JC Paper is a distributor of fine printing paper, food service and janitorial supplies. After an eight-month selection process the company chose IBS integrated supply chain management software.
Mark Clarke, VP and General Manager of JC Paper likes that IBS supply chain software is fully integrated.
Company background
JC Paper is a distributor of fine printing paper, food service and janitorial supplies. From its base in Fremont, California, the company services Northern California and Reno, Nevada and also operates four retail stores in the region. These stores sell reams of paper, janitorial or industrial products and paper plates to consumers and also act as mini warehouses, which are used as distribution hubs but with a retail front-end.
In addition, the company has a production facility in Southern San Francisco that makes envelopes. Typically, 95 percent of JC Paper's business is wholesale. Out of six competitors in Northern California, JC Paper is number three in terms of sales - an impressive achievement for a small independent.
The company employs more than 160 people and had an annual turnover of USD 65m in 2003.
Business issues
In business for over 48 years, JC Paper is one of two independent paper merchants on the west coast of the USA. As such, JC Paper deals with highly competitive pressures in the marketplace. Low margins, pricing and quality requirements, short turn-around, tight delivery schedules and safe inventory levels are just a few of the daily operational challenges that JC Paper faces.
JC Paper's base of 7,500 customers can call in, fax or email their orders as late as 18:00 hours. 90 percent of all orders require next-day delivery. An average 3,000 order lines are processed per day through JC Paper's 18,000 square metre warehouse.
With two different software systems for distribution and warehouse management, the biggest problem for JC Paper was the synchronisation of data. After learning that one of these systems was discontinuing, the company realised that the best way to solve the problem was by installing one integrated software solution for its business.
Solution and capabilities
JC Paper went through an eight-month selection process before choosing IBS' integrated supply chain management software. The main reason for this choice was IBS' commitment to integrate Radio Frequency (RF) with IBS software for Warehouse Management. Other vendors did not give the same assurances and obligation to the project.
IBS has provided JC Paper with an automated IT solution. In a tight market, integrated and automated sales orders, campaign planning and analysis and reporting are key areas that help find and retain customers. JC Paper has gained complete control over inventory with optimised, automated warehousing and the ability to plan, simulate and replenish accurately and quickly.
IBS software covers JC Paper's needs for distribution, financials, inventory control, warehouse management with RF support, customer service hotline and advanced pricing options. Planning and configuration tools help the company to meet short lead-times and fulfil back-to-back orders, keeping its customers happy and ensuring next-day deliveries.
When customer service representatives input orders, pick instructions are dispatched to the warehouse staff via RF. Inventory is updated in real time while the orders are picked in the RF terminal. JC Paper has particularly benefited from IBS software for Inventory Control: this module helps the company replenish the right products at the right time, and at efficient quantities, with great improvements in performance.
Once orders have been picked, the final steps are to prepare the products for shipment and produce the shipping paperwork. Inventory availability can be seen immediately and the product moves from allocation to ship. For fast, efficient deliveries, JC Paper runs 28 truck routes per day.
In the near future, ASW NetStore will allow JC Paper's national accounts to have real-time access to a wide variety of merchandise. Customers will be able to perform on-line ordering and get access to product information, stock availability, order status and even credit status via the Internet.
In short, IBS has wrapped up JC Paper's business needs in a new package, complete with fast ROI, business performance measurement and value.
Benefits and value
The implementation of IBS software at JC Paper was split, starting with a small segment of its business. After smoothing out some creases the rest of the company went live three months later. The most immediate benefit was the effect of a fully integrated software solution.
The biggest impact made by IBS software was with inventory accuracy, which is now running at 99.8 percent. With IBS software for Inventory Control installed, JC Paper is proud to boast that if stock is available at the time of ordering, it would definitely be on the shelf to pick. Making correct and quick decisions about stock replenishment has improved total efficiency and profitability.
More information is now available at the customer service reps fingertips, enabling a leap ahead in customer service for JC Paper.
Seamless integration has resulted in higher efficiency, improved communication and company-wide performance. JC Paper has found the best software package for its paper distribution business. IBS has made the company's further expansion into janitorial and food service distribution a trouble-free process.
Name: JC Paper Region: Fremont, California, USA Operation: Wholesale distributor and envelope manufacturer Products: Fine printing paper, cleaning and food service supplies, envelopes Employees: 160 and 30 sales representatives Revenue: USD 65 million; No. 3 in terms of sales in this market Website: JC Paper
Issues
Disparate systems for distribution and warehouse management
Data synchronisation problems
Need for RF in the warehouse
High costs and low margin
Tight delivery schedules
Inaccurate inventory replenishment
Solution
Leading-edge software solution for paper and packaging distribution
