Following their best sales year, John Gross & Company now turned their attention to improving their financial performance by addressing a number of major business operations problems including mis-picks and inventory control.
To establish a solid foundation designed to solve these types of problems, John Gross partnered with AFS to implement the entire supply chain solution suite (ERP, WMS, OMS, WEB, Discovery G2, and DATUM). After successfully launching the software suite in late 2016, they began seeing the benefits of the AFS solution on their bottom line. By 2018, their sales had grown by 19.7 percent and gross margin had increased in kind. In addition to the sales and margin improvements, their balance sheet improved as well given their processes had become so streamlined that they actually required less inventory to run the business even though sales had risen nearly 20 percent.
The John Gross & Company team pointed to several key features of AFS software that drove their boost in sales and profitability.
- The OMS order entry system allowed the salespeople to manage pricing for individual customers and items which increased overall profitability.
- The marketing program they were able to run using the standard functionality in the ERP Deals module allowed them to capture 1.5 percent more deal dollars. With the robust capabilities of ERP, they were also able to retire a third party software solution they had been using to manage their deals, saving them more on licensing and maintenance.
- The built-in interface with ERP and Roadnet has allowed them to save time routing and has made their truck routes more efficient.
- The out of the box replenishments and scanning capabilities of WMS have increased their order accuracy, customer satisfaction, and inventory precision. This has allowed them to better manage their inventory and reduce what they have to store by 6 percent despite having 20 percent more business.
“Our legacy system was nearing end of life and our company had grown to the point that we needed a warehouse management system,” said John Gross & Company Director of Operations, Zach Gross. “Within two years of implementing the AFS systems, we had seen increases in sales and margins while decreases in inventory levels. This allowed us to continue our growth without having to do an expensive expansion.”