CRM Is Here to Stay: Evaluating Its Use with ERP

by Trevor B. Cain

The debate over whether the recession has ended may continue, but most industry watchers agree that conditions over the past two years have created a new climate in business – a climate where caution reigns, and increased customer service will be a key differentiator between competitors.

I hear almost every day from Activant clients and prospects that they need better tools and access to more accurate, real-time information in order to provide the increased level of service required to keep their current customers and attract new business. Competition is tough: a quote from one rep today could easily turn into an order for a competitor tomorrow.

The businesses I work with are distributors of wholesale durable goods. Wholesale distributors often run lean and mean – many times, without an outside sales force or the ability to be in front of every customer all the time. This does not exempt them from needing to create a competitive edge, however. Their field sales force has to be more proactive than reactive. They need to walk into a customer meeting armed with information: Quotes and invoices based on the last visit. Were there any new quotes? Any outstanding orders? Credit issues? Other problems?

Being aware of what is going on with an account has always been basic to customer relationship management (CRM), but in today’s climate, it’s a critical factor. As a result, wholesale distributors are looking for a better approach to CRM as they evaluate Enterprise Resource Planning (ERP) systems to run their business. For some, this is their first look at CRM, but others may be seeking to consolidate systems, searching for a more efficient alternative to maintaining two or more databases of information that often don't communicate with each other.

These stand-alone CRM applications can be quite costly to the midsize family-owned distributor. The functionality may be robust, but is it tailored to the specific demands of the distributor? Often, the investment has more function than needed.

When considering ERP systems for distribution, the question to ask in reviewing CRM functionality is: What does CRM mean to my business? Determining what CRM means to a distributor involves evaluating all areas of the business and their needs. CRM isn't just the customer relationship as it pertains to sales, but also accounting and value-added services, if they exist. Outside of sales, distributors also maintain relationships with their vendors. Without inventory and knowledge of availability, distributors would be dead in the water.

One approach to evaluating these areas of the business is to empower key employees from various departments to have a voice in what is important.

• Does the company have an outside sales staff? If so, enhanced CRM functionality could greatly increase their efficiency. This usually goes to their bottom line, which is what they are always watching.
  


• Do these field sales reps have laptops, smartphones, iPads? What tools do they need to have access to and from a system?
  


• Can your company automate workflow not only within the business, but also out to those reps in the field?
  


• Can the system generate automated tasks based on those important transactions that often require follow-up, such as quotes to the customer?
  


• Does your company get involved in larger bids with customers (i.e., it's not just a single quote, but multiple quotes under a larger opportunity that may linger on for months)? Is the company able to track these opportunities in order to generate a pipeline of what is to come in future months?

These small pieces of functionality will make the difference between being proactive or reactive. The bottom line is, to see both immediate and long-term effects of CRM, you should get buy-in from employees. Determining needs, uncovering key functionality and implementing are only half the battle. No matter what CRM system you choose, the ROI will come only if it is put to use.

Trevor B. Cain is an Industry Segment Manager at Activant Solutions Inc. Find out more about Activant at distribution.activant.com or call 1-800-776-7438.

Activant Solutions Introduces Prophet 21 version 12.0

Enhanced User Interface Drawing Rave Reviews

Activant Solutions Inc. announces the availability of Activant® Prophet 21® software version 12.0.

"Before we began writing code for Prophet 21 version 12.0, we did an in-depth analysis of industry trends, including having extensive conversations with our customers, to determine what features to include," said Kevin Roach, executive vice president of Activant. "Our goal with this release of the Prophet 21 software is to help distributors increase efficiencies in their business, helping them through this recession so they will be positioned to take advantage of the opportunities expected to arise during the economic recovery."

Currently more than 1,500 distributors have invested in Prophet 21 software, making it a leading enterprise software solution for the distribution industry. Prophet 21 version 12.0 builds upon existing functionality and is designed to further assist distributors increase sales, improve customer service and reduce operating expenses. Among the many features in Prophet 21 version 12.0 is an enhanced user interface.

"There are a lot of great features in Prophet 21 version 12 that allow us to streamline our processes," said Michael Dean, IT Manger for Power & Pumps Inc. in Jacksonville, FL. "The search bar and my menu options improve our workflow and make it easier to move through the system."

Jennifer Buschmann, president of EA Buschmann Inc. in Lewiston, ME, agrees: "The updated user interface has a lot of potential for the user to customize screens to fit the individual user’s specific needs," she said. "The extended description view and field chooser features are two features we are extremely excited to have."

Many Valuable Features

In addition to the enhanced user interface, new customer relationship management (CRM) tools provide ready access to information, allowing users to streamline their day-to-day processes while improving customer service.

Attributes of the Prophet 21 software's production order and secondary processing functions have been combined into a labor tracking, job costing process that provides true light manufacturing capabilities. Distributors may assign technicians, track labor costs, and issue necessary material through a series of processes that manage the entire production process, whether the manufacturing stages are completed by the distributor or a third party.

The Wireless Warehouse Management Solution (WWMS) Workbench capability is designed as a tool for the warehouse manager/supervisor to dynamically manage the flow of transactions within their warehouse operation. The workbench is a dynamic list of transactions ready to pick that can be sorted, grouped and moved about in an ad hoc manner. Transactions at the top of the list can be quickly pushed to an available employee. Other warehouse tasks are also displayed and sorted by a user-defined hierarchy and can be pushed to the employee in the warehouse in accordance with that hierarchy. Also, the workbench feature has the capability of dynamically creating group pick tickets, providing a command and control tool for dynamic management of the warehouse picking workload, and providing the capability to push higher priority tasks to available “picking” employees while organizing and balancing usual pick loads. This feature increases the visibility of pickers' tasks, their progress, and their overall performance.

Further enhancing the international capabilities of the Prophet 21 software, Activant has added multi-lingual functionality which allows users to dynamically translate terms used throughout the application. This feature helps increase user productivity by enabling them to use the system in their native language.

To find out more about the Prophet 21 software, visit distribution.activant.com, e-mail distribution@activant.com, or call 1-800-776-7438, press 1.

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada, Ireland, and the United Kingdom.

For more information, please visit distribution.activant.com.

Distributors Must Embrace Change and Activant Is Ready to Help

Activant Summit Attracts More than 1,300 attendees

"Shift happens," announced Kevin Roach, executive vice president and general manager of Activant Solutions Inc., at Summit 2009, Activant's annual conference for wholesale distributors.
Quoting Alvin Toffler -- "Change is the process by which the future invades our lives." -- Roach told the more than 1,300 professionals assembled in Nashville, TN, in early March that there has been a major shift in the United States from manufacturing to a more information-centric economy, which directly impacts wholesale distributors.

Officially kicking off three days of educational and networking sessions, Roach encouraged the crowd: "Don't let shift [change] happen to you. Make shift happen. It's particularly important in these tough economic times that we are not insular -- that we look outside of our industry to understand how others are using shift to their advantage."

Pointing out that the time it takes the economy to recover from a recession is historically much faster than the time it takes to slip into one, Roach encouraged distributors to position themselves for the future.

Hard Realities
Roach didn't shy away from telling distributors the truth about the lagging use of technology in their industry. "The hard reality is that pervasive EDI adoption among wholesale distributors is only about 12 to 18 percent... as compared to nearly 100 percent of manufacturers and suppliers," he pointed out. "A recent survey revealed that only 39 percent of wholesale distributors can accurately track operating profit by customer and that only 30 percent can track the profitability of fee-based services.

"The lack of access to this kind of information -- in real-time and in actionable form -- effectively leaves you behind the wheel with no dashboard, no windshield -- just an accelerator and a brake to manage your business," Roach continued. "In an environment where change is occurring more rapidly, more dramatically, and more frequently than ever before, you can no longer afford to drive your business the same way and expect to get the results you're aiming for."

Roach cited the example of CC Dickson, an Activant customer in attendance at the conference. "Only seven years ago they were running a $115 million operation on paper alone with more than 800 employees and 112 locations. Now the company uses an Activant ERP solution, streamlining their entire business. That's some crazy shift."

Evolution
Citing figures that demonstrate a loss of more than 200,000 wholesale distribution businesses in the past 10 years, Roach urged distributors to adapt.

"Adaptation means you constantly modernize your processes to meet the competitive watermark," he told the packed room. "What you were doing a few years ago isn't going to cut it today. Improvement is not an event, it's a process. In today's economy, you must reinvent yourself constantly."

Promising that Activant will continue to do all it can to help distributors succeed, Roach concluded his comments: "We are your partners. Our success as a technology partner is 100 percent predicated on your success as a distributor. We want you to strive... to compete on a higher level... and to ultimately succeed through solutions that help your business run more flexibly, efficiently, and profitably."

ROI
Distributors gathered in Nashville to participate in three days of educational sessions and networking events designed to help them maximize the use of their Activant solution. Classes were lead by Activant technology experts as well as well-known industry consultants, including David Bauders, Bill McCleave, Dr. Barry Lawrence, Bill Muehlbauer, and Jon Schreibfeder.
Daron Brown of South Central Company, an HVAC distributor located in Columbus, IN, raved about what Summit 2009 did for his business: "There is no doubt in my mind that with the tools we brought back [from Summit], we will get ROI from this trip. It was potentially a company changing week for us."

Aaron Pace, of EVCO House of Hose, a Salt Lake City-based fluid power distributor, agreed. "Our company has sent people to Summit every year for the last four years." commented Pace. "It is ALWAYS worth the money! Not only is the software education top-notch, the general business training is certainly a cut above the rest. As far as training and networking dollars go, Summit, by far, offers more bang for your buck than almost anything else out there."

Summit 2010 is scheduled to take place March 10 through 14, 2010, in Washington, D.C.
To find out more, visit distribution.activant.com, e-mail distribution@activant.com, or call 1-800-776-7438, press 1.

About Activant Solutions Inc.
Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada , Ireland , and the United Kingdom.

For more information, please visit distribution.activant.com.

Activant Introduces its Next Generation of Business Analytics

Activant Solutions Inc. users know the power that Activant's business analysis tool gives them to help make smarter decisions about their operations. Now Activant has introduced its next generation of business analytics -- Activant Business Analyzer -- to give distributors an even greater advantage.

The Activant Business Analyzer solution includes features and functionality that provide distributors with greater insight into their businesses. For starters, it's faster -- queries return results quicker and databases are more compact and take less time to build. It's also easier to customize: distributors can produce charts and tables for specific users and roles, and users can also produce their own custom reports.

"I am particularly pleased with the ability to customize a number of different queries into a very flexible layout of multiple reports that reflect valuable information across different departments in our company," said Rodger Hurt, president of Southern Marketing Affiliates, headquartered in Jonesboro, AR. "In previous generations of executive information systems from Activant, you were limited to a single report on the screen. With the Activant Business Analyzer product, you can have multiple tabs that can be built and modified to show information based on how you want to see it. The graphs and charting functionality is much improved."

In addition to allowing the viewing of multiple reports at the same time, the Activant Business Analyzer solution also lets users set up flags that warn them when performance indicators are weak or headed south. And it's far easier to get important information into the hands of those who need it with this new package.

"You can email reports directly from the application," said Hurt. "You can launch an Excel file with ease that retains nice formatting. Reports can also be set to run on a variety of different scheduling options and then distributed automatically to the people in your company that need the data.

"The ability to create multiple scheduled distributions of varying reports is going to be great as we develop our business further."

The Activant Business Analyzer solution comes packed with other useful features, such as:

* Ability to view data based on calendar or fiscal year
* Security protection to keep users out of unauthorized areas
* Drag-and-drop design tool that creates queries faster
* And many more

To find out more, visit distribution.activant.com, email distribution@activant.com, or call 1-800-776-7438, press 1.

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada , Ireland and the United Kingdom .

For more information, please visit distribution.activant.com.

Activant Prophet 21 Offers Functionality for Petroleum Distributors

Activant®, the leading software and services provider for wholesale distributors, announces the addition of functionality to Prophet 21® specific to petroleum distributors.

"Petroleum distributors have unique needs due to the variable nature of supply and demand for our products," said Bob Crouch, CFO of PetroLiance, LLC. "Activant’s product development teams have spent the time to understand our requirements and build them into Prophet 21’s functionality, and they are committed to continuous improvement of these features for the long run."

Special Functionality for Petroleum Distributors

Activant Prophet 21 contains the key functionality important to the success of petroleum distributors, including:

* Integration with suppliers – including ExxonMobil, Shell Oil, and Valvoline
* Integration with routing systems- including Geocom, Centeron Dispatch Compass Integration/E-tank
* Support for delivery scheduler routines
* Extensive reporting, including gallons display and loan processing
* Hazmat Tracking
* PetroVend Cardlock integration
* Integration to Axxis
* Support for drum deposits
* And much more

To find out more, visit distribution.activant.com, email distribution@activant.com, or call 1-800-776-7438, press 1.

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada, Ireland and the United Kingdom.

For more information, please visit distribution.activant.com.

Activant B2B Seller Version 5.5 is Now Available

Activant Solutions Inc. announces the availability of Activant B2B Seller version 5.5, an integrated Web-based storefront solution.

"The new version of B2B Seller is remarkably stable and reliable," said Shelby Scanlan, IT manager for Cascade Orthopedic Supply, an early adopter of B2B Seller 5.5. "The feedback we have received from customers is extremely positive."

Activant analyzed users’ specific needs and market trends to determine which features to include in B2B Seller 5.5. The result: a product release designed to help distributors further increase sales, improve customer service and reduce operating costs.

B2B Seller offers distributors the tools they need to service customers 24 hours a day, seven days a week. B2B Seller allows them to extend their geographic reach and increase market share, without hiring dozens of additional employees or building new warehouses.

New Features Include

* Search Engine Optimization (SEO) -- Customize meta-tags and titles of specific HTML pages to allow the user's desired site page to have a better chance of being returned in Internet searches triggered through Google and other search engines. Available in B2B Advanced and above.

* Admin users may make changes to the site -- When any setting changes are made, the Web site will be immediately updated with the changes. The areas that can now be configured by the user are: e-mail recipients; feature enablement for certain features; screen configuration for category search results, contact us, item detail, item search; and my account report configuration. Available in B2B Advanced and above.

Special Functionality for Activant Prophet 21 Users

Prophet 21, the leading enterprise software solution for distributors, combines the familiarity of Windows with the power of SQL Server to help distributors increase sales, improve customer service, and reduce operating costs. B2B Seller fully integrates with Prophet 21 and acts as an additional customer support representative 24 hours a day, seven days a week.

* Shopping Carts and Shopping Lists -- Automatically recognize Item ID/Item Code changes in the backend system to allow existing data to continue to work without updating when Item ID/Item Code changes are implemented. Also available to Activant Acclaim users; B2B Advanced and above.

* Select contracts at the line-item level -- Shoppers can choose from a list of contracts associated with a given item; the selected contract will then be used to calculate pricing for that item. Available in B2B Advanced and above.

* Open Quotations can be viewed in the My Account Open Quote section -- View and print quotations stored in their system. This feature adds the capability to select those quotes to be converted to orders. When selected, the shopper will go through the typical checkout process and the quote converted to an order in Prophet 21. Available in B2B Premier and above.

* Distributors with multiple Prophet 21 Companies can now share a single B2B Seller site -- B2B Seller will set the proper Prophet 21 Company ID based on Customer associated with the Shopper. Available in B2B Premier and above.

* Shoppers may apply Merchandise Credits to orders -- Customers can cover a part of the order by using a Merchandise Credit and cover the rest of the order by either invoice or using a credit card. Available in B2B and B2C.

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada, Ireland and the United Kingdom.

For more information, please visit distribution.activant.com.

Distributors Continue to Invest In Software Despite Economy

Despite the struggling economy, distributors continue to invest in software to better position their business for long-term success.

"While initially, the thought of investing in a new ERP solution in a down economy may seem daunting, if you think about it, there really is no better time," said Steve McLaughlin, senior vice president and general manager of Activant. "With things slow, distributors have time to review all of the options available and make a decision based on their current and future needs. In addition, they can take the time to train on the new system so their staff is ready to hit the ground running when the economy rebounds."

Many distributors are following McLaughlin's advice. In the month of June alone, nearly 40 distributors invested in Activant Prophet 21™, making it the leading enterprise software solution for distributors. As of today, more than 1,375 wholesale distributors have invested in the system.

"We were impressed by the way the Activant team has factored its experience in distribution into Prophet 21," said Kevin Reidl, executive vice president of Hodel-Natco Industries. The Cleveland , OH, distributor recently choose to move from SAP BusinessOne to Prophet 21. "The package has several very nice tools that were clearly developed from Activant’s experience in the distribution industry, and specifically in fastener distribution. The fact that the people at Activant live and breathe distribution shows in the product."

Distributors on legacy Activant solutions are also looking to move to Prophet 21. "Our overall goal, no matter what system we implemented, was to help us improve our customer experience." said Donna Benner, director of operations for The RG Group in York, PA. The company will move from Activant Disc to Prophet 21. "We wanted to get more data out of our solution more efficiently than we could with our current one. We chose Activant Prophet 21 because they do know our business – they’ve been in our industry for a long time – and the functionality of the system was what we had been looking for.”

"While there is no question that tough economic times put a strain on all businesses," concludes McLaughlin, "those distributors that view this slow period as an opportunity will emerge from this cycle stronger and in a better position to take advantage of what comes next."

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About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada, Ireland, and the United Kingdom.

For more information, please visit http://distribution.activant.com

Embassay Selects Activant As Technology Provider Resource

Plumbing Wholesalers to Benefit from Access to Technology

Embassy Group Ltd., a limited group of premier plumbing, HVAC, and PVF wholesalers, has selected Activant Solutions Inc., a leading enterprise software provider, as a new recommended resource for its members.

"This partnership is further proof of Activant's commitment to the plumbing, HVAC, and PVF wholesale distribution industry," said Steve McLaughlin, senior vice president and general manager of Activant. "We look forward to working with Embassy and its members to continue to develop the technology and services they require to succeed in an ever-changing marketplace."

Activant provides ERP solutions with deep functionality designed specifically to help wholesalers increase sales, improve customer service, and reduce operating costs.

"Part of Embassy's responsibility to its members is to provide resources that will help them strengthen their businesses," said Wally Gumm, president of Embassy. "This relationship provides them with access to the technology that supports that effort."

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States, Canada, Ireland and the United Kingdom.

For more information, please visit http://distribution.activant.com

About Embassy

Established in 1991, the Embassy was founded on the principle that equal participation by a limited group of Premier Plumbing, HVAC and PVF Wholesalers partnering with the Top Industry Plumbing, HVAC and PVF Vendors would result in a mutually rewarding relationship for all. This union also insures the individual Members' business remains viable in the face of changes, consolidations and chain competitors entering the markets today.

Find out more at http://www.embassygroupltd.com

Activant Introduces Automated Backup Solution (ABS) For Prophet 21

Activant Solutions Inc. introduces Automated Backup Solution (ABS) for Activant Prophet 21™. ABS provides real-time, off-site data backup storage in Activant's secure location.

"Even more than inventory, the data gathered by a distributor's enterprise software solution is the most valuable asset in their business," stresses Steve McLaughlin, senior vice president and general manager of Activant. "Inventory can be replaced, but contact information, order history, accounts receivable information, etc. is irreplaceable if lost or damaged. Backing up data should be as constant as breathing out and breathing in."

"Unfortunately, the daily backup of data can easily be forgotten among all the other things going on in a distributor's business. What is more, backup is only half the challenge; keeping those backup copies in a safe location off-site is the key to recovery when disaster strikes. That is why Activant now offers automated data backup for Prophet 21 users."

Private and Protected

Coupled with your standard backup procedures, ABS provides the first step in your business continuity plan. All you need is a supported VPN device. Activant takes care of the rest.

With ABS, every time a user enters an order or updates the general ledger, the transaction is automatically updated at Activant's secure site. There, the data remains protected and private until needed. Then it can be restored to the distributor's server or uploaded to a production site.

Data When You Need It

No one can predict when disaster will strike. Even distributors who don't live in a region where natural disasters such as hurricanes, wildfires, tornadoes, or earthquakes are a regular threat, something as simple as a lightening strike to the warehouse or someone inadvertently spilling coffee on the server can cripple a business until data can be accessed again.

ABS makes it easy for distributors to keep their businesses running without missing a beat. One call to Activant's support team will get them back in touch with their data and ready to service customers.

Pricing and Availability

Activant ABS is now available. For more information, contact Activant at 1-800-776-7438, visit http://distribution.activant.com , or e-mail distribution@activant.com.

About Activant Solutions Inc.

Activant Solutions Inc. ("Activant") is a leading technology provider of business management solutions serving retail and wholesale distribution businesses in three primary vertical markets: hardlines and lumber; wholesale distribution; and the automotive parts aftermarket. Founded in 1972, Activant provides customers with tailored proprietary software, professional services, content, supply chain connectivity, and analytics. More than 30,000 customer locations use an Activant solution to manage their day-to-day operations. Activant has operations throughout the United States and Canada, Ireland, and the United Kingdom.

For more information, please visit www.activant.com.