Infor ERP SX.enterprise to Improve Inventory Management and Transparency for Electrical Distributor
Infor announced Teche Electric Supply, a Lafayette, La.-based wholesale distributor of electrical appliances and equipment, has selected Infor ERP SX.enterprise, a robust enterprise resource planning (ERP) solution with powerful warehousing capabilities, to manage growth and operations across 17 distribution centers in the southeastern United States. ERP SX.enterprise will provide the company with greater transparency to manage inventory and improve supply chain management, forecasting and workflow.
Teche Electric selected ERP SX.enterprise because the solution’s supply chain coverage capabilities, including order management, planning and inventory visibility functions, will help the company manage its growing customer and supplier base. The Total Warehouse Logistics (TWL) module within ERP SX.enterprise will supply Teche Electric with heightened visibility across its multiple warehouses and real-time data management for workflow elements including shipping, receiving and inventory adjustment.
“Our inventory is our number one asset and it is important that our ERP system improves forecasting by providing full transparency across our all inventory, from the warehouse to the yard and the dock,” says Tommy Hayes, senior vice president, Teche Electric Supply. “Infor has proven itself as an innovative and reliable software partner to companies in the distribution industry, and we know that ERP SX.enterprise will give our company the ability to access and manage data more easily. The solution’s flexibility and Infor’s product direction ensure that the solution will be a powerful asset to Teche Electric for the future.”
After reviewing a host of possibilities, Teche Electric determined that the industry specific functionality offered by ERP SX.enterprise was the ideal fit for its anticipated growth and emerging business needs. The solution’s flexibility and Infor’s roadmap for future development was key to Teche Electric’s decision to implement ERP SX.enterprise.
The decision to move from Teche Electric’s previous software vendor to Infor came after consulting with the firm Brown Smith Wallace Consulting Group, a distribution industry software selection specialist. “The Teche project team utilized our very detailed 35-step project plan in order to conduct a thorough search for new software. Infor did an excellent job of demonstrating the required business process functionality and satisfying all of the due diligence requirements,” said Jeff Gusdorf, managing consultant for BSW.
“Electrical distributors today must improve their visibility and workflow, inventory management and customer service to increase productivity and remain competitively viable,” says Gary Rippen, director, distribution solution marketing, Infor. “Infor ERP SX.enterprise’s end-to-end inventory management and supply visibility replenishment provides electrical distributors with the tools necessary to manage their intricate business environments.”
For more information on Infor ERP SX.enterprise please visit: http://www.infor.com/content/brochures/610581/
http://www.infor.com/product_summary/erp/sxenterprise/
About Teche Electric Supply
Teche Electric Supply was founded by brothers Magruder "Mac" Hays and Pete Hays in Lafayette, LA in April of 1962. Over four decades later, Teche Electric Supply is still locally owned and operated and now occupies a 52,000 square foot building on five and a half acres. Since its humble beginnings, this company has added 16 branch locations.
Teche is now operated by the second generation of the Hays family, and carries a full line of electrical products for the residential, commercial and industrial market places. Teche also provides a number of value added services including local deliveries, 24/7 emergency services, convenient credit options, wire cutting, full service lighting showrooms, convenient hours, unmatched inventory, and 100% dedication to customer service.
About Infor
Infor acquires and develops functionally rich software backed by thousands of domain experts and then makes it better through continuous innovation, faster implementation options, global enablement, and flexible buying options. In a few short years, Infor has become one of the largest providers of business software in the world. For additional information, visit www.infor.com.
Thursday, May 21, 2009
Saturday, April 25, 2009
"Hands Off" - Keys to Reducing Inefficiencies to Improve Profits
Battered by consistent reports of bad economic news? Winning distributors and manufacturers are seizing opportunity in the downturn by optimizing operating processes and investing in their business as others cut back, expanding while their competitors shrink.
In this educational Webcast, sponsored by Microsoft Dynamics and Industrial Distribution Magazine, learn some ways distributors are gaining traction in tough times while preparing for the eventual upswing. Join industry experts for this Webinar and learn:
* How optimizing the "front office" pays dividends for the entire business
* How reducing reliance on paper orders & manual reviews saves costs
* How a "No Touch" business environment can benefit your business
* How "role-based" systems are helping to maximize employee time
* How one small distributor increased profitability without hiring more labor
To view, visit: http://www.software4distributors.com/media/video/microsoft/Microsoft%20Webinar%20-%20Hands%20Off.html
In this educational Webcast, sponsored by Microsoft Dynamics and Industrial Distribution Magazine, learn some ways distributors are gaining traction in tough times while preparing for the eventual upswing. Join industry experts for this Webinar and learn:
* How optimizing the "front office" pays dividends for the entire business
* How reducing reliance on paper orders & manual reviews saves costs
* How a "No Touch" business environment can benefit your business
* How "role-based" systems are helping to maximize employee time
* How one small distributor increased profitability without hiring more labor
To view, visit: http://www.software4distributors.com/media/video/microsoft/Microsoft%20Webinar%20-%20Hands%20Off.html
Friday, April 17, 2009
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.
"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.
Monday, April 6, 2009
Get Inspired By St.Louis' Unsung Business Leaders
By Jeremy Nulik, Small Business Monthly
Many people believe that there is no such thing as true altruism. To those folks, this year’s Heroes in Business present quite a quandry. Refusing to buy in to the laws of scarcity, this pack is changing the business profile of our region by selflessly giving their time and talent to other businesses.
These unsung heroes create the environment necessary for growth. After reading their stories, it will be difficult to figure out how it is that St. Louis has been as successful as it has, since characters like them are so rare. Prepare to be inspired to be a hero.
Read on about how Steve Epner from the Brown Smith Wallace Consulting Group and Saint Louis University is "Inspiring Others With Imaginative Thinking." Download the PDF by visiting http://www.software4distributors.com/media/news/Steve-Epner-Small-Business-Article.pdf.
Thursday, March 26, 2009
STAFDA TECH BRIEF – Spring 2009
No signal of a recovery yet:
Various forecasts continue to project reduced spending on IT initiatives for 2009. A survey published by Computer Economics (http://www.computereconomics.com/) projects IT operational spending for 2009 to be at 1.5% of revenues which is the lowest level since the 2001 recession. Another survey conducted by SearchCIO (searchcio.techtarget.com) reports that 1/3 of the companies survey will reduce the IT budgets for 2009 while another third will hold the line at last years’ levels. BSW Consulting conversations with distributors indicate that many projects have been put on hold waiting for some indicator that it’s safe to spend money on new technology. For the most part, they are still waiting for the signal.
Even though many sectors of the industrial marketplace are in recession, distributors need to invest in new technology or upgrade existing software and infrastructure to remain competitive. This is especially true for businesses that have legacy systems (systems that are based on technology, languages or hardware platforms that are generations out of date) or heavily customized their software packages and haven’t been able to move to the current version for many years.
Typically, distributors will postpone technology investments during difficult economic times as they don’t have the cash to invest in new hardware, software license fees, and implementation services. However, if those investments are delayed for too long, when the recovery comes along and demand increase, those distributors are at a disadvantage while they try to catch up.
There are several alternative approaches to acquiring technology that you should consider:
Leasing:
The traditional approach to managing the cash flow of your technology purchase has been to use leasing to spread payments out over a 3 to 5 year period. This approach is still viable but more difficult given the condition of the credit markets. If you can obtain this type of financing it allows you to continue to purchase hardware and software. Hardware, software, and consulting can all be leased. You will need to work with a leasing company that has a history of financing technology transactions to make sure that all the details are handled properly. Be sure to ask for references so that you can verify this.
Alternative financing models:
We recently were involved with in a software selection project where one of the software vendors selected as a finalist proposed some pretty innovative financing. This approach has been used in the Tier 1 market (companies of $1B in revenue) for quite a while but is now appearing in the mid-sized company market.
The typical software purchase requires a significant investment at the inception of the project for licenses, hardware and implementation services. Over an average 9 month period your project team and software vendor will install new hardware, install the software, convert data, configure the software, train your users, conduct conference pilots, and finally go-live on the new software. Over the next several years the investment generates costs savings justifying the investment.
Economic Business Alignment Inc. (http://www.ebainc.com/) develops a customized payment plan that matches payments for the technology with the return generated. Every financing deal is individually underwritten since EBA assumes the financing risk. If you can put a deal together this eliminates much of the reason for postponing your project.
A new approach to making technology investments that has been gaining momentum for several years. Instead of making an up-front purchase of user licenses you sign up for a subscription and pay a monthly fee to use the software. You’ll need to be familiar with the following terms:
Cloud Computing:
Cloud Computing refers to computer processing resources (services, software, services) that exist at some remote location that can be accessed over the Internet. Google created massive data centers to host the equipment they needed to create the indexes of everything on the web that was need for their search business. The latest data center is located in Oregon along the Columbia River where they can get cheap hydro-electric power to operate and cool the center. Microsoft and Yahoo have similar facilities.
The centers represent “the cloud” where users access services. An example of these cloud based services would be Google Maps: enter the “to” and “from” addresses and get driving directions and maps. You aren’t concerned about the servers, the network, the user interface – it “just happens.”
Software-as-a-Service (SaaS):
Software-as-a-Service refers to programs that operate in the cloud that are paid for on a subscription basis. The number of these web-based services that you or your kids might be using at home have exploded in the last several years – hosted email like AOL, Gmail or Yahoo, social networking like Facebook, Myspace or Linked In, photo editing software like Picasa or photo sharing sites like Flickr. This list goes on and on. All of these services are available for free or at a nominal cost. If there is a cost it is normally in the form of an annual subscription.
There are a similar set of free or nearly free services available for business that you can use to improve productivity or streamline costs. Travel expenses can be reduced by holding meeting on line. Services such as GoToMeeting, Webex, or Live Meeting are low cost ways of hosting on-line meetings with integrated audio services the ability to share powerpoint presentations and other exhibits over the Internet. If you’re conducting any type of email marketing to your customers you’re most likely using services such as iContact or Constant Contact. These are very low cost tools that allow you to be very productive with no initial investment and little training.
SaaS for Business:
This approach to computing is also being used for serious business purposes from single purpose applications to enterprise software. You may want to think about how these types of applications can integrate with your existing ERP software or be used to upgrade your capabilities:
Function-specific application – Example: E-Mail SaaS
The vast majority of e-mail traffic is spam. At our office, our IT staff maintains a hardware device that is used to filter out the spam so that only “good” emails are delivered to our Outlook Exchange mail boxes. When the filtering device fails or is overwhelmed by an increase in traffic we are flooded by the Spam. If the traffic increase is permanent, our IT group has to determine when to invest in a bigger device that can keep up with the amount of traffic.
We could purchase our e-mail filtering from a SaaS provider. We wouldn’t have to invest in hardware as it is runs in “the cloud” and has an almost infinite amount of resources and redundancy. The staff time to monitor and maintain the device would be used to monitor the service but with less time devoted to the task. The amount we would pay would depend on the amount of traffic filtering that we needed.
Process-specific application – Example: Salesforce automation
One of the earliest success stories for a process-specific application delivered as SaaS was Salesforce.com. Founded by an ex-Oracle executive in 1999 Salesforce was an early innovator of what was then called “on-demand” computing. The product provides a fairly long list of functionality including sales force automation, customer service & support, marketing campaign management, etc. If your ERP vendor doesn’t offer a CRM package and you’ve been wanting to add this capability, consider this option. Other SaaS companies are providing application-specific products that include Business Intelligence, Demand Planning, Supply Chain planning and more.
Enterprise-wide application –Example: ERP software
Full blown ERP packages (order processing, inventory management, accounting, etc.) that are delivered using the SaaS model was introduced by NetSuite (http://www.netsuite.com/) in 1998. Originally perceived as an accounting only application it now includes a full range of functionality. Software companies that have their roots in the Wholesale Distribution world are joining in: IBS (http://www.ibsus.com/) recently introduced IBS Enterprise Online. This solution is hosted at IBM’s datacenters and provides the same distribution-centric functionality as their on-premise solution. As with any ERP selection, a rigorous evaluation of functionality is required to ensure that the product will satisfy your business process requirements.
Ask these questions:
Like any flavor of new technology, Saas isn’t without questions and concerns. When considering whether to utilize SaaS application you need to consider the following:
· Does your ERP vendor already provide that functionality?
· How would you integrate a SaaS application with your current ERP package?
· How would you customize or personalize the SaaS application?
· If your network access was lost for 2 or 4 or 6 hours or longer what would you do?
· If the SaaS vendor went out of business could you continue to use the application? And much more important, who owns the data and how would gain control over your data?
· What are the economics over the long-term? (At what point is renting the application more expensive the purchasing it?)
All companies are looking for ways to conserve cash during this downturn while staying competitive for the long-term. These ideas may help you to do so.
The Brown Smith Wallace Consulting Group is a Saint Louis-based consulting firm that specializes in researching software and technology topics for the wholesaled distribution industry. Their Distribution Software Guide has been published since 1991 and helps the STAFDA member evaluate, compare and analyze software to determine which packages best fit your operation. Learn more at http://www.software4distributors.com/. As a member of STAFDA, contact Jeff Gusdorf, CPA (314-983-1208) for a free 30-minute consultation.
Various forecasts continue to project reduced spending on IT initiatives for 2009. A survey published by Computer Economics (http://www.computereconomics.com/) projects IT operational spending for 2009 to be at 1.5% of revenues which is the lowest level since the 2001 recession. Another survey conducted by SearchCIO (searchcio.techtarget.com) reports that 1/3 of the companies survey will reduce the IT budgets for 2009 while another third will hold the line at last years’ levels. BSW Consulting conversations with distributors indicate that many projects have been put on hold waiting for some indicator that it’s safe to spend money on new technology. For the most part, they are still waiting for the signal.
Even though many sectors of the industrial marketplace are in recession, distributors need to invest in new technology or upgrade existing software and infrastructure to remain competitive. This is especially true for businesses that have legacy systems (systems that are based on technology, languages or hardware platforms that are generations out of date) or heavily customized their software packages and haven’t been able to move to the current version for many years.
Typically, distributors will postpone technology investments during difficult economic times as they don’t have the cash to invest in new hardware, software license fees, and implementation services. However, if those investments are delayed for too long, when the recovery comes along and demand increase, those distributors are at a disadvantage while they try to catch up.
There are several alternative approaches to acquiring technology that you should consider:
Leasing:
The traditional approach to managing the cash flow of your technology purchase has been to use leasing to spread payments out over a 3 to 5 year period. This approach is still viable but more difficult given the condition of the credit markets. If you can obtain this type of financing it allows you to continue to purchase hardware and software. Hardware, software, and consulting can all be leased. You will need to work with a leasing company that has a history of financing technology transactions to make sure that all the details are handled properly. Be sure to ask for references so that you can verify this.
Alternative financing models:
We recently were involved with in a software selection project where one of the software vendors selected as a finalist proposed some pretty innovative financing. This approach has been used in the Tier 1 market (companies of $1B in revenue) for quite a while but is now appearing in the mid-sized company market.
The typical software purchase requires a significant investment at the inception of the project for licenses, hardware and implementation services. Over an average 9 month period your project team and software vendor will install new hardware, install the software, convert data, configure the software, train your users, conduct conference pilots, and finally go-live on the new software. Over the next several years the investment generates costs savings justifying the investment.
Economic Business Alignment Inc. (http://www.ebainc.com/) develops a customized payment plan that matches payments for the technology with the return generated. Every financing deal is individually underwritten since EBA assumes the financing risk. If you can put a deal together this eliminates much of the reason for postponing your project.
A new approach to making technology investments that has been gaining momentum for several years. Instead of making an up-front purchase of user licenses you sign up for a subscription and pay a monthly fee to use the software. You’ll need to be familiar with the following terms:
Cloud Computing:
Cloud Computing refers to computer processing resources (services, software, services) that exist at some remote location that can be accessed over the Internet. Google created massive data centers to host the equipment they needed to create the indexes of everything on the web that was need for their search business. The latest data center is located in Oregon along the Columbia River where they can get cheap hydro-electric power to operate and cool the center. Microsoft and Yahoo have similar facilities.
The centers represent “the cloud” where users access services. An example of these cloud based services would be Google Maps: enter the “to” and “from” addresses and get driving directions and maps. You aren’t concerned about the servers, the network, the user interface – it “just happens.”
Software-as-a-Service (SaaS):
Software-as-a-Service refers to programs that operate in the cloud that are paid for on a subscription basis. The number of these web-based services that you or your kids might be using at home have exploded in the last several years – hosted email like AOL, Gmail or Yahoo, social networking like Facebook, Myspace or Linked In, photo editing software like Picasa or photo sharing sites like Flickr. This list goes on and on. All of these services are available for free or at a nominal cost. If there is a cost it is normally in the form of an annual subscription.
There are a similar set of free or nearly free services available for business that you can use to improve productivity or streamline costs. Travel expenses can be reduced by holding meeting on line. Services such as GoToMeeting, Webex, or Live Meeting are low cost ways of hosting on-line meetings with integrated audio services the ability to share powerpoint presentations and other exhibits over the Internet. If you’re conducting any type of email marketing to your customers you’re most likely using services such as iContact or Constant Contact. These are very low cost tools that allow you to be very productive with no initial investment and little training.
SaaS for Business:
This approach to computing is also being used for serious business purposes from single purpose applications to enterprise software. You may want to think about how these types of applications can integrate with your existing ERP software or be used to upgrade your capabilities:
Function-specific application – Example: E-Mail SaaS
The vast majority of e-mail traffic is spam. At our office, our IT staff maintains a hardware device that is used to filter out the spam so that only “good” emails are delivered to our Outlook Exchange mail boxes. When the filtering device fails or is overwhelmed by an increase in traffic we are flooded by the Spam. If the traffic increase is permanent, our IT group has to determine when to invest in a bigger device that can keep up with the amount of traffic.
We could purchase our e-mail filtering from a SaaS provider. We wouldn’t have to invest in hardware as it is runs in “the cloud” and has an almost infinite amount of resources and redundancy. The staff time to monitor and maintain the device would be used to monitor the service but with less time devoted to the task. The amount we would pay would depend on the amount of traffic filtering that we needed.
Process-specific application – Example: Salesforce automation
One of the earliest success stories for a process-specific application delivered as SaaS was Salesforce.com. Founded by an ex-Oracle executive in 1999 Salesforce was an early innovator of what was then called “on-demand” computing. The product provides a fairly long list of functionality including sales force automation, customer service & support, marketing campaign management, etc. If your ERP vendor doesn’t offer a CRM package and you’ve been wanting to add this capability, consider this option. Other SaaS companies are providing application-specific products that include Business Intelligence, Demand Planning, Supply Chain planning and more.
Enterprise-wide application –Example: ERP software
Full blown ERP packages (order processing, inventory management, accounting, etc.) that are delivered using the SaaS model was introduced by NetSuite (http://www.netsuite.com/) in 1998. Originally perceived as an accounting only application it now includes a full range of functionality. Software companies that have their roots in the Wholesale Distribution world are joining in: IBS (http://www.ibsus.com/) recently introduced IBS Enterprise Online. This solution is hosted at IBM’s datacenters and provides the same distribution-centric functionality as their on-premise solution. As with any ERP selection, a rigorous evaluation of functionality is required to ensure that the product will satisfy your business process requirements.
Ask these questions:
Like any flavor of new technology, Saas isn’t without questions and concerns. When considering whether to utilize SaaS application you need to consider the following:
· Does your ERP vendor already provide that functionality?
· How would you integrate a SaaS application with your current ERP package?
· How would you customize or personalize the SaaS application?
· If your network access was lost for 2 or 4 or 6 hours or longer what would you do?
· If the SaaS vendor went out of business could you continue to use the application? And much more important, who owns the data and how would gain control over your data?
· What are the economics over the long-term? (At what point is renting the application more expensive the purchasing it?)
All companies are looking for ways to conserve cash during this downturn while staying competitive for the long-term. These ideas may help you to do so.
The Brown Smith Wallace Consulting Group is a Saint Louis-based consulting firm that specializes in researching software and technology topics for the wholesaled distribution industry. Their Distribution Software Guide has been published since 1991 and helps the STAFDA member evaluate, compare and analyze software to determine which packages best fit your operation. Learn more at http://www.software4distributors.com/. As a member of STAFDA, contact Jeff Gusdorf, CPA (314-983-1208) for a free 30-minute consultation.
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
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