Provide a brief description of the Solution, Service Provided, or Initiative?
Stenek Corp. is one of Atlantic Canada’s leading merchandising distributors of consumer products, with expertise in product selection, planogram design, installation and management services. Servicing more than 1,200 retail locations nationally, the company is a preferred supplier of several retailers, including Foodland, IDA, Guardian, PharmaChoice, Price Chopper, Sobeys and Value Foods, among others. Stocking more than 8,000 SKUs from 400 manufacturers in 15 categories, it specializes in single unit pick and pack distribution. The company was looking to replace a homegrown warehouse management system and separate ACCPAC financial system. Though the system provided advanced capabilities, as time went on they realized they had to become software developers to maintain and upgrade the system – and as their business grew, their technology wasn’t fast or capable enough to keep up. In addition, they needed to provide efficiencies in their warehouse operations and roll out a mobile sales order solution to their merchandisers. They were looking to implement an end-to-end solution with a leading brand, increase the productivity and efficiency of their warehouse, as well as become EDI-compliant with major customers. They also wanted to increase their fill rates without increasing inventory through the use of inventory planning and mobile sales order applications, as well as increase B2B web-based sales activities. Further, compliance with major customers was increasing in the form of EDI compliance and service and fill levels. Post-implementation the fill rate is at 98%. While Stenek looked at several offerings in the market, Fortsum Business Solutions was chosen for its consultative approach to the sales cycle. Fortsum provides a global ERP solution offering that helps businesses with five to 500 employees manage their accounting, commercial and banking data. Stenek chose to implement SAP Business One, SAP Webtools, Accellos Warehouse Management System, Mobile One Handheld Technology, True Commerce EDI, TWBS EFT and Valogix Inventory Planning System. The installation of Valogix allows for automatic forecasting based upon sales history and trends and vendor lead times, while the wireless handheld ordering system, provides direct order transfer to SAP, listings by retail partner and the ability to scan retailer-specific barcodes.
Describe what makes this Solution, Service Provided, or Initiative original or innovative.How is this over and above the accepted norm?
Specializing in unit pick-and-pack distribution, Stenek is unique from other distributors in the industry, most of which only distribute products by the box or pallet. Stenek, however, will buy a pallet, break it down and put the individual units in a bin. That means technology is a huge component of the business – if they’re not good at technology, they’re not going to make money. So finding the right solution was essential to driving business growth and profitability. With the SAP ERP solution, Stenek is able to manage three high-volume order channels in one platform, including a traditional order desk, mobile sales orders from merchandisers in the field (which shows up in SAP Business One as an automated order flow) and an e-commerce site for business-to-business customers. The mobile sales order application and e-commerce site channels are pure technology plays, and Stenek has been able to master those areas through its SAP ERP implementation.
Describe the improvement this Solution, Service Provided, or Initiative made to the customer’s sales or revenues. What changed?
The solution has resulted in better forecasting capabilities, which has reduced inventory levels while increasing service levels. It has allowed Stenek to reach a 98 per cent fill rate on orders, which is a dramatic increase from previous levels – allowing them to do more business without expanding physically. They haven’t had to hire any additional staff, even though the business has grown. And the mobile sales order application and e-commerce site have helped to increase business volumes, while decreasing fulfillment times.
Describe the improvement this Solution, Service Provided, or Initiative made to the customer’s efficiency. What changed?
The solution has allowed Stenek to improve their rows-picked-per-hour rate from about 200 to 500, meaning they can fill more orders more quickly. Stenek now operates one of the most modern distribution centres in Canada, using the latest in technology, such as wireless stock picking trucks equipped with laser scanning to ensure orders are accurate the first time around. The company ships upwards of 60,000 units per day, and the ERP system records the contents of each tote, producing a pack slip sorted by tote number, which allows for error-free receiving of large orders. The e-commerce site is also scalable, allowing the business to grow as the company grows without needing to add more people.
How did this Solution, Service Provided, or Initiative improve the customer’s ability to serve its internal and/or external clients?
The solution has improved customer satisfaction levels in several ways. To remain competitive, Stenek had to become EDI-compliant with its largest customers. Sobeys, for example, measures its suppliers on fill rates, and now Stenek is able to meet those stringent requirements. And with more than 30 field merchandisers, Stenek is able to provide extensive retail coverage in Atlantic Canada. Merchandisers no longer have to drop off their orders at the warehouse or fax them in – they can do it instantly in the field. Merchandisers are equipped with wireless handhelds and can transmit customer orders to the warehouse in less than five minutes. The B2B e-commerce site is easy to use, yet responsive, allowing customers to browse by brand, category, latest additions and promotions. They can also create a personalized “favourites” list with the click of a mouse, and the auto-save feature allows them to build their order over hours or days. Setup options include restricted buying, multiple buyers, approval routing and e-mail confirmation.
In what ways does this Solution, Service Provided, or Initiative go above and beyond industry norms and expectations?
This was a large, complex project with an end-to-end scope, including ERP, warehouse management, e-commerce, inventory planning and EDI. It included the successful delivery of a mobile sales order application with the merchandising team and a scalable e-commerce web site for B2B customers. What’s unique, however, is how the solution enables Stenek to funnel all different order channels into the warehouse, allowing them to master each channel. As a result, this mid-market company can compete in a highly competitive industry – typically with much larger distributors – and still make money. Its intelligent use of technology has allowed the company to build a niche for itself in the distribution business and satisfy large customers such as Sobeys. And the company is able to run a successful unit pick-and-pack distribution business, which would be challenging to do without the right technology tools in place. Going forward the company will incorporate more business intelligence features into the solution to continue to serve its customers and increase profitability – and effectively compete with much larger distributors.