The Challenge:A leading, high-end cabinetry hardware supplier, Hettich Canada operates in a highly competitive environment. With a staff of 50 people, Hettich Canada distributes hinges, drawer systems and connecting fittings to be used in the assembly of cabinets, vanities, furniture and specialty millwork products - all products vying for position with rival products. Both cost-containment and customer satisfaction are critical to Hettich in order to maintain a competitive edge.
This is no simple challenge: with an ever-increasing inventory comprised of more than 20,000 SKU's, Hettich struggled with issues that hurt the company, both in terms of cost control and relationships with customers:
- Inaccurate order fulfillment
- Tracking out-of-stock items
- Searching for misplaced inventory
Meanwhile, management struggled with pricing issues. Without accurate information about product turnover and margins, they were unable to forecast demand, assess profitability on a product level, or determine effective pricing strategies.
The Solution:By taking the time to listen and understand all of the company's issues and requirements, Beckard Associates was able to quickly identify solutions. Taking advantage of MasterWorks' built-in customization features, Beckard adapted the integrated distribution and financial services software to meet all of Hettich's needs.
Here were the most important improvements:
- Access to real-time information for sales people - so that they could accurately quote prices and on-hand stock, perform product demos, reduce paperwork, and communicate efficiently with Head Office staff.
- Introduction of Electronic Data Integration (EDI) to improve customer and supplier relationships -and significantly decrease costs associated with placing orders over the phone.
- Real-time information about customer buying habits, customer groups, and costs for analysis of profit margins, credit limits, and pricing structures.
The Results:Within three months of the MasterWorks implementation, Hettich Canada had solved its most pressing problems:
- With real-time information at their fingertips, sales representatives no longer needed to worry about damaging client relationships by giving out inaccurate information. Morale improved - as did the relationship with Head Office.
- Management was able to create proactive price strategies, constructing customized pricing lists based on analysis of accurate up-to-date information.
- Communication with the Corporate Office in Germany also improved, thanks to the daily reports sent by Hettich Canada through EDI.
Mike Squizzato, President,