iP3 Systems Global Sales & Procurement Solutions
Clients

Case Study: Nelson

 

Introduction;

Nelson Industries (a member of the HPM Group of companies) is a major import and distribution company specialising in lighting, electrical and associated products - offering a complete Lighting and Electrical Solution for commercial and domestic markets. Nelson Industries is a major player in Australia supplying both the Bunnings Group and Kmart Australia on a national level, as well as other retail and distribution companies around the country. Nelson Industries cater for niche markets by offering unique products as well as commodity items. Based in Melbourne Australia, Nelson Industries offer over 2500 products encompassing light sources, electronic control gear , LED products , electrical products , commercial and domestic light fixtures , HID Products, Dynamo products, Security sensors , Insect Control Devices, and Home Automation. Nelson Industries are the sole distributors of NEC lighting products in Australia, and a market leader in T8, Triphosphor and their quadphosphor range of fluorescent lamps. Nelson and Bunnings Group Ltd Nelsons is a major supplier of lighting goods to The Bunnings Group. The Bunnings Group is the southern hemisphere's largest hardware chain, and is owned by Australia's largest employer Wesfarmers Limited, based in Perth, Western Australia. As of December 2008, across Australia and New Zealand Bunnings operate 171 Bunnings Warehouse stores and 59 smaller format Bunnings stores. To deliver a full service offering for home builders, they also operate 20 trade centres as well as 8 frame and truss manufacturing sites. The Bunnings network of stores and trade centres continues to expand. Bunnings sales for the 07/08 year reached AUS $5.3 billion and they employ 26,000 staff across Australia and New Zealand . The Need Nelson Industries were trading with Bunnings via an outdated third party EDI vendor when they approached iP3 Systems to deliver an eCommerce solution to redesign and streamline their trading with Bunnings. Nelson Industries faced many challenges with this system:

• Due to the large quantity of daily orders being placed by Bunnings, Nelson were encountering EDI costs which were becoming unacceptable and working against their strategic plans. With a strong desire to maintain their position as a leader in their highly competitive market, Nelson wanted to eliminate this cost completely out of their budget. In addition to this,

• Nelson Industries also did not want to be vulnerable to price increases from their third party provider.

• From a strategic perspective Nelson wanted to implement a low cost, peer to peer electronic transacting platform to streamline their processes and provide the best service to all of their trading partners. The main goal being to heighten their responsiveness to their trading partners.

• Nelson Industries wanted to have full control of their trading information by hosting their new trading platform in-house. This would allow them to have sole access to any commercially sensitive information while also making them self sufficient by utilising their all ready established in-house IT capabilities.

• Nelson determined that they needed an ecommerce solution platform which would not only support, but also add value to its supply chain while also enabling and adding value for their trading partners. This was deemed vital in order to facilitate their strategic plans for growth. Nelson Industries wanted to have in place an in house solution which could be rolled out not only with their existing client case, but any future clients as well, regardless of what internal systems they may be using.

iP3 Systems designed a tailored solution, revolving around its state of the art Electron® eCommerce offering, to meet Nelson Industries current needs and to underwrite and support business process requirements. The Electron® Commerce solution is a comprehensive global B2B, direct sales and procurement process solution that operates as a single, enterprise-based software package. The Electron® Commerce solution is bale to provide discovery, sourcing, procurement, sales and transaction management functionality within a single system. As iP3 Systems solution is an enterprise based package it immediately gave the organisation ownership and control of their data and business processes which meant no more reliance on a third party provider. This also meant that they would be empowered with peer to peer capability. After a thorough analysis of the Nelsons requirements, iP3 recommended and planned the development of a solution that would be interfaced with the current ERP (a DOS based system) and replace the restrictive EDI component with an Electron® configured system adapter. This interfacing allowed the Nelson to leverage as much as possible of their current business processes while still being able to become more agile and responsive. The Interfacing also allowed Nelson to start trading right away using the new system with minimal stand down time and user training. The Electron® configured adapter eliminated all transaction costs immediately delivering the desired savings, giving Nelson Industries full control of their supply chain. From a strategic point of view, now that Nelson Industries has moved one trading partner off the third party EDI they are now able to roll out the Electron® with their remaining trading partners, eventually eliminating the need for a restrictive EDI third party provider completely - positively delivering savings to their bottom line. and offering them full control and complete ownership of their supply chain with all of their commercially sensitive data living on their own servers. iP3 Systems are very proud to congratulate Nelson Industries Australia on their recent Go Live (Feb 09). iP3 Systems wish Nelson Industries all the best for the future and looks forward to an ongoing and mutually beneficial relationship as we continue to work with Nelson Industries on additional project roll outs moving forward.

Electron® Offers:

The Electron Commerce solution is a comprehensive global B2B, direct sales and procurement process solution that operates as a single, enterprise-based software package. The Electron Commerce solution provides discovery, sourcing, procurement, sales and transaction management functionality within a single system. By providing highly flexible supply and value chain functionality, the Electron Commerce enables instantaneous connectivity between all organisations’ trading partners - regardless if they are operating an Electron Commerce. Features unique to the Electron Commerce solution include: ? Simplified procurement and sales processes ? Automated supplier sourcing processes ? Enhanced buyer and supplier enablement The Electron Commerce solution is not a marketplace or intermediary managed solution. The Electron Commerce solution enables your organisation to regain and retain total control of its strategic data and dynamically facilitates the sending of strategic pricing signals to your customer.

Electron® Procurement:

Conventional e-procurement solutions have focused on that aspect of an organisation's purchasing activities that represent the most significant set of process and cost-savings inefficiencies - the acquisition of consumables. The Electron Procurement component specifically designed to handle the procurement of direct-cost goods and services from all your supply chain partners - from the discovering of potential suppliers, through quotation and transaction negotiation to the completion of the trade. The Electron Procurement component handles the procurement of your organisation's consumable or indirect-cost requirements as well.

Electron® Sales:

The Electron Sales component is a web based, e-commerce software specifically designed to handle the complexities of an organisation's sales functions. The Electron™ Sales component has been constructed to include: ? Advanced sales pricing, ? Negotiation and transaction management for inter- and intra-company, ? Domestic and international sale of direct and ? Indirect cost goods and services.

Electron® Logistics:

A key factor in choosing the best deal, whether buying or selling, is ensuring the product can be transported from the seller's site to the buyer's site at the best cost for the best service. Recognising this, iP3 has incorporated logistics quotation and management functionality as an integral part of Electron Procurement. The Electron Logistics links trusted third party logistics handlers to both the Electron Sales and Procurement components of respective sellers' and buyers' systems enabling the rapid provision of accurate shipping quotations on a per order basis without any manual intervention by the supplier. The Electron Logistics includes functionality that provides asynchronous and multi-party communication that is: ? Integrated with transaction management functions consistent with international trade rules and core contract terms ? Integrated with transaction execution safeguard functions to reduce transaction failure risks such as non-payment

Microchain®:

Another feature Electron Procurement includes is a unique supply-chain management tool known as Microchain. Microchain enables your procurement staff to select items found in the Ether Directory or on other organisations' Electron Commerce systems, and have those items added to your procurement catalogue. It further facilitates the acquisition of goods and services at the best possible terms. Microchain links the Electron Commerce system's purchase order and inventory management functions with supplier relationship management functions to result in a highly flexible supply-chain management tool. Other features and functionality of Electron Procurement are the: ? Direct B2B, asynchronous order acceptance, rejection, amendment and processing functions. ? These features assists enterprises to overcome information inconsistencies because real-time updated items are cross-referenced to an enterprise's supply-chain requirements and any strategic sourcing agreements it may have in place with key suppliers.

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