Latest technologu helps dealers run more efficientlU

By Steve Bieszczat Activant Solutions

I-TECHNOLOGY solutions for

.a 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 conesponding 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 exactly what they have in stock and precisely where everything is. Greater accuracy and visibility mean less need for safety stock, allowing dealers to reduce inventory by upto lo7o.

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 2O-3O%.

Lotuer Fleet tquipment Costs

Recent spikes in gas prices were a grim reminder of the importance of keeping an eye on fuel costs and vehicle maintenance. In the past, manY dealers were not concerned with fuel costs and the wear-and-tear on their delivery trucks. In fact, many thought that overuse of delivery trucks meant a surplus of orders, which meant that business was probably thriving.

Today, dealers need to keep close tabs on their dispatch and delivery process. On-time and accurate order delivery is one of the most important services a dealer can offer. In the past, dispatchers have managed deliveries using paper, whiteboard, or some other manual tracking system. However, the marketplace has become increasingly competitive and customer expectations for delivery times are getting more demanding. A reliable delivery system can be a key differentiator in winning new business and improving customer loyalty.

Dispatch and delivery systems provide dispatchers with an up-to-date view on the status of delivery materials for any delivery time-allowing dispatchers and salespeople to commit to specific delivery times with the confidence that materials will be there to meet that commitment. The software also displays order status information to anyone on the network with a proper security clearance. A tracker module combines global positioning system, mobile phone, and Internet technologies to show the precise location of trucks at any given time.

Bringing lt fltl Together

Running a LBM supply business can be a very complicated job. A truly streamlined and efficient yard must fire on all cylinders to maximize profits. For example, it does not matter how well you are managing human resources and inventory if the warehouse is not sending out the correct orders in a timely fashion.

Many forward-thinking dealers are taking the opportunity to invest in these new technologies during this slow period in the market. The investment will not only help them weather this challenging market, but also position them for accelerated growth when the economy turns around.

- Steve Bieszczat is senior vice president for marketing, at Activant Solutions, Livermore, Ca., a provider of business management solutions for LBM dealers and distributors. He can be reached at (888) 463-4700 or info@ act ivant.com.