Customers

Case Study - Phoenix

For over a decade, the UK's leading distributor of quality branded motorcycling clothing and accessories has worked that little bit harder to satisfy their customers' needs. As a result of their enthusiasm, hard work and sheer commitment to bikers - and the sport - Phoenix Distribution (the Midlands based supplier of famous brands, including Belstaff, Arai and Shark) has maintained a reputation for really delivering the goods and, over the past five years, has seen turnover double to £15 million.

Finance director David Drillingcourt reflects: "Our market had expanded between 1997 and 2001 and in simplistic terms we were feeding demand. Since then, the market has remained static, but we have seen an influx of new brands and products into the market. Stock control had become a major issue, and out old system simply didn't male the information readily available to make decisions quickly."

In 1994 Phoenix had opted for a general industry computer solution, but a larger part of the software had to be bespoke written to include a "colour/size matrix" for the stock. Subsequently there was no upgrade for 5 years which meant they were left behind in terms of management information.

David said: "After a few years we recognised that this system was just not going to support out future needs and so the search for a replacement got underway."

Smooth Transition

Phoenix were quick to call on speciality systems provider, Prima Solutions. Phoenix were aware of the solid reputation that Prima had within the clothing and footwear industry but had previously underestimated the importance of a system flexible enough to handle the unique make-up of clothing and footwear products.

After a rigorous six months selection process, the decision was easy. The PrimaNet® software, was able to enhance our existing operational procedures within a flexible and integrated package. Because of Prima's experience in the industry, both in terms of apparel and technology, we knew development of their applications would be continuous. Their people are dedicated and professional and their references were excellent," praises David.

Phoenix selected the PrimaNet® Order Management, Financials and Information Management modules to offer a truly integrated supply chain solution across all areas of the business. System implementation is a transitional period when everyone has to be trained and, on occasion, change the way they do things. This process is closely monitored by Prima, and their hands on Project Management approach keeps a close eye on progress at all stages.

"What we now have is a fast, flexible and robust system. From the moment we went 'live' we have never looked back. We are regularly upgraded with the latest version of software, which is executed with minimal disruption. Our dedicated Account Manager from Prima really knows the system and most importantly our business; any issues that arise are quickly dealt with," commends David.

The bigger picture

Phoenix is now able to react to Customer requirements more professionally and efficiently. from the moment the order is placed, sales people can quickly see what stock is available, or when it should arrive. Individual Customer payment plans can be set up, so that Phoenix can keep a tight rein on credit control and cash flow.

"Integration of the old system was particularly non existent. It would take us over a week to pull together our month end reports. Prima's Information Manager module is business intelligent; it allows us to access and exploit data from all areas of the business and is available at the touch of a button."

As well as the standard reports within the system, Phoenix is now able to build and maintain it's own reports and enquiries through Prima's Information Manager. Within 24 hours of our month end, a pack of management reports is produced, which includes Daily Stock and Sales Evaluation, Top 50 Companies by Sales and Profit, Working capital, Forecasts and Debtor Days.

David adds "Information Manager is a powerful tool. We really can see the bigger picture now and we can quickly see where we need to be focussing our attentions. Our key Performance Information is completely exposed to our Management Team, which keeps everyone on their toes, and we have managed to reduce our working capital commitment by over£1.5m - now that's what I call impressive."

A fine balance

Phoenix's business is seasonal. The length of season, which is very much dependent on the weather, runs roughly from March to September.

"We created a new Purchasing process following implementation," says Operations Manager, Dominic Ball. "Stock levels are always maintained to support seasonality and growing demand. On average we aim to turn stock three or four times a year and because of our lengthy lead time, there is a fine balance on making the 'do we buy now' decision. The Prima system gives us the confidence to make these decisions, based on accurate stock levels and trend analysis by Product Group, Style, Colour and Size. This way, we can always offer our customers what they want and when they want it."

"A daily orders and stock report now tells us which stock we need to focus on. If some items are slow moving, we can inform our Sales team or promote discounts through our dealer network," says Dominic. "We can offer our dealers bigger discounts, based on the amount of stock they hold. This way everyone benefits,"

Better visibility

Phoenix currently operates out of a 'state of the art' 50,000 square feet office, showroom and warehouse. Goods are booked into the stock inventory area of the system and if the high quality control standards that are set by Phoenix are satisfied, the stock becomes available for allocation.

"Batch allocation used to be a nightmare. If you can imagine having a delivery of five styles, with three colourways, in five sizes; that's 75 SKU's. With the old system, you had to go into every SKU. It would take me a whole day to allocate one delivery. It now takes ten minutes", comments Dominic.

Phoenix has a hierarchy of customers, which is based on certain criteria. The information has been defined by Phoenix to offer improved customer focus. Priorities are set for key customers, who include some of the leading UK motorbike dealers and agents. The batch allocation report profiles their hierarchy of customers who take natural precedence. When these orders are fulfilled remaining stock becomes 'free to sell'.

"The system has really enhanced our administrative efficiency within the warehouse," states Dominic. "The process of Goods Receipting, Put Away and Allocation has been greatly accelerated. This allows us to process the movement of stock more efficiently." Dominic continues," our promise is 'next day delivery' with no compromise. With the new system in place, we know we can uphold this promise."

Taking stock

After a period of making good use of the new system, Phoenix is now ready to further exploit the benefit.

David concludes, "success is about never standing still, about being able to adapt to change. The Prima system has given us the confidence to do just that. We now have a system that we can extend into other areas of our business and rely on in the future."

John Norman, Joint Managing Director at Prima Solutions remarks." For a new system to be truly effective, it is vital that the reasoning behind its introduction is understood and endorsed by the whole business. Phoenix has embraced this challenge with true commitment. They are a credit to their customers, bikers and the industry. We are delighted to have helped make a difference to their business success and we look forward to working with them long into the future."