Timmermans is a cut above the rest with new ERP systemCustomer Story Belgium-based Timmermans wanted new ERP software to replace its legacy system. The requirements? High-volume order processing, easy information exchange, process automation, online customer service and other functionality that would keep Timmermans on the fast track. The answer? IBS. Company background
Timmermans is a dynamic importer and wholesaler of office and school supplies. George and Fernand Timmermans founded the company in 1954 and grew the business until 1989 when George’s two sons, Patrick and Michel, took over the organisation. Timmermans is now the undisputed market leader for office supplies in the Benelux countries.
Timmermans has three categories of customers. First are the independent stationery and art supply stores. Then there are mass-retail customers such as Carrefour. Last, but not least, are the wholesalers or dealers, who re-sell Timmermans products to schools and businesses. The latter category makes up Timmermans’ biggest customer base, accounting for 40 percent of turnover.
The company employs 125 people with an annual turnover of EUR 50 million.
Business issues
Selling pencils and paper and related products is a surprisingly high-tech business. Timmermans’ 16,000-square-metre warehouse in Deinze, Belgium contains 15,000 different items including inks, pens, paper, Post-it® notes, coffee and sanitation items. Thirteen Timmermans trucks are on the road every day delivering orders to customers.
Timmermans’ back office processes approximately 7,000 order lines a day at an average value of about EUR 20 per line. The typical order is about eight lines long. Order processing was previously a slow and costly process, as 95 percent of orders were taken by Timmermans’ own work force mostly via fax and telephone.
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 Timmermans must face.
Timmermans’ legacy system was tailor-made but was incapable of coping with the increased volumes generated by this vibrant company’s growth. The company decided that a new ERP solution was the only answer for its ever-changing environment. It was crucial that any new system would be open and very easily able to import and export information. Furthermore, Timmermans needed an advanced IT solution, designed for office supplies organisations that pick many low-margin products, package them, forward them and invoice them.
In addition, making information available online was important, as Timmermans wanted to allow its dealers and wholesalers to order products on the Internet.
Solution and capabilities
After studying the market closely, Timmermans selected IBS’ integrated supply chain software suite. IBS has provided Timmermans with an automated IT software solution designed for office supplies organisations. In a tight market, integrated and automated sales orders, planning, analysis and reporting are key areas that help find, satisfy and therefore retain customers.
Modules for distribution, financials and e-business were implemented, as well as IBS’ catalogue suite, an integrated solution for creating and maintaining the company’s marketing information. This is a database that provides the automatic generation of printed catalogues, which are then published on the Internet by IBS’ e-business module.
The IBS NetStore application is a password-protected, web-based customer-ordering tool. It allows customers to track their orders, check stock availability and view their own unique price calculations. In addition, information from the ERP systems of Timmermans’ dealers is automatically converted to work with IBS NetStore. This means that IBS software is not only able to cope with Timmermans' e-business needs, but also those of their dealers. Timmermans has even volunteered to share the cost of this innovative process with its dealers.
Benefits and value
The biggest impact made by IBS software is related to customer satisfaction. The combination of IBS NetStore and IBS’ catalogue suite has given a huge boost to the area of online ordering. IBS software has shortened time-to-market rates by making information available online. Moreover, the software is flexible and transparent, already resulting in a full 47 percent of order lines being processed electronically.
Maintaining high volumes of item-related data has always put pressure on the Timmermans organisation, especially with the shortening lifecycle of many products. The seamless integration of IBS software has resulted in higher efficiency and improved communication between the marketing, procurement and sales departments, boosting company-wide performance.
Because of the pressure on margins, it is important that purchases are in sync with any promotional activities. Timmermans’ online customers are extremely impressed, as they now appreciate that published prices in the printed catalogues correspond with the prices published on the Internet and the prices on their invoices.
Even with today’s increasingly competitive markets, Timmermans has seen its turnover and profits grow.
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