Tech-distributors streamline stock with Ixchange`s Ability

Siltek Telecoms, a local distributor of telecoms equipment such as Lucent`s range of voice products, and Workgroup Systems, an IT software distributor in the Siltek group, have standardised their respective stock-control systems on JSE-listed Ixchange`s ProfitAbility, part of the Ability suite of business management solutions.

Siltek Telecoms` financial manager, Steven Dent, says the company carries a wide range of high-value products and its previous system was not able to handle the number of line items in the warehouse. "We needed a system that could handle the complexities of our low-volume, high-value business. ProfitAbility enables us to get a better handle on what inventory we have in stock, as well as the ageing and logistics issues of the telecoms distribution business."

Dent says ProfitAbility has improved the company`s turnaround dramatically, with staff able to pick items in a matter of minutes. ProfitAbility gave Siltek Telecoms the ability to serialise every item (utilising bar code scanners) in their warehouse with full bin tracking allowing them to have accurate records of inventory levels and stock availability. Serial number tracking also assists the company in keeping track of faulty equipment and warranty issues.

Dent adds that the ProfitAbility e-commerce module was installed as well due to the company`s strategic adoption of e-commerce. "This option has been installed and our dealers are ready to take the e-commerce system live. This solution will take the pressure off our backoffice in terms of order processing."

The e-commerce module allows dealers to place orders online, with the picking slip immediately printed in warehouse ready for picking, invoicing and shipping.

The Siltek Telecoms deal is for 20 licenses of ProfitAbility, ReportAbility (the reporting tools for the Ability suite), and AdaptAbility (the tools for integrating the Ability applications to various databases), worth about R300 000.

Workgroup Systems` relationship with ProfitAbility stems from the fact that the original version of the product was developed at Workgroup between 1993 and 1996 when ownership was transferred to Ixchange.

With R500 million annual turnover, 150 users, 3 500 active clients, over 8 000 active product items and an average annual stock turn of twelve, financial director Vaughn Parkin says the company needed to upgrade its stock control system and chose a system they knew and trusted to manage the distribution process. The greatest need of the business was to be able to control the thousands of software products` part and product numbers.

Workgroup has two main business streams: one dealing with retail-focussed sales, and the other focussing on corporate clients. The previous method of control was to manually link the company`s stock control system with the AccPac database. ProfitAbility allows Workgroup to combine the two phases by including a complete, integrated back-end accounting system (AccountAbility) with ProfitAbility.

Parkin also notes that the speed of processing has improved, especially for staff located around the country who access the system via Citrix thin clients. Workgroup`s stock control system runs on Compaq servers running Windows NT, located at the head office in Johannesburg and serves approximately 150 users. The upgrade cost in the region of R200 000.