- Location: Oklahoma City, Oklahoma
- Industry: Lumber and Building Materials
- Number of Employees: 45
- Number of Locations: 6
- Web site: www.gordonwhitelumber.doitbest.com
- Affiliation: Do it Best
"When you work in the business every day, you don't work on the business. Hiring Epicor consultants allowed us to step back, look at the numbers and enact change. We've gained a competitive advantage because we are now constantly improving our business."
Hank Bockus, Owner | Gordon White Lumber Company
Family-operated company uses Epicor Professional Services and improves performance across the business
Gordon White Lumber Company has been a family-owned business for over 80 years. What started as an oilfield supply house, grew into a booming hardware store and lumberyard with six locations serving Southern Oklahoma. After several years of using the Epicor Eagle business management solution, the management team at Gordon White Lumber Company needed help. "We were only using Epicor Eagle as a glorified cash register and we wanted to utilize all of the system's capabilities," said Hank Bockus, fourth generation and owner of Gordon White Lumber Company. "The catalyst that drew us to Epicor Professional Services was our inventory problem. We'd visit each store and see inventory everywhere. We knew we needed help to proactively manage our inventory to improve turns."
Inventory reduced by $200,000 and turns doubled
An Epicor Business Consultant conducted a five-day on-site analysis, prepared a comprehensive written action plan, and made follow-up phone calls. With the Business Consultant's initial plan and ongoing recommendations, Gordon White Lumber Company made huge strides improving inventory management and their bottom line. "We decreased our inventory by nearly $200,000, which significantly improved our cash flow," said Bockus. "Our consultants showed us how to identify slow-moving inventory and create a list of dead inventory. Then our store managers and salespeople worked over several months,to sell the marked down product and eliminate the list of dead inventory. Our stock turns doubled from two to four, which had a tremendous impact on the bottom line."
Using Eagle order point calculations, where the system offers purchasing suggestions based on inventory levels and sales, the company keeps inventory under control while maximizing sales. "Now we have a more dynamic approach using the suggested orders to make smart inventory investments," said Bockus. "Additionally, we've built viewers to track every department and every category, so we can use history to make seasonal adjustments."
Gordon White Lumber Company also set up "pennies from heaven," or price rounding, where prices are rounded up based on rules established by a business. "Every week, we gain extra margin through our price-rounding table," said Bockus. "We added pennies to tens of thousands of SKUs and to our bottom line."
Increased efficiency and freed staff for other tasks
Epicor Professional Services also helped Gordon White Lumber Company identify areas where they could do more with fewer people. "We would have employees arrive when the store opened and stay until it was closed. Now we use reports to look at transactions per hour and staff accordingly," said Bockus. "Additionally, our hardware buyers used to walk the store to create an order, which took 10 to 12 man-hours per store, per week. Now we're using the Eagle system to do it, freeing up almost eight hours each week, times six stores and that adds up to huge savings. As a result of these efficiency improvements, we repurposed six full-time positions without reducing customer service."
Days outstanding reduced by more than 40 days
"The biggest advantage of using Epicor Professional Services is in our accounts receivables (AR). Our receivables were in the upper seventies as a result of our decentralized approach across six stores. We started using the Epicor Eagle system to run AR aging reports and produce collection letters three times a month," said Bockus. "The AR viewers give us the information we need to make outreach calls to our customers letting them know about their account balance.The improvement in our AR is almost unbelievable. We went from upwards of 70 days to 30 days, which is the lowest it's ever been."
Epicor Professional Services paid for itself five times over
Today, Gordon White Lumber Company has fully implemented the Eagle system into every aspect of its business with the help of the Epicor consultants. "The benefits we derived from working with the consultants are felt everywhere - they helped us improve our company," said Bockus. "Our Eagle system is now a critical tool for running the business. Epicor Professional Services paid for itself five times over."
Bockus describes the consultants as extremely knowledgeable about the Epicor Eagle system and about his business. "They're the best of the best and are there helping us improve. They come out of the industry and in addition to helping us with business processes and the Eagle system, we consult with them about business growth opportunities like mergers and acquisitions. They've provided us with a sounding board to make sure we're doing the right thing."
"We'd highly recommend that other businesses, regardless of size, consider using Epicor Professional Services," said Bockus. "When you work in the business every day, you don't work on the business. Hiring Epicor consultants allowed us to step back, look at the numbers and enact change. We've gained a competitive advantage because we are now constantly improving our business."
Epicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit www.epicor.com.