Electrical Products Distributor Supercharges Revenue, Efficiency and Productivity with Epicor
Every contractor knows the frustration of a job on hold waiting for an essential item that did not arrive when promised. However, few customers of Alarm Products Distributors experience that problem. The company has developed a business and distribution automation platform built on Epicor that helps ensure customers get the products they order on time.
Alarm Products Distributors (APD) is a specialty electrical distributor supplying the trade with parts and components for alarm systems and other associated products such as networking equipment, switches, cabling, and security cameras. The company has two warehouse locations in Minnesota and Texas serving customers across the US, but mainly in the upper Midwest. In addition to products, APD permits bundled kits for customers.
A few years ago, APD began a series of system and process upgrades to continue allowing customers first-class service as demand increased and the scope of product offerings expanded. Additionally, APD had increased capacity by opening its second distribution location in Texas, and it now distributes 55,000 individual product packages a year, some including as many as 50 items. Previously, APD had an ERP system that was no longer fit for purpose and did not sufficiently meet business needs. For example, warehouse operations were paper-based. When shipping products, staff had to access several courier websites manually to get the best delivery prices and options.
APD uses technology to automate, streamline and simplify processes and business operations, and wanted to replace its existing ERP system. The company decided on a solution from Epicor.
APD started using Epicor in 2013 and since then, has increased and enhanced the platform. Today the company uses Epicor Prophet 21 as its core ERP solution integrated with Epicor Quick Ship, Epicor Commerce, Epicor Wireless Warehouse, and Epicor Tax Connect. The company has recently moved to Epicor Cloud in line with its strategy to run more applications and services in the cloud on Microsoft Azure, which made IT infrastructure and data center operations more cost-effective. Over the next few years, APD is planning to open more warehouse locations in areas that are underserved. Having Epicor Cloud will make this much easier.
The scope of features and capabilities is one of the reasons why ADP chose Epicor. “Epicor Prophet 21 has by far one of the best pricing engines for distribution,” said Dave Jackson, Operations Manager, APD. “That was re-affirmed when we wanted to move to a cloud platform and looked at other solutions. Again, we found that no one can do what Epicor does when it comes to customer pricing.”
At APD we eat, live, and breathe Epicor. It is the heartbeat of our business and ties everything together. Epicor is reliable, it works the way we want it to work all the time and that is what we want from a software application. Epicor is one central platform for everything from inventory management and financials to sales orders, shipping, and CRM.
For instance, when a sales representative enters a part order into Epicor Prophet 21, the application uses code, historical data, AI, and current costs to determine the best price and margin for the customer. Another advantage of Epicor is how easy it is to enhance the platform with additional modules such as Epicor Quick Ship, which APD found was the best shipping tool for its business.
Besides the ERP applications, APD found partnering with Epicor beneficial. “Epicor is very customer-centric,” shared Jackson. “The company has several customer panels that I am involved in, and it acts on the feedback and comments from customers. I know from personal experience how Epicor listens to its customers and acts. It is not in five years’ time; I would see the results of that input in the next release of the software. When everyone else is saying it is this way or the highway, Epicor asks us what we need. That is another important reason why we continue to use Epicor.”
Jackson added that despite being one of Epicor’s smaller customers with around 40 users, he still gets access to senior people across the business.
“At APD we eat, live, and breathe Epicor. It is the heartbeat of our business and ties everything together,” divulged Jackson. “Epicor is reliable, it works the way we want it to work all the time and that is what we want from a software application. Epicor is one central platform for everything from inventory management and financials to sales orders, shipping, and CRM.”
In short, Epicor has automated and improved operations, reduced costs, and increased efficiency and productivity for APD.
In another example of streamlined efficiencies, Epicor Quick Ship replaced five applications that were previously used to manage shipping, making the process simpler and faster. It reduces the need for human intervention, minimizes errors, and allows no critical process steps to be missed. The application compares costs automatically, so APD can choose the most cost-effective courier for each shipment.
“Epicor Quick Ship very quickly delivered an ROI,” explained Jackson. “We thought most ROI would be from time saved, but it turned out to be from saving costs and increasing revenue. Shipping costs have been cut by 7%, freight revenue increased by 17%, and the reduction in time to process outbound shipments saves a one-person headcount a year.”
At any one time, APD holds around $3.5M in product stock across its two distribution facilities. Epicor is used to automate inventory so that the company has on average 30 days of stock available to meet customer demand. “Epicor has made inventory operations more efficient and accurate,” elaborated Jackson. “The application is very good at alerting us if certain items are trending up or down, and it filters out the oddities, so we are not tripped up by large, one-off orders. It gives us great transparency for managing inventory and warehouse operations allowing a better experience for our customers.”
Jackson added that COVID-19 has changed the dynamic of the distribution business. Previously, APD aimed to hold stock for between 10 and 15 days. But longer supply-chain times due to COVID delays and interruptions have pushed that to 30-45 days. For unusual products, APD would order on demand and deliver to the customer within a week. The pandemic has meant those products can now take up to a year to supply.
“Longer lead times from manufacturers had really changed the distribution industry,” recalled Jackson. “APD has had to change its focus and the nice thing about Epicor Profit 21 is we change a few values, and the application will quickly adapt to how we want to work, making the transition simple and smooth.”
Epicor also helps make warehouse operations more productive. “Epicor Wireless Warehouse has transformed warehouse operations,” explained Jackson. “Receiving items into the warehouse, adding them to inventory, and getting them out to customers is more efficient. Wireless handheld devices have replaced paper tickets. Epicor sends picklists to the devices and allows our 10-warehouse staff with the most efficient and ergonomic pick order.”
Epicor Quick Ship very quickly delivered an ROI. We thought most ROI would be from time saved, but it turned out to be from saving costs and increasing revenue. Shipping costs have been cut by 7%, freight revenue increased by 17%, and the reduction in time to process outbound shipments saves a one-person headcount a year.
Because APD no longer has to spend time and resources on manual processes and supporting an outdated ERP system, the company can devote more time to activities that benefit customers. “A salesperson knows that if they enter an order into Epicor to ship on a certain day that – as long as we have the inventory – it is definitely going to ship on that day,” concluded Jackson.