Automotive parts and services supplier U.S. Tire & Exhaust maximizes its operations by keeping close tabs on inventory without sacrificing customer service.
Tom Kriplean, Customer Care Manager at US Tire & Exhaust explain how IBS software has improved efficiencies in the warehouse.
U.S. Tire & Exhaust (UST&E) is a division of U.S. Oil Co., a group of growth-oriented businesses that are leaders in their respective markets, focused primarily on the petroleum and distribution industries.
UST&E manufactures exhaust pipes and distributes tires, mufflers, and suspension and brake parts to its customers. Repair facilities and car dealerships form the majority of the company's growing customer base. UST&E also procures mufflers, tires, brakes, suspensions, chassis and motor oil from about 40 different suppliers, which it in turn sells to its customers.
UST&E has some 275 employees, including salespeople, drivers and warehouse operators, and has an annual turnover of USD 75 million.
Business issues
Automotive aftermarket distribution relies heavily on human contact. Orders are typically placed over the phone, but a small fraction is received online. UST&E receives roughly 2,800 orders per day and up to 300 per hour.
The company has an active customer base of some 6,200 auto repair shops and dealerships. Orders are fulfilled from six warehouses scattered across the Midwest. The warehouses run 24 hours a day, six days a week as deliveries and pick-ups are made.
In the past, UST&E used an in-house IT system to track inventory in its six warehouses. But there was a critical need to reduce costs through more efficient inventory control, and increase productivity through optimised picking. With the turn of the millennium just around the corner, the company felt it was time to find a superior IT solution.
Mapping data from the old system to the new was a major challenge. Due to time constraints, the full solution needed to go live at the same time.
Solution and capabilities
UST&E turned to IBS to modernise its warehousing operations. The company felt that IBS' ASW business software suite was the best overall package to address its needs. Modules for sales order management, inventory management and warehouse management provide UST&E with easy access to information for keeping close tabs on 26,013 square metres of storage area in six different locations.
The software enables sales reps to take orders on the phone and register the information directly into the system. This starts a process where a pick ticket is printed in the dispatch area and sent to the warehouse for items to be pulled from the shelves. ASW Warehouse Management enables products to be picked more efficiently by zone and location.
Products sold at the remote warehouses are registered and added to ASW's automatic replenishment report, then shipped from the main warehouse the next day. Bar coding and radio frequency technology make it easy to register the incoming inventory that will replenish the shelves.
ASW has helped UST&E's customer service centre through sales order management and a substitution database. Customers can call up a manufacturer's part number by using another number with which they maybe familiar. UST&E can then provide acceptable stocked items from other manufacturers.
Additionally, a module for e-business allows customers to register their orders online. ASW NetStore gives them access to real-time product and inventory information and their own individual pricing levels.
Another ASW advantage that UST&E finds extremely valuable is the flexibility of reporting. ASW includes a Report Writer that provides the quickest and easiest way to prepare statistical, financial and management reports from the system, in any time period, in user-defined formats. This allows UST&E management fast access to the company's financial position.
Benefits and value
ASW has enabled UST&E to maximise its operations by keeping close tabs on inventory without sacrificing customer service. The software has allowed easy, user-friendly access to information, thereby facilitating the management decision-making process.
The warehouse management software has improved efficiency by putting more popular parts closest to the loading docks. When pullers go out to get those parts, they are closer to the trucks. This has lead to increased efficiency and saved time in loading trucks.
UST&E has grown in net sales by an astonishing 37 percent since going live with ASW. The software is one of the tools used to manage this growth efficiently. It has allowed the company to reduce expenses while at the same time increasing productivity. In just the first 18 months of using ASW, UST&E was able to save USD 3m in inventory costs, without affecting daily operations.
The ASW software has been a tremendous asset to UST&E. It paid for itself in just three years - a proven track record of value and return on investment.
Nimi: U.S. Tire & Exhaust Alue: Midwest United States Toiminta: Manufacturing and distribution Tuotteet: Exhaust pipes, tires, mufflers, suspension and brake parts Työntekijöitä: 275 Liikevaihto: USD 75 million Kotisivu: U.S. Tire & Exhaust
Haasteet
Old IT system developed in-house
Need to reduce inventory costs
Need to increase productivity
Y2K concerns
Need for online ordering
Need for flexible reporting.
Ratkaisu
Modern, user-friendly, business software solution with modules for:
