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.
Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
Friday, April 17, 2009
Tuesday, March 17, 2009
Standing Up in a Down Economy:Six Strategies for Improving Operations and Profits
By Steve Epner
These are difficult and unprecedented economic times. For the vast majority of businesses, the economic downturn will be painful, but not fatal. Success will depend on being able to respond proactively to the many regulatory and market changes that are coming. It will require the ability to take successful practices from the past and adjust them for new realities. The successful distributor of tomorrow will need to build on what has worked, be willing to shed things that no longer work, and be open to new ways of doing everything.
The good news is that there are a number of techniques that a distributor can use to increase productivity and lay the foundation for a more profitable future. These "fixes" are not untested or unproved. Some are from other industries and some have been around but unused. In high growth times, many opportunities for efficiency may have been delayed or overlooked as not necessary or of a high enough priority to allocate resources. Now the world has changed and it is a good time to consider how some of these capabilities may be used to improve operations.
Consider the current downturn as an opportunity to change the way things are done. Customers and suppliers are all open to new ideas and are willing to try new things. The leaders in each industry will take advantage of the environment to modify what is being done, to streamline operations, and to establish new realities that will have long term effects.
It is a good time to think about redirecting investment of time and effort to create a sustainable future. The ownership of our companies must lead the way to make sure management and employees do the right things. In the following pages, trends and the status quo will be examined. Processes will be questioned and replacements suggested.
A realistic and honest appraisal of each organization’s strengths, weaknesses, opportunities and threats is required. Then direct and deliberate steps are needed to take advantage of technologies and techniques that will propel the operation into the future. That is the secret for surviving the current downturn and laying the foundation for future success.
To read more click to this website: http://www.software4distributors.com/media/whitepapers/BSWCWhitepaper_Six_Strategies_for_Improving_Operations_and_Profit.pdf
These are difficult and unprecedented economic times. For the vast majority of businesses, the economic downturn will be painful, but not fatal. Success will depend on being able to respond proactively to the many regulatory and market changes that are coming. It will require the ability to take successful practices from the past and adjust them for new realities. The successful distributor of tomorrow will need to build on what has worked, be willing to shed things that no longer work, and be open to new ways of doing everything.
The good news is that there are a number of techniques that a distributor can use to increase productivity and lay the foundation for a more profitable future. These "fixes" are not untested or unproved. Some are from other industries and some have been around but unused. In high growth times, many opportunities for efficiency may have been delayed or overlooked as not necessary or of a high enough priority to allocate resources. Now the world has changed and it is a good time to consider how some of these capabilities may be used to improve operations.
Consider the current downturn as an opportunity to change the way things are done. Customers and suppliers are all open to new ideas and are willing to try new things. The leaders in each industry will take advantage of the environment to modify what is being done, to streamline operations, and to establish new realities that will have long term effects.
It is a good time to think about redirecting investment of time and effort to create a sustainable future. The ownership of our companies must lead the way to make sure management and employees do the right things. In the following pages, trends and the status quo will be examined. Processes will be questioned and replacements suggested.
A realistic and honest appraisal of each organization’s strengths, weaknesses, opportunities and threats is required. Then direct and deliberate steps are needed to take advantage of technologies and techniques that will propel the operation into the future. That is the secret for surviving the current downturn and laying the foundation for future success.
To read more click to this website: http://www.software4distributors.com/media/whitepapers/BSWCWhitepaper_Six_Strategies_for_Improving_Operations_and_Profit.pdf
Wednesday, March 4, 2009
Increasing Industrial Distribution Profitability by Segmenting Customers, Suppliers and Products
By Steve Epner
In the current tough economic times, Industrial Distributors must use every advantage to improve operations, reduce costs and ultimately increase returns for stakeholders. Organizations that have access to and are willing to make better use of specific ERP applications can integrate the concepts of metrics and segmentation into the business for outsized results.
An important element in management theory is the simple concept:”If you cannot measure it, you cannot manage it.” By examining how to make information more visible to the distributor, it is possible to increase their ability to take charge of and manage their environment.
Once the metrics are available, then the use of Segmentation becomes a viable option to better manage the assets of an organization. Using measurements of “value” and profitability” it is possible to divide groups (customers, suppliers, and products) into subcategories which can be individually managed to provide the greatest benefit to the operation. Industrial distributors can use this concept to provide an objective basis for increasing the return on all assets.
In the current tough economic times, Industrial Distributors must use every advantage to improve operations, reduce costs and ultimately increase returns for stakeholders. Organizations that have access to and are willing to make better use of specific ERP applications can integrate the concepts of metrics and segmentation into the business for outsized results.
An important element in management theory is the simple concept:”If you cannot measure it, you cannot manage it.” By examining how to make information more visible to the distributor, it is possible to increase their ability to take charge of and manage their environment.
Once the metrics are available, then the use of Segmentation becomes a viable option to better manage the assets of an organization. Using measurements of “value” and profitability” it is possible to divide groups (customers, suppliers, and products) into subcategories which can be individually managed to provide the greatest benefit to the operation. Industrial distributors can use this concept to provide an objective basis for increasing the return on all assets.
For many Industrial distributors, the greatest hurdle will be learning how to develop, track and report the information hidden in their automation systems. Information collected and stored within a modern and properly configured ERP system combined with applications (such as Business Intelligence) can be used to fine tune pricing, inventory, purchasing and customer service levels based on objective measures of value and contribution to profitability.
Companies who make more effective operational decisions based on metrics and segmentation can outperform the competition in all aspects of business.
To read more click on this website: http://www.software4distributors.com/media/whitepapers/BSWCWhitepaper_Increasing_Industrial_Distribution_Profitability.pdf
Thursday, February 26, 2009
Economic Conditions Affect Business
By Tim Reynolds
President, Tribute, Inc. and President, COSE (Council of Smaller Enterprises - Cleveland)
Well it’s official. Our economy is in a recession. Of course, economic conditions will affect different businesses in different ways and some of you may be having a great year. But for those of us that have seen our business volume turn down, it’s time for some clear thinking. This will be my third major recession as a business owner and I thought I’d share just a couple of the lessons I’ve learned along the way.
First, denial is the enemy. If your business needs to be smaller for a time, bite the bullet and make it smaller. Failing to take the steps you need to preserve your capital and match your business expenses to achievable revenues is the reason businesses fail.
Only then are you in a position to take advantage of the opportunities recessions have always provided flexible business owners. For example a competitor may stumble, or perhaps a vendor may lay off a talented employee that can take your company to a new level. You may have to lay off employees of your own. That’s painful of course, but it also gives you the opportunity to rethink important business processes. What you do now will lay the foundation for profitable growth thereafter.
Fortune's Feb 18, 2008 issue has an article written by management guru and Wharton faculty member, Ram Charan, which is still timely and offers some useful advice to weather the recession. I found a couple of his tips relevant:
1. Keep building. When the top line looks shaky and the bottom line worse, the temptation is to go after discretionary spending. Fine - but do not consider product development, innovation, and brand building optional. Sacrificing your future for a slightly more comfortable present is not worth it. If you keep building, you can come back strong.
Tribute continues to offer our customers new tools to streamline their business and cut costs. Our users determine the innovations most beneficial to the group as a whole and we implement those tools in our regular releases. We’ve partnered with WarehouseTWO to offer our customers an easy and convenient method to do inventory-sharing, enabling them to get rid of excess inventory and provide another means to fill backorders.
The "American Recovery and Reinvestment Act" has extended the Section179 tax expensing limit to $250,000 and boosts the overall investment limit from $510,000 to $800,000, so this is the year to invest in making your company as efficient and profitable as possible.
2. Communicate intensively. Get information from where the customer action is, and get it to the operating people - fast. Companies should do so routinely, of course. But they don't. It's counterintuitive but true that when the economy slows down, the pace of decision-making has to speed up, because you can't put off the tough choices anymore. The companies that are readiest to act on solid information are primed to shoot ahead of the business cycle.
Partnering with Rubber Tree Systems, Tribute now offers TrulinX Mobile and Tribute Mobile, a business intelligence and sales force mobilization system that extracts the data from our Tribute & TrulinX systems and shares it with any mobile device. In this economy, access to up-to-the-minute data is a must.
Clear thinking and an open mind are critical to small business success. Tribute is ready to help you take a hard look at your business processes, compare them against the best standards in distribution, and show you how our software can help you achieve Best Practice. We continue to invest in product development and innovation to best serve your needs. We can help you keep the “blinders” off and streamline your business so you can be ready for the good times to come.
To find out more, visit www.tribute.com or call us at 800-874-2883 and press “1” for sales.
About Tribute, Inc.
Tribute, Inc. is the leading provider of enterprise-wide distribution management software to the pneumatic & hydraulic, power transmission, belting, sealing products, automation & motion control, instrumentation and hose distribution marketplace. We specialize in providing superior tools combined with personal and knowledgeable customer support for this specific niche. Our customers are more than just a number – they are partners with valuable input that drives the direction of our product. Tribute has provided a comprehensive management solution for industrial distributors for 28 years and is an active member of FPDA, ISD, NAHAD and NIBA.
President, Tribute, Inc. and President, COSE (Council of Smaller Enterprises - Cleveland)
Well it’s official. Our economy is in a recession. Of course, economic conditions will affect different businesses in different ways and some of you may be having a great year. But for those of us that have seen our business volume turn down, it’s time for some clear thinking. This will be my third major recession as a business owner and I thought I’d share just a couple of the lessons I’ve learned along the way.
First, denial is the enemy. If your business needs to be smaller for a time, bite the bullet and make it smaller. Failing to take the steps you need to preserve your capital and match your business expenses to achievable revenues is the reason businesses fail.
Only then are you in a position to take advantage of the opportunities recessions have always provided flexible business owners. For example a competitor may stumble, or perhaps a vendor may lay off a talented employee that can take your company to a new level. You may have to lay off employees of your own. That’s painful of course, but it also gives you the opportunity to rethink important business processes. What you do now will lay the foundation for profitable growth thereafter.
Fortune's Feb 18, 2008 issue has an article written by management guru and Wharton faculty member, Ram Charan, which is still timely and offers some useful advice to weather the recession. I found a couple of his tips relevant:
1. Keep building. When the top line looks shaky and the bottom line worse, the temptation is to go after discretionary spending. Fine - but do not consider product development, innovation, and brand building optional. Sacrificing your future for a slightly more comfortable present is not worth it. If you keep building, you can come back strong.
Tribute continues to offer our customers new tools to streamline their business and cut costs. Our users determine the innovations most beneficial to the group as a whole and we implement those tools in our regular releases. We’ve partnered with WarehouseTWO to offer our customers an easy and convenient method to do inventory-sharing, enabling them to get rid of excess inventory and provide another means to fill backorders.
The "American Recovery and Reinvestment Act" has extended the Section179 tax expensing limit to $250,000 and boosts the overall investment limit from $510,000 to $800,000, so this is the year to invest in making your company as efficient and profitable as possible.
2. Communicate intensively. Get information from where the customer action is, and get it to the operating people - fast. Companies should do so routinely, of course. But they don't. It's counterintuitive but true that when the economy slows down, the pace of decision-making has to speed up, because you can't put off the tough choices anymore. The companies that are readiest to act on solid information are primed to shoot ahead of the business cycle.
Partnering with Rubber Tree Systems, Tribute now offers TrulinX Mobile and Tribute Mobile, a business intelligence and sales force mobilization system that extracts the data from our Tribute & TrulinX systems and shares it with any mobile device. In this economy, access to up-to-the-minute data is a must.
Clear thinking and an open mind are critical to small business success. Tribute is ready to help you take a hard look at your business processes, compare them against the best standards in distribution, and show you how our software can help you achieve Best Practice. We continue to invest in product development and innovation to best serve your needs. We can help you keep the “blinders” off and streamline your business so you can be ready for the good times to come.
To find out more, visit www.tribute.com or call us at 800-874-2883 and press “1” for sales.
About Tribute, Inc.
Tribute, Inc. is the leading provider of enterprise-wide distribution management software to the pneumatic & hydraulic, power transmission, belting, sealing products, automation & motion control, instrumentation and hose distribution marketplace. We specialize in providing superior tools combined with personal and knowledgeable customer support for this specific niche. Our customers are more than just a number – they are partners with valuable input that drives the direction of our product. Tribute has provided a comprehensive management solution for industrial distributors for 28 years and is an active member of FPDA, ISD, NAHAD and NIBA.
Monday, October 6, 2008
For Immediate Release: From the Editor and Publisher of Progressive Distributor Magazine by Rich Vurva
To learn more about researching, evaluating, analyzing and comparing software request the 2008 Progressive Distributor Supplement Guide released this month.
To order a complimentary copy visit http://www.software4distributors.com/pdsupplementguide/default.aspx
A sagging economy has forced distributors to search for ways to streamline their businesses. One way distributors can become more efficient, lower their cost of doing business, and potentially increase sales is to utilize technology.
For example, in our recent annual reader survey, distributors anticipate that while outside and inside sales efforts will remain their primary sales solicitation methods, they expect Internet sales to grow in popularity in the next 12 months. Doing business online not only provides a quick and easy way for customers to place orders, it’s also more cost-effective for distributors because it reduces costly in-person sales calls.
Technology can help distributors streamline their operations in other ways as well, such as providing greater customer access to inventory, speeding the order entry and invoicing processes, utilizing EDI, CRM and WMS systems, and much more.
In order to gain the greatest benefit from the latest technologies, distributors must have reliable software vendors to help them determine the best solutions for their business.
That is why Progressive Distributor magazine is especially pleased for the opportunity to partner with the Brown Smith Wallace Consulting Group to publish this supplement to the Distribution Software Guide. For nearly 20 years, the Distribution Software Guide has earned a reputation as a reliable resource for detailed information that helps distributors make informed choices when it comes time to upgrade their distribution software packages. Our hope is that this valuable supplement will enable your business be better equipped to succeed in a challenging economic environment.
About The Author
Rich Vurva is the Editor and Publisher of Progressive Distributor Magazine, which reaches 37,000 executives and salespeople at industrial and contractor supply distribution companies.
About The Brown Smith Wallace Consulting Group
The Brown Smith Wallace Consulting Group has been serving the distribution community for more than 20 years through the publication of the Distribution Software Guide, speaking at industry programs, giving free telephone advice to distributors and providing fee-based consulting services to companies who need help selecting the best software packages for their business. For more information visit http://www.software4distibutors.com/.
For More Information Contact:
Sara Nelson
314.983.1393
snelson@bswllc.com
Monday, August 4, 2008
What’s going on?
It seems clear our economy is slowing down. Although 1st quarter GNP grew at a slow rate, our newspapers are filled with stories on a troubled economy. The sub prime loan “crisis” has shaken the stock market. Oil prices have increased well beyond previous record levels. Food prices, metals prices, and other commodities have also seen dramatic rises. The Fed has acted aggressively to support our financial infrastructure and interest rates are very low indeed. All signs point to a recession, and we should be very worried about inflation at the same time - what is known as “stagflation”.
And yet:
Nearly every prospect and every customer we talk to is enjoying a very successful year, on top of great results last year. Industrial Distribution magazine reports that the Top 50 distributors ALL report record years in the making. The US manufacturing sector is thriving.
A big part of the answer to this paradox is those low interest rates mentioned above. They have resulted, over a period of several years, to make the US dollar “weaker” against other currencies. As a result, our various products have become much more competitive in the international markets. Our exports are truly booming and this is great for manufacturing, and therefore great for industrial distributors.
However:
That won’t make your job less difficult. Although interest rates are low, lenders have become very timid, given the impact of the sub prime loan problems on financial markets in general. This always impacts small businesses first, and hardest. No doubt you have experienced this if you’ve tried to increase a working capital line of credit lately, or borrowed to purchase a capital asset. Rates are low, but credit standards are very tight indeed.
In addition, given rising commodities prices and more costly imports (the other edge of a weak dollar sword), inflation is a very serious concern. This will impact your business in the form of rising purchasing prices, as manufacturers pass the costs of higher metals and other raw material prices along. This has been going on for several years, of course. The problem comes in maintaining your margins in a competitive market place. In addition, those of you that distribute for foreign manufacturers are seeing prices there (due to the weak dollar) rising much more quickly.
A well run distributor has the tools to deal with these issues and utilizing an ERP solution geared toward your industry is of primary importance. Other than that, there are really only three things to do.
First, aggressively manage your purchasing. Make sure you are buying only what you need, when you need it. Understand your demands at the item level, if necessary. Are you truly using the power of your software to support aggressive purchasing and inventory management? If you haven’t implemented any more than “min / max”, now is the time to dig in and get to a more sophisticated, aggressive and effective process. From the theory behind the process, to the practical applications of inventory management, your software should support Best Practice.
Second, just as you aggressively manage your inventory costs, you must manage your pricing. You need to work toward being able to actively manage each item’s price for each customer, what is labeled “strategic pricing”. You may have a big customer that aggressively negotiates and shops key items he buys from you. But other items he buys out of convenience. He’s not shopping those items, just adding them to the PO. Why give him the deep discount on those convenience items? He’s willing to pay more and probably won’t even notice if you give him your standard discount. There are several other pricing strategies like that one available - if you do the analysis and really understand what each customer is willing to pay. David Bowders of Strategic Pricing, Inc. can help you implement this very important pricing philosophy.
Finally, all small business owners know the importance of low overhead. Now is the time to aggressively manage your costs. If inflation takes hold, this will be critical to your ability to do business. Your software should have detailed reporting capabilities to manage your budget line by line and the tools to make your operation more efficient and streamlined.
If you’re a small business, joining an organization like COSE, the small business division of the Greater Cleveland Partnership – one of the nation’s largest metropolitan chambers of commerce, will help you lower costs by providing group purchasing programs that reduce the direct cost of doing business, and open doors to government agencies, business and community organizations, and economic development partners that can address your business concerns.
There is much to be optimistic about with the US economy. But we all have to manage our way through the ups and downs. Taking advantage of small business resource center of your local chamber of commerce and the tools offered by a well designed and industry specific software will help you lower costs and run your business more efficiently and profitably.
Tim Reynolds is the Chairman of COSE, the Council of Smaller Enterprises, and the President of Tribute, Inc., a firm specializing in distribution management software and support for industrial product distributors. He can be reached at treynolds@tribute.com.
Tuesday, July 22, 2008
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
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."
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
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