Lawson M3 Distribution

The market changes and becomes more and more competitive, and long chains of deliveries — less and less effective. Extensive methods of work which still still practice in a number of segments of the Russian distribution gradually "become obsolete". The most competitive are those companies which stake not on "quantity", and on quality and reach profit increase due to effective use of resources. And, perhaps, today such approach to business is most relevant for distribution companies. Only in this case the distributor can take with guarantee the central place in supply chains.

Lawson M3 Distribution is that "tool" which will help to manage business on the basis of the best world practices. As the independent Lawson M3 Distribution direction – the complex ERP solution for management of distribution — develops Lawson Software company since 1992 and today accumulates in itself experience more than 400 companies worldwide.

Lawson M3 Distribution: Positioning in the market

Industries:

• Food;
• Medicine and pharmaceutics;
• Spare parts;
• Water supply and ventilation;
• Electrical equipment;
• Construction materials;
• Clothes, footwear and accessories;
• Equipment (industrial, construction, medical).

Business scales:

• Annual turnover from 50 mln. dollars of the USA;
• 100 – 5.000 employees;
• To 2,000,000 SKU;
• Up to 500 departments;
• Up to 100.000 suppliers;
• Up to 500.000 clients;
• Up to 100.000 positions (lines) in orders daily;
• 50 – 4.000 users.

Lawson M3 Distribution can be used not only as the complex ERP solution for management of all spheres of distributor business, but also be implemented module-by-module — in addition to already existing systems (for example, for planning and demand forecasting, e-commerce, etc.).

Lawson M3 Distribution: Reduction of operating costs

Today's trend such is that the margin of distributors is steadily reduced. The European distributors consider marginality in the amount of 25% very good indicator since still there is a small place for "maneuver" (about 3%). Moreover, in the western market there are already enough examples when distribution companies were forced "withdraw" and be converted in the service enterprises. The same companies which intend to remain in business aim not just to reduce operating costs, but to do it most competently and effectively.

Let's give one of examples as it is possible to reduce operating costs using the ERP solution Lawson M3 Distribution. It is possible to begin with small — to give to clients an opportunity to place orders and claims via the Internet, to keep track of the status of their execution and to take part in planning of deliveries. In most cases clients carry out these tasks much more effectively, than distributors. From this follows:

• From the first day internal costs are reduced by preprocessing of orders/claims and it is possible to focus on their execution;
• Level of customer service (i.e. what is really valuable to clients) is estimated proceeding from objective indicators of the ERP system of Lawson M3 Distribution, but not on the basis of subjective appraisals of certain managers;
• All "narrow" places in work of all chain — from Commercial service to Department of Logistics become obvious. And as clients will be more informed and, respectively, more exacting, it will not be necessary — to eliminate anything else except how to make a right choice "defects" and to increase service quality in the shortest possible time;
• It will be possible to see and eliminate the duplicated and unusual functions, to bring an organization structure into accord with the business strategy of the Company. The "extending" management system within which all internal processes will be subordinated to a main goal – value creation for the client is as a result created;
• And one more important point: the industry ERP solution Lawson M3 Distribution includes the best practices of management – employees on places will not have opportunity to work not correctly.
  

Lawson M3 Distribution: Value creation

Reality such is that for one distributor short terms of deliveries can be a strategic objective, and for another the working standard – it depends on specifics of this or that specific market. Nevertheless, there are two fundamental tasks relevant for each distribution company aiming to be the best in the segment:

• Find new opportunities for permanent improvement of supply chains: solving problems of planning and distribution quicker, cheaper and more reliably, than suppliers and clients can independently make it, you increase a margin of all participants of a supply chain and are for them of value;
• Expand a range of post-sale services: not a secret that the profitability of distribution in pure form becomes less attractive. Distributors need to use the knowledge of the market for creation of new competitive advantages – services post-sale and service maintenance.

Use of the ERP solution Lawson M3 Distribution will give the chance to move to qualitatively new level of work in the segment. It will allow to create an additional barrier to entry for competitors as suppliers and clients will consider your level of service the market standard and will hardly agree to the worst quality for the same money.

The distributors, best in the class, overstepped the traditional bounds of distributor business for a long time and create additional services for clients, becoming a part of their business and the strategic supplier.

Real example: The Fiege company, the leading European logistic operator, implemented based on Lawson M3 Distribution the "extending" model of centralized deliveries of medications in 11 hospitals and 18 shelters in the neighborhood of Muenster, Germany. Now, when the nurse scans a barcode on packaging of aspirin before transfer to his patients, this fact automatically is registered in the ERP system of Lawson M3 Distribution and becomes available to the staff of the Center of booking Fiege. Also the Fiege company implemented one more useful service: mobile crews assemble medical tools and the equipment (scalpels, trays, etc.) from each hospital and return them in a sterile type within 4 hours! Such service not only allowed to improve significantly relationship of Fiege with hospitals, but also it was very profitable service. Thus, having the fresh business idea and such "tool" for its implementation as the ERP solution for management of distribution of Lawson M3 Distribution, Fiege became almost irreplaceable partner for the clients.

The solutions Lawson Software in Russia and the CIS countries are submitted by BSC company.