VJ Technology

VJ Technology

VJT enhanced their operational efficiency across sales, procurement, and warehouse management by implementing ERP and WMS systems, streamlining processes, reducing SLOB stock, and establishing robust KPIs to support their growth and maintain profitability.

Client

VJ Technology

Date

November 28, 2023

Services

VJT streamlined operations with new ERP and WMS systems, cutting excess stock and refining processes to bolster profitable growth.

Background

VJT are the market leader in manufacturing, distributing and testing fixings, fasteners and building consumables for the construction and infrastructure sector'. Purchased by Primary Capital Partners from SIG Plc in early 2018; VJT had and continues to show, a desire in creating a ‘best in class’ operation that will support the continued and accelerated profitable growth aspirations of the business.

Anchoring themselves as the No.1 impartial supply chain partner to the construction and infrastructure sector for over 30 years; focusing on technical connections utilising an in-house UKAS Accredited Laboratory, a 6million + quality product range offering next day before 12 pm, free of charge nationwide.

Challenge

Whilst profitable and growing, it was acknowledged that business processes and supporting systems were inefficient, evidencing non-value adding activity. Three key areas: Internal Sales, Operations and Procurement including business systems architecture, were identified as requiring prioritised attention to ensure maintainanced profitable growth with a view to acceleration.

- Internal Sales - Order processing, up-selling and the interface with inventory management & ops​

- Procurement - Effective buying, aligned to demand requirements and working capital management​

- Pricing Policy - Joined-up policy in relation to customer profiles and margin targets​

Solution

A synergistic solution spanning three interdependent departments was required, beginning with streamlining and enhancing the sales order process through an ERP system (a first for the business); removing process waste, removing paper processes, improving and increasing efficiency, and providing greater visibility of sales terms and product margins. Operational KPIs that were data driven were agreed and a governance process was created to manage performance through the KPIs

In conjunction to the Sales solution, a dynamised approach to stock ordering was introduced underpinned by a robust stock model; ensuring appropriate inventory levels met the sales demands while still providing flexibility with purchase prices; VJT were able to streamline the product offering and reduce stock holdings to a manageable level.

With warehouse capacity being reduced; maneuverability was increased to heatmap stock profiles, define a robust location convention, implement a barcoding system and reallocate stock to the new convention. A streamlined picking process within a restructured team was defined and implemented, allowing for a newly procured WMS, (another first for the business) to be customised, trained and implemented. A newly agreed and accountably managed set of robust KPI's culminated from the use of new processes and integrated ERP, WMS and current TMS systems.

VJT now has the vigorous processes and systems in place to ensure profit maintenance; providing a sturdy foundation for acceleration long term.

Results

VJT optimised the sales process by eliminating all non-value-added activities and redundant manual or paper-based tasks. A fully trained ERP system was implemented, complete with all the necessary training materials, enabling VJT to efficiently onboard new users. Additionally, they established a stock modelling capability that effectively drove the reduction of slow-moving and obsolete (SLOB) stock throughout the business. An extensive overhaul of operational processes was also carried out, re-engineering them to remove any non-value-added tasks and to create seamless links between Purchasing, Sales, and Warehouse/Shipping functions. The warehouse was reorganised for efficiency, with a robust naming and barcode system put in place. Furthermore, they implemented a fully trained Warehouse Management System (WMS), which included all relevant training materials, equipment, and required system integrations.

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