A smooth ride for West Coast with IBSCustomer Story West Coast Differentials wanted to streamline its order processing and reduce inventory levels. The company achieved this and more with IBS software. Company background
Based in California, West Coast Differentials (WCD) supplies a full line of rear-end and differential parts for off-road, 4-wheel-drive, performance and stock cars. Its products include ring and pinion sets, installation kits, positractions, lockers, spools, axle shafts, stock replacement parts, small parts and more. WCD supplies parts for Chrysler, Dana, Ford, General Motors and Toyota differentials.
West Coast Differentials is committed to making totally enjoyable experiences for its customers. The company believes that top-notch customer service is the most important thing it can offer. What sets it apart from other companies is that WCD delivers the level of customer service that its competitors can only promise. Hence, at West Coast Differentials, 'We Make the Difference' is much more than a slogan.
WCD employs 17 people and generated sales of USD 8m in 2002.
Business issues
WCD is faced with a highly competitive automotive aftermarket, which often lacks good inventory control. The manufacturers involved in this industry cannot produce at a consistent level, which would enable distributors like WCD to maintain satisfactory levels of inventory. In order to develop the business, it is important for WCD to use an IT solution that copes with these difficult scenarios.
Despite the challenges of the industry, WCD has expanded. This pressure and success has resulted in a move to new facilities. The building is custom-designed to meet WCD's needs and the company is now more efficient than ever before. Along with a new physical plant, WCD needed an enhanced business system that would fulfil the company's needs for optimised inventory.
The company’s operational level of one warehouse, 4,000 products and 3,000 customers demanded a reduction in inventory levels. At the same time, WCD wanted more efficient picking, improvements in order processing, greater financial control and a streamlined collation of installation kits.
WCD has been using ASW, IBS' integrated software suite for the automotive aftermarket, since 1996. In order to keep the company up to speed with improved trading volumes and to maintain the latest industry developments, it became desirable to upgrade to new versions of ASW.
Solution and capabilities
In 1996 West Coast Differentials purchased the first version of ASW. From day one, the solution exhibited an exceptional understanding of the company's financial position on a daily basis. Quotations, sales order processing and progression - as well as picking and shipping - are all extremely efficient.
Inventory management is as streamlined as it could be under the restrictions made by the manufacturers. Jetform, which is a tool for facilitating flexible printout solutions of external and internal documents, yields eye-catching paperwork using only the data that WCD's customers need to see. All of this has been enhanced, throughout the growth of the company, by incorporating the latest versions of ASW.
WCD has kept faith with IBS since ASW shows, on a comparative basis, more sophistication at all levels of software. On the other hand, its simplicity of integration was one of the critical criterion that influenced product choice.
Rapid identification of products with supporting specifications and pricing, on-line availability checking, original manufacturer recalls and product sales restrictions can all become very expensive. This can easily result in lower customer service and increased stock. ASW is designed to accommodate such sales demands, and translates them directly to supplier products and ordering patterns, releasing time for WCD's staff to be more service-oriented.
The production control functionality that forms part of ASW Industrial Manufacturing is particularly useful for WCD, as it is specifically designed for companies with both distribution and assembly operations. This ASW module facilitates more efficient production planning and control.
Benefits and value
With ASW driving its operations, West Coast Differentials has grown and prospered. Perhaps the most difficult problem the company faced, inventory control, has been eased by improvements in warehouse efficiency. The solution has also given more operational control of stock to WCD, instead of being dictated by the manufacturer's production levels.
All other facets of daily business operations, such as order taking, processing and shipping, as well as financial information, have improved with each level of sophistication offered by the updated versions of ASW.
The net result has been a significant improvement in market share, orders taken, stock turns, revenue, margin and the whole reason for being in business - profit.
WCD finds the production control functionality very easy to use, providing the company with enhanced competency in its assembly operation.
Furthermore, WCD is now more efficient throughout its entire business. The company can almost run on 'autopilot'. ASW allows WCD's staff to be extremely effective. Management can focus on purchasing, projects and marketing and take time off knowing that its IT solution and operations are stable and consistent.
IBS's ASW solution has enabled West Coast Differentials to run at full speed - without a bumpy ride.
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