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MORSCO

Company Facts

  • Location: Fort Worth, Texas
  • Industry: Plumbing Supply
  • Number of Employees: 2,000
  • Web site: www.morscousa.com

“Eclipse immediately handled our business right out of the box. We now have one system that works equally well for everyone and is poised to seamlessly blend new acquisitions and stores with our existing companies.”

Christine Tine, CIO | MORSCO

 

MORSCO supplies more than 80,000 commercial and residential plumbing, HVAC, and PVF products to approximately 25,000 customers nationwide. Founded in 1917, the company once known as Morrison Supply has morphed into an ever-broadening family of business units operating under the MORSCO banner. Today, this includes seven separate companies consisting of 164 branches in 12 states that generate $1.2 billion in annual sales.

“Our goal is to be the supplier of choice for contractors based throughout the Southwest and beyond,” said Christine Tine, chief information officer. “We have a very aggressive growth strategy that’s founded on the continual acquisition of successful businesses and new openings bound together with existing stores operating the same world-class technologies and backoffice solutions.”

Centralized record-keeping at 164 company branches

MORSCO entered the next step in this mission when it began reviewing enterprise resource planning (ERP) systems that would synchronize the activities and records of all branches with its Fort Worth, Texas headquarters. After an exhaustive search, MORSCO initiated the phased rollout of the Epicor Eclipse software solution.

“Previously, we had a homegrown system that we just flatout outgrew,” said Phil Osborn, vice president of customer and pricing strategies. “There was no way to coordinate record-keeping. Every branch operated independently, making corporate oversight very difficult. Data had to be copied and manually sent to the corporate office. There was no way to instantaneously share electronic records. The old system couldn’t even accommodate our ongoing growth, since the field for tracking branches only went to 99 and we had already passed the 100-store milestone.”

An analytical approach to pricing

According to Osborn, the Eclipse system’s analytical approach to pricing made an immediate impact on MORSCO’s bottom line, increasing profit margins by 2–3 percent in the first year of operation. In addition to providing the statistical information necessary to increase costs in the markets that could afford it, the Eclipse system also fostered the implementation of hagglefree pricing that set fair product charges at each branch.

“This was a tremendous problem at numerous branches,” explained Osborn. “Customers would negotiate prices with sales staff who were often happy to accommodate them. With Eclipse, this practice effectively stopped by locking in pricing, eliminating manual overrides, and adding another level of visibility to all transactions.”

Enhanced operational efficiencies

Other operational efficiencies provided by the Eclipse system since going online in 2015 have included the ability to increase capital by lowering excess inventory and developing a focused sourcing strategy where items are stocked only when needed and at the right price at the right time.

In addition, Tine noted that “more than 50 operational procedures have been enhanced since its implementation.” The reduction of manual errors alone increased profit margins by one percent. This was achieved by centralizing product labeling systems—making it easy for employees to find items either on the shelf or in warehouses with RF devices.

“We looked at numerous ERP systems, but they would have required a great deal of customization to meet our needs,” added Tine. “Eclipse immediately handled our business right out of the box. We now have one system that works equally well for everyone and is poised to seamlessly blend new acquisitions and stores with our existing companies.”

“Eclipse has also played a huge role in standardizing our processes, driving productivity, and getting everyone on the same page,” said Tine. “We now operate as a large, unified company. Plus, the ability to instantaneously access inventory reports from any location at any time has provided us with an invaluable way to evaluate individual branch performance.”



Success Highlights:

Challenges

  • Foster ongoing growth and synchronize the information generated by 164 separate branches at one central location

Solution

  • Epicor® Eclipse

Benefits

  • Increased profit margins by 2–3 percent in first year of operation
  • Fostered haggle-free pricing and set product charges at each branch
  • Improved more than 50 operational processes
  • Increased capital by lowering excess inventory
  • Helped develop a focused sourcing strategy

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