Activant Prophet 21 Helps The Miami Corporation Increase Bottom Line

An Activant Prophet 21 Success Story


Three years ago, if you would have asked Dan Niehaus, vice president of finance for The Miami Corporation, whether his company had much in common with the average distributorship, he'd probably say that a distributor of automotive and marine interior and exterior trim products is hardly typical.

Challenge:
  • Help a Cincinnati, OH-based distributor of trim products for the automotive, marine, and upholstery trades reduce AR and increase their bottom line
Solutions:
  • Activant Prophet 21
Benefits:
  • Integrated solution keeps all vital information in one place
  • Reduced AR days and dollars withstanding
  • Increased bottom line by 50 percent
  • Improved fill rates

"When we started out, we thought of ourselves as being in the automotive/marine upholstery business," explains Niehaus. "Now we know that not only are we in the distribution business, but we're also in the business of information - Prophet 21 was a big factor in that evolution."

When Niehaus and the executive team at The Miami Corporation decided a few years ago to implement Prophet 21, Activant's Windows-based enterprise software solution, they were looking for a single solution to streamline every aspect of their business. "We didn't want separate systems for contact management or accounting - we wanted integration," says Niehaus.

Besides keeping all areas of a business in touch, the integrated nature of Prophet 21 keeps all of a company's vital business data in one location, so employees always know where to look. For example, The Miami Corporation has more than one warehouse, but all employees have access to stock information at every location.

"In one order, a single employee can ship items from different warehouses, have other items drop-shipped, and special order items - all on the same transaction," Niehaus says. "In the past, we needed multiple orders to do that.

"The amount of information our guys have at their fingertips is leagues different than what it used to be," he continues.

The Best Possible Information

The right information can be a powerful tool, and The Miami Corporation has spent the years since going live on Prophet 21 it to use. As examples, Niehaus is quick to point out the effects the solution has had on both purchasing and accounts receivable (AR).

In addition to providing contact information, a history of notes, and order information, the cash collections functionality in Prophet 21 prioritizes customers who have owed the most money for the longest amount of time.

"Cash collections has been huge for us," remarks Niehaus. "We've done a really good job pulling our AR days down, as well as the dollar amount withstanding."

Focusing on AR can have a huge impact on a company's bottom line, and The Miami Corporation is no different - since going live on Prophet 21, their bottom line has increased by approximately 50 percent.

"Not all of that 50 percent is attributable to the solution," laughs Niehaus. "After all, we do some of the work, but it's certainly been a big part of it."

Prophet 21 has also helped The Miami Corporation improve its purchasing. According to Niehaus, the company is selling a lot more with basically the same level of inventory. "Our turns have stayed the same, but that was a customer service decision - we've invested more in inventory knowing are turns wouldn't increase, but our fill rates are much better," he says.

Reflecting on how his business has changed in the years since implementing Prophet 21, Niehaus sees the data the solution provides as the catalyst. "We've been thinking a lot about having the best information possible, because that creates a competitive advantage," he concludes. "Gaining Activant as a strategic partner has helped move us in that direction.

"The entire Activant culture is based around business information, and if you take advantage of that - whether through the data in your solution or by participating in their community of distributors - you can't help but learn something."

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