Company background
Fogliani is one of the leading distributors of electrical products in the Lombardy region of Italy. The company, founded in 1971, originally specialized in industrial automation. It has since expanded its product range to include lighting systems, air conditioners, electrical tools and components and equipment for civil and industrial plant engineering.
Fogliani employees 40 people and had a turnover of EUR 40 million in 2002.
Business issues
Fogliani’s business strategy is focused on its customers. The company’s aim is to forge closer relationships with its 4,000-strong client base. Fitters, electricians and retailers usually buy Fogliani’s products directly from the wholesaler’s numerous subsidiaries. Fogliani stocks in excess of 75,000 products ranging from cables to lighting systems. In fact, the majority of company’s core business
is derived from its multiple subsidiaries.
In addition to the company’s headquarters in Busto Arsizio, Fogliani operates a number of subsidiaries. These include seven warehouses, two sales offices and a showroom in Italy along with a new subsidiary in Romania. As the successful Italian electrical products supplier expanded its operations, it found a need to expand its IT solutions as well to better manage its inventory.
In the last few years Fogliani has updated its IT system more than once, providing changes that responded to contingent needs, but without focusing on a structured approach. A consistent strategy was needed for the substantial growth that has characterised Fogliani in the last few years, especially with respect to opening new shops.
Solution and capabilities
Fogliani finally decided to replace its old Enterprise Resource Planning system in order to better manage its growing business. Fogliani chose IBS electrical distribution software for distribution, marketing and sales to support the company’s activities.
From an operational point of view, the most important improvement has been the unsurpassed control of the warehouse. Available space has been optimized and inventory movements are closely tracked. IBS electrical software has helped the company with inventory location and replenishment routines that are based on real customer demand and market expectations. At the same time, Fogliani maintains constant control of the progress of purchase and sales orders, as well as the related documentation workflow, by allowing sales outlets to check on order processes.
With IBS electrical software, Fogliani is empowered with sophisticated tools that enable the creation of procurement suggestions. Demand forecasting enables Fogliani to make realistic projections of future requirements for sales and demand. By analysing the predictions given by the software, the company is able to plan orders by taking advantage of opportunities, such as extra discounts or other particular conditions offered by its suppliers.
Finally, IBS electrical software for sales and marketing provides Fogliani with complete transparency and control of its customer relations, throughout the sales cycle and across the range of communication channels. Order entry and information access via the Internet will give Fogliani's customers enhanced interaction with the company.
Today, Fogliani boasts modern logistics systems driven by and focusing on the business decisions of the company.
Benefits and value
IBS automation has enabled Fogliani to optimize warehouse rotation by reducing the amount of excess inventory resulting in a reduction of delivery errors. IBS software’s intelligent functionality allows such errors to be catalogued and analysed, highlighting their causes to better prevent them in the future. Delivery errors and returns have been cut by 25 percent by simply improving the workflow of sales order documentation and creating visibility throughout the entire supply chain.
As a result of the decline in delivery errors, Fogliani's customer service levels have improved dramatically.
Fogliani’s new electrical distribution solution has improved order and forecast information between sales outlets and manufacturing, optimised storage space per stock item, optimised procurement and eliminated procurement of non-selling items. These benefits have increased the company’s stock turnover from 4.1 to 5.1 turns per year. Inventory levels have been lowered by a staggering 13 percent, translating to annual savings of EUR 250,000.
Based on the improvements to Fogliani's inventory management alone, ROI with regard to IBS electrical distribution software is expected within one year.
