Managing Growth for an import & distribution firm

With explosive sales growth of over 100% year on year since opening for business, the management at our client rapidly realised they had outgrown the basic IT systems they had in place and needed to implement a more sophisticated business solution for their company, in order to better manage the day to day operations as well as plan strategically for the future.

Our client imports and distributes a wide range of household electrical products, including fridges, air conditioners, DVDs, televisions and washing machines under their own brand. These products are sourced from several Asian based manufacturers.

Over a six month evaluation period, our client looked at fifteen possible packages as well considering building their own solution in-house (an option quickly dropped as too expensive and too much work). The key selection criterion was managing its stock movements and warehouse stock-on-hand, purchasing as well as improving customer and supplier service levels.

The final decision was made for a mySAP All-in-One solution supplied by SMS Enterprise Solutions. “We initially didn’t consider SAP, believing it to be too large, too expensive and difficult to implement” said the Manager of Sales Planning and Operations. “However SMS Enterprise Solutions showed that All-in-One is actually very competitive and affordable, quick to implement and could grow with our company well beyond our next five years of expansion in Australia”.

The implementation went live as in the planned timeframes for the new fiscal year, using financial applications, sales and distribution, materials management, purchasing, and service. The six week SMS Enterprise Solutions led project included planning, implementation, user training and system data transfer.

Our client quickly recorded measurable benefits in the critical area of stock management and control. “Previously we had no accurate visibility of stock on hand at each of our warehouses, now our accuracy is very close to 100% at all times” says the Manager of Sales Planning and Operations. “Also having each of the warehouses online with the head office system has improved the speed and accuracy of deliveries, streamlined invoicing and reporting has improved out-of-sight”.

As the staff has become more familiar with the SAP solution, they have begun to use more of the functionality available to them. SMS Enterprise Solution has also assisted changes to some reports as well as further educating some of the 35 users. Subsequently the client has implemented an automatic fax facility for the service department which was relocated to the Sydney office.

Senior management at our client have noticed benefits the SAP solution has brought the company through improved sales analysis reporting. “With the old system we used to have to wait hours for reports which were often inaccurate and misleading, now I can easily do my own reporting and know the data is totally accurate” said the Managing Director.
The client is now looking at other areas within the company, such as sales force mobility and warehouse management, where they can improve efficiency using the SAP solution more effectively. “We will continue to work with SMS Enterprise Solutions in the future as they have proven to be a good company to deal with and the support staff are helpful, quick and responsive”.

REALTECH Australia was acquired by SMS Management & Technology to form SMS Enterprise Solutions in October 2006