Success Stories

Activant Gives Distributor Voice in Development of Enterprise Software Solution

When we think of technology, most of us tend to think in contemporary terms. Yet, it was a new technology in the 1920s that led to the current ownership and operation of the Portland, OR-based General Tool & Supply Company.

General Tool President Bill Derville's grandfather, a Morse code operator for the Associated Press, was "displaced by technology," specifically the introduction of the teletype. In need of a new career, in 1927 he began helping a friend run a tool business. Shortly thereafter, he took over the business and it has remained under family direction ever since.

From Cardex to Computers

As General Tool's business grew, so did the complexities. As late as 1980, the company was still posting every transaction on a manual system. Although long convinced that computerization was necessary to sustain profitability and for continued growth, Derville had heard his share of "horror stories" about computer system failures.

One such failure even led to the ultimate demise of a competitor known as "the largest industrial distributor in Portland." Armed with the knowledge that the selection of the wrong system could lead to disastrous results, Derville took his time, asked lots of questions, and studied all the possibilities. After attending a convention in 1980 and speaking with an Activant representative, he contacted 17 Activant users about their experiences. He liked what he heard.

With his father, Derville then visited three companies similar in size to General Tool to get a first-hand look at an Activant solution in operation. The first visit convinced both men to buy an Activant solution.

"Portland is an Activant town"

After years of study, but only months after their visits to Activant customers, General Tool was running with Activant. And they never looked back. And others in Portland soon followed, so many in fact, that Derville considers Portland "an Activant town."

Derville believes that the Activant design approach, based on the direct input of customers, is responsible for Activant's position of dominance within the distribution industry. He cites the efficiencies of Activant Acclaim as a major factor in his company's growth from sales of $7.5 million with a staff of 65 people in 1980 to almost $45 million in 2000, with the addition of only 50 employees.

Listening to customers

A charter member of Activant's Local Users Group, Derville continues to share his expertise with other users and helps in the development of new features and approaches via direct feedback. Throughout the years, Derville has upgraded his company's Activant solution to take advantage of better and more efficient hardware and software.

Derville believes Activant's enterprise software solutions are dominant in the distribution industry "because they really have been built based on the ideas of customers. Activant is very good at listening to what needs to be done to make the system better." In fact, one of Derville's early suggestions was promptly integrated into an Activant Acclaim update and is still in use today. Frustrated by the need to change sort codes manually when new items were added between existing inventory line numbers, he suggested the programming be changed to automatically re-space item sort codes. He also initiated and led a national task force that helped to design the current Quality module.

General Tool & Supply also utilizes Activant Customer Support, which provides users with a comprehensive solutions database 24 hour a day, seven day a week via the Web. Derville believes this is another strength that Activant customers enjoy.

Staying on the Cutting Edge

As an Activant customer for more than 20 years, Derville has continued to upgrade his system to remain on the cutting edge of distribution industry technology. He understands the importance of staying one step ahead of the competition in order to remain successful.

That's why, needing a more in-depth Progress-based Accounts Payable package, and EDI invoicing and real-time General Ledge capabilities, Derville moved from Activant XL to Activant Acclaim several years ago. "Although I loved XL, it simply couldn't do the things that I wanted to do with it," says Derville. "With Acclaim, I'm doing EDI invoicing rather than manual posting, which saves me a great deal of money annually. I'm also able to view my General Ledger in real-time, rather than waiting for a batch-posting at the end of the day. "

Asked if he ever looked elsewhere for an enterprise software solution, Derville is quick to respond: "I have never been tempted to go anywhere else. Because Activant is the dominant enterprise software provider for the distribution industry and has input from so many people, they have created a system that is the best available."

Customers Enjoying Added Power

Commenting about changes within his own industry, Derville notes the dramatic shift in power from manufacturers/ suppliers to customers. Customers have a much broader choice of quality products today than they did when only one brand of product was acceptable to their plant. Distributors have shifted from being primarily a sales agent for their manufacturers to a representative for their key customers to procure a wide range of products, deliver them to the point of use, and create customer cost savings.

Today, General Tool represents more than 1,400 manufacturers, and serves customers through branches in six cities and an Internet site (www.generaltool.com).

Trading Partner Connect

Derville sees Activant Trading Partner Connect, an Internet trading network as a unique opportunity for distributors to reduce excess inventories while at the same time providing customers with a broader selection of goods. Customer, distributor, and manufacturer/supplier all win. As a member of the advisory board, Derville's input is once again helping his fellow distributors prosper.

For more information on Activant's enterprise software solutions, please fill out our Web Contact Form.

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