Latest technologu helps dealers run more efficientlg

TTTECHNOLOGY solutions for

I LBM dealers have undergone an interesting transformation in recent years. Computerized business management systems first entered the market years ago to help dealers keep up with large sales volumes. Overwhelmed with all the paperwork and administration costs involved in selling building materials and maintaining proper stock levels, dealers turned to these computer-based systems to help them stay ahead ofthe curve.

However, with the recent slowdown, dealers have shifted their focus and are looking for ways to trim overhead and run more efficiently. Technology providers have followed suit with a number of new products to help companies accomplish more with fewer resources. These technologies help dealers get the most out of their three key assets: employees, inventory and equipment.

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By and large, the LBM business is still based on good, old-fashioned paper. Most dealers have a number of people charged with tracking the many different types of invoices, contracts, forms, receipts and orders that are generated every day.

Recent advancements in document management technologies are making the paperless office a reality. Document management technology allows customers to reduce the amount of paper they must store while increasing customer service and overall business management. It gives dealers the ability to easily store customer signatures with receipts and invoices, and deliver electronic billing statements that incorporate this information. Dealers can realize a quick and substantial return on investment by eliminating stamps, envelopes and storage space, and by eliminating the hours they spend daily researching old invoices or stuffing envelopes.

Optical character recognition technology automates the data entrY process by allowing users to scan in all the accounts payable invoices. The software analyzes each invoice, matches it with its corresponding vendor, and places the file for the scanned invoice in the correct vendor folder. The result is a smooth transformation from paper-based invoices to actionable accounts payable records.

Streamline Inuentorg lllanagement

In today's economic climate, dealers need to maintain a careful inventory balance. Good inventory management means carrying enough products to meet customer demand while eliminating unnecessary excess that negatively affects cash flow. The first and most important step to achieving effective inventory management is establishing and maintaining accurate inventory counts.

A wireless warehouse management system allows LBM dealers to know exactlv what thev have in stock and

By Steve Bieszczat Activant Solutions

precisely where everything is. Greater accuracy and visibility mean less need for safety stock, allowing dealers to reduce inventory by up to 10Vo.

WMS solutions track items as they enter and exit the warehouse, using handheld wireless terminals equipped with barcode scanners. These devices guide warehouse staff exactly where to find and store each item. The system also automatically directs warehouse staff to perform cycle counts and automatically adjusts quantity in the company's ERP system.

Studies indicate that dealers who adopt and fully implement WMS technology can improve shipping to approximately 99.9Vo accuracy and boost warehouse productivity by as much as 20-307o.

Lotuer fleet Equipment Costs

Recent spikes in gas prices were a grim reminder of the importance of keeping an eye on fuel costs and vehi(Please turn to page 4I )