AXEL Christiernsson moves to SaaS agreement to provide more predictable, uniform service levels

New all-inclusive billing covers DC1 SaaS hosting, support, hardware, software and maintenance for greater cost control enterprise-wide.

Background

AXEL is a leading, first-choice supplier of customized solutions for the global lubricating grease market. They are based in Nol, Sweden and operate production facilities in the Netherlands, France and the United States, with plans to continue expanding in select geographic areas. AXEL targets strong, high-profile international and regional players within the lubricants industry.

They maintain close customer relationships by being a reliable supplier of market-focused products and services, including customized and private-label grease, adapted to current and future demands. The company employs more than 300 people worldwide, with revenues in excess of 1.6B SEK. In an effort to trim their vendor list and reduce related paperwork, the company entered negotiations with Iptor to streamline their billing agreement.

The Challenge

AXEL has been an Iptor customer for more than 20 years, starting with the Enterprise ERP application and moving to DC1 during their recent version 9 upgrade in 2017. The software performed well enough for the firm, but their contract with Iptor, including hosting services, applications and support, needed refinement. AXEL was licensing Iptor machines on-premises, with various service level agreements in place across the company, providing variable amounts of hours for various levels of support. As support hours rolled over into a new month, departments that had consumed their maximum support hours had to wait for a new month to get service on issues or pay a premium for breaking the SLAs.

The arrangement also caused separate invoices to be submitted at different times each month, creating further confusion and paperwork. In an effort to streamline the number of invoices received, balance SLAs across departments and control cost, AXEL entered negotiations with Iptor to revise the contract in Q4 of 2019.

Iptor has been a great partner of ours for over 20 years. It feels good to know that we are moving forward together to ensure that our team has the right information at the right time and the right place, and that our users can access the system with confidence across the various cultures and geographies we serve.

In Response

The negotiating process spanned nearly three months, as the two partners redefined SLAs to arrive at an all-inclusive agreement. Under the new contract, all hosting, support, hardware, software and maintenance for AXEL’s DC1 SaaS solution would be covered by a single monthly bill, effectively licensing all Iptor machines on-premises with the same level of service for one flat fee.

If an application or hosting error occurs, users will no longer need to decide which part of the issue is covered or wait on approval. They can simply connect with Iptor support via a virtual private network and report their case for service. Meanwhile, service questions that are out of the norm or not urgent can be sorted out during pre-set monthly and quarterly partner support meetings.

The Outcome

The new simplified billing system has eliminated confusion for AXEL users and streamlined their accounts payable process, with a more consistent level of service across the enterprise for DC1 issues. With Iptor DC1 SaaS providing integrated finance, business intelligence, manufacturing, distribution and PlannerView modules across the AXEL business European footprint, cost control has been achieved, and the new, trim vendor profile is providing added efficiencies, above and beyond what the software already brings to AXEL operations.

Further, the number of service calls hitting the AXEL service desk have dropped considerably, as Iptor and AXEL now have unified support across the enterprise. The detailed monthly reports have provided a more proactive service environment, with fewer hand-offs and quicker response for improved user productivity.

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AXEL Christiernsson moves to SaaS agreement to provide more predictable, uniform service levels