Howard Edelman has accuracy on the brain. The vice president of marketing for
American Packaging, a packaging products and equipment distributor based in San
Leandro, California, estimates that inventory accuracy at his company currently
hovers around 99 percent, a significant jump from where it was five years
ago.
Challenge:
- Help a San Leandro, CA-based packaging distributor satisfy customers' needs
while improving inventory accuracy
Solutions:
Benefits:
- Increased inventory accuracy from 25 to 99 percent
- Reduced instances and length of physical inventory counts
- Improved access to item, sales, and customer information
- Improved customer service
"We had a tremendous amount of inventory control problems with our old
system," explains Edelman. "At the time, we were probably 25 percent accurate in
our warehouse, so we were taking inventory an average of three to four times a
year."
According to Edelman, each of those three or four physical inventory counts
would take a week of preparation and two days of counting and recounting. Now,
American Packaging has to conduct only one physical inventory a year, and it
takes approximately four hours. So what's the difference between then and
now?
In 2001, Edelman called for a change from their old business system to
Activant Prophet 21?#8222;?- a change that not everyone at the company was happy about
at the time.
"When we first switched to Prophet 21, our people fought against it because
they didn't understand the solution - it made us look at our business a
different way," says Edelman. "But now, the results speak for themselves."
Custom-Made
Besides wanting to improve inventory accuracy, Edelman cites Prophet 21's
scalable SQL server database as another reason he pushed for the switch. When
drilling for data in their old system, employees had to scroll through
unorganized lists and hope they'd stumble upon what they needed - a cumbersome
procedure that hindered customer service.
"Sixty percent of what we sell is custom-made for our customers, so drilling
into sales data is extremely important for us," Edelman says. "Now, if customers
call and say, 'I ordered this box from you so many months ago, but I don't
remember the dimensions,' we can quickly view their sales history and have that
information in moments."
A companion to Prophet 21's comprehensive sales history is the Item Master
Inquiry feature, which tracks everything that's happening with a particular
item, from open purchase orders and backorders to average price and margin, and
displays it with the F2 key.
"F2 is my favorite key. I'm like a salesman, walking around saying, 'F2 is
great! Press F2,'" laughs Edelman. "If you want to see anything that's happening
with an item - how many customers are buying it, who we buy the item from, if
it's a seasonal item - all you have to do is press that key and all of its
information pops up."
Get More Than You Give
Edelman's interest in accuracy didn't appear by accident - it's just what
packaging customers demand. Whenever he speaks with prospective customers about
what they look for in a distributor, the common theme is almost always accuracy:
in placing orders, order filling, and invoicing.
"Many of our prospective customers find that they're wasting too much time
trying to figure out what they received and whether they were billed at the
right price," says Edelman. "We're able to do those things much better than our
competitors and a lot of it has to do with Prophet 21."
Looking back on American Packaging's five years of history with Activant and
Prophet 21, Edelman contrasts the early resistance from employees to adopt the
solution with the success they're now having: a disparity he blames on an overly
aggressive go-live date.
"If I could do it again, I would extend our implementation time and focus
more on set-up and training," concludes Edelman. "We've found that Prophet 21
gives you back 150 percent of what you put in, so it truly pays to know all of
its capabilities - our business is better for it."