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A. Fillinger Inc.

Company Facts

  • Location: Milwaukee, Wisconsin
  • Industry: Hardware and Home Center, Lumber and Building Materials
  • Number of Stores: 1
  • Website: www.afillinger.com
  • Co-op: Ace Hardware

“We reduced our Ace inventory costs by 25 percent. We also reduced excess inventory and are more efficient at how we use shelf space. We spend 10–15 percent less time adjusting order points and use that precious time to increase sales.”

Ryan Fillinger, co-owner of A. Fillinger Inc

 

A. Fillinger Inc. was founded in 1938 and has since remained in the Fillinger family. The business manufactures and sells millwork goods, designs and creates custom cabinetry, and stocks over 25,000 hardware products. The Epicor Eagle system has been instrumental in helping the company stay competitive, as they rely on the system to streamline inventory management, set aggressive pricing, and keep a tight rein on the day-to-day operations.

Remaining competitive on pricing 

A. Fillinger Inc. has needed to remain competitive on pricing in the lumberyard-saturated area of Milwaukee. To that aim, they adopted new policies and programs with the assistance of Epicor Eagle Pricing Planner and its accompanying mobile app. “With the mobile app, I can walk the aisles of a competitor’s store, scan any item with my phone, and save their prices into our system,” said Ryan Fillinger, co-owner of A. Fillinger Inc. “I discovered that we were overpriced in a lot of categories. Using forecasting models with competitors’ pricing information, we adjusted the margins and prices for certain lines to be more competitive. We also run price elasticity analyses to see how our proposed price changes could affect sales before implementing any changes. Having the ability to make price changes and ensure we meet our margin benchmarks has been invaluable. Now we are offering better deals  on a larger variety of products and are much more competitive. Customers view us differently, and we are seeing increased sales as a result.”

Saving on inventory costs

A. Fillinger Inc. owners adopted new inventory strategies, aided by Epicor Eagle Inventory Planner. “In the past, we had a lot of inventory challenges, and never monitored inventory correctly,” said Fillinger. “Today, we view inventory on a larger scale and analyze items in detail, which provides a perspective on inventory we simply didn’t have previously.”

“We more easily identify high-demand items and change the reorder point to better reflect that demand,” said Fillinger. “We reduced our Ace inventory costs by 25 percent. We also reduced excess inventory and are more efficient at how we use shelf space. We spend 10–15 percent less time adjusting order points and use that precious time to increase sales.”

Increasing sales volume

The owners of A. Fillinger Inc. only had access to limited information to make decisions about the business prior to using Epicor Eagle Performance Manager. “Being able to quickly and easily evaluate the performance of our company has been tremendous,” said Fillinger. “I love having pricing, margins, inventory, operating costs, and more all reflected in easy-todigest Performance Manager charts.”

The business uses the Market Basket feature to increase sales volume by analyzing items that customers purchase at the same time. “I like that I can see which items are frequently purchased with a specific product,” said Fillinger. “I have been working to put together discount packages for specific product bundles, so customers can get certain items at a discounted rate. It’s helping us reach our sales volume goals. This encourages customers to purchase additional units.”

Now the owners analyze daily sales and view specific details with a few clicks. “I view sales by bank card, check, or cash; sales by department; and comparisons to last year or last month,” said Fillinger. “The information is presented in a straightforward way. For example, sales data revealed that paint sundries have stronger sales than paint itself. We didn’t have access to that kind of information previously. The software has allowed us to analyze our products at a deeper level, better understand the trends occurring in the company, and make changes that increase revenue and profitability. Epicor solutions are helping us exceed our goals. In the long run, they will make us a much more profitable company.

Tracking sales

The management team can better track sales performance of their employees with Performance Manager. “We didn’t have a way of tracking sales by employee before,” said Fillinger. “Now we’re tracking an individual’s sales and can provide immediate feedback. We have sales review meetings that educate the team on how to sell custom millwork and add-ons, and encouraged them to reach their sales goals. It has improved performance and morale.”



Success Highlights:

Challenges

  • Setting competitive prices that preserve or increase margin
  • Improving inventory management
  • Increasing sales of complex millwork products

Solutions

  • Epicor® Eagle®
  • Epicor Eagle Pricing Planner
  • Epicor Eagle Inventory Planner
  • Epicor Eagle Performance Manager

Benefits

  • Increase sales volume by identifying and upselling complimentary item
  • Price competitively while meeting margin goal
  • Reduce quantities purchased and reduce Ace inventory by 25%
  • Save 10-15% of the time required to adjust order points and use that time to drive revenue

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