Summary
¦ Internet commerce is moving centre stage.
¦ Cloud computing is the next new concept.
¦ There has been a move towards Windows systems and a more user-friendly dashboard concept.
¦ Hand-held stock control devices are becoming more widespread.
Systems suppliers agree the heart of timber trading remains controlling stock, selecting, pricing and delivering orders on time and without errors. Mining and sharing data with customers and linking into design packages are also key, as well as being able to access the masses of information from beyond the back office and trade counter.
However, internet commerce is again moving centre stage as timber traders look to buy and sell to whomever and wherever the potential customer may be, and have instant access to every detail of their business. The latest signpost to the future points away from hardware and software installed within the business, to computing capability hosted centrally within a data centre and accessed via the internet on any PC, laptop or a hand-held device.
Cloud computing, where users tap into external computer resources, provides for very fast transactions with guaranteed security without the cost of installing and maintaining a server and software on the premises. Ten-25 Software, which has more than 70 installations ranging from two to 200 users, is rolling out just such a system based on its flagship UniTrade product. Its latest release, available this month ahead of a major product launch in the summer, replaces servers at the customer site.
Concept evolution
UniTrade 360 is borne out of the seventh generation of the company’s core UniTrade system and coincides with Ten-25’s 30th anniversary. Ian Oldrey, Ten-25’s sales and marketing director, said web and hosted systems are an evolution of the original concept.
“This is a fairly mature market for a core trading system – most companies have something in place. From our point of view there is an awful lot more that can be done as to how someone can perfect their daily job and we are constantly evolving that,” he said. “Online and through a web shop is one of those ways. There are different parts of that which will suit different businesses. Some want the full web shop capability while others decide it’s not suitable for them, but want to allow customers to look up information on sales. Everyone is taking a different approach.”
Blue Rock Systems, the Southampton-based systems supplier, has gone live with a web-based hub system for the National Buying Group (NBG). The contract catapulted Blue Rock, which acquired Sense Computer Systems in Nottingham in 2009, to a wider merchant audience.
NBG comprises 83 independent partner merchants with 271 outlets generating a turnover of £750m-plus. It now operates a bespoke, multi-business, electronic trading system which, through the web, allows for constant detailed analysis of all NBG members and their purchases from more than 240 approved suppliers.
“Allowing our category management teams this level of information allows for much more dynamic management of our deals and our purchasing,” said a spokesperson for NBG. “This will help ensure our partners remain as competitive in the market place as they always have been.”
US-based Spruce Computer Systems has 12 timber installations among its UK builders merchant customers. Spruce director Terry O’Reilly said the need for information had forced a move away from large systems towards Windows systems and a more user-friendly dashboard concept.
Windows environment
“About five years ago many customers started looking for sophistication, and the nice little things that were coming along to enhance the use of computers are Windows-based,” said Mr O’Reilly. “And, of course, everyone can operate a Windows environment because we all use Windows. That set the pace for us. Everyone is able to buy and sell and manage stock control. It’s those frontline customer-facing things that are being driven at the moment, along with the reporting functions.”
Progressive Solutions’ bisTrack customers include Arnold Laver Timberworld, Premier Forest Products, Ridgeons Forest Products, James Latham, Yorkshire Timber and Continental Wood Products. The system can manage stock in different units of measure as it is traded, making it possible to buy per pack, stock per 100m, price per 10m and sell per metre. Figures can be produced quickly for stock takes and there is constant, year-round access to accurate visibility of all stock, including timber still on the quayside and stock already allocated or being processed in-house and by third parties.
“With access to accurate live data, potential problems can be revealed and new areas of interest opened up,” said a spokesperson. “For example, some bisTrack users have set up Smart Views on their dashboard which highlight slow-moving stock, or to keep an eye on stock levels of particular products across multiple branches.
“For smaller companies the key benefit of total visibility might be simply a reliable record of what stock is held, while larger companies trading on a national level can guarantee next-day deliveries to site or track stock on order and sell from shipping documents before the stock has arrived.”
Solarsoft, whose customers include Staverton Building Supplies, has a Management Information Option (MIO) to improve reporting. “Most business owners know what their top-selling product is, but which products contribute the most margin and which customers are buying those products?” said a spokesperson. “MIO presents data in a graphic dashboard, giving instant access to margin by product, supplier or customer, supplier price and delivery performance, patterns of sales by region or between products, stock turn, ageing and outages.”
Increased efficiency
Increased efficiency with an eye on web trading was the message Monmouth-based Border Merchant Systems, formed in 1990 by a consortium of independents, took away from its recent user group conference. Its in-house-developed CounterAct software is used by a number of timber customers including Beers.
“We still develop in-house and it’s vital to hear from our customers,” said head of sales and marketing Phil Davies. “Trackage is something everyone is looking to run more efficiently; proof of delivery and collections, what rebates are due, product waste information – that kind of thing. Generally, it’s KPIs (key performance indicators) to see how their business is doing and what can be done.
“Web trading is getting bigger and we are working with a number of customers who have their own websites and want to link with their trading system,” he added. “It’s a natural progression. Cloud computing is on our list of things to do, but for the moment you have to ask at what point it becomes economic. At what point does low cost of ownership outweigh hassle?”
Data capture and display
Simplifying the way data is captured and displayed is a relatively new development for the timber industry. Progressive Solutions has integrated hand-held, wireless count devices
to its optional Mobile Stock and Counting applications. This enables perpetual stocktaking/stock verification, reducing annual or biannual stocktaking costs. Staff can count stock in individual or quiet areas as often as required. The data is entered directly into bisTrack, avoiding paper count sheets and the manual re-entering of figures.
Kerridge Commercial Systems (KCS), the Hungerford-based IT specialist with its K8 system, has also introduced its digital signature capture capability with a range of four hand-held devices. Rather than signing a printed form, the transaction is confirmed on a digital signature capture pad connected to K8 and held digitally. Through KPrint, advice notes can be output on single-sheet laser-printed form as an alternative to pre-printed continuous stationery.
Roadshow events
Like Border, KCS has been staging a series of roadshow events to promote the importance of IT and to discuss the challenges faced by merchant businesses when selecting and implementing a computer system. The agenda also includes industry best practices, customer case studies and first-hand customer experiences from Howarth Timber & Building Supplies. Programmes in the UK conclude on April 6 at the Heritage Motor Centre in Birmingham.
Ramtac, which recently installed its timber trading module at Chilton Timber in Hemel Hempstead and at Young’s in Dymchurch, Kent, has its Intact Software designed for use by every type of merchant, and wholesalers and distributors. However, the company, from Berkhamsted, Berks, recently released Sharp-ax specifically for the timber industry.
“We have put in more than 300 systems in the past five years; waging war against the lever arch file,” said chairman Mike Munnelly. “They have been distribution systems – order processing, stock, nominal ledger, credit control data drilling, KPIs – now we are looking at developing further into manufacturing with Sharp-ax. We believe it is vital to keep acquiring and developing with the technology.”
