Selga was founded in 1969 and became a subsidiary of Rexel, the world’s largest electrical wholesaler with a seven percent share of the global electrical wholesale market in 1996. Since the acquisition, Selga has grown to encompass 18 business units across 37 locations throughout Sweden. The company employs 455 staff who manage some 46,000 stock items.
Selga is focused on providing a highly efficient service to customers. The company offers a quick and accurate delivery service at a price which encourages its customers to place repeat business. Selga guarantees that any order placed by phone, fax or via the web will be ready for collection within one hour.
At Selga, IBS is in the process of rolling out its ERP solution, IBS Enterprise. This has provided the company with a fully integrated business system specifically designed for electrical wholesalers. The solution caters for Selga’s main operations and has helped Selga to excel in the three cornerstones of its business, stock keeping, information and distribution.
“To ensure the business is even more efficient, we needed a fast, user friendly reporting tool that would easily access the IBS Enterprise database as well as other business applications,” explains Jonas Redin, Project Manager for Business Intelligence at Selga.
Lack of confidence
Selga already had a custom-built data warehouse in place, but this was causing a number of issues. “The old data warehouse had to access several different systems and was prone to error, so we were not entirely confident in the figures it produced,” says Redin. In addition, Selga was forced to contract an external business consultant to write and produce the necessary reports as well as having to carry the cost of at least 3 days a month support from internal IT.
“Reports were being produced only on a monthly basis which meant that our operations people had to make some critical business decisions using out-of-date figures”, explains Redin. “We realised we had to replace our custom-built system with a new, company-wide, reporting tool that would empower our users with efficient analysis capabilities and would help us make faster decisions for our business,” he adds.
Selga turned to IBS, who provided a comprehensive solution with IBS - Business Intelligence (BI) software and introduced its BI specialist business partner, Advectas, to manage the implementation. “The team from Advectas were excellent,” says Redin, adding, “They kept good control of the project and helped us implement our first business unit on-time and close to budget.”
“Because IBS BI software is pre-packaged with IBS Enterprise, the implementation was very straightforward,” explains Peter Jönsson, Product Manager, Advectas. “We were able to take a detailed assessment of Selga’s specific BI requirements and match these with comprehensive and easy to use reports. However, IBS BI doesn’t just produce reports. With our assistance, it enables Selga to improve its processes, identify and reduce costs, maintain and improve margins, align operations with business strategy and open up revenue opportunities.”
Accurate picture of the business
IBS BI delivers a pre-configured, centralized data warehousing system, which provides a powerful core repository that delivers reliable, consistent and timely data for reporting, score carding and other performance management functions.
The solution includes an integrated data repository that supports business intelligence client tools, such as Cognos 8 BI, which is bundled with IBS BI. It allows Selga to access all its business data, wherever it resides, using published interfaces across transaction systems, relational and OLAP warehouses, and flat, legacy, and modern sources. “IBS BI combines with and compares all our operational business applications to give a complete and accurate picture of our business performance,” says Redin.
“As well as providing standard reports, its very easy for users to create their own reports. Distributing these reports via email around the company is much quicker and when users need to take a closer look at the data, the excellent drill-down capabilities of IBS BI allows them to instantly pinpoint performance improvements,” he adds.
One of the main improvements that IBS BI has provided is faster feedback to operations staff. Reports are now produced on a daily rather than monthly basis. Information such as top 100 products sold, as well as stock movements and abc reporting, means that business decisions to ensure accurate delivery promises can be made in super quick time. Other reports like invoiced amount per invoicing date, top 50 customers, top key accounts and a mixture of customer segments allow Selga to run a more efficient business.
Because the new system uses one database, Selga now has confidence in the information they analyze, present and share. “Margin control is much tighter and we feel we have gained a competitive edge”. Selga plans to roll-out IBS BI in its other 17 business units over the next 4 months so the potential for ROI is just the tip of the iceberg.
IBS BI is the base for sales statistics that Selga’s CRM-system uses. As a result, sales people have improved customer service because they can now closely follow their customers by utilizing reports such as products by customer and customers by sales area.
Other companies in the Rexel Group have seen the speed and efficiency of the IBS BI solution. They have also noted the effectiveness of the the system, which Selga has experienced so far, and are keen to discuss the possible implementation of IBS BI for themselves.
Jonas Redin concludes, “In order to maintain our super-fast delivery promises to our customers, IBS BI provides us with a host of detailed reports that are fast and easy to produce, yet extremely detailed and up to date. IBS Business Intelligence software gives us a key business advantage in a hugely competitive market.”