Monday, October 08, 2012

Rexel selects IFS Applications™ to streamline operations

IFS, the global enterprise applications company, today announced that Rexel, a global leader in distributing electrical equipment and services, will implement the component-based ERP suite IFS Applications™ to streamline its operations and execute its growth plan.

Rexel is a global electrical distribution and services company active in 37 countries around the world. In P.R. China, Rexel has 34 sales locations and ten stock locations. According to Benoit Le Chatelier, Rexel China’s Managing Director, following a number of acquisitions, the company has amassed several business systems that needed to be consolidated. Furthermore, the old systems do not meet the company’s business requirements today, missing end-to-end business flow.

"With over 100,000 products in our article masterfile, 4000 order lines per day, and a wide variety of purchasing and selling scenarios, we needed a system that could help manage the complexity of Rexel’s business needs in an efficient way, and still be simple to implement and user-friendly,” says Le Chatelier.

After a detailed evaluation of six different vendors, Rexel selected IFS Applications because it was the most comprehensive, easy-to-use ERP suite on the market, which could be implemented rapidly without extensive customization. “For our employees, the key selling point was the intuitive ‘walk-up-and-use’ interface, which will help improve productivity across the business. We spoke to several other IFS users, including other players in professional distribution, who all said that implementation of the ERP suite had been easy, and the system well-received by their staff.”

With a proven track record in large distribution companies around the world—including Shanghai Pepsi-Cola Co. Ltd in P.R. China—IFS Applications will be rolled out in a phased approach across Rexel's different business entities. Implementation will begin in October 2012 and the first phase is expected to be delivered by April 2013, with phase two expected to be completed by early 2014. It is anticipated that IFS Applications will be implemented in other Asian countries thereafter.

IFS Applications will replace Rexel’s current disparate systems to manage the whole process from the initial customer quotation through to automated inventory replenishment, delivery and payment. IFS Applications will also handle costing, pricing, warehouse management, and financials. “The IFS system will give us real-time reports for all our business processes, not only for financial reporting but also inventory management and customer management,” says Le Chatelier.

The company also expects to gain efficiencies in a number of areas to achieve additional earnings that will pay for the new ERP system within two and a half years of going live. Rexel expects upsides in gross margin from fine-tuned pricing and costing, increased operational efficiency and better inventory management. “IFS will consolidate all of our operations into one system, provide transparency and consistency across the organization to enable us to make informed business decisions quicker,” says Le Chatelier.

“We are delighted to welcome Rexel as one of our customers,” said Raymond Lam, General Manager at IFS China. “Companies focused on managing the distribution and replenishment of stock need a global solution that will enable them to shorten their time to market and respond to market changes. We look forward to partnering with Rexel to help them achieve their business goals.”

About Rexel

Rexel, a global leader in the distribution of sustainable and innovative products and services for automation, technical supply and energy management, addresses three main markets - industrial, commercial and residential. The Group supports customers around the globe, wherever they are, to create value and run their businesses better. With a network of some 2,100 branches in 37 countries, and over 28,000 employees, Rexel’s sales were €12.7 billion in 2011. Its majority shareholders are an investor group led by Clayton, Dubilier & Rice, Eurazeo and BAML Capital Partners. Rexel is listed on the Eurolist market of Euronext Paris (compartment A, ticker RXL, ISIN code FR0010451203). It is included in the following indices: SBF 120, CAC Mid 100, CAC AllTrade, CAC AllShares, FTSE EuroMid, FTSE4Good, STOXX600 and ASPI Eurozone

For further information, please visit Rexel’s web site at www.rexel.com

About IFS

IFS is a public company (OMX STO: IFS) founded in 1983 that develops, supplies, and implements IFS Applications™, a component-based extended ERP suite built on SOA technology. IFS focuses on industries where any of four core processes are strategic: Service & asset management, manufacturing, supply chain and projects. The company has 2,000 customers and is present in approximately 60 countries with 2,800 employees in total. Net revenue in 2011 was SKr 2.6 billion.

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Contact Information

Vice President Corporate Communications Oliver Pilgerstorfer

Phone: +44 1494 428900

Contact Oliver Pilgerstorfer

Head of IR Frédéric Guigues

Phone: +46 8 58 78 45 00

Contact Frédéric Guigues