Reliable software for Reliable PartsCustomer Story Getting it right, the first time, every time from web shopping to collaborative commerce. Using IBS software, appliance parts distributor, Reliable Parts, captures its share of the ever-growing emerging electronic market. Company background
Reliable Parts was established in 1933 and has evolved into one of the largest and most respected appliance and barbecue parts distributors in North America. Reliable is a mature company in experience but its outlook is young, and it faces the challenges of the future with excitement.
A distribution centre and head office in British Columbia serves the Canadian market as well as numerous branches located in major cities across Canada. The United States market is served by a distribution centre and head office in Washington, four branches in California, and several branches located throughout the Pacific Northwest. All branches are located for convenience and contain showrooms effectively displaying Reliable’s most popular parts and accessories. The company has a thriving trade with do-it-yourself repair enthusiasts but enjoys even larger sales to wholesale servicing dealers.
Reliable employs 100 people in its US operation and 150 people in its Canadian operation.
Business issues
If you live in Canada or the US Northwest and own a malfunctioning barbecue or kitchen appliance, the chances are that you will contact Reliable Parts. Within 24 hours, Reliable will have shipped the critical part directly to you. With such a variety of parts available for the wholesaler and consumer, Reliable is known as the ‘house of a million parts’.
A company as successful and forward-thinking as Reliable needs an integrated IT solution, first to consolidate and then to grow. Reliable’s 30 branches and 56,000 part numbers, supporting 16,000 customers in Canada and the US, give an immediate grasp of the size of the problem. Reliable had in fact grown apace with the latest developments of the IT industry, but as with all progressive organisations it needed to make that leap into the next generation of technology.
Other issues included a lack of integration between accounting and distribution as well as a requirement for multi-distribution functionality. Another problem was on-line ordering, Reliable wanted to offer its customers 24/7 ordering and status tracking via the
Solution and capabilities
Reliable’s period of business system assessment took a year before the final decision was made in favour of IBS’ integrated supply chain management solution, ASW. The basic criterion for a potential system was whether it could handle Reliable’s operations with greater speed and efficiency, and what enhancements the software could provide.
IBS won the day primarily because of its Inventory Control module and the software’s ability to cope with multi-language and multi-currency business environments.
IBS enterprise software is developed to enhance customers’ profitability by increasing sales, reducing costs, shortening lead-times, improving customer service, realising greater efficiency in internal and external processes and achieving excellent visibility of
management information.
IBS software for Inventory Control improves performance and helps Reliable replenish the right products at the right time, and at effective quantities. Making correct and quick decisions about stock replenishment improves efficiency and profitability.
ASW NETSTORE allows Reliable’s customers to have real-time access to a wide variety of merchandise. Customers can perform on-line ordering and get access to product information, stock availability, order status and even credit status.
Throughout the implementation, Reliable was most impressed with the strength of the working relationship that developed between its employees and those of IBS. This partnership enabled the installation to be completed on time and within budget - not a common occurrence in this industry.
Benefits and value
Reliable has had spectacular results using IBS software. Order taking efficiency is up by 20 percent, sales per individual employee have risen by 30 percent, and inventory turns are up by 25 percent - all this with an order line intake of 4,000 per day in Canada and 3,000 per day in the USA.
The vast increase in information availability has simplified and improved the speed and accuracy of decision-making. Information on customers, product lead-times and full marketing statistics are widely and instantly available.
The main improvement in order taking results from the order taker having immediate access to more information, such as expected delivery times, purchase order details and customer sales order and payment history. Access to inventory in all warehouses is also much faster than before.
A somewhat unexpected benefit accrued from ASW NETSTORE. At the time of installation no orders were transacted through the Internet. That figure is now 15 percent. ASW NETSTORE’s efficiency and operational ease are expected to produce growth in Internet orders to 25 percent in the next twelve months alone.
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