IT


ERP helps avoid supply chain pressures


By Kevin Crowe, software consultant at OGL Software. A


'perfect storm' of supply chain and other geopolitical issues caused by Covid-19 and Brexit threatened to significantly disrupt the ability of air conditioning and refrigeration (ACR) engineers and suppliers to perform their work as usual in 2021. Some ACR businesses didn’t just weather the disruption, they came out stronger thanks to implementing ERP (Enterprise Resource Planning) systems. The pandemic’s lockdown meant supply chains were disrupted to the point where some engineers and suppliers were waiting for weeks, if not longer, for back-ordered parts. In turn, air conditioning repairs took longer due to those parts’ shortages. However, Covid-19 also brought with it reduced staffing levels which, combined with the shortages and rising costs of parts, saw prices fluctuating in response as demand outstripped supply.


ERP systems can have a big impact on staying


profitable when there is price volatility, as they have features, particularly integrating disparate functions such as purchasing, inventory, , finance sales and marketing, into one, that drive business performance, for success. In connecting all areas of the business via ERP, ACRs are able to manage digital and physical sales channels more efficiently.


Ensuring consistency ACR distributors can also input direct pricing from suppliers, using ERP, which minimises the chance of eroded margins as the engineers and supply businesses can stay on top of the best prices for customers, thanks to up to-date price information in real time. ERP also ensures there are no delays for air conditioning engineers caused by having to reach out to their suppliers since all of the relevant information needed is available on the ERP system. Supply chain problems are exacerbated by inaccurately forecasting sales and stock


14 February 2022 • www.acr-news.com


pandemic. To keep up with demand, eCommerce teams like our own are busy supporting merchants to integrate their online sales channels with Amazon and eBay. We have also been working with ACR businesses to retain current customers and attract new business with updated websites to help fulfil orders. Implementing an ERP solution provides


full control over all business systems to help ACRs manage the adoption of additional digital channels, without any significant overheads. ERP benefits – TF Solutions case study Dedicated air conditioning and refrigeration


levels, but ERP can provide a benefit as it offers transparency and visibility of a business’s entire supply chain to enable identification of any gaps. An ERP solution helps maintain consistency


across multiple sales channels. If an ACR supplier has a catalogue with thousands of parts and multiple stock lines, quick delivery is essential. Using ERP whole teams can stay on top of pricing and stock control levels to avoid input errors, while ensuring orders are processed efficiently and deliveries are made on time. This is key for customer satisfaction and retention, no matter what channel they buy from.


Perceived barriers to ERP adoption A survey by OGL[1] revealed that 81% per cent of respondents across the heating, ventilating and plumbing professions agree that a central ERP system would give them far greater visibility and control of stock. The same survey found that simplifying eCommerce for selling products more easily online was a prime consideration for the adoption of ERP, as cited by 82 per cent of the respondents in the air conditioning and refrigeration sector itself. More suppliers are turning to online sales channels after the


products and parts distributor TF Solutions implemented an ERP solution that has enabled the company to increase operational speed. The ERP system was adopted to combine two systems – one for stock management and the other for accounting – for easier access to the information remotely, for staff working from home or on the go, and reporting purposes. By using a web-based ERP solution that


pulled previously disjointed systems together and integrated them with TF Solutions’ other business processes, efficiency was improved. This was in part down to ERP allowing TF Solutions to deliver next day thanks to one click of a button identifying current stock levels for order histories to be fulfilled. A recent customer satisfaction survey TF Solutions conducted found that 93 per cent of customers cited the company as providing 'excellent' customer service. TF Solutions has expanded significantly


in recent years and now has 32,000 sq. ft. of warehousing which houses around £650,000 worth of stock at any one time. Managing an operation of this size would be significantly more challenging without fully integrated business software via an ERP solution.


X www.ogl.co.uk


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