CASE STUDY: A 5% margin increase for Bonus Electrical!

Bonus Electrical

Kerridge Commercial Systems’ K8 software has delivered cost and time savings across every area business for wholesaler, Bonus Electrical. A key element of the software is its ability to provide the business intelligence that the management team needed, enabling them to analyze sales in more depth…

Bonus Electrical is the wholesaling division of the East Yorkshire-based, family owned, Bonus Electrical group. Established nearly 60 years ago, the group also owns an electrical retail superstore, a solar P.V. distribution company, and supplies electrical kits to caravan and mobile home manufacturers. Bonus Electrical is the largest independent wholesaler in Hull and a key supplier to local health authorities, councils, schools, colleges, contractors, and industry.

Company spokesperson, Carl Dearing, said: "Unlike national wholesaling groups, who have very strict rules, Bonus is extremely flexible. Where local competitors may have one or two vehicles and offer a next day delivery service, we offer a shuttle service using a large fleet of vans. If we have what customers want in stock, the average delivery time is 90 minutes."

Bonus also offers its major customers a free call out service during evenings and weekends, the facility for stock holding, and warehousing for a council home maintenance company – with whom they have just renewed a three-year supply contract. In 2013 the Bonus management team was tasked with doubling the turnover in two years. At the time they were using "an antiquated, character-based system that was always crashing," and although the old system could not produce the reports they needed, a change of system was considered "too disruptive." But when it became clear that the old system was collapsing, the search for a new solution began.

'Distraction of change'

As a member of the ANEW buying group, the Bonus team asked other members for suggestions. They discovered, however, that many others companies were also using quite old systems and had the same anxieties about the distraction of change. Then the manager of a local builders’ merchant suggested looking at their K8 system.

The brief Bonus eventually gave to Kerridge Commercial Systems (KCS), the company that develops K8, and two other software providers was for a system that would give the company all the business intelligence they needed in a format that was usable and accurate. Staff should also be able to use the system competently as soon as it went live.

Said Carl: "We ultimately chose K8 because of the attitude of the KCS salesperson. He really listened to all our concerns, and we felt he genuinely understood them. The fact KCS had implemented systems for other electrical wholesalers, whereas the other providers hadn't, also gave us comfort.

"The frustrations we expected when the system went live never happened. There was some firefighting during the first six months over printer interfaces and a snagging list that we worked through at our weekly meetings with KCS, but we never stopped trading or lost any business."

Being able to send out invoices by email delivered the first immediate cost and time-saving benefits. And, on the trade counter, staff were now able to access accurate pricing which speeded up service straight away. The internal sales team was also able to access the customer history they needed more quickly and easily.

Click here to read the entire article on the Electrical Wholesaler website. 

 

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