Less is more

Arthur Duffy, Director of Operations at Progressive SolutionsA few months ago Steve Dunkley of Hunter Plastics used this column to promote useful strategies for survival during an economic downturn. With still no light visible at the end of the recessionary tunnel Arthur Duffy adapts those strategies, explaining how merchants might use business management software to help implement them.

We all know that the key challenge in a recession is to do more with less; this is precisely what modern IT is capable of delivering — by automating procedures, reducing human errors and saving time. And whilst these benefits can be translated into hard, bottom line increases, many merchants have yet to embrace anything more than a basic accounts-only software package (or are trying to use an accounts package for stock controlling) with some of those that did take the step of implementing a fully integrated, merchant-specific package are using a system designed 20 years or more ago.

"Many merchants may not realise just how much more tightly costs can be controlled with the right software: stock levels can be managed more effectively and automatically to prevent overstocking; transport costs can be reduced by more effective journey planning; and pricing will always be correct with no danger of selling at old prices."

Whilst these systems are doing a job, they are often out of date, meaning they are relatively expensive to run, hard to support, and more importantly, are not helping the merchant save money or increase turnover.

Steve's first specific strategy was to ensure that all costs are tightly managed — good business practice at any time, but obviously crucial during a downturn. Many merchants may not realise just how much more tightly costs can be controlled with the right software: stock levels can be managed more effectively and automatically to prevent overstocking; transport costs can be reduced by more effective journey planning; and pricing will always be correct with no danger of selling at old prices.

Good software also enables the credit control team to monitor customer payment patterns more easily, spotting changes in the average number of days taken to pay and forewarning them of possible payment issues. I know of merchants whose businesses are differentiated by their modern systems, enabling them to win large contracts by more fully satisfying major companies' ITT/RFP requirements.

Software can also be used to record reasons for having quotes rejected which, over time, can provide actionable information. It can also notify you instantly of any sales put through below margin.

Keeping service at best possible levels is another key concern during a downturn. This is made easier when all the pertinent customer information is in front of you on screen when selling to customers at the counter or over the phone. Sales staff can see what customers have bought previously and how much they have paid. Being able to capture this data, as well as being able to note additional information alongside it, provides merchants with powerful business intelligence that can be accessed by sales and marketing teams to help sell more to existing customers — the third of Steve's key principles.

The return on investment benefits are there for merchants who are prepared to invest now in the right system for their business.

It's easier to formulate marketing campaigns to existing customers comprising selective discounts, BOGOFs, etc., when you can analyse their purchasing history. Prompts by the software to offer related products to those purchased will help upsell and add extra value to every transaction too. For example, after every sale of a drill the question 'Do you need safety goggles too?' should be asked.

Having access to the sort of management information which is impossible to access using basic software puts a merchant in a stronger position to react to market conditions and grasp whatever opportunities are out there. Easy management of specials and back-to-back ordering will help staff maximise sales. Modern software will even allow them to access, from the trade counter, suppliers' catalogues for products not normally held in stock.

The return on investment benefits are there for merchants who are prepared to invest now in the right system for their business. When the good times inevitably do return, these are the companies who will continue to increase their return on investment — and their profitability — because they will be able to carry on doing even more with less.

Arthur Duffy is Director of Operations at Progressive Solutions.

© 2009. Kindly reproduced courtesy of Professional Builders Merchant

 

Testimonials

  • "We were drowning in paper and, as a business turning over £2.2 million, the time had come for us to invest in business management software."

    David Biddle, MD, Huntingdon Timber & Roofing

  • "I was working with 2.7 in our test environment and looking at all the work you have done. Just wanted to let you know how much we appreciate all you do to make this a great technology partnership."

    Brian King, Lumber USA

  • "The time was right for a change of software at Alsford's and we selected bisTrack from a shortlist of three. The key criteria was 'business fit'. We wanted a Microsoft Windows, intuitive solution which would best serve our claim to be 'The Timber Experts' in all our 20 branches."

    Neil Fuller, MD, Alsford Timber

  • "There’s no doubt that bisTrack is a good tool. We’ve a fantastic record for growth and we’re getting a lot out of bisTrack now, particularly over the control of our business."

    Mike MacLellan, MD, GPH Builders Merchant

  • “Hargeaves are ideally placed to take advantage of the offer – whilst we plan to continue using e-Xact to update our product file we also want much better control over special product sales and purchases."

    Gordon Rothwell, James Hargreaves MD

  • "Our computer system impacts on every aspect of the business. Buying, selling, importing, transport planning, as well as accounts. If you install the wrong software, without the right level of performance or functionality, it will cause significant problems throughout your business."

  • "Progressive's experience was important, as was the link with Microsoft. We think that's the way ahead for all merchant systems."

    Stephen Fairbairn, MD, Henry Alty

  • “Hargeaves are ideally placed to take advantage of the offer – whilst we plan to continue using e-Xact to update our product file we also want much better control over special product sales and purchases."

    Gordon Rothwell, James Hargreaves MD

  • "Progressive's experience was important, as was the link with Microsoft. We think that's the way ahead for all merchant systems."

    Stephen Fairbairn, MD, Henry Alty

  • "bisTrack is an excellent piece of software and getting better. Their approach to meeting our needs is excellent. eBusiness is not going to be big for another 12 months but PSI are there already, which means we’re ahead. They're very open to ideas and keep getting better at turnaround."

    Adam Myers, Beesley & Fildes

  • "To stand out from the crowd, you need great customer service. Really great customer service."

    Progressive Solutions' guest blog, Builders Merchants Journal

  • "I was working with 2.7 in our test environment and looking at all the work you have done. Just wanted to let you know how much we appreciate all you do to make this a great technology partnership."

    Brian King, Lumber USA

  • "With bisTrack we now have real-time information on our profitability, which allows us to continually optimise and make decisions on our business plan."

    Stuart Hall, General Manager, Lawcris Panel Products

  • "bisTrack was a big investment for us but it's the best change we've ever made. We've grown so much over the last four or five years, we simply couldn't have carried on using a manual system."

    Gerwyn Thomas, partner, TL Thomas (builders' merchant)

  • "We improved net margin by 3% within 6 weeks of going live on bisTrack."

    Andy Halpin, Payne Timber

  • "I'm happy bisTrack will grow with us. If we find we need something which isn't already incorporated, I'm confident Progressive will work with us to fill the gap."

    Operations Director, CF Anderson

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "If we hadn't changed to bisTrack we simply couldn't have grown like this."

    Nigel Williams, Chairman, Premier Forest Products

  • "The decision to go with bisTrack was based on the relationship we were developing with the Progressive team, a confidence in deliverability and their aggressive approach to overall cost."

    Stephen Mulhall, FD, McMahon

  • "We improved net margin by 3% within 6 weeks of going live on bisTrack."

    Andy Halpin, Payne Timber

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "Our computer system impacts on every aspect of the business. Buying, selling, importing, transport planning, as well as accounts. If you install the wrong software, without the right level of performance or functionality, it will cause significant problems throughout your business."

  • "We spent a long time evaluating several systems and I'm confident that bisTrack is the best available."

    Andrew Laver, Arnold Laver Timberworld

  • "Performance across the system is continuously enhanced too. Since our last release, finding products is now significantly faster ...by up to 30%."

    Gary Brookshaw, Product Director, Progressive Solutions

  • "I'm happy bisTrack will grow with us. If we find we need something which isn't already incorporated, I'm confident Progressive will work with us to fill the gap."

    Operations Director, CF Anderson

  • "Once we started building up information we could trust, we started seeing real benefits. If stock accuracy was the main benefit, then quality of management information was next."

    Peter Kerr, FD, Palmer Timber

  • "We were drowning in paper and, as a business turning over £2.2 million, the time had come for us to invest in business management software."

    David Biddle, MD, Huntingdon Timber & Roofing

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "Our computer system impacts on every aspect of the business. Buying, selling, importing, transport planning, as well as accounts. If you install the wrong software, without the right level of performance or functionality, it will cause significant problems throughout your business."

  • "We were drowning in paper and, as a business turning over £2.2 million, the time had come for us to invest in business management software."

    David Biddle, MD, Huntingdon Timber & Roofing

  • "We saw benefits straight away, particularly with the time we saved on monthly stock takes and sourcing information for management reports."

    Nigel Williams, Chairman, Premier Forest Products

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "The decision to go with bisTrack was based on the relationship we were developing with the Progressive team, a confidence in deliverability and their aggressive approach to overall cost."

    Stephen Mulhall, FD, McMahon

  • "bisTrack was a big investment for us but it's the best change we've ever made. We've grown so much over the last four or five years, we simply couldn't have carried on using a manual system."

    Gerwyn Thomas, partner, TL Thomas (builders' merchant)

  • "Inventory accuracy is higher because everyone is more focused and our staff can see the benefit of getting it right."

    Ian Murchie, Operations Director, Howie Forest Products

  • "Good customer service is easier to achieve with good IT systems to back up our staff. Progressive provides us with an efficient system for dealing with customers, and good management tools to enable us to concentrate our efforts in the right direction."

    David Dunmow, Group Finance Director, James Latham plc

  • "At Complete we have a responsibility to the environment. That’s why we’re trying to lower our Carbon Footprint. We introduced e-commerce cut down on paper receipts & are introducing electronic billing through bisTrack for customers."

    Richard Moody, Director, Complete Building Materials

  • "Inventory accuracy is higher because everyone is more focused and our staff can see the benefit of getting it right."

    Ian Murchie, Operations Director, Howie Forest Products

  • "We spent a long time evaluating several systems and I'm confident that bisTrack is the best available."

    Andrew Laver, Arnold Laver Timberworld

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "Good customer service is easier to achieve with good IT systems to back up our staff. Progressive provides us with an efficient system for dealing with customers, and good management tools to enable us to concentrate our efforts in the right direction."

    David Dunmow, Group Finance Director, James Latham plc

  • "Our computer system impacts on every aspect of the business. Buying, selling, importing, transport planning, as well as accounts. If you install the wrong software, without the right level of performance or functionality, it will cause significant problems throughout your business."

  • "We saw benefits straight away, particularly with the time we saved on monthly stock takes and sourcing information for management reports."

    Nigel Williams, Chairman, Premier Forest Products

  • "Inventory accuracy is higher because everyone is more focused and our staff can see the benefit of getting it right."

    Ian Murchie, Operations Director, Howie Forest Products

  • “Hargeaves are ideally placed to take advantage of the offer – whilst we plan to continue using e-Xact to update our product file we also want much better control over special product sales and purchases."

    Gordon Rothwell, James Hargreaves MD

  • "The decision to go with bisTrack was based on the relationship we were developing with the Progressive team, a confidence in deliverability and their aggressive approach to overall cost."

    Stephen Mulhall, FD, McMahon

  • What will YOU do with your week off?

    "With the time saved we've carried out branch refurbishments and I've taken my first holiday!"

    John Cavanagh, MD, Cavanagh Timber

  • "I was working with 2.7 in our test environment and looking at all the work you have done. Just wanted to let you know how much we appreciate all you do to make this a great technology partnership."

    Brian King, Lumber USA

  • "Progressive's experience was important, as was the link with Microsoft. We think that's the way ahead for all merchant systems."

    Stephen Fairbairn, MD, Henry Alty

  • "I can export information into Excel by right-clicking and manipulate it to my heart's content."

  • "We spent a long time evaluating several systems and I'm confident that bisTrack is the best available."

    Andrew Laver, Arnold Laver Timberworld

  • "The great thing is we can always export information to Excel and produce any report we need — such as an aged debt report by sales rep, or our bespoke ‘exposure’ report, which helps us assess potential credit risk and protect ourselves."

    Damien Cosgrove, Credit Control Manager, Noyeks Newmans

  • "We were drowning in paper and, as a business turning over £2.2 million, the time had come for us to invest in business management software."

    David Biddle, MD, Huntingdon Timber & Roofing

  • What will YOU do with your week off?

    "With the time saved we've carried out branch refurbishments and I've taken my first holiday!"

    John Cavanagh, MD, Cavanagh Timber

  • "There’s no doubt that bisTrack is a good tool. We’ve a fantastic record for growth and we’re getting a lot out of bisTrack now, particularly over the control of our business."

    Mike MacLellan, MD, GPH Builders Merchant

  • "Stock counting is one of the best facilities in bisTrack ever. Stock counting across multiple locations is effortless with multiple entries of the same product. Entering a count is even easier. Counting 10,000 lines used to take two of us 4 days. This time it was 8 hours."

    East End Group

  • "I can export information into Excel by right-clicking and manipulate it to my heart's content."

  • "If we hadn't changed to bisTrack we simply couldn't have grown like this."

    Nigel Williams, Chairman, Premier Forest Products

  • "I can export information into Excel by right-clicking and manipulate it to my heart's content."

  • "We were drowning in paper and, as a business turning over £2.2 million, the time had come for us to invest in business management software."

    David Biddle, MD, Huntingdon Timber & Roofing

  • "Stock counting is one of the best facilities in bisTrack ever. Stock counting across multiple locations is effortless with multiple entries of the same product. Entering a count is even easier. Counting 10,000 lines used to take two of us 4 days. This time it was 8 hours."

    East End Group

  • What will YOU do with your week off?

    "With the time saved we've carried out branch refurbishments and I've taken my first holiday!"

    John Cavanagh, MD, Cavanagh Timber

  • "It's a very nicely laid out system with easy to follow structural menus and taskpads which, even if I haven't used a particular function before, I find relatively simple to complete."

    Chris Pratt, Pratts Timber and Builders Merchants Ltd

  • "Good customer service is easier to achieve with good IT systems to back up our staff. Progressive provides us with an efficient system for dealing with customers, and good management tools to enable us to concentrate our efforts in the right direction."

    David Dunmow, Group Finance Director, James Latham plc

  • "Once we started building up information we could trust, we started seeing real benefits. If stock accuracy was the main benefit, then quality of management information was next."

    Peter Kerr, FD, Palmer Timber

  • "Good customer service is easier to achieve with good IT systems to back up our staff. Progressive provides us with an efficient system for dealing with customers, and good management tools to enable us to concentrate our efforts in the right direction."

    David Dunmow, Group Finance Director, James Latham plc

  • "If we hadn't changed to bisTrack we simply couldn't have grown like this."

    Nigel Williams, Chairman, Premier Forest Products

  • "I can drop-down and drill into any business information easily, which enables me to analyse a situation very quickly. It gives me complete control."

    Mark Congdon, Financial Director, Noyeks Newmans

  • "We helped ourselves by getting bisTrack on board quickly and painlessly while business was slow, so we won't have disruption as we start to implement a very aggressive three year strategic plan."

    Neil Fuller, Managing Director, Alsford Timber

  • "Inventory accuracy is higher because everyone is more focused and our staff can see the benefit of getting it right."

    Ian Murchie, Operations Director, Howie Forest Products

  • "Inventory accuracy is higher because everyone is more focused and our staff can see the benefit of getting it right."

    Ian Murchie, Operations Director, Howie Forest Products

  • What will YOU do with your week off?

    "With the time saved we've carried out branch refurbishments and I've taken my first holiday!"

    John Cavanagh, MD, Cavanagh Timber

  • “A member of our buying group told us about bisTrack, although we looked at four or five other software packages. Key factors in the eventual selection of bisTrack were its SQL platform and our confidence in the people we dealt with.”

    Gordon Rothwell, James Hargreaves (Plumbers Merchants)

  • "Our staff have margin figures right in front of them now, so they're much more aware of the profit they are making."

    Robert Blumsom, Blumsom Fine Timber

  • "The reporting capabilities of bisTrack really help the sales department answer day to day enquiries. It gives them instant access to information about purchasing volumes and when timber is due to come in."

    Wayne Abrams, Project Leader, Arbor Forest Products

  • "I'm happy bisTrack will grow with us. If we find we need something which isn't already incorporated, I'm confident Progressive will work with us to fill the gap."

    Operations Director, CF Anderson

  • "We looked at several systems, but most of them were using the same out-of-date technology as the system we were replacing!"

    Rodney Scoles, Director, T Brewer & Co

  • "Our computer system impacts on every aspect of the business. Buying, selling, importing, transport planning, as well as accounts. If you install the wrong software, without the right level of performance or functionality, it will cause significant problems throughout your business."

  • "bisTrack was a big investment for us but it's the best change we've ever made. We've grown so much over the last four or five years, we simply couldn't have carried on using a manual system."

    Gerwyn Thomas, partner, TL Thomas (builders' merchant)

  • "We looked at several systems, but most of them were using the same out-of-date technology as the system we were replacing!"

    Rodney Scoles, Director, T Brewer & Co

  • "bisTrack was a big investment for us but it's the best change we've ever made. We've grown so much over the last four or five years, we simply couldn't have carried on using a manual system."

    Gerwyn Thomas, partner, TL Thomas (builders' merchant)

  • "At Complete we have a responsibility to the environment. That’s why we’re trying to lower our Carbon Footprint. We introduced e-commerce cut down on paper receipts & are introducing electronic billing through bisTrack for customers."

    Richard Moody, Director, Complete Building Materials

  • "Progressive's experience was important, as was the link with Microsoft. We think that's the way ahead for all merchant systems."

    Stephen Fairbairn, MD, Henry Alty

  • "Progressive's experience was important, as was the link with Microsoft. We think that's the way ahead for all merchant systems."

    Stephen Fairbairn, MD, Henry Alty

  • "If we hadn't changed to bisTrack we simply couldn't have grown like this."

    Nigel Williams, Chairman, Premier Forest Products

  • "There’s no doubt that bisTrack is a good tool. We’ve a fantastic record for growth and we’re getting a lot out of bisTrack now, particularly over the control of our business."

    Mike MacLellan, MD, GPH Builders Merchant

  • "Stock counting is one of the best facilities in bisTrack ever. Stock counting across multiple locations is effortless with multiple entries of the same product. Entering a count is even easier. Counting 10,000 lines used to take two of us 4 days. This time it was 8 hours."

    East End Group

  • "The time was right for a change of software at Alsford's and we selected bisTrack from a shortlist of three. The key criteria was 'business fit'. We wanted a Microsoft Windows, intuitive solution which would best serve our claim to be 'The Timber Experts' in all our 20 branches."

    Neil Fuller, MD, Alsford Timber

  • "At Complete we have a responsibility to the environment. That’s why we’re trying to lower our Carbon Footprint. We introduced e-commerce cut down on paper receipts & are introducing electronic billing through bisTrack for customers."

    Richard Moody, Director, Complete Building Materials

  • "The people at Progressive Solutions are likeable, straight_

    talking individuals who have a

    commitment to continuously develop and push the software forward."

    Joe Tipper, Walter Tippers Ltd

bistrack Customer Portal | Progressive Solutions UK

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