Action Industries LBSi / SAP success story


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LBSi is proud to be a partner of Action Industries, Inc. a national manufacturer and distributor of garage door parts

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Action Industries LBSi / SAP success story

  1. 1. SAP Customer Success Story Wholesale Distribution Action industries Maintaining 98% SaMe-Day DeliverieS With SaP® BuSineSS One Quick factS“Implementing SAP Business One was Company Implementation Highlights • name: action industries inc. • tailored software to meet specific needs one of the best business decisions I have • location: cleveland, Ohio • integrated third-party applications to round made in my 15 years running the com- • industry: Wholesale distribution out the solution • Products and services: garage door parts • created a stable environment that has pany. It would have been impossible • revenue: uS$7.5 million satisfied needs for years and is expected • employees: 35 to continue doing so for many more to accomplish all we have in the last • Web site: • implementation partner: long Business Why SAP two years without SAP Business One.” • excellent fit for a midsize company Systems inc. Pat Marron, President, action industries inc. • Powerful demonstrations and presentations Challenges and Opportunities • Scalability to support years of growth • Provide a single source for all business data • integrate business processes Benefits • Provide more complete costing and better • Supported move to 4 business entities, cost control remote warehouses, and years of double- • increase visibility of business information digit growth and confidence in its accuracy • automated and shortened the order-to- • improve warehouse control shipment process, allowing same-day • accelerate the order-to-delivery process delivery 98% of the time • automate manual processes • cut invoice creation time from 7 hours to 1 • Strengthen planning tools • cut purchasing staff by 1 fte while reducing • reduce cost of customization and add-on inventories software • Supported use of landed costs • Provide a foundation for many years of rapid • Provided real-time sales reports growth • increased sales efficiency, allowing sales- people to handle a 15% increase in call Objectives volume replace legacy software with a powerful, • reduced outside accountant costs by 80% comprehensive, integrated, and scalable business solution well suited to the distribution Third-Party Integration business • inventory Planner from valogix inc. • B1 usability Package from Boyum it SAP Solutions and Services • lBSi enhance from long Business SaP® Business One application Systems inc. • credit card solutions from tWBS
  2. 2. One of the claims to fame of action industries inc., a distributor of Business One stood out above the rest,” reports Marron. “the demonstrationsgarage door parts, is its record for 98% same-day order fulfillment. and presentations we saw were impres-as the firm’s growth exceeded its legacy software’s ability to keep sive. as a midsize firm, we didn’t want the cost of big-company software, butpace, this delivery performance level became ever more difficult we had already learned not to go withto maintain. “We moved to the SaP Business One application, which something too small. SaP Business One was just right.”helped us continue our record by greatly accelerating the order-to-delivery cycle, improving inventory management, and performing for implementation assistance, action industries engaged long Businesssmarter purchasing,” says Pat Marron, the firm’s president. “and Systems inc. (lBSi), which installed SaP®that’s just the beginning.” Business One and the firm’s own lBSi enhance package of enhancements. to address the particular needs of actionExceeding Legacy Software’s our orders within a day, we need very industries, lBSi customized the solutionAbility to Cope intelligent warehouse management and by implementing three complementary purchasing, but we got very little help applications, developed and preintegratedfor 30 years action industries has dis- in either respect from our software.” with SaP Business One by SaP softwaretributed garage door parts to customers solution partners:near its cleveland, Ohio, home and the legacy application’s vendor tried • inventory Planner from valogix the company’s product cat- customization to help, but that just drove maintains histories of purchases thealog contains thousands of name-brand up action industries’ costs and left it company has made and uses them tostandard parts that the firm augments having to pay even more for recustomiza- suggest items to purchase that areby performing light fabrication, assem- tion whenever an upgrade was installed. necessary for maintaining properbly, and custom engineering services. “Worse, the customizations were just inventory levels, a feature that action baby steps that moved us ahead only industries has found very helpful.its focus on customer service has helped incrementally until we reached the next • the B1 usability Package fromaction industries grow at a double-digit barrier,” Marron continues. “finally we Boyum it allows action industries toclip even through difficult economic times, realized that if we were going to become tailor the contents of the screens into the point where it has now split into the kind of company we wanted to be, SaP Business One so that users seefour business entities and has opened we had to just get rid of the old and bring only information that is appropriatedistribution centers in Wisconsin and in some new software that we could to their job function – also very usefularizona. “none of this growth would have count on over the long haul.” for the company.been possible with our legacy software,” • credit card solutions from tWBSsays Marron. “We had business infor- Finding the Right Fit in SAP® provide secure storage of credit cardmation in multiple systems that could not Business One numbers, boosting sales by enablingtalk with each other. Data accuracy was customers to make purchases overalways suspect. Many of our processes action industries went about its search the internet and pay for them safelyin the order-to-delivery cycle were paper- diligently, speaking with industry experts and conveniently.based and manual. to fulfill almost all and evaluating several alternatives. “SaP
  3. 3. “As a midsize firm, we didn’t want the cost of big-company software, but we had already learned not to go with something too small. SAP Business One was just right.” Pat Marron, President, action industries inc.Fitting Company Needs Improving Purchasing, Warehousing, Boosting Sales by Boosting SalesHand-in-Glove Accounting, and More Staff EffectivenesslBSi worked extensively with action Marc calcaterra, action industries’ vice having customer relationship manage-industries to tailor the implementation to president and day-to-day operations man- ment integrated with the rest of its busi-the company’s specifics. the integrator ager, cites several of the improvements ness software for the first time has helpedis still in close contact, continually sug- the company introduced based on the action industries greatly improve its salesgesting ways to improve business pro- new solution. “With thousands of Skus operations. Management and salespeoplecesses. “the help we receive from in our product catalog, providing same- alike have fast access to customer dataour lBSi consultant is much appreciated,” day delivery without busting the budget and completely up-to-date reports onsays lisa reading, action industries’ is a monumental challenge for purchas- sales figures, broken down by territory,office manager, who was closely involved ing,” he begins. “SaP Business One has state, and customer. “in our monthly one-in the implementation. “She is just made an exponential difference in mak- on-one meetings with the sales force, weoutstanding.” ing our purchase planning process more can pinpoint areas of success and areas fluid and accurate. We have been able that need attention – everyone sees the“all the work the team did matching to cut our procurement staffing require- same numbers and knows exactly wherethe implementation to our precise needs ments by one and reduce inventories.” they stand,” says Marron. “Our relation-was well worth it,” adds Marron. “We ship with salespeople has never beenreally have it down now, which makes “We have better cost control as well,” better, and they are more productive thanfor one less thing to be concerned about calcaterra continues. “One big reason is ever before. in fact, our call volume perwhen we’re trying to grow the company. that the solution lets us work with landed salesperson is up 15% since we imple-i belong to a business group with 11 other cost for the first time, which is important mented the solution, but our people have been able to absorb the increase easily because the software makes them so“I belong to a business group with 11 other Cleveland-area company owners. . . . much more efficient.” Action Industries is the only one of the group that is experiencing double-digit unlike many businesses, action growth, and I believe that SAP Business One is an integral part of that growth.” industries manages all its operations in Pat Marron, President, action industries inc. SaP Business One and the third-party applications that are integrated with it. the company uses no satellite softwarecleveland-area company owners. Some because the cost of a part’s freight and for data massaging or other special pur-of them spend 20% to 30% of their time handling sometimes exceeds the cost of poses, and it is glad for it. “implementingworrying about their business software, the part itself. Our invoices are going out SaP Business One was one of the bestwhereas we have complete confidence the same day as deliveries because invoic- business decisions i have made in myin our SaP Business One implementa- ing now takes less than an hour, not six 15 years running the company,” Marrontion. action industries is the only one of or seven hours like it did before. in the concludes. “it would have been impos-the group that is experiencing double-digit past we used outside accounting services sible to accomplish all we have in the lastgrowth, and i believe that SaP Business several hours a week, but now we’ve two years without SaP Business One.”One is an integral part of that growth.” been able to bring most of that in-house.”
  4. 4. /contactsap50 104 644 (11/03)©2011 SaP ag. all rights reserved.SaP, r/3, SaP netWeaver, Duet, Partneredge, ByDesign,SaP BusinessObjects explorer, StreamWork, and other SaP productsand services mentioned herein as well as their respective logos aretrademarks or registered trademarks of SaP ag in germany andother countries.Business Objects and the Business Objects logo, BusinessObjects,crystal reports, crystal Decisions, Web intelligence, Xcelsius, andother Business Objects products and services mentioned hereinas well as their respective logos are trademarks or registered trade-marks of Business Objects Software ltd. Business Objects is anSaP company.Sybase and adaptive Server, ianywhere, Sybase 365, SQl anywhere,and other Sybase products and services mentioned herein as wellas their respective logos are trademarks or registered trademarks ofSybase, inc. Sybase is an SaP company.all other product and service names mentioned are the trademarks oftheir respective companies. Data contained in this document servesinformational purposes only. national product specifications may vary.these materials are subject to change without notice. these materialsare provided by SaP ag and its affiliated companies (“SaP group”)for informational purposes only, without representation or warranty ofany kind, and SaP group shall not be liable for errors or omissionswith respect to the materials. the only warranties for SaP groupproducts and services are those that are set forth in the expresswarranty statements accompanying such products and services, ifany. nothing herein should be construed as constituting an additionalwarranty.