Success Stories

Out of the Past

Chandler & Farquhar Company, a Randolph, MA-based industrial distributor that specializes in cutting tools and abrasives, has the unique distinction of being a fairly new company that, come 2007, will have been around for 125 years.

"We're known as a start-up with history," explains CEO Kathy Hersey. Originally founded by Frank Chandler and Charles Farquhar in 1882, the company was on the brink of folding when Hersey and her business partner, Greg Garbick, leveraged an asset purchase in 2003 to keep it afloat.

Having gone to school for computer science, Hersey began her career with Chandler & Farquhar in 1976 as a computer operator, making stops as data processing manager, office manager, and controller before assuming the role of COO in 1998. Now Hersey handles operations and finances as CEO while Garbick oversees sales and marketing as company president.

"This company is like a little family," says Hersey. "We took a risk when we bought it, but we've got a great and loyal staff that is dedicated to making the new Chandler & Farquhar a success."

All the Pieces

When Hersey first took the computer operator position at Chandler & Farquhar, the business was running on a massive IBM server, and orders were written and filed on paper. It wasn't until 1986, when the executives decided to implement Activant� XL that the company began to fully embrace technology.

"During that time I was putting all the modules of the business onto computers," remembers Hersey, "which was good for me, because I was able to learn the intricacies of the company from the ground up."

Her education continued when she became Chandler & Farquhar's controller some years later. "It was enlightening for me to see the company books and understand what the bottom line was about," says Hersey. "That was probably the beginning of my current journey - once you see the financials of a business, you can begin to understand what it's about."

The business savvy Hersey learned over the years came in handy in 2003 when she and Garbick purchased Chandler & Farquhar, and she decided that one of her first projects as CEO would be to evaluate the popular technology offerings on the market.

"We did our homework," she says. "We looked at four systems pretty intensely before deciding to implement Activant Prophet 21™ - it turned out to be the most complete system, and had all the pieces we needed."

Hersey cites the SQL Server database and Windows interface of Prophet 21 as two of the factors that informed the decision. "We wanted a solution that was easy to use, and the point-and-click nature of Windows covers that," she says. "And with my background in computer science, I know the importance of having a relational database that allows you to easily drill down and extract data."

Points, Profits, and Margins

"We want to make some money - even though we're having fun, we want to be profitable." Hersey's formula for profitability is simple: push more transactions through the system without increasing the number of employees.

Pushing sales has been tough, however, with a shrinking customer base wracked by rising fuel costs, surcharges, and overseas manufacturing. Chandler & Farquhar counters these challenges by keeping a careful watch on their margins, and Prophet 21 helps.

"We used to have a full-time purchasing agent, but when he left, Greg and I decided to handle purchasing ourselves utilizing Prophet 21's forecasting functionality," explains Hersey. "One point in margin is enormous for us, and it's been enlightening learning the things you can do to consolidate like items and get better prices."

For the Long Haul

Since Hersey and Garbick took the reins in 2003, Chandler & Farquhar has grown by approximately 10 percent, and Hersey plans on continuing that trend by making sure they get the most out of Prophet 21: "We've been through all of the Computer-Based Training discs, and Activant Application Consultants have been onsite twice: once during implementation, and the other to help me design the financial statements and close out the year."

Hersey also plans on having an Application Consultant come out in the near future to do a system audit, which will determine how much of the Prophet 21 solution they utilize. "We get so busy running the business that we don't always have the time it takes to learn the ins and outs of the system," she says. "Having the consultants come out is an easy way to overhaul our usage."

With solid plans for building profitability, tightening margins, and utilizing technology, Hersey and company have Chandler & Farquhar on track for continued growth and success. "We're on our way," says Hersey, "and we know Activant will be with us for the long haul."

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