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Technology Investment Secures Success for Busy Distributor
End-to-end accounting, warehouse management and electronic communication solution allows company to grow revenues while decreasing staff.
As the sole U.S. licensee for Adidas accessories and Body Glove apparel, Agron, Inc. runs a busy warehouse operation. Charged with the design, marketing and distribution of branded clothing and accessories, the company has enjoyed steady and significant growth over the years. It is an industry where retailer requirements — including labeling directives, EDI mandates and penalties for missed or incorrect shipments — threaten to overwhelm many distributors. How does Agron ensure that its business continues to grow and flourish in this competitive marketplace defined by tight margins and increasing regulation? Years ago, Agron made the strategic decision to invest in its technology infrastructure. It's a decision that's been paying dividends ever since.
Changing Retail Landscape
In the 18-plus years the company has been in business, the retail marketplace has changed dramatically. Within the changing retail landscape, manufacturers and distributors like Agron must meet strict labeling, packing, shipping and invoicing protocols. Retailers are placing increasing numbers of requirements on their suppliers.
For example, where previously Agron might ship a large order to a retailer's distribution center, it must now divide the order up, packing and shipping to hundreds of individual stores. One late order may mean hundreds of thousands in lost revenue dollars and chargebacks. As weekly stocking orders arrive from its retail customers, Agron must have adequate stock on hand and be equipped to respond quickly.
To meet the demands, Agron could have hired additional staff to keep up with order entry and shipping operations or invest in the company's accounting and warehouse management technology to streamline and automate many of the tasks. "Ramping up staff to perform order entry just doesn't make sense to us," explains Alan Gomperts, controller at Agron. "We believe in using technology wherever possible and prefer to use our staff for revenue-generating activities."
EDI Delivers Consistent Communication
Electronic data interchange (EDI) was one of the first, and the most important, technology tools in which Agron invested. Research led the company to an integrated enterprise resource planning (ERP) and EDI solution. Now customers' incoming orders are automatically processed, acknowledgements sent, advanced shipping notices generated and invoices delivered with virtually no manual interaction.
A single order from some retailers may be processed into 3,000 individual orders shipping to individual store locations. In the past, processing and shipping such a large order could have taken close to a week. Now Agron is able to pick, pack and ship orders of that size in a single day.
In a typical month, the company ships millions of units. With the threat of large chargebacks for late or incorrect shipments, Agron relies on its EDI technology to ensure it plays by customers' rules. "We consistently receive 'A' ratings from Kohls and JCPenneys," notes Gomperts. "Very few suppliers are able to routinely perform at that level."
Integrated Warehouse Automation
Agron invested in a best-of-breed warehouse management solution (WMS) with robust capabilities and a scalable, flexible architecture. The WMS solution interfaces with Agron's ERP software, ensuring that the two systems remain in perfect sync.
Changing Retail Landscape
In the 18-plus years the company has been in business, the retail marketplace has changed dramatically. Within the changing retail landscape, manufacturers and distributors like Agron must meet strict labeling, packing, shipping and invoicing protocols. Retailers are placing increasing numbers of requirements on their suppliers.
For example, where previously Agron might ship a large order to a retailer's distribution center, it must now divide the order up, packing and shipping to hundreds of individual stores. One late order may mean hundreds of thousands in lost revenue dollars and chargebacks. As weekly stocking orders arrive from its retail customers, Agron must have adequate stock on hand and be equipped to respond quickly.
To meet the demands, Agron could have hired additional staff to keep up with order entry and shipping operations or invest in the company's accounting and warehouse management technology to streamline and automate many of the tasks. "Ramping up staff to perform order entry just doesn't make sense to us," explains Alan Gomperts, controller at Agron. "We believe in using technology wherever possible and prefer to use our staff for revenue-generating activities."
EDI Delivers Consistent Communication
Electronic data interchange (EDI) was one of the first, and the most important, technology tools in which Agron invested. Research led the company to an integrated enterprise resource planning (ERP) and EDI solution. Now customers' incoming orders are automatically processed, acknowledgements sent, advanced shipping notices generated and invoices delivered with virtually no manual interaction.
A single order from some retailers may be processed into 3,000 individual orders shipping to individual store locations. In the past, processing and shipping such a large order could have taken close to a week. Now Agron is able to pick, pack and ship orders of that size in a single day.
In a typical month, the company ships millions of units. With the threat of large chargebacks for late or incorrect shipments, Agron relies on its EDI technology to ensure it plays by customers' rules. "We consistently receive 'A' ratings from Kohls and JCPenneys," notes Gomperts. "Very few suppliers are able to routinely perform at that level."
Integrated Warehouse Automation
Agron invested in a best-of-breed warehouse management solution (WMS) with robust capabilities and a scalable, flexible architecture. The WMS solution interfaces with Agron's ERP software, ensuring that the two systems remain in perfect sync.
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