Success Stories

Activant Enables MRO Distributor to Serve Customers "Faster, Easier, and Cheaper!"

Visitors to the DXP Enterprises Web site find the heading "MRO Supplies- Faster, Easier and Cheaper!" This major Houston, TX-based distributor serves a multitude of industry needs including bearing and power transmission, pumps, safety equipment, electrical equipment and more.

Starting as a sole proprietorship in 1907, the company was incorporated in 1913 as Southern Engine and Pump Company. Through a period of growth and acquisitions, the company was rechartered under the name of Sepco Industries, Inc. in 1979. Then, still more growth and one more name change as David Little, owner of Sepco, renamed the company DXP Enterprises in 1996, and took the company public via the Nasdaq (symbol: DXPE) the same year.

From DXP's humble beginnings to a company with 52 branches in 14 states, 25,000 industrial customers, and more than $200 million in annual revenues, the complexity of an operation serving so many customers with so many different needs cannot be overstated.

From Many Platforms to One

As early as 1974, DXP was computerized, using an IBM System 3. Through a series of mergers and acquisitions, DXP Enterprises inherited a variety of computerized management systems including Activant XL. With growth and added complexity, the need to adopt a common technology platform became critical. DXP Chairman, President, and CEO, David Little, began his career as an accountant and had a keen appreciation of the demands such a system would be required to meet.

Little believed an ultimate solution would meet three main criteria. First, DXP should standardize on a single platform to ensure company-wide efficiencies and ease of operation. Second, with the advent of e-business opportunities, the solution would need to be e-commerce friendly, adaptable, and expandable to meet future demands. Three, according to Little, "We thought our biggest problem was data mining...getting information out of our database."

So, the ultimate system would also allow information to be gathered, processed, and interpreted so that strategic planning could take advantage of information already available but not readily obtainable through DXP's previously installed multi-vendor systems.It didn't take long for Little to settle on Activant Prophet 21's scalable architecture.

Prophet 21 is designed to enhance data mining and reporting capabilities as well as integrate additional elements, which add even greater value to the suite.

Learning the Ins and Outs

DXP was also impressed with Activant's diverse and comprehensive training opportunities - on-site, on disk, or via the Internet. Any solution is only as useful as product knowledge allows, and Activant is committed to providing continuous training opportunities.

With so many different customer needs, Activant builds feature after feature into all of its products, not to mention scalability and expandability. The company understands that business needs and practices constantly evolve, so customers are encouraged to learn more about both current and future product innovations, at their convenience.

Like most Activant customers, DXP Enterprises uses only a fraction of the full capabilities of Prophet 21. According to Little, "50 percent would be generous."

Little says, "You always need training. And then you need training on top of your training eventually. I've been very impressed with the quality of the (Activant) people." Little also appreciated the intuitive nature of the product, comparing it positively to the very familiar Microsoft Windows Graphical User Interface (GUI). DXP Enterprises also recognizes the value of Activant Consulting Services where in-house experts bring a variety of educational and work experiences to bear on specific customer needs.

Recently, DXP required an independent appraisal of inventory management techniques, with the goal of bringing DXP's corporate office up to speed on system capabilities. An Activant consultant brought her extensive experience in accounting and inventory management to the task to fine tune and help improve operating efficiencies.

Leveraging Your Way to Better Profits

In the late 1990s, DXP sought to capture a share of the emerging Internet e-commerce landscape. Developing an e-commerce site is not an easy or inexpensive task. "It's pretty hard to go it alone..." according to Little.

Although DXP Enterprises developed a very attractive and functional site, the inability to leverage costs through a number of different companies presented a financial handicap. That's why Little is also impressed with Activant Trading Partner Connect, an Internet trading network.

Trading Partner Connect streamlines the commerce process between distributors, their manufacturers/suppliers, and customers, enabling distributors to increase sales and improve customer service while reducing operating costs.

Best of all, it operates seamlessly with Prophet 21. According to Little, had this solution been available when DXP was developing its site, DXP wouldn't have had to "go it alone." "When I look at what Activant can bring to the party, I probably can't maintain my site...for the price that I could go with Activant," says Little. "They're doing the same thing I am, but they can leverage it across a large base of customers."

As a valued member of the Trading Partner Connect Advisory Council, Little brings more than just ideas to Activant products and services. He brings experience.

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