LEPCO is a wholesale distributor specializing in lawn equipment, parts, accessories, and power tools. The company serves a network of independent lawn equipment dealers, providing products ranging from mowers and tractors to repair parts.
The Challenge
LEPCO’s existing bookings order process is heavily manual and inefficient, leading to operational delays, increased labor costs, and a suboptimal customer experience. Weidenhammer and the LEPCO Team conducted an in-depth analysis of the current workflow, identifying critical bottlenecks that hinder productivity and accuracy. To address these challenges, Weidenhammer has proposed an automation and modernization strategy aimed at streamlining operations, reducing manual intervention, and enhancing overall efficiency. The success of this initiative will be measured by improvements in processing speed, accuracy, and customer satisfaction.
Impact:
- Too much time spent creating order forms.
- Order forms prone to having input errors.
- Not dynamic/flexible process today.
- TMs cannot adjust purchase history dates and cannot combine/separate multiple dealer locations on an order
- Forms are not “dummy proof” – inadvertently TM changes can affect macro code in Excel forms.
- Orders can be “lost” misplaced by TM’s and Customer Support.
- Excessive time to print & enter orders manually into ERP.
- Manual order entry is prone to entry errors.
- Review and approval of booking orders by Sales Management is not part of the process.
- Lack of management reporting.
- Warehouse management has incomplete and inaccurate order and shipping information.
Goals
- The dealer booking is an opportunity for the Territory Manager (TM) to sell a sizable stocking order (whole goods, parts & accessories) in exchange for extended terms.
- Approximately 40-50% of LEPCO sales are achieved during booking.
- These booking events are the “true sales process” for TMs.
- Opportunity for TMs to define current dealer inventory.
Metrics
- Sales Volume: Track the total sales volume generated during the booking events. This includes whole goods, parts, and accessories sold by Territory Managers (TMs).
- Order Size: Measure the average size of stocking orders placed by dealers during the booking events. Larger orders may indicate successful negotiations and extended terms.
- Booking Event Participation: Monitor the number of dealers participating in the booking events. Higher participation rates can indicate the effectiveness of the booking process and the appeal of the offers.
- Inventory Turnover: Evaluate the turnover rate of dealer inventory before and after the booking events. This can help assess how well TMs are defining and managing current dealer inventory.
- Sales Conversion Rate: Calculate the percentage of booking opportunities that result in actual sales. This metric can help determine the effectiveness of the sales process during booking events.
- Customer Satisfaction: Gather feedback from dealers regarding their satisfaction with the booking process and the terms offered. Positive feedback can indicate successful interactions and negotiations.
- Revenue Growth: Analyze the revenue growth attributed to booking events compared to other sales periods. This can help quantify the impact of booking events on overall sales performance.
- Extended Terms Utilization: Track the usage of extended terms offered during booking events. Higher utilization rates can indicate that dealers find the terms attractive and beneficial.
Solution
Weidenhammer recommended that LEPCO design and develop a new custom web application for its Booking Orders solution. A web application is software that is accessed using a web browser. The new web application will have one relational database instance where all data is stored and maintained. The plan is to integrate with LEPCO’s S2K ERP solution as well as with the newly implemented data estate.
- Tools and Technologies: Microsoft .NET Core technology stack and SQL Server Database. The application will run in the cloud and be hosted in MS Azure.
- Implementation: Went through the Software Development Lifecycle (SDLC) from Concept to Implementation. The process followed was iterative and had great participation by both the LEPCO and Hammer Teams
Results
- Increased Sales: With Territory Managers (TMs) focusing on selling sizable stocking orders during booking events, you should see a significant increase in sales volume. This will contribute to achieving the target of 40-50% of LEPCO sales during booking periods.
- Improved Inventory Management: TMs will have the opportunity to define and manage current dealer inventory more effectively. This will lead to better inventory turnover rates and reduced instances of overstocking or stockouts.
- Enhanced Dealer Relationships: By offering extended terms and engaging in the “true sales process” during booking events, TMs can build stronger relationships with dealers. This can result in higher dealer satisfaction and loyalty.
- Higher Order Sizes: Successful negotiations during booking events will likely lead to larger stocking orders from dealers. This indicates that the terms offered are attractive and beneficial to the dealers.
- Greater Participation: As the booking process becomes more effective and appealing, you can expect higher participation rates from dealers. This will further drive sales and strengthen the overall sales process.
- Revenue Growth: The combined effect of increased sales, larger order sizes, and higher participation rates will contribute to overall revenue growth for LEPCO.
- Utilization of Extended Terms: Dealers will find the extended terms offered during booking events attractive, leading to higher utilization rates. This can help improve cash flow management for both LEPCO and the dealers.
- Benefits:
- Increased Sales Volume
- Enhanced Inventory Management
- Stronger Dealer Relationships
- Larger Order Sizes
- Higher Dealer Participation
- Revenue Growth
- Improved Cash Flow Management
Conclusion
The implementation of the Booking Orders Application at LEPCO has led to several significant benefits. The primary objective was to leverage dealer bookings as an opportunity for Territory Managers (TMs) to sell sizable stocking orders, which has been successfully achieved. This focus has resulted in a substantial increase in sales volume, with 40-50% of LEPCO’s sales being realized during booking events. Additionally, the booking events have enhanced inventory management, allowing TMs to better define and manage dealer inventory, leading to improved turnover rates and reduced overstocking or stockouts. The extended terms offered during these events have strengthened dealer relationships, resulting in higher satisfaction and loyalty. The success of the booking process is also evident in the larger order sizes and higher participation rates from dealers, contributing to overall revenue growth for LEPCO. Furthermore, the utilization of extended terms has improved cash flow management for both LEPCO and the dealers.
Overall, the Booking Orders Application has proven to be a valuable tool in driving sales, enhancing dealer relationships, and achieving significant business growth for LEPCO.