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Retail news articles. ........Date: 8/1/2004

Can real-time scanning help your customers' inventory processes?


Source:http://www.businesssolutionsmag.com, Source date:


Advantage Business Computer Systems, Inc. (Big Sandy, TX) has been a software developer/VAR for the lumber and building material vertical for nearly 30 years. Recently, it expanded its long-time relationship with HPM Building Supply (Keaau, HI) by recommending and installing a wireless, real-time bar code scanning solution. HPM has been using Advantage's core software package to automate its inventory control, point of sale, and order entry applications, as well as for its accounting and purchasing systems, for 10 years in its four locations throughout Hawaii.

Actively Find New Technology, Recommend Upgrades

In addition to its strategy of building long-lasting customer relationships, Advantage also makes a business practice of monitoring emerging technology. And that's not merely taking note of vendors and integrators that extol their products -- it's taking a proactive approach to finding new technologies. Advantage monitors Web sites and trade periodicals and frequents trade shows to stay abreast of what's available. "Because of our relationships, customers trust our recommendations," says Scott Sanford, president of Advantage. "So it's not usually a question of 'Should it be this solution?' but 'How much do I need it?'"

Provide Real-Time Inventory Information

HPM sells materials to residential and commercial customers through its retail locations and a catalog service, operates an equipment rental service, provides planning and cost assessment for local contractors, and receives RFIs (requests for information) through its Web site. Until recently, HPM had been using 8-year-old Norand batch bar code scanners, along with paper and pencil, to track and update inventory.

With the batch scanners, employees would update the inventory by taking a printed list of the inventory database around the warehouse or lumberyard. Disparities between what was on the shelves and what was on the list would be noted and entered into the database at a workstation at the end of a shift. HPM's construction customers need to know immediately whether materials are available for their projects. This means HPM needs to know exactly what is on its shelves. If a contractor calls asking if HPM can supply 20 bundles of shingles, and there are only 15 bundles available, that information needs to be in the database.

In an attempt to bring the database more up-to-date, HPM mounted data entry terminals on carts and stretched wires across the warehouse, to put the point of entry closer to the merchandise. That process was not efficient, though, and did not solve the problem. Advantage, consistent with its practice of monitoring its clients' needs, noticed the inadequacies with the batch scanning procedures and recommended a wireless, real-time solution.

Advantage sold HPM 10 M7100 wireless bar code scanners from American Microsystems, Ltd. (AML) (Euless, TX) and a wireless access point from Linksys (Irvine, CA). HPM was running Advantage's inventory management application, so Advantage was able to integrate the scanners' software. As an existing customer of Advantage's, HPM was not charged for the new software or the implementation -- just the hardware. "With a real-time scanner, you have live data at your fingertips and can change inventory data, if necessary, right where you are," says Sanford. Now, HPM's employees use the handheld scanners in the warehouses and lumberyards for stock inquiries and inventory counts; HPM hopes to be able to use the scanners for receiving inventory in the next few months.

Because Advantage's core business is software and it builds upon that with peripheral hardware pieces, keeping that software functioning for the customers is imperative. To do this, Advantage offers 24/7 support at a monthly rate based on a customer's number of locations and users. In fact, 98% of Advantage's customers subscribe to this service.