IFS Offered Functional Fit and Stability
IFS was selected on the basis of two key criteria; its functional fit, delivering flexibility without the need for major customization; and the fact that IFS was a stable company offering the expertise and resources needed to support the future development of the software. The evaluation was fairly straightforward, says Operations Managing Director, Graham Stuart. “Basically we wanted a generic package with sufficient flexibility to meet our requirements.”
Availability of Information
One early win has been the immediate availability of information. “I can now call up a list of purchase orders with totals for a week within the Operations group and sort the list by branch or by supplier. Previously this would have been impossible,” says Graham Stuart. “I can do it instantly and I do not have to ask anybody.” “And the quality of information we can get back from IFS is superb. I can’t speak highly enough of it. We put in a lot of effort during the set up and design period, which is clearly paying back in many ways.”
Return on Investment
Graham Stuart believes that the company should now be able to handle up to 40 percent additional business without increasing administrative staff levels. “We are now in a better position to take advantage of new opportunities and grow the business without increasing our overhead. So in that respect we will capitalize on our investment fully on a long-term basis.”
Better Control of Costs and Margins
Financially, the main advantage is better control of costs and therefore gross margins. Previously the company relied on historical information and much time was spent chasing cost information to prepare invoices so as to manage company cash flow. “As well as greater visibility, the IFS system has provided the discipline we needed to make sure everything is done properly and in a completely standard way. For the first time we are able to keep track of costs, both internally and externally, and from that we can monitor and control our gross margins. Since we can now measure our performance, we are able to manage in a more proactive way.” Moreover, branch managers can use the IFS reports capability to identify potential problems and delegate tasks more effectively to their staff. Each month the managers receive their monthly results—a single-page profit and loss summary with a second page detailing the cost accounts. If they need further details on any account, such as an overspend on consumable stock, they can refer to online queries, create a report and drill down to the appropriate transaction.
Dashboards
This concept is being carried forward with the development of the Managers’ Dashboard, a real-time screen showing salient key performance indicators such as outstanding purchase orders; sales invoices overdue for payment; inactive work orders not invoiced yet; and overdue maintenance visits. Managers can now operate proactively rather than trying to sort out problems retrospectively at the end of each month.
Improving Customer Service
Graham Stuart sees additional benefits for improving customer services. “Every module provides a mine of useful information. As new maintenance contracts come up for review and renewal, Star Refrigeration’s Operations team can prepare detailed analysis on maintenance costs, which can be used to show customers where they can cut costs and benefit financially.” “In order to grow our business we are going to have to be more competitive. IFS Applications will help by providing a strategic information resource, backed by whatever analysis we want to do. I just see it as a great step forward.”
About Star Refrigeration
Founded in 1970, Star Refrigeration is a leading supplier of industrial refrigeration equipment, from food production and coldstores to process industries and ice rinks. With its headquarters and manufacturing base in Glasgow, Scotland, Star Refrigeration operates nationwide from ten strategically placed depots, employing around 270 people. It currently has a sales turnover of around £25 million. During 2004, Star Refrigeration made its first acquisition, extending its capability to include in-line cooling systems for food manufacturing production lines.
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