Construction Equipment Dealer - September 2009
September 2009 Construction Equipment Distribution www.cedmag.com 51 A Closer Look Resource Management Suite to help optimize its workforce. The implementation of the single, integrated Lawson system will replace Wheeler's current reliance on several different software systems. The thing I like the most is that it is fully integrated, said Ipsen. Information flows seamlessly and easily through all of the different products: payroll, finance, accounting, operations. Benefits of an Enterprise System According to Archer, there are five main areas where customers typically find value in the system: (1.) stream-lining service/support operations; (2.) higher technician productivity and increased throughput capacity; (3.) increased sales through additional face time and improved close rates; (4.) increased parts and service sales; and (5.) reduced services (work in progress) and day's sales outstanding. Lawson's Equipment Service Management & Rental helps dealers manage equipment from initial sale through its useful life until disposal. It supports integration across a dealer's global supply chains and links back to the equipment manufacturers. It also helps improve integration across the dealer's internal sales, finance, service, warranty and rental depart-ments. This integration helps dealers more quickly process customer orders and warranty claims. The software also helps dealers plan and schedule future service require-ments based on the maintenance programs of their customers' equip-ment currently in the field to help better predict future parts and labor demands. If you are entering into an agreement that stretches out into the future, explained Archer, you need some level of confidence that you can handle and manage the risk and at the same time make a profit. Many dealers have a hodgepodge of systems, said Archer. They have a financial system, a little maintenance system over here and little rental support system over there. Or, they have a system that is `in theory' covering their needs, but not covering it to such an extent that they can be flexible in their approach to the market. According to Archer, what dealers are missing is deep functionality. They need some consistency of approach, some transparency of operation. They need to actually trust the data on which they are making their decisions. For the most part, dealers are no longer sales companies. Servicing is more important than selling, and so the service and maintenance elements of their business need to be an integral part of their own busi-ness processes. The real value of software is through optimization of their entire processes, said Archer. Focused on Equipment Dealerships For the past few years, Lawson Software has focused on the construc-tion equipment dealer segment by making it a dedicated business unit. By choosing just a few market segments in which they wanted to compete, the company has gained considerable success. Finning, the world's largest Caterpillar dealer, began using the software in 2008. More than 300 other equipment-intensive customers throughout the world have successfully implemented Lawson's software solution. While Archer is pleased about success with Cat dealers, he is also emphatic that the product is not strictly for Cat dealers or even large dealers. The software is preconfigured so that smaller dealerships can imple-ment the solution out of the box, while larger dealers can customize the solution if that's what they want. An important feature of the Lawson software, says Archer, is the equipment profitability portal. The software now allows dealers to look at the profitability of the machine from the initial sale through to final disposal. From this data you can plan preventive maintenance schedules and forewarn a customer when profitability will end. Decisions on when to service, buy or sell are based on hard data, rather than intuition. We try and do that now, said Ipsen, but it's difficult. He believes the new system will make this process easier. Rental functionality was another feature that was an upgrade in the latest version, and something that Archer believes is unique in the industry because it's not just a separate rental program, but part of the total enterprise solution. A Veteran Player While Lawson might be a relatively new face in the U.S., the company has been around for more than 30 years and is a major global busi-ness software provider serving more than 4,500 customers worldwide. The company's Web site features more than 200 case studies organized by industry. Of course, the success of any software program in large part depends on getting the entire staff on board. Lawson has trained consultants in all aspects of the business process to ensure successful implementa-tion. Training usually begins with a learning camp to introduce key users to the software and processes. Technology won't fix all of the problems dealers face today, but it's refreshing to know that there's at least one software vendor prepared to show you the benefits to your bottom line, not just the bottom line price. n Julian Archer, global marketing manager for Lawson Software.