Success Stories

Prophet 21 and Knowledge Management Center Help Distributor Delve Into Details, Resulting in Bottom Line Improvements

Because Richard Sauve works in a world of slim margins, every cent counts. "In the home improvement industry, we get excited about half-point profits," says the president of GMG Distrubutors, a California-based hardware supplier.

For that reason, Sauve must keep a close watch on everything that moves into and out of his warehouse - and what each SKU costs to buy, carry, and sell. "That's where Prophet 21 comes in," he says.

Prophet 21, a Windows-based, SQL Server enterprise software solution, offers distributors business technology - including inventory, purchasing, and financial management tools - that make it easier for companies like GMG to ensure their customers can compete against national big-box retailers. "Prophet 21 offers me the real-time, accurate data I need to make educated decisions to adapt to the marketplace," Sauve says. "I can't cut costs if I don't know what I'm spending."

Extensive Inventory Management Tools

GMG benefits most from Prophet 21's extensive inventory management tools. Detailed information about the company's 20,000-plus SKUs has helped Sauve manipulate purchase points to improve turns, resulting in a reduction in carrying costs and overall inventory value.

The solution has also enabled Sauve to determine which SKUs are most profitable - and which ones cost the company money. "Our bread and butter comes from identifying those little areas where we can increase margins through better purchasing decisions," he says.

Seasonal forecasting capabilities help GMG keep the right items on shelves at the right time. "You can't wait for the weather to break in March to put orders in for garden hoses," Sauve says. "That's too late. And you don't want to keep them in the warehouse all winter. Prophet 21 tracks trends and tells us to bring inventory in during January or February - so we can meet demand in the spring."

Overall, the solution has enabled GMG to increase fill rates from approximately 96 percent to 98 percent, and boost its bottom line by 2 percent.

Power from Knowledge

Knowledge Management Center, an executive information solution that integrates seamlessly with Prophet 21, offers Sauve detailed business information he can easily delve into. "It's a great complement to what Prophet 21 already offers," Sauve says. "With Knowledge Management Center, I can drill into particular inventory, customer, or vendor information one level at a time to determine what everything costs."

It is information Sauve does not think he could live without: "You can't run a business in this world without details," Sauve says. "Knowledge Management Center and Prophet 21 offer me those tiny details that sometimes fall through the cracks - the details that can make the difference between just doing business and profitability."

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