Power Farming increases yield with IBS softwareCustomer Story New Zealand’s largest importer of agricultural equipment, Power Farming, found the perfect ERP system in IDSe42. Three months later, the company is already reaping the many benefits. The Power Farming Group of companies is New Zealand’s largest importer and distributor of tractors, agricultural and turf equipment to a dealer and retail network spanning New Zealand and Australia.
The organization offers a wide range of high quality brands such as McCormick, Landini, Kverneland, and Renault Farm Equipment, from state-of-the-art professional user products through to entry-level value offerings. As a fully independent, privately owned family company with a three-generation history of serving the New Zealand tractor and machinery market, all products are underpinned with first class service and after-sales support.
Based in Morrinsville near Hamilton, Power Farming employs some 90 people in its distribution business, around the same number in its retail businesses, and approximately 20 staff in Australia. It operates with 35 independent dealers located throughout New Zealand, and customers include farmers, agricultural contractors, orchardists, viticulturists and those in the turf care market.
The challenge
With a complex spare parts business, low margins, high competition and the challenge of cementing its growth in the Australasian market, Power Farming recognized its ten year old DOS-based ERP system was no longer flexible enough to cope with changing industry demands. The company also needed to update business processes encumbered by the existing system, introduce efficiencies to its dealer network, streamline orders and spare parts warranty management.
The solution
Power Farming reviewed solutions from Intentia, Kerridge, Pronto, Great Plains, GEAC and Sage among others, but soon realized that, in order to achieve its objectives of improving efficiencies and containing costs in the long term, the IDSe42 System from IBS (formerly known as IDS Enterprise Systems in Australia) offered the best fit.
John Watkins, CEO at Power Farming, explains, “IBS had the overall product and ability to meet our business needs. They listened to us, performed a detailed fit analysis and demonstrated that the solution was flexible, yet proven.”
The IDSe42 System is a complete ERP and supply chain management solution for the automotive and durable goods import and distribution industries. The solution features multiple functionality providing instant communication across multi-company, multi-time zone, multi-currency, multi-language and multi-warehouse.
The system gives internal users, customers and dealers better access to information about equipment held by Power Farming, as well as spare parts and warranties.
“The fact that IDSe42 was developed in the southern hemisphere was of great benefit, as the solution was more cost-effective and more closely aligned to local market needs,” Watkins continues.
Power Farming chose to implement IDSe42 in May and the company had a three-month deadline of being live by the beginning of the farming season in Spring.
Finance, warranty, inventory control, service and vehicle tracking modules were implemented as part of the IBS solution, with the project being completed in one stage, due to the complexities and risks associated with data migration from a DOS to a Windows-based system. The project was achieved on time and within budget, going live in August 2002 despite data conversion hitches that were more complex than had been allowed for in the planning stage.
Stuart Young, IT Manager at Power Farming, says, “No matter how much planning you do, day-to-day details always throw up unforeseen complications. That’s when you need a product that’s flexible and a team that’s competent enough to overcome those obstacles, yet still hit the deadline within budget. IBS has a proven history, and its solution was fresh and easily adapted to hit a constantly moving target.”
The future
Enhancements will be made to systems in the wholesale operations to facilitate an interface into the company’s retail operations which will shortly be implementing the first rollout of JET, IBS’ new Dealer Management Software. There is also a particular emphasis on Australia, where the company is also reviewing additional projects.
Most significantly, Power Farming is implementing the full automation of warranty claims by dealers so they can be credited for returns overnight. This means that customers won’t have to wait for extended periods for parts or refunds, and much more accurate stock information will be held on the system for all involved.
As the agricultural industry is more complex than the automotive sector in terms of the parts makeup of any one vehicle, Power Farming and IBS are also working to establish a sophisticated system to categorise future orders as a ‘part’ or a ‘unit’ enabling dealers to order online.
The benefits
Now the IBS solution is fully bedded in, Power Farming has 70 concurrent users with over 200 actual users over multiple sites, as well as remote users and dealers across New Zealand and Australia.
“Our sales business units and dealers have all been pleased with the system and objectives have been met for all users. We measure the success on our users’ satisfaction. The help desk is certainly very quiet now,” explains Young. “The investment is starting to reap benefits as we control outgoing expenditures better and act upon growth opportunities.”
Power Farming recently completed it first stocktake on the new system, with very accurate and timely results. The company can manipulate data, provide reports and understand business indicators and processes more – and make the necessary changes.Ota yhteyttä, kerromme lisää » |
