Independent Builders Merchant Group (IBMG) needed an ERP solution that would allow it to consolidate across a network of 39 branches, but crucially allow its businesses to operate independently. With four customer-facing brands already under its umbrella – Chandlers, Parker Building Supplies, Fairalls and Stamco Timber – finding a platform that would deliver both consistency and growth was essential.
The group recently implemented K8, the flagship ERP solution from Kerridge Commercial Systems (KCS), in a move that has facilitated its current operational needs, while positioning IBMG for future success.
IBMG is dedicated to being “your favourite local merchant who can get you what you want” – and this mantra remained critical when choosing and implementing an ERP system. IBMG’s four distinct brands each delivers a personal service to its customers; however, having access to a single, central platform is imperative to ensure consistency and efficiency of reporting across the group.
“Everyone is really proud of the independent brands, so it was essential that we didn’t lose that,” said Anna James, head of marketing at IBMG. “Our customers like working with an independent, they like that personal service that we offer – the important thing for us was to make sure we deliver a consistent experience across our network.”
IBMG brands predominantly serve trade customers, providing a product portfolio that encompasses building materials, roofing and timber products as well as specialist ironmongery, trade kitchens and bathrooms. As the largest independent builders’ merchant group in the south-east, choosing the business system that would deliver the right balance of flexibility and consistency was no easy feat.
“Before moving to K8, the brands maintained their own support functions for transactional processing in a head office-type environment,” said Paul Barry, IBMG’s chief financial officer. “We wanted to consolidate all of this onto a single platform, with all of the business benefits that this can bring.
“Through the implementation of K8, we have been able to support multi-branch operations, while facilitating the rationalisation and organisation of a central team to support the common areas of our business. This is not to reduce head count explicitly, but is designed to ensure we share out the best of our different brands throughout the entire group. We’ve got fantastic people across our business and we want to bring them together under that family umbrella so we can tap into that expertise and knowledge to the benefit of all.”
The ability to maintain a wide variety of customer pricing options was a key feature IBMG sought from its new ERP system. Whether it relates to terms, profiling or discounts, the flexibility around these options has been really important to enable each brand to maintain its local relationships and independence.
“One of our guiding principles was to avoid any modifications, and we achieved this by adopting new processes and configuring the system,” said Frank Murtagh, project leader at IBMG. “Users have adapted very quickly to the new platform; Chandlers, for example, which has 16 branches, had very few issues in adapting to the new system in a simultaneous go-live.
“In K8, we now have a platform where we can easily add new brands or new branches to existing brands.”
The implementation of K8 was initiated during the first national lockdown, which brought a number of new challenges for both IBMG and KCS as there was no onsite training or ‘hand holding’ through the process. Throughout this time, IBMG kept a number of essential branches open so that the business was able to continue to supply the NHS and emergency plumbing and contractors. Having a functional ERP in place was essential, as was ensuring disruption was kept to an absolute minimum.
Thanks to the commitment and determination of IBMG staff – and the team at KCS – the implementation was successfully phased in by brand, despite the upheaval brought about by the pandemic.
“Our counters were able to operate and continue operating all day – customers came in from 7am onwards to load up with goods and get on with their jobs for the day,” said Mr Barry.
“Fundamentally, the most important thing for us was to make sure our customers were served as normal, and in all cases, we’ve been able to do that. That’s a real plus, a real tick in the box. It’s a credit to the commitment of our team.
“The can-do attitude of everyone involved really came through during the lockdowns. We had to work hard to configure and implement K8 within the restrictions imposed by Covid, but our team was up for the challenge.”
From the outset, IBMG was keen to ensure “there would be no backwards steps in terms of functionality and customer service” and the results have so far been very encouraging.
“Now we are using K8 across the group, everybody is able to use the same platform, no matter what the brand or branch location,” said Mark Routen, head of IT at IBMG. “This gives us a powerful lever in terms of resourcing and addressing needs across the business as our customers move or change their buying approaches. It has given us that level of flexibility that a single ERP should, without a long, drawn-out and cumbersome implementation.”
DATA INSIGHTS
IBMG needs to be able to access consistent information at both a branch and management level, which K8 has been able to facilitate. The group designed a K8 dashboard that provides branch managers with a complete overview of their operations and business KPIs, with drill down into data from a single home screen, including sales, orders placed and general activity throughout the business.
“The implementation of this innovative dashboard has been a real win for many of the branch managers – the quality of information they can retrieve for decision making has improved dramatically,” said Mr Barry.
One of the challenges IBMG faced was being able to consolidate legacy data that had previously been stored in three separate ERP platforms. The group is now benefiting from bringing this information together within a single database.
“You can’t underestimate the power of consistency of management information,” said Ms James. “When you’ve been working across different systems and suddenly you’re working with just one, it means that no matter where the data is coming from, it represents a single source of truth and makes it so much easier for us to be able to do comparable analysis.”
SETTING UP FOR THE FUTURE
IBMG is currently launching several transactional websites and is using the extensive range of K8 digital APIs (application programming interfaces) to integrate its web partner’s platform.
“We want our customers to enjoy a seamless experience when they buy from us online,” said Ms James. “It’s been a big project to get these websites up and running and K8 seamlessly integrated into these portals is the clever bit. Moving to a modern ERP with digital services has facilitated the launch of these sites and allows us to really make the most of our ecommerce offering.”
And IBMG’s digital journey is only just beginning.
“K8 opens up significant operational and digital opportunities for our business,” said Mr Routen. “If you implement an ERP that doesn’t offer any functionality beyond what it currently does, then you quickly become limited in what you can achieve. With K8, we are now able to optimise our operations, improve the quality of our data and enhance our customers’ journeys.”
“A key thing for us is that our customers don’t know what we’ve done behind the scenes with regards to our ERP – and that’s how it should be,” added Ms James. “They are getting a really consistent experience; our colleagues are able to access consistent information and it offers real potential for future growth.”
Although still in the initial stages of using its new ERP software, IBMG has already witnessed a positive impact across all areas of its business. Even considering the difficult trading conditions imposed by the Covid-19 pandemic, IBMG is on course to achieve record-breaking sales and profits in 2021.
“We’ve seen a massive boost in trading activity and having the single K8 platform is underpinning that. Having a consistent, consolidated ERP is really helping us drive our business,” said Mr Barry. “We’re ready and able to supply the market because our ERP is operational and because our teams are able to use it. K8 is doing what it’s meant to do in facilitating our sales teams and operations to give our customers what they want, therefore enabling us to be their favourite local independent merchant.”
IBMG also praised the support KCS offered throughout the implementation and beyond. The after sales experience has been incredibly positive, with the two companies forging a close relationship and building a long-term partnership.
“Learning and identifying how to move forward and to further grow our business with our new ERP is the next step for us, and I look forward to KCS providing the same level of assistance in expanding our usage of the platform,” said Mr Routen. “You don’t replace your ERP every couple of years, it’s a long-term partnership. In K8, we have a great platform to build our business on and in KCS we have found our ideal partner for the future.”
