A strategic shift
Breaking out of the on-prem box
Prochaska and his team recognized that to support the company’s customer-centric approach, a major technology shift was required. They determined a move to cloud-based solutions for core business processes and warehouse management was essential to meet the new demands of the marketplace, enhance security and enable greater responsiveness.
They turned to Tecsys as their technology partner to drive their cloud transformation. Prochaska and LK Packaging’s lead process development engineer, Charles Procsal, have a long history with Tecsys, having used its Elite™ technologies for more than a decade in various industries.
“Working with Tecsys means being on the forefront of supply chain technology. The capabilities they have developed over the years truly make them stand out as a leader in the industry. Tecsys innovates based on where its customers need to go.”
Charles Procsal, Lead Process Development Engineer
LK Packaging
Leading the effort
Dan Hamilton Chief Supply Chain Officer LK Packaging
Mark Prochaska Chief Information Officer LK Packaging
Charles Procsal Lead Process Development Engineer LK Packaging
Tecsys’ Elite™ cloud-based solution
LK Packaging established its cloud-based technology foundation through the implementation of Tecsys’ Elite™ Distribution ERP and Elite™ WMS.
Their cloud transition served as a catalyst for rethinking the company’s broader technology infrastructure and operations as Prochaska explained:
“Our on-prem legacy ERP application was the biggest factor when considering a shift to the cloud because it served as the central hub for all our connected systems. Moving to the cloud with Elite™ Distribution ERP opened the door to migrating everything else to the cloud, including our WMS. It became the cornerstone and key driver of our broader technology modernization.”
Moving to the cloud with Elite™ Distribution ERP opened the door to migrating everything else to the cloud, including our WMS.
Financial impact of CapEx to OpEx
The move to the cloud with Tecsys marked a major financial and operational turning point for LK Packaging. By transitioning from on-premise ERP and WMS platforms to Elite™ platform, the company shifted from a capital expenditures (CapEx) model to an operating expenditures (OpEx) model.
Prochaska also pointed out how the shift to software-as-a-service (SaaS) simplifies budgeting and financial forecasting. Where in the past LK Packaging experienced cash flow spikes on a periodic basis stemming from maintenance to its on-prem hardware and data servers, the move to Elite™ solutions in the cloud has balanced out the company’s cash flow. Motivated by these financial benefits, LK Packaging has begun migrating its remaining on-prem infrastructure to the cloud.
“We were about to make a massive investment in our on-prem data center before deciding to move to the cloud," explained Prochaska. "That meant spending a lot on hardware and support to get it all up and running. With the move to the Elite™ cloud environment from our on-prem systems, we didn’t have to make that very expensive CapEx spend. We are purely OpEx going forward. That’s transformational.”
CapEx versus OpEx
Traditionally, on-premise systems require significant upfront capital expenditures (CapEx) — investments in hardware, infrastructure and support to get systems up and running. In contrast, cloud-based solutions like Tecsys’ Elite™ platform operate on an operating expenditures (OpEx) model, where costs are spread out over time as subscription-based services.
How cloud elevates the role of the CIO
The shift from on-prem to the cloud not only powers a company’s advancement but that of its leaders and team members. At LK Packaging, cloud transformation has eliminated many of the tactical supply chain challenges faced in the past, freeing Prochaska as CIO to play a more strategic role as a member of the company’s C-suite. He stated:
“Having Elite™ cloud technology as our foundation has elevated roles across the board, with responsibilities shifting from tactical to more strategic at every level. The questions I ask my operations, sales and customer service team members, and the answers they provide, are now far higher in the strategic realm. My focus as CIO is now where it should be, setting strategic direction and preparing for future growth.”
Capabilities for rapid customer response
A high level of performance that includes seamless adaptability is central to LK Packaging’s supply chain operations. Tecsys’ Itopia® low-code application platform (LCAP), which sits on top of the company's Elite™ Distribution ERP and WMS solutions, enables rapid, user-driven modifications, helping teams respond to customer requests in real time.
Itopia® also plays a key role in supporting LK Packaging’s U.S. manufacturing expansion by integrating new equipment into its supply chain systems. With the ability to configure Elite™ solutions without disrupting the base platforms, LK Packaging maintains a future-ready infrastructure that easily incorporates new features and security enhancements as they become available.
Case in point: Rapid response to custom labeling requests
LK Packaging has seen a growing demand from distributor customers for custom product labels that include both their own branding and LK Packaging’s, along with scannable barcodes for detailed product information.
With Elite™ and Itopia®, LK Packaging now has the flexibility to quickly and efficiently deliver custom labels and other tailored solutions — enabling mass customization at scale and strengthening customer satisfaction.
“Having the modern infrastructure that Tecsys provides makes it easier to connect all the pieces of our supply chain. And that’s critical because all those links must work to satisfy customers’ needs. If there is a break in the chain, the whole thing is considered a failure.”
Dan Hamilton, Chief Supply Chain Officer
LK Packaging
