Lawson believes this is an ideal time to invest

BY MARY JO MARTIN
Editorial director

To battle the current tough economic conditions and residential construction slump, many distributors in this industry have understandably tightened their belts and are limiting any non-essential expenses. And while that is an excellent -- and necessary -- strategy, there are some business tools that actually might be a wise investment right now.

A good distribution software system is at the top of that list. It goes without saying that these systems allow distributors to operate more efficiently and accurately -- definitely a plus when streamlining operations. But a downtime like this is also an ideal opportunity to look into and implement such an investment because the slower business pace allows more time to really investigate options. And once a system is selected, it allows a more manageable implementation and training pace to ensure that all employees are on board and all systems are go before going live.

“The companies that are going to get ahead are going to be the ones that take a long view on the current economic environment and weather this storm,” said Bob Peterson, global marketing director for distribution with Lawson. “This is just a cycle. We all know that. Distributors that are best positioned for the upswing that will come are those that are making investments in tools to make them more efficient. They are looking at where they can save cash by cutting out extraneous spending. That will make them a much more streamlined operation when the economy goes into recovery. Projects like this take some time, and this is an ideal opportunity to invest in and install a new system.”

Lawson, one of the largest publicly traded erp software providers in the world, has a long history in other verticals, but in recent years has been making a push into distribution and manufacturing. Currently, Lawson has about 4,000 active users, of which approximately 400 are involved in distribution.

According to Peterson, plumbing, pvf and hvac wholesalers are a key target area for Lawson: “These distributors fit right in our wheel hub. We are very precise in our go-to-market strategy. Distribution is a very broad business; we have chosen to focus on construction materials, plumbing, hvac and janitorial and parts & equipment. Lawson tries to align itself with partners in these distribution sectors. We affiliate ourselves with associations that can help us raise our profile in each of these subsectors.

“Lawson’s heritage has been in the mid to upper mid market. That is where we perform the best. We do have some very large companies and a few small ones, but distributors with $100 million and up in annual sales is where we really fit well with our functionality.”

The company’s flagship product for distributors is the M3 Enterprise Management System, which represents companies that have “Make, Move and Maintain” processes. The suite is a full erp solution that includes all core and supporting functionality from soup to nuts. Among its offerings are financial management, customer relationship management, supply chain planning and execution, and service and maintenance. This integrated, industry-specific software offers great flexibility and is designed for the easiest possible implementation, usage and maintenance. M3 7.1 is the latest release for this suite.

In addition, Lawson’s QuickStep for Distribution is a pre-configured erp application package created for the needs of distribution companies. It is designed to help distribution companies cut traditional erp implementation times by up to 50%, reducing the cost of implementation services and allowing firms to be up-and-running on their enterprise applications more quickly, which ultimately helps provide a faster return on investment.

The software -- which was specially designed for targeted industries -- packages Lawson’s industry-specific knowledge of best practices and expertise in implementation with the client’s knowledge and understanding of distribution. Among the functions QuickStep assists distributors with are:

• Managing a high velocity of transactions
• Handling the complexities associated with a diverse range of product types and units of measure
• Coordinating a variety of delivery methods
• Supporting flexible pricing, discounts, rebates and promotions
• Providing online sales statistics, including overall sales, margins and service analysis at both the organizational and product level
• Controlling specialized “buy to order” situations, particularly for goods outside of a firm’s standard product offering.
  
  

“Our solutions for distributors can handle all the business functions they need,” noted Peterson. “Previous to implementing Lawson, many of our customers had been using systems that have been cobbled together over the years or have been merged with other systems through acquisitions. Distributors often get to a point that they can’t really grow without making the move to an integrated system.

“I can’t emphasize enough that our distribution customers have unique needs, and we understand that. Every company has a slightly different business model. The value of Lawson might mean something different to each company. Until the recent economic crisis, we had been positioning ourselves as the platform for growth for distributors of all sizes for the next 10 to 20 years. In the last few months and going forward in the immediate future, that strategy has been slightly redefined. Distributors are being forced to concentrate on efficiency and lean operations for their survival.”

Peterson, based in St. Paul, Minn., is one of the key Lawson executives most in touch with North American wholesalers. As global marketing director for distribution, he has responsibility for the advancement of all of the company’s distribution products from a marketing perspective. Organizationally, he works hand-in-glove with industry strategy director Ian Wahlers, who is based in London but spends a great deal of time in North America. Peterson describes him as “the voice of Lawson distribution strategy.”

In addition, Rich West serves as managing director of distribution sales for the Americas.

“We see the Americas as a great opportunity for us in the distribution sector,” Peterson explained. “We are really staffing up and bringing on board some high-profile distribution customers. A benefit of our vertical go-to-market strategy is that we are able to apportion a great amount of resources to our verticals. We offer a comprehensive set of product training and marketing programs to our regional teams throughout the globe. Ian and I also do a lot of field enablement sessions and training programs.

“In the near future, Lawson will be offering more and more product enhancements and getting more precise as we delve deeper into our verticalization. We’ll be offering more specific options and greater functionality for distributors.”

In looking at the overall market -- from both a customer and software provider point of view -- Peterson believes that Lawson is in a very unique position right now.

“I think the market needs a nimble, much more efficient option like Lawson,” he said. “We are able to quickly adapt to the changing marketplace. I think that proves itself out by our simplicity message. That, more than anything else, is why our customers say they choose Lawson. Our total cost of ownership is quite favorable, but it certainly doesn’t compromise the functionality that our customers deserve. They get a very robust product that can be rolled out in an efficient fashion. And a product that will make a big difference in their operations.”

For more information, visit www.lawson.com.