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Automotive Components

Company Profile

Edwards Bros have been in the motor factor business since the 60’s and have successfully established a small chain of stores across the UK managed by the two brothers and a staff of 26. In 2001, their two sons joined with ambitions to move the business forward. As a result, the management team decided to adopt new methods of working in the local store and to use it as a blueprint for their other stores.

The business trades with several UK based component manufacturers, with specialist orders often imported from France, Italy and Japan. Historically they have relied on microfiche for stock ordering codes and have placed daily orders via modem to their head office.  They have traditionally kept an annual stock check as their point-of-sales records have not captured stock control data.

Business Need  

The main business drivers identified included the need to:

• compete more effectively with UK competitors including retail park-based DIY stores
• respond to their key supplier’s decision to move to a secure on-line ordering system that will give a priority to Web based orders
• move to a more cost-effective paperless accounting system, providing the company with fully automated invoicing and payment
• adopt best practice across all stores

In essence the company were seeking to implement a supply chain management strategy that would help the business succeed and grow.

eCommerce Solution

As both sons had gained experience of working with computerised systems prior to joining the firm, they decided to develop a costed proposal based on the analysis of agreed business needs and the trading terms and conditions outlined by their key supplier in the ‘selection criteria’ document. Talking to the WDA’s Accelerate Wales programme provided a real stimulus of how to improve the supply chain using Internet technologies.

• The brothers chose to lease a powerful new PC pre-loaded with office software and packaged with all of the latest accessories.
• They contacted a national EPOS supplier to install and maintain a sales and stock control system which was linked to their new PC.   
• They worked with their key supplier to gain access to the company Extranet - the Web site designed to address the communication needs of all members of the supply chain - and to submit Web-based orders via the secure on-line ordering system.
• One of the many additional benefits that they hadn’t originally considered was that their Stakeholder Pension scheme could be administered on-line through HSBC’s Business Internet Banking service.

The company has agreed a plan to roll out the new sales and stock control to every store, prior to the UK-wide chain being fully networked.

In addition, the business plan has been further developed to include the launch of a Web site for their own customers to both view and order components on-line.

Business Benefits

By working closely with its suppliers the company has been able to:

• React to market conditions and requirements more quickly and efficiently.
• Eliminate the need for time-consuming and costly manual stock-taking.
• Place orders in real time with local, national and international suppliers.
• Respond faster to customer demands and specialist parts orders.
• Share information on production schedules, future purchasing requirements and stock levels.
• Reduce stock-holding (just-in-time stock ordering and delivery).
• Improve operational efficiency and reduce costs.
• Improve communications with customers and suppliers.
• Build stronger working relationships.