Large Company CFO Roundtable. Russ Mellott SVP Sales Epicor Americas

Transcription

1 Large Company CFO Roundtable Russ Mellott SVP Sales Epicor Americas

2 Agenda Welcome Industry Trends Challenges Open Discussion

3 Epicor at a Glance

4 Epicor at a Glance Founded 1972 Distribution 4,500+ distribution customers worldwide Revenues $960M+ * Countries 150 Employees 4,600+ Partners 400 Customers 20,000+ Electrical Supply Plumbing Supply Heating & Air Conditioning Industrial Janitorial Fasteners Fluid Power Medical Supply Packaging, Paper & Petro Tile Logistics

5 Enabling Business Manage Global Operations Available in all the world s major markets and industries Increase Employee Productivity Access via PC, mobile devices, the Web; From Microsoft Office Adapt to Change Gain Key Insight Flexible, scalable SOA; Embedded business process management throughout In-context business intelligence provides real-time analysis where you need it

6 Wholesale-Distribution Industry Climate Business Priorities Revenue Growth Customer Retention Increasing Profitability Employee training Improved Inventory Management Deliver more value-added services Revenue Building Plans Existing Customers Adding new products or product lines Expanding geographic reach Improving e-commerce capabilities

7 Challenges of our Wholesale Distributors: How can distributors stay competitive with larger competitors? External Challenges Forecasting market demand Formalize value added programs Customer Confidence (retention) Global Positioning Online Competition Supplier & Competitor Consolidation Internal Challenges Reducing Business costs & safety stock levels Better inventory management and insights into performance Employee Pessimism, Worker Productivity & Career Planning (HCM) Change Management

8 External Challenges Anticipate and accurately forecast market demand Formalize value-add programs Cribbing Solutions Contract Management Kitting E-commerce Service & Maintenance

9 Internal Challenges Operational Efficiencies Controllable costs Uncontrollable costs Keeping Service Levels High Change Management Employee productivity

10 Case Study: Regency Lighting Challenge: Maximize the use of ERP system functionality to improve specific inventory turns Key Performance Indicators Location: Chatsworth, CA Vertical: Electrical Distribution Number of Employees: 255 Benefits Improved inventory turns by one point in one year Increased sales by 19 percent without increasing inventory value as a percentage of sales Improved net cash flow and financial positioning while increasing customer service levels Freed up purchasing agents to spend more time on value-added procedures We are very happy with the quality of the Epicor Business Consultants engaged with us. Epicor s process to identify specific, targeted quantitative goals and a defined scope of work is very good. -Isaac Regenstreif, Vice President of Operations Regency Lighting

11 Case Study: OneSource Distributors Challenge: increase revenue without adding any headcount Location: Oceanside, CA Vertical: Electrical Distribution Number of Employees: 255 Number of Locations: 14 Benefits Doubled gross annual sales since 2005 without increasing headcount Sales per employee grew to $1.2 million in 2010 Inventory turns in electrical business are pushing 7 Operating expenses are less than 11 percent of sales Eclipse is a great foundation on which to run a business, and we have really leveraged the technology. With Eclipse in place, we have very few fires to put out. Everything at our facilities is calm and organized. -Mike Smith, Chief Operating Officer OneSource Distributors

12 Key Financial Considerations GMROII Inventory Turns Gross Margin Sales per employee

13 Opportunities for Growth Cross-sell/up-sell Develop value added services Introduce or improve use of CRM Improve operations & processes E- commerce Mobility for workforce Social

14 Questions?

15 Case Study: Field Fasteners Challenge: Maximize the use of ERP system functionality to improve specific inventory turns Key Performance Indicators Location: Rockford, Illinois Vertical: Fasteners Benefits 1-2 percent improvement across every area of the organization, including better margins and improved inventory turns Facilitating vendor managed inventory Supporting customer service with realtime data queries, triggers and alerts Streamlining the ordering process and reducing entry errors with Electronic Data Interchange We see Prophet 21 as a competitive advantage, to help us provide the best level of customer service and drive costs out of the business, and to improve the accuracy and quality of our services to meet our customers expectations. Jim Derry, Executive Vice President Field Fastener Supply Co.