Sweet solution drives new growth

Tuesday, 1 December 2009

Sanderson Swords Case Study
Client: Glencrest

When Delivered Wholesaler Glencrest spotted a niche opportunity, it needed the right technology to help turn the idea into reality. Thanks to new functionality in the IT solution, from leading software supplier Sanderson, the company has been able to implement the idea and boost revenue by 30%.

Glasgow-based Glencrest was established in 1996 to supply soft drinks, confectionery and snacks to a range of independent retailers. Founder and Managing Director, Ross Gourlay and his family had owned a small chain of shops in the Glasgow area and it was this experience, combined with a spell in the finance sector that persuaded him to set up a Delivered Wholesale business of his own.

Glencrest soon established a great reputation among their customers, by offering competitively priced goods backed by superb service. The customer base is primarily located in the central belt of Scotland. All are independent retailers and include outlets such as petrol stations, social clubs, golf pro shops, cafes and many more besides.

As a Delivered Wholesaler, Glencrest has to overcome the logistical challenges of servicing hundreds of customers: “We have more than a thousand customers, so it’s vital we are highly organised and efficient. That’s where the Sanderson solution comes in,” says Ross Gourlay.

Glencrest has been using the Swords system from Sanderson for a number of years. It is a comprehensive software system for Delivered Wholesale businesses and the choice to go with Sanderson wasn’t a difficult one to make, as Gourlay recalls: “It’s designed specifically for our sector, so it works perfectly for this type of business. We did look at a couple of options, but the Sanderson solution was definitely the best one and it’s been a worthwhile investment.”

One of the system’s biggest strengths, he says, is its powerful logistics planning capability. “The route planning functionality is excellent. Customers receive a regular call and a regular delivery, usually the same day and time each week. The system plans all this so we don’t have to rely on people remembering where they have to be, and when.”

Right from the start, the benefits of the Sanderson system were apparent. Gourlay says the quality of the training from Sanderson was excellent, which made for a painless implementation. “We put hand-held terminals into the warehouse at the same time as we implemented Swords; it was all part of the system replacement,” he recalls. “Despite the extent of the changes, it all went in more smoothly than we could have expected, and we saw benefits very quickly from improved organisation and visibility.”

Glencrest’s processes are run by the Sanderson solution “from start to finish,” says Gourlay. Orders are captured in a variety of modes – web, in person or by phone – and once entered on the system, the order is automatically released to warehouse staff for picking. Radio Frequency terminals are used to scan goods for each order. This method has brought significant benefits in terms of accuracy. “With our previous paper-based systems, errors were commonplace and we often had to sort out picking problems. The difference with the Sanderson solution was staggering – overnight, we went from a 30% error rate to virtually zero,” says Gourlay.

As each order is picked and assembled, the Sanderson system assigns a route for that customer based on what is the most logical and efficient on any given day. Once all orders have been collated for next-day delivery by Glencrest’s nine vehicles, the routes are printed out, along with invoices and delivery sheets.

“Because of the automation Swords brings, it makes it much easier for us to increase business and expand, without causing administrative chaos,” says Gourlay. As well as the immediate elimination of picking errors, the company was also able to cut the time-consuming process of route planning. “It used to take hours to plan routes for the next day – now, the Sanderson solution does it automatically. We do still have some manual input, for example if we need to amalgamate routes for any reason, but it has turned a two-man, two-hour job into something that takes one person half an hour at most.”

The Sanderson system has provided the solid technological foundation for Glencrest’s continued success. So, when a new division was to be launched, the company didn’t hesitate to ask Sanderson about the software to run this operation, too.

Glencrest began to look at ways to boost confectionery sales, which were lagging behind other product ranges. “We decided to trial a new idea – we kitted out a van for mobile sales, branded it Confectionery Direct and put it out on the road to see what business we could develop.” Gourlay’s ability to identify an opportunity was vindicated: within four weeks, it was clear the idea had huge potential.

“We wanted to put Confectionery Direct on a more formal footing, so we decided to invest in technology to take it further.” Gourlay looked at two solutions for mobile sales, but opted for Sanderson. The mobile sales module is a core part of the Sanderson system, allowing representatives to take orders on the road and dispatch them instantly to head office via a hand-held device, where the order is processed and an invoice issued.

Glencrest wanted to extend the functionality to allow sales to be made direct from their vans and within three months the new software went live. Each van is set up as a separate sales location, so sales can be tracked for each van, and stocks analysed and controlled. The driver carries out all functions – ordering, delivery and collecting payments – and updates are received from the driver’s terminal which links to Swords via GPRS. The two-way link means that not only does van sales data get sent to head office, but price promotions, customer data – even VAT changes – can be automatically transferred to the driver’s terminal.

Once a customer is set up on the system, that location is included automatically in the future call schedule for that driver and van. Each van has the capacity to perform up to a hundred calls per week.

Confectionery Direct’s success has been nothing short of dramatic: Glencrest’s confectionery sales have increased by 80% and total turnover has leapt by 30% in the four months since it launched. The company now has three vans dedicated to this division and plans to increase this to five within the next few weeks.

“We have a great relationship with Sanderson,” comments Gourlay. “They are always responsive and their support service is of incalculable value to a company our size.”

With its sound business model and sophisticated technology, Glencrest can look forward to a future of continued growth and increased revenue: “Having competitively priced products is one thing, but now we can offer a truly unrivalled service.”

This company is certainly enjoying sweet success.

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