Success Stories

Bringing Business Home

At the 1999 Missouri Governor's Economic Development Conference, Tacony Corporation received the Small Business of the Year Award, due in large part to a decision the company made in 1997 to move one of their manufacturing plants from Taiwan to St. James, Missouri.

While most businesses were - and still are - pursuing overseas manufacturing in the hopes of cutting costs, Tacony Corporation went in the opposite direction. In bringing the Taiwan plant home, the company not only increased their control over the design, assembly, and quality of the vacuums they produce, but also changed the face of Missouri's economy for the better, creating jobs and economic growth in the community of St. James.

Behind this apparent move against the grain is a philosophy of making the business feel more like family, and Tacony Corporation subscribes to it on more than one level. In addition to helping bolster the economy of its home state, the company strives, according to its Web Site, "to build long-lasting relationships with customers that are based on trust and feel like family."

On a more literal note, many of Tacony Corporation's employees work alongside their spouses, children, and other family members, including CEO Ken Tacony, whose children, Kristin, Kennon, and Korbin, hold varying roles within the company.

It should come as no surprise then, that Tacony Corporation's 18-year partnership with Activant has benefited from its familial quality. "We're still working with many of the same people at Activant as we were in the beginning," says Tacony. "It's nice to know that if I'd call, they would still know my name."

A Vast Capacity

Originally founded in 1946, the business known today as Tacony Corporation began in Nick Tacony's basement in St. Louis, where he set up shop selling and repairing sewing machines. A mechanic by trade, he invested his entire savings into the company, opening a retail store before ultimately expanding into the wholesale sewing parts market in the early 1950s.

Two decades and two major acquisitions later, as Tacony Corporation began to stand out as a market leader, Ken joined his father in the business. After graduating with a BBA from Tulane University in 1965 and serving four years in the Air Force, he assumed the role of executive vice president and began overseeing the company's IT department, a responsibility he maintains to this day.

"The major computer decisions are still under my direction," he explains. "I'm involved with almost everything that affects the technology of our company, and it's been that way pretty much from the beginning."

One of the most significant technology decisions Tacony had to make occurred in 1989, five years after he assumed the role of company president. With the company's sales having increased from $3 to $40 million since 1970, their growth necessitated a move to a more sophisticated enterprise software solution.

"We needed a solution that would support our expansion," states Tacony. "Prelude was more comprehensive and user-friendly than our previous system, and with a current user count of 350 - versus the 75 we started with - it certainly has demonstrated a vast capacity for growth."

Keeping Pace

Currently boasting 12 offices worldwide and nine strategically located distribution centers, Tacony Corporation shows no signs of curbing its growth, and they depend on Prelude to help them manage their size, while simultaneously streamlining processes and maximizing profitability.

For example, Tacony Corporation's accounts receivable (AR) department utilizes the Credit Collection module in Prelude to stay on top of their delinquent days outstanding (DDSO). While many companies work from aging reports that can be out of date the day they are printed, Tacony's AR department has been able to utilize the real-time information they pull from Prelude to reduce their DDSO to nine.

"We usually run in the 10 to 12 range for days outstanding, but Prelude has helped us get it down to nine, which is very good," remarks Tacony. "Implementing that Credit Collection module was probably one of the best things we've ever done."

Prelude has also kept pace with Tacony Corporation over the past 11 years as they have acquired or opened four new manufacturing locations, extending the solution's functionality from traditional distribution into retailing and manufacturing. "We also do our own payroll and employee benefits in-house for over 600 associates through Prelude," Tacony adds.

While summing up his company's success with Prelude, Tacony mentions how a few years ago, he and his fellow executives surveyed the top distribution software packages in the industry but ultimately decided to stay in the Activant family. "Before we converted to Prelude, our sales were about $40 million. Since that time, we have completed seven more acquisitions and grown to $200 million," he concludes. "Our 18-year implementation of the Prelude solution has been the cornerstone."

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