical – and highly reliable – as work-from-home initiatives began with pandemic’s emergence and ongoing considerations; no down time at any time
  • Able to expand in new directions such as direct to retail while strengthening service to all customers, including real-time 360-view of orders, order status, pricing, product data, etc., across the enterprise
Share the story:

“SAP had the proven track record to help us get back on track. They have the solutions, platform, and ecosystem to support recovery as well as advancement from the toughest of circumstances.”

Dave Cooper, Director of IT, Congoleum Corporation

Days to Close Monthly Financials (vs. 14 Days Previously)
Estimated Annual Labor Cost Savings

Industry: Consumer Products

Products and Services: Luxury Vinyl Flooring, Tile & Plank, and DuraCeramic

Featured Solutions & Services: SAP Business ByDesign, SAP Warehouse Management System (WMS)