On the EDGE, April 2009

The Electric Connection: Leading the Way for a Greener Environment

As the new Lumecon distributor in Arkansas, The Electric Connection (TEC) is one step closer to pioneering a green future. Distributing electrical and lighting equipment to Arkansas and the surrounding area since the fifties, TEC, known as Home Electric in the early years, has developed consistent and reliable practices via their team's dependable efforts and leading edge systems to insure their clients' success and resulting satisfaction.

With locations in Jonesboro and North Little Rock, TEC is one of Arkansas' premier wholesale and retail electrical and lighting distributors, offering full electrical and lighting lines that include residential, commercial, and industrial items. According to Jonesboro's System Administrator Barry Wright, who has been with TEC for over a decade, TEC's main customer base consists of electrical contractors and builders. Some of their top product lines include offerings from Square D and Leviton electrical products as well as lighting from over 300 lighting manufacturers. And of course, they are now a leading supplier of L.E.D. lighting. Their inventory of lighting products ranges from interior recessed lighting to exterior fixtures. TEC also offers chandeliers, track lighting, ceiling fans, and more.

The Electric Connection Selects SX.enterprise
In 2003, TEC decided it was time to seek a new distribution solution. Before implementing their current system, SX.enterprise, TEC had experimented with other systems, including Distribution One's Vision, but none fit their industry well. They also tried implementing what they thought would be a fiscally conservative solution, but in the end, TEC spent more money in an effort to make the non-distribution system work within the distribution industry.

Ready to find a lasting solution, TEC began to search for a solid software base with which they could grow. Even though they were interested in SX.enterprise, TEC first researched other well known competitive solutions, originally avoiding Infor's SX.enterprise for fear of a far greater expense than they could afford. However, an account executive they had encountered at another company recommended SX.enterprise and suggested the expense would be more manageable than suspected, especially if TEC partnered with an Infor Channel Partner like Acumen Group, a founding partner of Distributor's EDGE.

TEC had admired SX.e but refrained from researching the system earlier because of financial concerns, so once this concern was alleviated, they immediately began to research the system. Ironically, one of the largest deciding factors in the purchasing decision happened to be the very affordable and respectable price for a Windows-based system that, according to Wright, "had most everything we were looking for." By November 2005, TEC had fully implemented SX.enterprise and partnered with Acumen Group.

Great Expectations
At the outset of their search, TEC was looking for a software system with which they could grow; after viewing demos and speaking with Acumen Group's other SX.e users, TEC knew SX.e would provide the option for growth. Once the software met their technical expectations, TEC had a few expectations of their new technology partner, Acumen Group. TEC was looking for a good listener, someone with whom they could easily work and is readily available over the phone, and excellent service from a Channel Partner as related to Infor.

Four years into their relationship, Wright believes Acumen successfully responded to all of their expectations, and he especially appreciates the dedicated service the Channel Partner relationship affords him. Acumen's willingness to listen to TEC, respond to their needs, and work closely with TEC contribute to this good service.

From the beginning, Acumen's Director of Application Integration, who was very involved in the implementation process along with other key Acumen employees, worked closely with TEC executives, including Wright, the General Manger, Charlie Coles, and the owner, Keith Felkins, to initiate the Train the Trainer approach. Once Wright, Coles, and Felkins were comfortable using SX.e, they in turn trained their TEC associates. Additionally, TEC utilized the Computer Managed Instruction CDs, which included a thorough breakdown of each module and section. Through the CMIs, TEC employees took tests to determine their comfort level with SX.e, and the CDs even offered printable certificates, enabling TEC to execute an incentive program.

Noticeable Improvements
With in a week and a half, TEC felt comfortable with the basics, such as order entry, and Wright attributes the ease of use to the detailed training process, their focused team, Acumen's dedication, and the Windows-based system.

As with many organizations, TEC faces a few common challenges, including employee concerns, sales, and aiming to embrace new technology while considering cost. Wright believes Acumen and SX.e immediately helped TEC face many of these challenges.

First, Wright credits the CMIs as a key element in new employee training, especially when it comes to order entry. Of the CMIs, Wright says, "Training was great with the program." He believes new employees are fully ready to start work with SX.e after only a week of training. In addition, TEC now only employs one purchasing agent as opposed to multiple agents, and the agent is very well versed in TEC's inventory.

Second, SX.e's strong forecasting nature has improved TEC's inventory levels. With SX.e, TEC is more aware of the stock they are currently carrying and the items they are about to ship. Wright compares the difference from their previous system's Inventory Management capabilities to that of "night and day." For example, in the past, Jonesboro's inventory levels were between $1.2 and 1.4 million, and now the inventory is around $800,000. Wright adds this is not due to a struggling economy but to SX.e's ability to better manage inventory.

While SX.e has decreased inventory levels, it has also greatly improved TEC's customer service. Now, TEC only carries the stock their customers want to buy. With SX.e, TEC has the ability to find previous sales information dating back many years. In addition, SX.e has helped improve TEC's communication with their clients because they can now fax and email to their clients directly from the system.

While SX.e has not helped TEC to face their third challenge relating to new technology, it has simplified the process of adding new products to the system once they adopt new technology. In addition, SX.e's cross-referencing abilities enable TEC to more easily locate new items in the system.

Enhancing Functionality
Aside from seeking a system that has the functionality and a partner who is willing to put in the time, TEC did not have many specific initial goals. Working on the assumption that strong, solid ingredients would result in better numbers, TEC focused on extracting the most out of their new system and partnership, which included co-developing applications with Acumen. Wright recalls quickly recognizing SX.e's deep functionality. In conjunction with Acumen's high level of expertise in SX.e, TEC especially noticed SX.e's programming capabilities within the first six months. Wright believes "everything that we could need is in the system now. Maybe it was missing a few small things, but with Acumen's help, we now have everything we need."

One area in which TEC and Acumen worked together to enhance the software is Document Imaging. Since Wright and one of Acumen's technicians developed the application, TEC can now more easily view an invoice for a particular vendor. The number of steps necessary to view the invoice is significantly less.

More importantly, with Document Imaging and Signature Capture capabilities, TEC has seen a significant decrease in their paper, toner, postage, envelope, and other filing related expenses. Wright notes the large impact this has had on TEC's bottom line. In addition, TEC has decreased their filing cabinets from eight to half of one.

TEC and Acumen
After working with Acumen for many years, Wright defines the relationship as a good partnership, saying "Acumen was a great partner for reaching our goals after the implementation of SX.enterprise, and as a partner going forward, they stay on top of the technology so we can always count on them to get us through to the next level." As TEC continues to work with Acumen and SX.e, their bottom line continues to see improvements due to superior inventory management, decreased paper expenses, and Acumen's dedicated involvement. Moving forward, TEC hopes to implement a Web Commerce system and utilize Event Manager more in an effort to truly reap its benefits and improve company communication. Further, they plan to continue growing as one of Arkansas' leading green companies. When asked whether he would recommend Acumen to a peer, Wright says, "If you can buy SX.e from Acumen, that's what you need to do."

For more information on The Electric Connection, visit www.tecelectric.com.