PCH Marketing achieves higher profitability and lower leakages by a web-based ERP system across 60 locations.
PCH Marketing is one of India’s largest distributors and retailers of Samsung Mobile and Consumer Electronics, Garments etc. It is the largest distributor of Samsung in South India, distributes Tablets, Mobile Phones, Televisions, Refrigerators, Washing Machines, sells Apple products from 5 Apptronix Stores, and retails Peter England, Allen Solly, Tommy Hilfiger, Ray Ban, Adidas, Levis, Denizen, and other branded garments from over 60 stores. Its head office is in Hyderabad and stores are located across Hyderabad, Vizag, and other major cities spread across India.
All stores are managed by professional managers, have their own inventories, billing is done locally and amounts collected are banked.
The challenges of the business are the same as any large, growing multi-location business would face:
- To get real time data about sales, inventories, receivables etc of every store so that management knows what is happening and to make good decisions
- To get superior analysis of data from across the company
- To improve planning, strategies and sales promotions
- To make the business managed and controlled by systems, not people
- To have controls and processes which must be mandatory for all to follow
- To plug leakages of money and stocks which may happen in a disjointed system
- To ensure all billing and operations happen on the system and not manually
- To save on IT and other costs
The Company deployed Wings 2013 ERP as a web-based offline system. The Wings Central Server was installed on the Company’s Server at the head office. Satellites were installed at every store.
This resulted in the setting up of an offline system which works across the enterprise over the internet.
How Wings Offline Works
The offline system works as under:
- Each satellite is locally installed, with its own database.
- All billing is done locally at each store and transactions are saved on the local systems.
- Each satellite connects to the Central Server periodically, over broadband connections, at which time all data is synchronised. Changes to masters, prices and user rights, get downloaded to the Satellites. The Satellites upload all transactions to the Central Server. The synchronisation is incremental.
- The Company can optionally enable automatic synchronisation at fixed intervals.
- The system is centrally managed from the Central Server. All rights to access the software are granted to users centrally.
- All account, product masters and prices are managed centrally and stores have no authority to change them or use other masters.
- Wings maintains Branch (store) data separately so that each user can access data only of that store.
Reports & Analysis
Management wanted data from across the company, from all locations, in real time, without having to wait for consolidation and compilation. This was a critical consideration to go for a web-based enterprise system.
Wings ERP delivers to the client’s expectations. The many ready reports and the Reports Designer have helped achieve this. Some key analytic reports:
- Item-wise and Invoice-wise Profitability reports help the management track profitability to the smallest level and plan accordingly.
- Track Dead stock.
- Branch wise Sales Analysis help track slow and fast moving items. Based on this analysis, Company is able to liquidate slow moving items or to move them to another branch where it is in demand.
- Pending Sale Orders report helped in reducing fulfilment time.
- Receivables are reduced considerably by better management. Invoice details are sent by email automatically when the invoice is made. Overdue amounts are intimated over SMSs and email to customers from the software itself. Follow up for collection is much better.
The Managing Director of the Company has found the Dashboard of great value. He is able to see real-time critical analytics on his desktop, without getting into the software. He also views it on his Samsung (Android) Tablet or mobile phone. Some analytics he keeps continuous tabs on are:
- Sales Analysis Branch-wise, also as a Bar Chart
- Pending Receivables Branch-wise, also as a Pivot Chart
- Pending Delivery Branch-wise as Bar Chart
- Comparative Monthly Sales Analysis, as a Gauge chart.
To ensure that systems drive the business operations, to plug leakages and for good management, the Company was keen on implementing very tight security. This is done as under.
- Only an authorised Administrator can define rights and privileges to individual users to access the software and its modules, even at offline locations.
- Multi-layered access control has been setup defining:
- access to database
- access to branches
- access to modules
- access to menus
- access to features and functionality
- Rights to users to edit the transactions has been disabled after a specified number of days (during which it was considered essential to allow)
- Users are prevented from entry and editing of transaction in a locked period.
- By a setting, users cannot enter data of future transactions.
- A mechanism of Track Transactions helps managers understand transactions which have been entered, edited, or deleted.
- Conditional Transaction Authorisation ensures that any transaction entry beyond pre-defined limits was immediately sent to higher-ups for authorisation.
Wings takes care of every function in the Company:
- Enquiries & Ordering, Sales & POS
- Procurement & Purchases
- Financial Accounting
- Accounts Receivable & Payable
The Company has derived considerable value.
- A deep understanding of the business with the help of rich reports and analysis.
- The system is tightly controlled and managed centrally
- Business (including sales and billing) at all locations is done on the system, and never manually.
- Management always gets real-time data from across the Company, including from Branches where internet is unreliable.
- Information is sent to the mobile work force – anywhere, anytime, and on any device, using Wings Android enabled, user configurable Dashboard.
- Emailing helped sending user defined Sales Orders, Sales Invoice as attachment to customers instantly.
- SMS’s helped customers with real-time information like Orders Status, Delivery dates, etc.
The Company was able to go live within one month of the start of the implementation with the help of the existing staff.
Says Mr Sutinder Singh, Managing Director:
“We have been with Wings for the past 20 years. The new Wings 2013 is a fine ERP software for medium businesses. We now have one system, with great controls, covering all our locations in offline mode. The system works smoothly without any hitches.
I get valuable analysis about sales, profitability etc on my own laptop and mobile phone, even when I am travelling. This has helped me manage the business much better. And, the Wings service is very good and committed.”