Distributor’s Investments In Technology Streamline Operations
Spa Parts Plus is the oldest exclusive distributor of replacement parts for the spa and hot tub industry. Founded 25 years ago, the company has grown its inventory, capabilities, and reputation over the years and now employs 30 people in two locations and stocks more than 11,000 items.
Growing a company in a niche market where margins are slim and expectations are high can be a challenge. Spa Parts Plus meets the challenge with a lean and efficient business model and by making continual investments in technology to support its model. The technology partner Spa Parts Plus turns to for ideas, assistance, and support is Silverware, Inc.
Remain Ahead of the Curve
For years Spa Parts Plus relied on an older, highly modified version of SBT, a product that would later be merged into Sage Pro ERP. “A contract programmer kept the system running, but we were not making much forward progress,” recalls Barry Knickerbocker, CEO of Spa Parts Plus.
The recent economic downturn jolted the company into action. The recession hit the spa industry hard, with some manufacturers slashing production by 75 percent. In response to slowing business, Spa Parts Plus looked for ways to maximize efficiency. “We have always relied on technology to streamline our operations,” says Knickerbocker. “But it is even more vital now as we look for ways to reduce costs and do more with less.”
Knickerbocker found Silverware, whose talented team of engineers and consultants were able to continue to support the old platform while planning for and executing an upgrade to the new technology platform.
“It is a logical move for us,” Knickerbocker says. “Our new ERP platform uses open source code and is extremely flexible. It fits our business processes and allows us to modify or add new functionality
as we need it.”
Warehouse Efficiencies Cut Costs
Silverware helped design and execute a wireless pick, pack, and ship solution for the company’s Memphis warehouse. Today, armed with handheld computers, warehouse personnel are directed to the most expedient picking path through the warehouse as they pick items for multiple orders — saving steps and fulfilling orders more quickly.
When a backordered item arrives, the system automatically selects the order and notifies the associated customer service representative that the order now can be filled. The representative then contacts the customer to see if they wish any additional items to be added to their order before it ships. “It’s entirely paperless,” explains Knickerbocker. “We can handle it all through electronic workflows and notifications.”
In fact, the overall volume of paper moving through the warehouse and corporate offices has been greatly reduced. The only documents still being printed are the packing lists enclosed with each shipment.
There is only one complaint Knickerbocker hears about his efficient shipping operation — one he is happy to hear: “Customers sometimes will call back an hour or two after they place an order wishing to add something to it. Nine times out of ten, we have already shipped the order.”
Increasing Customer Service
Customer service representatives have all the information they need to answer questions at their fingertips. “If an ordered item isn’t in stock, they can see what we have on order, and based on a vendor’s past delivery performance we calculate an accurate receipt date and based on that, an expected ship date,” explains Knickerbocker. “That information is in the system, and we’re making it available at the point of purchase to give our customers the best service possible.”
Integrated credit card processing saves valuable time by pre-authorizing the charge during order entry. As the item is shipped the transaction is completed and the invoice is updated as paid.
Spa Parts Plus also has eliminated paper invoices, sending them by e-mail or fax directly from the software instead.
eCommerce Site Works 24/7
Silverware was instrumental in bringing the Spa Part Plus eCommerce site live. Real-time integration between the accounting application and the site means that customers have access to accurate item quantities, pricing, and expected ship dates. As new items are added to the company’s inventory they can be immediately available for purchase. In addition, customers can check order statuses and view open invoices.
Trusted Technology Partner
Knickerbocker is a committed, conscientious business owner; “I feel a responsibility to the business, to its employees, to its customers, and to its vendors. I keep their best interests in mind with every decision I make.”
He feels that same commitment from the team at Silverware: “Together we have accomplished so much. We receive real value from our long-term relationship with Silverware. They aren’t in the business of just selling software; they design business solutions. They are good people with great talent.”
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