RSM Resources

New software enables an automotive distributor to gain a competitive edge.

In today’s automotive environment, it’s challenging to grow a business and gain a competitive edge. Here’s how one distribution company used our IT consulting services to help implement new software systems aimed at tackling these challenges.

The challenge
As the competition increased in the auto parts industry, our clients knew they were at an impasse. They realized that if they were going to effectively manage their growing distribution business, they needed to integrate disparate information systems.

As a Ford Authorized Distributor of Motorcraft Automotive Parts, the company was seeking advanced information systems to efficiently forecast demand and process orders.

The auto parts distributor was using a proprietary, industry-specific order processing system that did not allow them the flexibility and power they needed.

And since they manage multiple warehouses -- each with tens of thousands of parts -- streamlining business processes and getting a handle on their data was a key concern.

The company faced four major challenges with their current system: inaccurate financial reporting, inadequate support from the vendor of the proprietary system, a database that was not ODBC compliant and had weak inventory forecasting ability. As a result, it was difficult to make good business decisions.

The solution
RSM McGladrey partnered with the auto parts distributor to help them implement an application software solution -- Microsoft Great Plains®.

Since Microsoft Great Plains utilizes SQL, an ODBC compliant database, integrating with a third party add-on, from Rockysoft, was a snap. This combination dramatically reduced the purchasing process from a five day-activity to an eight-hour task. In addition, the distributor was able to decrease on-hand dollars of inventory while increasing the service level to their customers.

The Great Plains and third party software helped to tackle their four major challenges in the following ways:

1. Financial reporting: Utilizing customized Crystal Reports has now solved their accuracy issues.
2. Support: Training materials and process manuals provided by RSM McGladrey and Microsoft have alleviated prior support issues.
3. ODBC compliance: Connectivity to third party programs, data sources and reporting features are no longer plagued with obstacles.
4. Forecasting/demand planning: Ordering the right part at the right time while improving customer service levels is now a reality.

The results
The system has now been up and running for eight months and is constantly evolving. It has enabled the auto parts distributor to overcome the problems of the past and to meet the challenges of the future. The company has increased the velocity of its business dramatically and maintained its reputation as an industry leader.