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Industrial machinery and equipment Vertical industry brief

Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

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Page 1: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Industrial machineryand equipment

Vertical industry brief

Page 2: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Production and design: Global Sales and Marketing department

IBS, ASW and IBS VIRTUAL ENTERPRISE are registered trademarks of IBS AB, in the European Union and in other countries. IBM, AS/400, iSeries, Lotus Notes, andWebSphere are registered trademarks of International Business Machines Corporation. All other trademarks or registered trademarks mentioned herein are the propertyof their respective holders. The information contained in this document is summary in nature, subject to change and intended for general information only. The details

pertaining to functionality and routines are based on IBS software, post release 5.50. For updates of this information, please contact your local IBS representative. © Copyright IBS 2003.

Page 3: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

ContentIntroduction

Market situation and trends 4Global economic factors

Home-front economics

Lifetime management of capital assets

Return to profitability - winning strategies

Implications on IME distribution

IBS software - a competitive advantage 9

Tailored for industrial machinery and equipment 10

IntroductionThis vertical industry brief highlights some best practices and current

trends specific to the industrial machinery and equipment (IME)

distribution sector. It is directed toward distributors who are faced with

industry-specific challenges and opportunities and who are looking for

solutions. This brief highlights several high-level market trends and

issues and identifies some competitive advantages to be gained from a

fully integrated, demand-driven business solution specifically designed

for the IME distribution, service and parts business.

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Page 4: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Market situation and trendsDistributors of industrial machinery and equipment include companiesinvolved in the sourcing, supply, installation, servicing, repair, decommis-sioning, rebuilding or reselling of any machinery or equipment typicallyassociated with an industrial production process. Distributors may alsoprovide services such as financing, renting, loaning or leasing of machineryand equipment.

Along with industrial suppliers, IME distributors supply the asset itself,plus spare parts and consumables; IME suppliers also provide a high levelof aftercare service. Some IME suppliers are small family-owned businessesproviding machinery and manufacturing, repair and operations (MRO)requirements for local industry. Others are dealerships offering exclusivesales and service support for specific suppliers' branded products, oftenfor major account customers worldwide. Distributors may also providegoods and services for industries including heavy manufacturing, con-struction, forestry, materials handling and metalworking. These customersmay require sales and service for items ranging from small parts forfreight elevator repairs to entire construction cranes.

According to the US Department of Commerce, consumers and businessesspend more than USD 700b on spare parts and service, of whichapproximately one quarter is for IME. However, recent downturns incapital spending have forced businesses to extend the working life ofmachinery and equipment assets, which requires even more profit-and-lossspending on spare parts and service.

Global economic factorsLower labour costs have driven the migration of the manufacturing basefrom the US and Western Europe to other countries, notably China,South Korea, Malaysia and Mexico, in the past 20 years. This shift inproduction capacity and capital goods has created demand for newmachinery and equipment, together with service support and spares.IME suppliers and distributors rushed to take advantage of these emergingoverseas markets and the challenges of providing service support.Larger, brand-recognised IME suppliers often established their presencethrough state-sponsored development projects. Smaller distributionbusinesses formed partnerships with local companies to achieve a moreglobal market presence.

Countries like Japan, South Korea and Malaysia started to produce theirown machines, plant and equipment at much lower costs. They exportedthese goods to the West, creating more choice, competitive landed costprices and an over-supply in the capital goods marketplace. This benefitedthose IME distributors who partnered with the overseas suppliers toform dealership networks. Western manufacturers of IME found it difficultto compete on price both at home and abroad: they have turned totheir distributors to cut costs and to provide exceptional service to theircustomers.

Global IME distribution networks require superior service managementsystems to manage their planning processes and align their service partsinventories and engineering support with their customers' requirements.This service-oriented approach also applies to national distributors whohave domestic supply chains, with regional distribution centres that supplybranches, mobile service units and some customer's vendor-managedinventory (VMI).

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IME distributors thumbnail sketch:• IME suppliers are competing for

market share

• Overlap with industrial supplies,but with more aftercare service

• Family-owned businesses to globalenterprises

• Decrease in capital spending since2000 has driven greater demandfor parts and service.

Global economic factors:

• Manufacturing base moving todeveloping countries

• Distribution industry shifting to follow manufacturers

• Distributors changing to service-oriented alignment.

Page 5: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Home-front economicsIn the US and the EU, capital spending has declined by approximatelyeleven percent each year since 2000. Declining sales have compelledmany IME distributors to survive by cutting costs and service levels.Supply branches are closing as spare parts inventories are shipped backto regional distribution centres or to third-party logistic (3PL) companies,contracted to manage the inventory and parts distribution. These cutbackslengthen the requisition process for spare parts, which in turn delaysservice job completion and production. Ultimately, declining service levelshave a negative impact on customer satisfaction - not to mention theprofitability of distributors.

Some market analysts believe that the global economy is over-stimulatedby the manufacturing capacity of countries with cheaper labour costs,and that a healthier economy may be a long way off. Many distributorshave cut costs and margins to compete on price, but at the expense ofdwindling profits.

Those distributors who are making the best 'returns on total assets'(ROTA) understand that productivity is the essence of profitability. Theyare adopting winning strategies to increase their competitiveness and tomaintain consistently better-than-average profits.

Lifetime management of capital assetsIME distributors are also motivated by the supply chain industry'sincreased focus on customer service and value-added services. This factor,plus sheer competition for market share, has led to such developmentsas vendor-managed inventory at original equipment manufacturers(OEMs) and distributor alliances. Competitors and customers provide thedrive to develop new management and operations techniques inresponse to dynamic market situations.

Value-added services play a strategic role in asset management, in whichOEMs outsource the servicing, maintenance and repair of capital plantsto IME companies. During the past two decades, OEMs have turned toMRO distributors to handle inventory and procurement at manufacturingsites, through integrated service and supply contracts. VMI has slowed inrecent years: some 24 percent of distributors, according to a recentstudy, have integrated supply arrangements. The large distributors whodo rely on integrated supply, however, are gaining bigger revenue sharescompared to the industry at large.

In today's IME market, most items of machinery are individually configuredand built to order. The asset may then later be retired, refurbished andresold. Serial number tracking is essential for accurate location, trackingand service history of primary assets and subcomponents.

Serial number costing is also important, as each asset often has a uniqueinstallation cost and service cost history. OEMs often require informationon the ongoing cost of asset maintenance compared to the cost ofreplacing it. Often this information is used to negotiate rental or leasingagreements that roll over asset replacements.

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Economic indicators at home and abroad:• Manufacturing base migrating to

other global regions

• Increase in global distribution ofIME

• Alignment of parts and service tocustomers' requirements

• Home-based IME suppliers aredownsizing.

Capital assets managementemerges as a focus:• Shift to value-added services forces

emphasis on assets

• OEMs turn to distributors to handleinventory and procurement

• Assets must be tracked for servicehistory and agreements

• Distributors must have serial number costing and tracking.

Page 6: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Return to profitability - winning strategiesIME distributors who are achieving higher-than-average ROTA havedeveloped specific strategies to maximise the 'value proposition' theycan offer their customers. These distributors have implemented technologysolutions to ensure:

• Alignment of inventory with customer requirements

• Optimisation of costly field service labour forces

• Flexible service billing and reporting procedures.

Recovering parts or labour costs that are billable or recoverable underwarranty plays a critical role in survival strategy. Some companies lose asmuch as two to three percent profitability due to ineffective warrantyclaims capability.

Maximising productivity for IME companies starts with these capabilitiesin place as part of an integrated system:

1. Internal supply chain systems to manage the dependent demand and replenishment of parts, from distribution centre to branch to service vehicle and to customer's VMI.

2. Automated forecasting and procurement processes for basic commodities and spare parts replenishment.

3. Efficient warehouse management, stock availability and stock location systems, fully cross-referenced and normalised in termsof stock descriptions and look-ups.

4. Clearly defined policy on whether high-value capital goods items are held in stock, made to order or back-to-back directly delivered to customers.

5. Visibility of the capacity constraints of service engineers to handle priority situations with fast rescheduling.

6. Measurement of critical KPIs in all areas of the business, in order to gauge profitability.

To build on the basics, high ROTA IME companies run a fully integratedcustomer care and service management system, which can manage thelife cycle of capital assets by keeping a complete service history. Top IMEsuppliers must be able to quantify the service levels provided to theircustomers and measure their service performance. They must be able toidentify their most profitable customers, products and services - and,equally important, those that do not make a net contribution to profits.

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Use technology solutions to maximise profitability:• Align inventory to customer

requirements

• Measure service levels and performance

• Identify profitable and non-profitable customers/products

• Identify and measure KPIs.

Page 7: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

The 80 / 20 rule can be applied to examine customer and product netcontributions to 'Profits Before Tax' (PBT). This exercise helps to identifythe top ten percent most profitable customers and those bottom 20percent of customers whose accounts are draining profits.

Two strategies should be applied after you identify your top and bottomcustomers:

1. Get rid of the customers who are eroding profits, so that you can re-deploy the resources consumed in managing their accounts to more profitable areas.

2. Take the top performing customers and apply the '10 by 10 matrix' to identify which products your most profitable customers are buying.

As an IME distributor, you need to analyse which products your bestcustomers are buying and those that they ought to be buying. Work onselling strategies to fill in the gaps: sell more of your profitable productsto your profitable customers. In the IME industry, focus on up-sellingand cross-selling complementary products - for example, selling jigs,chucks, drill bits and lubricants, when supplying a new lathe.

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Our experience with boththe software and IBS as apartner is good.

Sylvain Lemmens, Head of Operations and IT in Europe, Tyco Thermal Controls

Page 8: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Implications on IME distributionIndustrial machinery and equipment distributors are faced with:

• Global economic factors that require a broadening of distributionnetworks. Distributors must acquire accurate planning processes aligninventory and service to respond to changing customer requirements.

• Home-front economic factors, producing price competition that hasdictated cuts in cost and margins. Distributors must adopt strategiesthat optimise service levels and productivity.

• A continuing industry focus on capital assets management, especiallyin regard to VMI and MRO suppliers. This development requires dis-tributors to respond to customer demands for value-added services(VAS), with an increased reliance on the prolonged working life ofinventory and parts.

• The challenge to develop strategies for profitability. Distributors mustbe able to identify, and then focus on, customers and products thatgenerate profit.

A fully integrated, automated system is indispensable for providing theproduct, service and customer information that is vital for operations,analysis and planning.

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Page 9: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

IBS software - a competitive advantageIBS provides complete solutions for supply chain management, distribution,financial control and demand-driven manufacturing, including software,implementation, financing, training and service. With 25 years ofdevelopment, the company's products have a solid history of supportingenterprise warehouse and logistics management.

IBS develops, implements and supports world-class distribution and supplychain management software. Recent studies by AMR Research and Frost& Sullivan rated IBS as the market leader for supply chain executionsoftware. IBS also ranks among the top three globally active supplychain management suppliers.

Software that aims for business valueSupply chain software from IBS is designed to help your companyincrease your profits and be very agile in how you manage your businessoperations. Our aim is for you to achieve a faster return on your techno-logy investment and that the business benefits you expect are identifiableand measurable. The database structure and our own BusinessPerformance Director will enable you to set targets and measure perform-ance over a period of time to monitor that you are actually achievingyour return on investment.

The ASW software suite, along with enhanced products such as ASWPLANNER VIEW and ASW NETSTORE, provides you with a comprehensivemodular solution that can be customised to your needs. IBS' intelligentsupply chain software automates and optimises routines and is completelyscalable, and thus able to grow with your business. IBS software helpsto streamline processes through automation and real-time control ofinformation.

IBS gives you software that pays for itself, helping to reduce operatingcosts and capital outlay without cutting service. You can allocate moreresources to setting and fulfilling goals for products, sales and customers.The IBS solution fits any size of enterprise, including global multi distri-bution systems with full language, currency and regulatory support.

In addition, IBS provides top-level hardware and after-the-sale servicesupport, including project management and implementation throughthe IBS Implementation Control Process, which has a proven successrecord. IBS consultants work on-site with your company to provide asmooth transition to an integrated solution. Your business processesdrive the system, and we work with you to implement best practices foryour industry.

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IBS solution for industrial machinery and equipment distribution

Solution:Software: ASW 5.00+

Modules:

• ASW DISTRIBUTION

• ASW FINANCIALS

• ASW INDUSTRIAL MANUFACTURING

• ASW INVENTORY CONTROL

• ASW NETSTORE

• ASW PLANNER VIEW

• ASW PRODUCT CONFIGURATOR

• ASW PROJECT MANAGEMENT

• ASW SALES AND MARKETING SUPPORT

• ASW SERVICE

• ASW WAREHOUSE MANAGEMENT

• IBS BUSINESS INTELLIGENCE.

Hardware: IBM iSeries eServers

IBS had moderntechnology, it gave us thefunctionality we wanted, andit was the right price.

Ryan Self, Business Systems Group Manager,Honeywell Aerospace

Page 10: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Tailored for industrial machinery andequipmentIndustrial machinery and equipment suppliers and manufacturers canreap big benefits from IBS' integrated business software solution, includingthese major functional areas:

• Customer relationship management• Purchasing and procurement• Customer service management and field service • Project control and installation management• Warehouse and inventory management• Financials and business intelligence.

This section highlights some of the many advantages that your IMEbusiness can gain with IBS software.

Customer relations management The need to align your business with your customers means that youneed to know as much about their business as they do. Fierce competitionfor market share underlines the need to deliver first-class service andattention to every aspect of the business relationship. Distributors mustseek out new ways to sell products and to attract and retain customers.As a result of this pressure, IME suppliers must have a more intensefocus on customer relations management (CRM). With the IBS solution,you can cater to individual customer requirements and handle theiraccounts in relation to their value to your business.

IBS' solution addresses specific CRM and service management needs forIME distributors, such as:

• Quotation management linked to product configuration - ASWPRODUCT CONFIGURATOR helps to ensure component accuracy and integrityfor creating made-to-order BOMs that fit customer specifications. Thequotation can be copied to a supply contract or a sales order. Dependingon the sourcing requirement, the sales order will also generate anassembly instruction, a manufacturing order (within ASWMANUFACTURING) or a back-to-back purchase order on a supplier.

• Sourcing for rush orders and special orders - The system's automaticproduct sourcing capability is ready-made for rush orders, back-to-back orders or alternative and replacement parts. The Smart OrderEntry function lets you retrieve and search for order information withoutkeying part code, quantity or other information. Multiple sales orderlines can be created automatically. In addition, ASW MULTI DISTRIBUTION

CENTRE enhances the ability to find and allocate stock in a multi-branchenvironment. Enhanced parts visibility can help to produce shorterorder fulfilment lead-times and improve accuracy.

• Customer self-service - Web-enabled customers can use ASWNETSTORE capabilities to place sales and service orders and check partavailability and pricing, reducing your operation's administrative andstaff costs and providing 24/7 one-stop-shop service to your customers.

• Prospect management - ASW SALES AND MARKETING SUPPORT completesthe CRM suite with the ability to manage prospects until they becomecustomers. It also includes marketing and sales campaign or eventmanagement, with call scheduling and a complete record of everycommunication with prospects, customers and business partners.

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We have been able toremove 70 percent of our

complex discount codes, making our cost and revenuesituation much more transparent

Peter Swahn, IT Manager, Kidde

Page 11: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Purchasing and procurement supportIME distributors need to balance their inventory levels for machinery,equipment and spare parts with their service levels. ASW's productsegmentation capability is vital for this task (high value/low turnover versuslow value/high turnover versus low value/low turnover). ASW's inventoryreplenishment suggestions will advise you what you need to purchase,when and how much.

ASW is built to allow procurement on a wide-ranging basis, includingstrategic sourcing, to help your business secure items at the best price.Coupled with automated warehousing and inventory routines thatmaintain optimal stock levels, IBS' procurement measures help you minimisetotal supply chain costs through lower inventory holding costs, operatingcosts and the most efficient purchasing methods.

The IBS solution gives you advanced purchasing capabilities, such as IBSWEB SUPPLIER MANAGER with automated sourcing categories, that drivedown costs through better procurement processes and reduced overheads.

• Advanced purchase simulation - Based on current information fromthroughout the system, this analysis helps you to determine realprocurement costs. It also makes possible direct automatic replenishmentbased on the analysis results.

• Purchase suggestion management - The IBS solution providessuggestion management capabilities with automatic review codes forproduct lines, helping to ensure accuracy, maximum line value, stocklevels and optimised reorder values. Functions include special buyevaluation, interactive line buying and ASW PLANNER VIEW, which givesa complete overview of the procurement plan.

• Automated purchase order creation - Purchase orders can be createdautomatically, based on system suggestions when user-defined criteriaare satisfied. The system will can also check order points instead ofperforming this manually. The automated routine helps to reducelabour costs and errors.

• Landed cost - The IBS solution automates the calculation of landedcost, which can be spread over several purchase order lines in acontainer or a reception. This can lower indirect overhead throughmore accurate inventory costing at goods reception.

• Advanced RFQ capabilities - Requests for quotations can be generatedautomatically and sent to suppliers through EDI, XML, Web-servicecommunications, fax or email. This quick creation and transmissioncan result in lower administrative costs, better prices and the ability tonegotiate more favourable conditions and agreements.

In addition, the IBS solution includes other automated solutions forstrategic sourcing, including powerful reporting that helps you to followup rejected deliveries, back-orders, discounts and prices as well as provideinformation on supplier lead-times and service level analysis.

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Page 12: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Customer service management and field serviceSelling machinery and equipment to your customers starts the relationship.ASW CUSTOMER MANAGEMENT CONSOLE enables you to continue that rela-tionship by providing preventative maintenance, spare parts and servicecall-outs as quickly and efficiently as possible. You can plan and monitorspare parts and service engineering resources by using easy-accessonline enquiries or ASW PLANNER VIEW, which provides complete visibilityof service jobs and engineer schedules.

ASW SERVICE focuses on:

• Service agreements for single or multiple machinery or equipmentitems, with billing options for periodic rental or lease charges.Different conditions can be attached to each service agreement -response times, completion times, parts and labour free or priced.

• Preventative maintenance - ASW SERVICE lets you schedule automaticpreventative maintenance to keep machinery and equipment in peakcondition. It includes a preventative service calendar, recommendedservice engineers according to service qualification and recommendedservice kits. Preventative maintenance can also be used to service yourown assets.

• Advanced tools for service order management capabilities - IBS'solution offers a full range of capabilities for top service order man-agement, including: mobile service order dispatching to engineers,ASW PLANNER VIEW graphical planning tool for service orders, effectivetime reporting and automatic generation of internal and externalinvoices.

• Warranty management makes sure that, wherever possible, freeparts and labour are recorded and recovered. Items of machinery andequipment can have multiple warranty contracts covering specific serialnumbered components.

• Service object handling keeps a complete history during the lifetimeof the item and beyond (if it is refurbished and reused). This historydetails the item's configuration, its installation costs and a completeservice history. Documents and drawings can be attached to the serviceobject together with an unlimited amount of text.

Project control and installation managementASW PROJECT MANAGEMENT is designed to handle machinery and equipmentinstallations from the quotation stage through to final invoicing. Projectscan have several phases, and each phase can include numerous jobsthat can be costed individually. Using ASW PROJECT MANAGEMENT, you canplan, coordinate and track each stage of the installation until its comple-tion. Some specific features include:

• Project definition, where the installation can be planned over severalfiscal years if need be. Each phase can cover issues such as design andlayout (with attachments for actual blue prints and drawings), orderingmachinery and equipment, assembly, subcontracting, and on-sitecommissioning.

• Issuance of quotations to customers - The quotation and the projectwill share a common structure and multiple versions can be created asthe design and specifications are amended. Once a quotation is acceptedit initiates an active project.

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• Budgetary control - Each element of each phase can be separatelycosted and budgeted. Each element such as engineering, workshop,installation and sub-contracting may have separate cost codes. Budgetsmay be varied during the project and switched between cost codes.

• Purchase requisitions and purchase orders for machinery and equip-ment, components and sub-contracted work can be linked to the project.

• Invoicing can be either phased according an agreed plan or based onactual time and materials.

Warehousing and inventory controlIBS software supports advanced, automated warehousing and inventorymanagement techniques that increase response time, helping to keepboth errors and inventory to a minimum.

The IBS solution helps you keep tabs on warehousing operations and spareparts inventory levels throughout your own internal supply chain, ensuringthat parts can be easily located and dispatched to where they are needed.

IBS' automated warehousing solution handles all phases of machinery andspare parts distribution, from reception all the way through put-away,picking and despatch. Specific advantages for IME distributors include:

• Distribution Resource Planning (DRP) manages your internal supplychain from national to regional, to branch to service vehicle. DRPmanages your internal supply chain dependencies, generating internalreplenishment suggestions and orders (IROs) to re-supply the actualservice locations.

• Spare part identification - One item such as a bearing might havemultiple manufacturer's, customer's and supplier's part number, atdifferent prices. When a customer needs a part, you can enter partspecifications, look at the options and make the best choice based onthe customer's preference.

• SKU management - Dealing with hundreds of thousands of SKUnumbers, often with catalogue support for non-stocked items, is adaunting task, The IBS solution helps you manage the number ofSKUs you are required to stock, helping to reduce overhead costs.

• Inventory segmentation - You can classify all stock items based onvolume value classifications, helping to plan products more effectively.This feature can help identify products that are, for example, high-turnover, low-margin, high-value (such pumps and generators), andslow-moving, optimising your capital tied to inventory. This is especiallyuseful for spare parts that have a very long shelf life, requiring verylow re-order points (ROPs) and economical order quantities (EOQs).

• Stock optimisation - ASW INVENTORY CONTROL provides you with toolsfor dynamic demand forecasting for different item segments, automatedreplenishment suggestions, inventory analysis and simulations. All ofthese functions help to ensure that the right parts are ordered andavailable in stock.

• Bar code and radio frequency (RF) support - Fully integrated supportfor bar coding and RF handling automates the recognition, trackingand communication of serial and batch codes, helping to avoid pickand put-away errors, provide labelling accuracy and, ultimately, highercustomer satisfaction.

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The new integratedapproach enables us toimprove communications,reduce delivery times andultimately to serve our customers better

John Lashbrook, Head of IT, EnerSys Europe and Asia

Page 14: Vertical industry brief Industrial machinery and equipment · machinery and equipment assets, which requires even more profit-and-loss spending on spare parts and service. Global

Financials and business intelligence advantagesIME suppliers need to be able to analyse costs and margins by installation,service job, repair order and service object. They must also have completeaccountability and control of internal and external costs and billablerevenue. Industry best practice now dictates that customer and productnet margin analysis should determine which products are sold only tothose customers who contribute to the company's profitability. IBS'integrated system of financials and business intelligence lets you mineand use all the day-to-day transactional information, suitably summarisedto make the best informed decisions.

FinancialsIn addition to the usual financial functions - such as comprehensiveGeneral Ledger, reconciliation and banking functions, and powerfulreporting capabilities - ASW FINANCIALS handles specific problems that canhelp IME suppliers improve their profitability and cash flow, including:

• Accounts receivable - ASW FINANCIALS helps your credit controllersmanage their average days debt outstanding and their cash-to-cashcycles.

• Automatic G/L journal creation - Every time inventory moves orchanges in value, from receipt to sales and service, invoicing will triggerthe creation of a G/L journal. Physical inventory will always reconcileto G/L stock.

• Invoice registration and authorisation with three-way supplierinvoice matching, including matching of landed cost items.

• A/P payment scheduling to pay on time by cheque or electronictransfer, updating the cash book for easy bank reconciliation.

• Full VAT analysis and reporting, country specific Intrastat reports,including plant and machinery movements across borders, and quarterlysales reports.

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Business intelligenceAccurate, timely analysis is critical to the decision making process. Allthe transactional information in the ASW data warehouse can be sum-marised, sliced and diced according to your own requirements. IBS candeliver business intelligence to your desktop so that you can makeinformed decisions, easily distributing and sharing reports and graphsaround your organisation.

ASW ANALYSER, along with IBS BUSINESS INTELLIGENCE, includes many usefulfeatures to help you know your business better:

• Customer and product net margin analysis, ranking your customersaccording to the contribution they are making to your profits. The costinformation is generated as a by-product of daily transaction processing,so that costly, time-consuming, activity-based costing exercises can beavoided.

• Business Performance Director. Based on the Supply ChainOperations Reference model, this simple view of your business opera-tions can be customised, enabling you to measure actual performancetrends against set targets and industry standards.

• Critical Success Factor panels provide a graphical and numericpresentation of current vital business factors. It can be used to monitortime-sensitive information such as number of service orders enteredtoday, orders on credit hold, aged debt balances and critical stockbalances.

• Management Report Writer enables you to construct your ownreports, which can be viewed on-line, letting you drill down to theunderlying details and the original source documents.

• Single-click download to spreadsheets, conversion to graphs orHTML format for emailing or web publication.

• Data warehousing power, through IBS BUSINESS INTELLIGENCE, whichlets you extract, analyse, gauge and compare data from within all ofyour business systems. This module provides an invaluable tool for alltop-level management decision-making, ranging from key performanceindicators (KPIs) and ROI calculations, to improved business partnerperformance overviews, competitiveness analysis and internal efficiencycontrol.

From the range of fully integrated software modules available, you canselect the software components you need, easily activating additionalmodules or upgrading to new releases when you wish. You can step upto new e-business and supply chain opportunities at a pace that suitsyour company.

IBS has the right software for you, and the experience ofworldwide installations. Are you interested in finding outmore?

Contact IBS today - [email protected] or visitwww.ibs.net

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IBS corporate headquarters: +46-8-627 2300 • [email protected] • www.ibs.net

IBS is a world leading provider of supply chain management solutions for distribution, demand-driven manufacturing,financials and business intelligence. IBS delivers measurable value through software solutions, services, hardware,outsourcing and financing. IBS offers industry solutions for the automotive aftermarket and industrial machinerywith Cramo, Goodyear, Honeywell Aerospace, Mitsubishi and Trima among its 5,000 customers in 40 countries.