Atlas Supply Case Study
Delivering faster inventory turns and increased cash flow.
For nearly a century, Atlas Supply has been a favorite supplier to Northwest construction, industrial, and marine supply industries. Specializing in engineered sealants, adhesives, and waterproofing systems, the company maintains a well-deserved reputation for high-quality products backed by true product expertise.
A Weighty Problem
As is true for many distributors, Atlas Supply’s two largest assets are its receivables and its inventory. Its outdated Unix-based system lacked the tools needed to manage these assets effectively and accurately. “We couldn’t perform invoicing during the first 12 days of every month,” recalls Jeff Watson, operations manager. “The old system took that long to close, and no new transactions could be entered during that time.”
Having the right product at the right time is crucial to the success of every distributor. With busy operations in Seattle, Tacoma, and Portland, Atlas Supply found itself struggling to maintain appropriate inventory stocking levels at each of its warehouse locations. To complicate matters, many of the company’s products are heavy, and some have limited shelf lives. Without the tools to make accurate buying and allocation decisions, Atlas Supply often paid a premium to transfer its material from one location to another – or ended up with expired products it couldn’t sell. Worse yet, if Atlas did not have the stock on hand to meet an immediate need, a customer might take their business to a competitor.
Streamlined Solution
Atlas Supply decided that Microsoft Dynamics NAV was the solution it needed to gain better control of these valuable assets. “We chose Microsoft Dynamics NAV because it’s modern, flexible, and intuitive to use,” says Watson. And ICS Support is the partner Atlas Supply relies on to implement and support the solution. “We chose ICS because they know their products, and understand distribution.” Today, all three offices access the same Microsoft Dynamics NAV application housed at the Seattle headquarters.
Inventory Answers
Warehouse transfers, once tracked manually, are adeptly handled by the software using an in-transit warehouse designation. Now salespeople know immediately where available stock is, and its anticipated arrival date. With the old system, a customer-requested item could have been in the warehouse, ready to sell, but the salespeople were unaware until the receipt batch was updated. Now, real-time database updates mean that Atlas Supply’s salespeople are always working with up-to-date stock counts as they speak to customers.
Product movement information tracked by Microsoft Dynamics NAV helps Atlas Supply identify which products are top sellers and top revenue generators, and which products it should consider discontinuing.
ICS Support designed several custom reports for Atlas Supply, allowing it to harness the information that management needs to make better business decisions. Sales forecast capability has improved dramatically, because Atlas Supply’s buyers can analyze prior period-to-date sales or prior year sales for an item and make strategic buying decisions. “Before, we often bought product we didn’t need rather than risk running out,” recalls Watson. “With Microsoft Dynamics NAV, we have the history we need regarding sales and vendor’s required lead time right at hand, and can use that information to maintain lean - but adequate - stock levels. The results are faster inventory turns and a smaller inventory investment, which save the company money.”
Improved Cash Flow
Cash flow too, has improved dramatically. Now, the product is invoiced the day it is sold, equalizing the company’s workload and cash flow throughout the month. Payable invoices are now selected by discount due date, ensuring the company never pays more than it needs to.
“The solution is definitely paying for itself in terms of inventory efficiencies like having the correct stock on hand when we need it and the improved cash flow.”
- Jeff Watson, Operations Manager, Atlas Supply