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features & functionality used
by Target Wholesale: |
Running
web store
operations |
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Real-time integration
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with back-end |
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accounting and
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business operations |
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| Accounting |
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Multi--currency |
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| Sales |
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Sales orders |
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Multiple shipping/
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contact addresses |
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| Inventory
control |
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Item matrix//Multiple
sub |
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categories |
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| Purchasing |
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Purchase orders |
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Generate/assign
serial |
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numbers on purchase |
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orders |
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| Selling
products online |
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Storing item descriptions
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in HTML |
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Company
Background |
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Blaze King
Before starting out as a fireplace parts
supplier and distributor, George Catena
owner, founder & manager of Target
Wholesale worked his way through as
a mechanic and got into the contracting
business. In 1977 he built a successful
heating and air conditioning business
and sold it 21 years later. Now operating
out of Ontario, Canada, the company
has established a niche in wholesaling
and distributing fireplace supplies
with a total commitment to support customers
needs.
Target Wholesale runs on Everest ERP Software.
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The
Challenge |
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| Soon after going full-fledged
as a fireplace parts wholesaler and
distributor, Catena noticed the limitations
of his services-oriented business management
software. "We used a Novell-based
Fox-Pro DOS product called HVAC software
for a good fifteen years." |
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Though an integrated solution that worked
well for a service business, Target Wholesale
had to give it up, as it was not Windows-based,
lacked in the inventory front, and was incapable
of sub-grouping–a mammoth requirement.
"Ninety percent of our phone calls had
customers citing a fireplace of specific make
and model number. This made it difficult to
locate exact part numbers from over twenty
manufacturers and hundreds of models."
Catena had to spend a lot of money to hire
sales people with the requisite technical
ability to decide and locate what the customer
needed, and make a sale.
With costs out of control and inventories
a mess, Target Wholesale experienced limitations
with tracking inventory, and the lack of real-time
access to critical information.
Catena evaluated a variety of different software;
"it was like a demo every two days. IBM
had some software; I went over there and they
put on a show for us. We looked at Great Plains,
JD Edwards, Business Vision, Mind Your Own
Business, Simply Accounting, ACCPAC and Everest
Standard Edition. Everest ERP Software was the
only software at one price-level that could
do that for us." |
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The
Solution |
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Supplying over 3,000 parts
to more than six hundred contractors, Target
Wholesale handles more makes and models now,
running on Everest. Another objective to upgrade
to Everest was to extend the business online.
Catena sees his web store as his biggest potential
to increase sales and cut down on overhead.
"Once you get it up and running, you
can add products in one side of the software
which automatically pops-up on the other side,
which is a time saving feature," said
Catena.
According to Catena the greatest advantage
to the business has been the way up-to-date
inventory is displayed.
The company 's growth in terms of sales has
doubled in every year, since upgrading to
Everest.
"Before, we were growing
the business and trying to generate customers,"
said Catena. "Now it's completely reversed
and we are making good money and the margins
are higher. With information in the system
easier to get to, Everest has everything that
Target Wholesale needs."
Target Wholesale has nearly doubled their
gross profit margins, from below 30% before
Everest to 50% and rapidly increasing.
With all the information available in a click,
the sales department can to do a better job.
"Using Everest is super-easy. I can hire
someone and within an hour they understand
the system and use it. Its good-looking icons
call for only common sense to use. I have
not had any people say anything averse."
Customers are happier as they are not kept
on hold. "We looked for software that
would take away all that frustration and aggravation.
When you phone our company, you are talking
to the order person who can give you information
faster than you can say it," said Catena.
With real-time data, information is up-to-date
and accurate. The sales person can get into
specifics through the notes, pictures and
item descriptions stored in Everest.
Operating throughout North America, Target
Wholesale has the ability to convert currency
by using the multi-currency feature in Everest,
cutting down on the accounting time.
Everest has been driving the company's profitability,
helping to gain new customers and helping
to increase shipments, without having to increase
overhead in the same proportion. Catena feels
it would have been impossible to increase
business without Everest in place. "Upgrading
to Everest has allowed me to keep my standards
at the highest possible level and ship a lot
more business," said Catena.
Running the business on Everest gives Target
Wholesale a competitive edge, making it a
leader in their industry. The company now
processes between 1500 and 1800 invoices during
peak season compared with 300 before Everest.
Target Wholesale ships the same day the order
is placed.
It's been three years since Target Wholesale
chose Everest. Today, Target Wholesale is
fully implemented on Everest Advanced Edition.
"Down the road, I envision staying
with Everest for a long time as it certainly
does the job at hand," said Catena. "I
think I could double my business this year
and that's what I am shooting for with just
adding two people instead of four. It looks
like I will firm up with a barbeque grill
manufacturer to handle their parts business;
I am super happy with Everest." Catena
targets doing 40% of his business online,
and hopes to expand into newer markets. |
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The
Result |
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6 times increase in volume with twice
the employees |
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Ability to process 1800 invoices as
compared with 300 invoices |
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Doubled their gross profit margins
from below 30% to 50% |
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Saved time with real-time information |
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Doubled sales growth every year |
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5% increased sales with
the web store and reduce headcount |
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