The Challenge: Overcoming a fragmented and outdated technology landscape

Toll Brothers, a renowned Fortune 500 luxury homebuilder founded in 1967, faced a significant business challenge. With operations in over 60 markets across 24 states and looking to expand, its fragmented technology landscape was not set up to support ambitious growth plans. The JD Edwards World ERP system was outdated and approaching being out of support with Oracle, posing a substantial business risk. Project goals included the creation of a streamlined and integrated technology platform, one with complete, accurate, and timely data.

The Solution: Driving operational excellence through a strategic approach

Oracle's JDE EnterpriseOne was selected as the new ERP system, but the initial attempt to modernize with JDE E1 did not meet the aggressive timelines required by the business. The company’s IT team turned to Argano to develop an automated, repeatable data conversion process, both implementing a new system and converting data into JDE E1 and other integrated systems. This approach was designed to address the company's immediate needs while laying the groundwork for long-term success.

Data conversion and implementation: Argano worked closely with Toll Brothers to develop a methodical conversion strategy, successfully mapping over 11 legacy systems to E1. This process not only automated data conversion but also ensured a seamless transition to the new ERP system. Argano's strong project management and deep JDE subject matter expertise were instrumental in navigating the complexities of the implementation.

Software enhancements: As part of the transformation initiative, Argano provided critical software enhancements that drove business value. These enhancements included improvements to the sales and design studio platforms, which were delivered on time and within budget. By streamlining these processes, Toll Brothers was able to enhance sales efficiency and improve customer experience.

Managed support services: To ensure long-term success of the JDE E1 implementation, Argano provides 24/7/365 help desk support and managed services. This ongoing support reduces the administrative burden on Toll Brothers' internal teams, allowing them to focus on higher-value activities. The managed support services also ensure that the ERP system remains up-to-date and running smoothly, effectively future-proofing the company's business operations.

The Results: Unlocking unprecedented efficiency and growth

The JDE E1 implementation, powered by the Argano partnership, has been transformational for Toll Brothers. The results have been significant and far-reaching, with the company achieving:

Scalability and productivity gains: Toll Brothers successfully doubled its revenue from $5 billion to $10 billion while maintaining a flat overall headcount. Productivity is up almost 40% with home deliveries per employee up from 1.6 to 2.2, and revenues per employee up almost 60% from $1.4 million to $2.2 million. This remarkable achievement was made possible in part by increased productivity and efficiency brought about by the new ERP system. The company is now able to build and close two homes per employee per year, compared to one previously.

Financial improvement: Selling, General & Administrative expenses (SG&A) as a percentage of revenue is down 27% since JDE E1 was implemented, from 12.4% to 9%.This improvement in SG&A leverage has had a direct and positive impact on Toll Brothers' bottom line.

Foundation for continued success: The E1 implementation has created a singular, reliable data platform that has become the foundation for Toll Brothers' next wave of technological maturation. The partnership with Argano has been instrumental in Toll Brothers' success, providing ongoing support and tangible benefits, enabling the company to navigate complex challenges while maintaining operational efficiency.