Your Business Speed
You might think this is a heck of a time to explore the speed of your business as for many, sales are regressing. But the fact of the matter is that more and more evidence among reporting distributors shows that they are looking at their back office metrics (reducing variable expenses by using more of their computer ERP capabilities) to control variable cost. In addition, they are looking at changing the capabilities of their in-field sales personnel (referred to as “order takers’).
Most ERP software systems perform essentially the same basic functions, except that they either do not have all of the capabilities turned on to let the distributor electronically match up purchases to shipping/receiving documents/to invoices so they can manage by exceptions. Sometimes the software vendor hasn’t built the electronic matching capability and other connectivity features into their basic ERP system.
Back Office Bottle Necks
The point here is that matching stacks of paper and re-stacking those that don’t match are very labor intensive that a company would have to pay for on an ongoing basis. Electronic matching allows you to manage and pay invoices by exceptions. It might depend on the capability of your ERP system.
Customer Facing Opportunities
On the customer side of the business, a lot of companies use an inside/outside team approach to take and service customers orders. This operational approach has worked well for companies over time. However, this approach is about to change with the usage of iPads/tablets and a cell connection, or with a data hot spot/portable hub and a laptop computer. The possibilities that exist with some ERP systems coupled with a SmartPhone or Tablet/iPad offer the possibilities of cutting out some double entry and redirecting inside sales to more profitable activities. For example, with the right apps, an outside salesperson may now be able to present HD ads/messages and new product catalogs like from the ElectricSmarts electronic catalog; or
- Check inventory in real time
- Check the latest back order status
- Place an order real time
- Produce a quote and email it to the customer either in front of them or remotely
- Deliver and play new product videos from the manufacturer
- Not all the possibilities have risen to the surface yet. Stay tuned.
The bottom line is you can expect more mobility and an increase in the speed of your business.
With the use of these devices, your outside sales person becomes more than a “order taker” but they will need connectivity inside your ERP. Ultimately,the speed of your business will increase.
So do you remember the Mothership post back in July 2011?
Essentially, I asked some questions about which way you thought your ERP software investment was headed. The basic question was “would your ERP software be allowed to drift into a little satellite that would eventually go unsupported, or would it stay and grow into a Mothership?”
In today’s market place with changing technology brought on by Apple, Microsoft, Samsung and others, distributors can take advantage of mobility and connectivity. But your ERP software and the relevant apps/bolt-ons have to work together to be successful and speed up your business.
Newer ERP Offerings:
- Xtuple is a new open source ERP system that offers all sorts of flexibility and does not tie you to a private database. If you happen to use a package like Quickbooks, Xtuple offers a road map to migrate to their current version.
- Ximple Solutions LLC is another open source ERP. One of the recommendations comes from The Hite Company. This new coded package is not dependent on a private closed database.
Established and Satellite ERP’s:
- SAP is a well known ERP package that has as it’s roots in the manufacturing arena. Some distributors have successfully adapted it to their distribution business. With success, as might be would expected, there are some that have had to spend a bit more money and time. Most will recommend it as a sturdy software package. Responding distributors did not play golf with Ernie Ells.
- Epicor is a company that has been, and appears to be, focused on their manufacturing ERP package. Prior to Epicor and Activant joining forces, P-21 and Eclipse were well-known in the electrical and industrial distribution industries. Responding distributors report nervousness with support issues with their investment in Eclipse. Anticipating a gap in support and other issues, some have hired Eclipse support personnel, one being Sonepar. (Around the time they purchased OneSource, Sonepar hired a number of Eclipse employees). As a group, reporting Eclipse users seemed very concerned that Epicor is only going to be focused on manufacturing software. Time will tell.
- Infor 10 Distribution is rolling out some middleware named ION (Intelligent Open Network). Infor has recognized that the mobility for distribution is game changing technology. ION, with the mobility apps, can address issues such as quoting (quote pad, displaying feature products in a showroom, retail space or a warehouse from a mobile device such as an iPad). Now your outside sales can be a Road Warrior.
However, the overall question continues to be, “how is your ERP investment working for your company?” Is it a Mothership or satellite? How does it speed up your operational speed and keep the variable cost in check?
8 Comments
Interesting information.
I presume that Activant/Epicor would need to make some changes in the Eclipse program. There are some other changes we need.
I am wondering if ION could be installed on our current system?
Our system is so old we have a green screen. At the time we purchased, it solved our inventory and invoicing problems.
It sure doesn’t meet our current needs.
Got any suggestions how we should look at our current operations vs ERP that are currently up to date?
Also what do you think the usable life off business software is?
We followed the the herd (electrical distributor buddies)and bought Eclipse.
Not sure where Epicor is headed. SAP is out of our range. Saw a Infor demo that was impressive. That picture link says it all…..funny, yet makes you stop and think about our daily functions.
With pad/mobility…that’s a “gothca” step in technology and processes. I can see all sorts of possibilities.
My grand kids computer toys work with our system. Never knew it would. Good stuff.
A few weeks back I read a press release from Kaman that indicated that Kaman was steering their company toward growth and productivity….and that they were doing it with an investment in Infor technology. The sheer fact that Kaman views technology as a way to grow their company through productivity using a single multi-faceted ERP, for many readers may be a shock. Many distributors are locked into unsupported ERP systems that are drifting off as a satelite instead of a Mothership.
“We are undergoing a transformation within KIT expanding to three complementary product platforms, re-aligning the organizational structure and now adding a new state of the art enterprise-wide business system to support our long-term growth strategy. Our new Infor System will speed transaction processing, provide more robust reporting and allow for easier integration of acquisitions. The new system will help enable us to achieve our revenue and profit objectives and provide even more exceptional customer service,” stated Neal Keating, Kaman Corporation Chairman, President and Chief Executive Officer”.
To read the entire Press Release, copy paste this link into your browser:
http://www.kaman.com/news/kaman-announces-investment-in-technology-to-continue-distribution-business-transformation-and-suppor/
From David’s post above, he raises the questions that buying groups will have to wrestle with because some companies are public.
But maybe the real issue is that Kaman is in the Industrial Distribution world and probably will be the next National Chain. Some would bet that Square D didn’t even mention it to Graybar. What do you think?
Epicor doesn’t seem to be in the best of shape financially. Do you have any suggestions?
You may want to take a look at xTuple. xWD (xTuple for Wholesale Distribution)has many of the features and Benefits of products such as Eclipse, P21 and Array – here is a link
http://www.xtuple.com/solutions/distribution
On behalf of Epicor Software, I would like to reply to some of the comments made above. Our dedication to the distribution market, specifically electrical distributors, has not wavered. We have implemented more than 4,000 distributors and continue to be a leader in this market. With regards to Eclipse, we continue to lead with this solution in the electrical space. Eclipse version 8.7.4 was released this past week, and we continue to enhance the application every four months, which has been our normal release cycle for some time. In addition, we plan on integrating ICE — Epicor’s modern and visionary technology framework — with the Eclipse product. This is expected to enable our distributors with new levels of mobility, accessibility to business data, and interactivity among business applications. We also recently launched a new Eclipse mobile app designed specifically for tablets and smart phones. If you should have any questions about our commitment to Eclipse or the distribution market and want direct answers, please reach out to us at distribution@epicor.com. Thanks.
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