Success Stories

Activant Trading Partner Connect Helps Distributor Meet Demands of a Changing Role

For the first 33 years of its existence as an industrial equipment and supplies distributor, Duncan Equipment Company operated on a Cardex system. Founded in 1948, it wasn't until 1979 that the company set out to computerize its operations. Two years later, the company chose one of the first Activant products ever marketed. They've been with Activant ever since, working through XL to Acclaim to, in February 2002, Prophet 21.

Over the last 20 years, the company has diversified from a focus on energy-related business to a broad range of industries, including aircraft maintenance, aerospace, communications, government, automotive (General Motors is Duncan's biggest customer), and recreation. The company has grown from one location in Oklahoma to seven, covering all of Oklahoma, parts of Kansas and Missouri, and all of northern Texas. Duncan also does business with three plants in Mexico.

Trading Partner Connect

Among its many merits, Duncan has the distinction of being the first Activant customer to be a member of Trading Partner Connect, an Internet trading network, on both of Activant's enterprise software solutions - Activant Prophet 21 and Activant Acclaim.

"Trading Partner Connect really opened my eyes to the potential of Internet trading networks, not only as a means to exchange inventory with fellow distributors, but also as a powerful tool when working with suppliers," says David Ragland, CEO of Duncan and a member of the Trading Partner Connect advisory council. "A critical mass of trading partners will create a winning situation for everyone involved - distributors, suppliers, and Trading Partner Connect."

Ragland points to Trading Partner Connect's potential to eliminate dead stock and its ability to rationalize distributors' inventory to manufactures/suppliers codes as key features. "Item code rationalization is a major factor in putting together a true multiple sourcing database," says Ragland.

He also likes the ability to look at his trading partners' inventory in real time. "Before Trading Partner Connect, we could only check our own inventory," he explains. "Now we can instantly check our trading partners' and suppliers' stock just by pushing one key on our keyboard."

Turning Obsolete Inventory Into Profit

A major feature of Trading Partner Connect is its ability to help distributors sell their obsolete inventory. Duncan participated in a study with Activant that measured the effectiveness of that functionality.

"Prophet came up with the idea that every distributor has X amount of inventory that they consider 'excess' or 'obsolete,'" explains Ragland. "They matched up that stock with distributors' stock that is actively selling elsewhere in the country. That's the success story we saw - converting obsolete inventory into current-price, fast-moving inventory."

Ragland recognizes the potential for Trading Partner Connect to pay for itself based on this one feature alone.

Customer Focus

Ragland wants to take Trading Partner Connect's ability to clear obsolete inventory to his customer base. He envisions rationalizing his customers' inventory and showing them how Duncan can help them sell their excess, slow-moving inventory.

Ragland sees additional value in the B2B Gateway component of Trading Partner Connect. "Because Trading Partner Connect enables us to connect with other software solutions, we can meet the challenge of communicating with customers not using an Activant solution."

Duncan will take advantage of this interoperability to interface with AutoCrib, a supplier of automated vending machine systems. AutoCrib inventory systems provide 24-hour a day, automated access to critical tooling and supplies dispensed through a vending machine. This limits shrinkage and tracks usage on the floor of large manufacturing operations. AutoCrib and Activant have combined efforts for a completely electronic system that dovetails seamlessly into Trading Partner Connect members' existing enterprise software solutions.

The Evolving Role of the Distributor

Like many distributors, Ragland sees the role of distributor changing from selling products to selling services that improve the cost-effectiveness of the supply chain. He says technology is a key factor in the success of this change.

"There are not very many distributors that have the level of technology that we have," says Ragland. "For example, our vice president of technology has a Master's degree in MIS with an engineering undergraduate degree.

"Our commitment to technology has grown over the past three to five years," he continues. "We see it as a cost-efficient way to get products through the supply chain. We have developed technology training to show our customers how to interface their existing systems with our Activant solution. Our customers look to us - and Prophet - as the experts in interfacing with all kinds of software," Ragland concludes. "We have to get the word out about all that we can offer. Duncan employees need to talk amongst themselves and our customers and suppliers about what our technology is capable of doing. That is key in the successful integration of all of the technical services and all of the cost efficiencies that the customer is asking for us to take out of the supply chain today."

Acclaim to Prophet 21

It was Duncan's commitment to technology that led the company to search for an alternative to their UNIX-based enterprise software solution, Activant Acclaim. Self-proclaimed power-users, the management of Duncan wanted increased flexibility and greater access to data mining tools.

"We intentionally looked elsewhere for a new system," says Ragland. "We spent 18 months evaluating Activant's competition. The final result - we went with Activant. They provided the total package - support, training, software."

What sold Duncan's management on Prophet 21 was a return on investment (ROI) study they conducted. They found that Prophet 21 would allow more of their users access to data mining tools, like Crystal Reports, and get more information out to the customers. They also liked Prophet 21's Microsoft Windows NT/2000 backbone. The true GUI interface makes it easier for users to move around the system and to train new employees. Finally, Duncan's management felt more confident staying with Activant versus going to a complete new system.

"We felt that Activant had a better understanding of our industry and what we're doing now," explains Ragland. "We were looking for an enterprise software solution with specific functionality and features, and one that was backed by a company that could carry us forward."

Professional Services

As a long-time Activant customer, Duncan management already knew about the value Activant Professional Services could bring to their company. As soon as they placed their order for Prophet 21, they started the training process, giving employees Computer-Based Training programs and joining the local Prophet 21 User Group.

Duncan also created a "power user" in each of their locations. "The idea is to have Prophet 21 'champions' who will act as mentors for others in their office," explains Ragland. "Once someone is trained, they immediately start training another co-worker. That way, we continually double the expertise of the people in all of our locations."

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