IBS enhances Business Intelligence for distributors

Press Release Mar 08, 2000

International Business Systems (IBS), the world leader in supply chain execution software, is introducing a new version of Analyzer, its integrated Business Intelligence software. IBS will reveal Analyzer 4 at the IBM Global Supply Chain Executive Conference in Las Vegas on March 19.

Analyzer 4 monitors and assesses the net margin performance of each distributor's customers based on up-to-the-minute order entries, inventory data, customer demand patterns, transactions, receivables and all the cost elements associated with delivering products and services to the customer. "Net margin analysis has become an industry best practice and is a far more reliable product indicator than gross margin when identifying the most profitable and, most importantly, the least profitable customers," says David Woodhouse, IBS product manager.

"Those distributors who have identified their best customers can incorporate the information back into their enterprise system to ensure that these customers are given the best service," he says.

"Distributors can improve their nets with low margin customers by renegotiating their contractual terms, for example, unbundling services and charging separately for them."

"But in either case," Woodhouse says,"Distributors won't need an army of accountants to tell them how to make business more efficient. They can concentrate on day-to-day business issues and deploy information throughout the organization so everyone can focus on selling more profitable products to preferred customers, immediately influencing profit performance."

As with the earlier versions, IBS Analyzer 4 is integrated seamlessly with the underlying enterprise system. In this, it differs from other third-party activity-based costing packages that require constant maintenance and interfacing.

Integration allows customers (and all authorized parties to the supply chain) "constant profit awareness," information relating to their business activities. Analyzer 4 receives real-time (not historical) data from the enterprise system's multi-dimensional database so there is no need to install a separate data warehouse solution.

This enhanced version of Analyzer also liberates user from standardized inquiry formats. They can customize their own inquiries at the desktop and generate new reports to suit specific needs. "With this tool, distributors can gain business advantages by being able to ask their systems any combination of questions, drilling right down to the underlying transactional information," says Woodhouse.

"This software solution is critically important to today's distributors, Woodhouse says. "A wholesale distributor's business is beset by competition from other distributors and now, from manufacturers who sell both direct and through alternate channels that bypass traditional Distribution methods. To combat this pressure, distributors may be offering additional discounts and services to attract and keep customers."

"The result," says Woodhouse,"is eroding margins."

"Solutions such as Analyzer 4 permit distributors to regain control. It measures the net contribution of every customer and product, supports budgeting for sales and purchasing, provides flexible distribution and financial reporting and measures the performance of operations with graphic order flow analysis. It truly restores a wholesale distributor's competitive edge."

About International Business Systems

For further information, please contact:
Dan J. Wells
Vice-President of Marketing, IBS Americas
Tel: 1 (800) 886-3900
dan.wells@ibsus.com