IQ Supplies — Intelligent solution for IQ SuppliesCustomer Story Company mergers and acquisitions invariably create complex issues for the organizations involved. UK based tools supplier, IQ Supplies were happy that they had installed IBS Enterprise to help them with a smooth transition Long time IBS customer, Teamvise, recently merged with Ireland-based AH Anderson to form a new company, IQ Supplies. Both companies are their country’s sole distributor of the Teng Tools brand, amongst others. Kim Martin, Operations Manager for IQ Supplies, says that at the time of the merger, the company was looking at ways to create greater synergy and value by bringing the two companies together, particularly on the IT side. “At Teamvise, our IBS system was up and running and working effectively, while at AH Anderson, where they had implemented SAP software for small and medium enterprises a couple of years earlier, the system was not running so smoothly.” Martin says that AH Anderson had some fundamental problems with their system, one being that it didn’t have a warehouse management capability. “They were also becoming fairly disillusioned with the support they were receiving from their old IT supplier and the mounting costs associated with each question. We invited them to our offices to look at our solution with its efficient and integrated sales, finance and warehouse management system, and they decided that the IBS solution would be better for their own operations.” Initial ImplementationWhen IQ Supplies first installed IBS software, the speed of implementation was nothing short of miraculous. The company was able to go live in just three months after the contract was signed. This was accompanied by a total physical reorganization of its warehouse. New pallet racking, shelving and a mezzanine floor were installed together with a completely new warehouse location system. The new location system and IBS software went live simultaneously. “It was as if we had moved our entire premises at the same time as installing software that controlled every process within the company. To achieve all this within three months – without customer disruption or complaints – was remarkable”, explains Martin. The management of the warehouse has improved considerably, not only in terms of reduced lead times but also with improved availability, reduced stock-holding and reduced operating costs within the warehouse. Distribution costs and order processing times were significantly cut-back. With 99 percent stock availability and very few back-orders, the company saw a dramatic increase in customer service levels. “After hearing about the benefits in the initial implementation, AH Anderson was keen to start its own installation of IBS Enterprise,” says Martin. Passing the baton
Having made the decision to adopt IBS in both countries, important decisions needed to be made regarding implementation, particularly as the Dublin office wanted to move quickly. “We were still on an older version of IBS Enterprise so we decided it made sense for the UK to first upgrade to the latest release, learn from the implementation and then deliver the same solution to Ireland,” Martin says. The next decision was whether to have an additional main hardware server based at the Dublin office or to run both systems on the same IBM Power System in the UK office. “We had only recently upgraded the server and we were told that it had the power to run both the UK and Ireland. We had some doubts about the remote network connection in terms of speed, reliability and security, but these would be no different to the concerns we would have with a leased line and the remote network is certainly much less expensive,” he adds.
eCommerce Integration
In order to establish its own independent eCommerce system, IQ Supplies also wanted to implement IBS Netstore. Thanks to its complete integration with IBS Enterprise; IBS Netstore gives customers immediate answers to order-related questions. Previously, the company had been using a system based at one of their suppliers, Luna in Sweden, and accessed this via a private network. This created problems as IQ Supplies was dependent on Luna’s systems and connections. “IBS Netstore gives us the ability to create our own electronic catalogues, linked into our core IBS Enterprise system for a more efficient and customer friendly solution”, says Martin.
Focus on serviceOne of the major operational strengths for IQ Supplies in the UK is the efficiency of the warehouse and this is due as much to the vision and commitment of the management team and staff as the software. Despite operating a manual system for storing and picking, the company has virtually no picking errors, a very fast order fulfillment rate, and maintains a low inventory holding with high product availability. “We have a bonus system in place for warehouse staff and this helps them focus on delivering a very high quality service. Our error rates are so low that it is difficult to justify investment in a radio frequency solution, though we know we can implement this with IBS if we need it,” Martin explains. “The software supports our current method and we are now working hard to implement a similar solution in Ireland.” IQ Supplies also benefits from the IBS Parcel Carrier Integration (PCI) solution
at the UK office. This system manages the relationship with third-party distribution companies, integrating IBS with its own track and trace systems and it allows IQ Supplies to manage all aspects of distribution via any pc. “PCI has delivered significant efficiency and cost savings. It also provides accurate, real time visibility of order status throughout the company,” Martin notes. “We are pleased to have come to the end of our IT merger, which has met our objectives and given us the synergy we hoped for. IBS has performed well throughout and has been a good and committed partner.” Contact IBS for more information. » | 
