Sometimes, it takes a little discipline to get ahead. That was the case at Techni-Tool, Inc., an international tool distributor located in Worcester, PA, after they realized their home-grown, proprietary distribution system needed some long-awaited updating.
Challenge:
- Help a Worcester, PA-based international tool distributor increase inventory turns
Solutions:
Benefits:
- Increased inventory turns by 33 percent
- Improved connection between inventory and general ledger
The company was rapidly outgrowing their legacy software and, in August of 1999, they put out an RFP seeking a new solution. "We were looking for something more open, progressive, and comprehensive," says Stuart Weiss, executive vice president. "Our hardware had aged, and any new software would have to complement the new hardware, as well as promise a good deal of support and forward spin to ensure our long-term payback."
Techni-Tool selected Activant Prelude™ based on a "comfort factor" defined by Prelude's track record, service commitment, and positive "people chemistry." After utilizing the software for a couple of years, Weiss added the Prelude Warehouse Management System (WMS) module, extending Prelude to Techni-Tool's expanding warehouse footprint.
"We started seeing our inventory turns go from four and a half times a month to six: a 33 percent jump," Weiss says. "That was pretty exciting." In addition, the gains came without adding headcount to the Techni-Tool IT staff. So what accounted for the dramatic improvement in efficiency? According to Weiss, it was the connection between the inventory floor and the general ledger.
"The way Prelude is set up, you can't manage your inventory without viewing your results in the general ledger," says Weiss. "The system literally forced us to adopt this practice, and once we saw the numbers, the rest just fell into place.
"As Techni-Tool continues to grow, it will look to the general ledger for critical input on inventory decisions. In the meantime, another wave of stock is turning, and Techni-Tool keeps spinning forward into the future."
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