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OneSource Distributors

Company Facts

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  • Location: Oceanside, California
  • Industry: Electrical
  • Number of Stores: 14
  • Web site: www.1sourcedist.com

 

"Eclipse is a great foundation on which to run a business, and we have really leveraged the technology. With Eclipse in place, we have very few 'fires' to put out. Everything at our facilities is calm and organized."

Mike Smith, Chief Operating Officer | OneSource Distributors

 

OneSource Distributors of Oceanside, California, recently named as one of the Top 25 Electrical Distributors by Modern Distribution Management, has doubled sales over the past five years, growing to $365 million in annual revenue. While acquisitions have helped the company tap into new markets, the use of enterprise resource planning (ERP) technology has allowed them to maintain a steady headcount, increasing sales per employee to $1.2 million in 2010.

OneSource has been using the Epicor Eclipse ERP system since 1999. In fact, Chief Operating Officer Michael Smith worked for Eclipse prior to joining OneSource. Smith praises the strength of the Eclipse transactional processing engine and its add-on modules: "At OneSource, we are fully utilizing the Eclipse system; it allows us to take advantage of many modules that are fully integrated into Eclipse, including Web order entry, inventory management, work order processing, document imaging, and EDI."

According to Smith, OneSource Distributors' "top three" Eclipse modules would be:

1) e-commerce: Automatic processing of EDI files. Today, 70 percent of OneSource's inbound/outbound transactions are electronic.

2) RF and Wireless Warehouse Management technology, which is in use at their three Central Distribution Centers (in San Diego, San Francisco, and Los Angeles), and has allowed them to achieve 99.8 percent inventory accuracy.

3) Work order processing. Says Smith, "We are one of the largest users of this part of Eclipse, based on our $50 million in sales at our manufacturing facility." This module supports the requirements to assemble customized products involving multiple parts and labor efforts.

Actionable Data, Measurable Improvements, and Configurable Technology

Smith believes the "revolutionary" parts of Eclipse are its processing engine ("an incredible transaction-processing tool") and built-in business rules that support the unique needs of the distribution industry: purchasing, inventory management, and EDI. He explains, "With the way we've configured and added tools to the system, Eclipse monitors all of that activity and serves up actionable data and exceptions to be reviewed, looking for issues that need to be addressed. The built-in triggers in sales, purchasing and operations act as proactive tools and alerts, so we don't have to review piles of reports. As a result, we can handle more transactions with fewer bodies."

Another key to OneSource's success is measuring all aspects of the business and continuously striving for improvements. For example, using financial scorecards, they examine working capital metrics and turns by division. Smith notes that with Eclipse, the inventory turns in OneSource's electrical business are pushing 7, which is well above industry averages.

OneSource also appreciates that the system is easily configurable. "The core engine brings so much value," says Smith. "We just turned on all of the features we needed, and added a few others to be able to run at this efficiency level. We don't touch the core; we just enhance around it to provide us with a competitive edge."

Smooth Sailing Ahead

"Eclipse is a great foundation on which to run a business, and we have really leveraged the technology," Smith observes. "With Eclipse in place at OneSource, we have very few 'fires' to put out; it's just day in, day out normal business, with no paperwork piling up. We handle the work right as it comes in, and everything at our 14 facilities is calm and organized. That's the impact of having real-time access to data; it helps you 'keep your eye on the ball.' You can see exactly where you are in your business; it's all at your fingertips."

Looking ahead to the future, he concludes, "We are excited at the prospect of seeing new versions of the Eclipse system through Epicor, and the opportunity to leverage even more new technologies."

About Epicor

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 .



Success Highlights:

Challenge

  • Help a major California-based electrical distributor double their revenue without adding any headcount over the past five years

Benefits

  • Doubled gross annual sales since 2005 without increasing headcount
  • Sales per employee grew to $1.2 million in 2010
  • Inventory turns in electrical business are pushing 7
  • Operating expenses are less than 11 percent of sales

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