Success Stories

Activant Application Consulting Saves Distributor $30,000 Annually While Streamlining Processes

Terry Stookey, vice president of sales of Georgia-based Reliable Hydraulics, recently gained the responsibility of system administrator when his IT person left the company.

Though he could easily handle employees' day-to-day questions about Reliable Hydraulics' Activant solution, end-of-month tasks were a different story. Stookey simply did not have the time or resources to manage month-end financial reports, inventory journals, or batch postings.

Instead of hiring another full-time system administrator, Stookey enlisted the help of an Activant Application Consultant. Every 30 days, the consultant visits Reliable Hydraulics to run JCMs, train new employees, perform upgrades, and complete other administrative tasks. "He gets everything to where it's supposed to be while I focus on managing my staff and selling more product," Stookey says.

Stookey benefits from the Application Consultant's years of industry expertise while saving at least $30,000 annually on a new system administrator's salary. "We're a small company, and utilizing an Activant consultant instead of adding another employee helps us conserve resources and save on overhead," Stookey contends.

Additional Benefits

In addition to handling Reliable Hydraulics' month-end tasks, the Activant Application Consultant - an expert in both distribution and business - helps employees learn how to better utilize their solution, streamline day-to-day business processes, and identify areas of the business that can be improved.

For example, the consultant taught Stookey how to use the Activant solution to identify dead stock. "It was something we never really thought about before," Stookey acknowledges. Using parameters that Stookey determined, the consultant ran a report that identified approximately $400,000 worth of dead stock in Reliable Hydraulics' warehouse. "We were really surprised; we thought we had 25 percent of that amount," Stookey says.

The consultant also helped Stookey understand the importance of eliminating as much of that dead stock as possible: "Now, we realize it's a liability and that we need to get rid of it any way we can," Stookey says. "We've been pushing dead stock out the front door, and have probably sold about $125,000 worth of it so far."

Reliable Hydraulics also sends its own stocked trucks to customer sites for service and repairs. Prior to engaging a consultant, staff members never tracked inventory on the trucks, resulting in confusion and lost stock. However, during a recent engagement, the Activant Application Consultant showed Stookey how to manage inventory on those trucks by setting them up as separate locations. "It saves us a lot of time," Stookey reports. "We're not running and calling around, trying to figure out who has what part.

"I would highly recommend consulting to any other distributor," Stookey concludes. "It's saved us time and money, and helped us increase our return on investment in our operating system."

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