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Wednesday, August 27, 2014

Absolute Value Yields Tremendous Results For Phoenix Mecano

Phoenix Mecano Inc. operates three distinct distribution divisions and associated profit centers in the United States.

Rose+Bopla Enclosures manufactures an extensive line of off-the-shelf enclosures, machine control enclosures, and suspension arm systems. RK Rose+Krieger provides frameworks, linear products, and clamps for another group of customers that use those components to assemble their final products. PMI Dewert, the third division, manufactures a full range of single and dual linear actuators, handsets and control systems used in motion furniture(beds, tables, chairs), medical, long-term care, physical therapy, and industrial applications.

Each division has its own unique customers with different business and software needs. Because of long lead times when purchasing from sister companies overseas, customers were often left dissatisfied due to insufficient resource planning.

When the collaborative team at Phoenix Mecano determined the current limitations were hindering growth, they identified core problem areas and chose to address them with a software solution from Absolute Value. Like most companies, PM USA saw a decline in their sales during the 2009 global economic downturn, but by using Absolute Value to stock more appropriate inventory, the team was able to take their inventory value down by 35%. Within a few months of the implementation the team was able to realize the additional following benefits:

• Reducing stock inventory part numbers from 4,000 to 2,900 items, while increasing customer satisfaction.
• Eliminating costly off-site storage space, while opening up 30% of their existing warehouse space to be able to re-engineer the formerly congested traffic flow in the warehouse.
• Reducing warehouse staff by 55%.
• Significantly reducing air freight bills, previously caused by not being able to accurately predict key component needs on a timely basis.

Absolute Value has roots in the Distribution Software Industry that are extensive, with specific strength in Forecasting and Replenishment. To read more about the implementation, and learn more about their products, visit the Absolute Value Case Studies section of their website.

The Brown Smith Wallace 2014-15 Distribution and Manufacturing Software Guides are currently available for download. Please contact snelson@bswllc.com for more information about these latest editions.
 
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