As most industry participants and observers know by now, Rexel has decided to standardize upon one ERP software system, Activant’s Eclipse package. Rexel had been operating different systems for a number of years and trying to aggregate information to support its decision-making. At least one of its acquisitions, CLS (Hartford, CT) was using Eclipse very successfully.
From an industry viewpoint, the recent press release provides insights into Rexel:
- Jeremy de Brabant, CEO of Rexel, said “We understand that a significant number of the top electrical distributors run an Activant solution adn that depth of electrical industry experience is what we need in an ERP solution.” Does this mean that Rexel felt it was underperforming these “top electrical distributors” and perhaps didn’t have the right solution to drive its business? Typically, ERP conversions require process changes.
- Again, from de Brabant, “We look to Activant to help us improve operations and increase productivity. WE also want to add the functionality that our custoemrs need and expect from us as a leading electrical distributor.” Looks like Activant can be the provider of some best practices (good and bad for its other customers!) Also appears that Rexel is admitting that it didn’t have some of the system functionality it needed to improve operations and best serve its customers.
Additionally, from an Eclipse user viewpoint, what could this deal represent?
- From Chris Hartman, President of IESC, the holding company for Rexel, “There is no need for any customization with Activant and that’s important.” This sounds like Eclipse users can forget about Rexel being able to contribute ideas to enhance the software. Shoudl be interesting when Rexel joins the Eclipse user’s group. Typically every company that installs a new ERP system either 1) requires some customization due to their internal processes or 2) has ideas to enhance a system (although acceptance and integration of those ideas can be a different story).
Great opportunity for Rexel and for Activant. The scalability opportunity for Activant will be interesting and could benefit other distributors in the future.
As an Activant Eclipse user, how do you think Eclipse will benefit Rexel? How will Rexel benefit the Eclipse user base? Does it make any difference what ERP system a distrbutor is on? It’ll be interesting to learn what product source Rexel will use .. IDEA? Trade Service? All manufacturer provided? And knowing how installing a new ERP system can occupy a company’s time / resources, is this system adoption good for Rexel’s competitors?
With distributor margins eroding, can conversion, or utilization, of an ERP system make a company more profitable?
5 Comments
Does anyone know if Rexel is standardizing on the Activant platform globally? Or only in the US?
the press release reads as if it is US only. Wonder if it involves Canada (but don’t know if Activant has capabilities to handle another currency and other issues).
Don’t think Activant has the system or capabilities for rest of world, and seem to recall that Rexel had decent systems for everywhere else
Thanks –
Seems odd that a global company like Rexel would choose to standardize on one product in US and other products in other countries.
Doesn’t seem like standardization…
They don’t seem to be able to steer the ship toward a profitable outcome.
Its just bounce from one problem to another.
It will be interesting to see if they can scale the ERP on a private database.
Wholesale distributors utilize Activant technology throughout North America as well as the UK and Mexico.
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