A David & Co and Nation Wilcox are collaborating on the implementation of key IT projects in what is proving to be a promising union. Bringing information technology solutions to a well-established produce business, the relationship has already seen tangible results. An integrated computer system and a dedicated internal accounting system have served to update and streamline procedures. But it is the implementation of forthcoming initiatives that will really shape the future as far as A David is concerned.
Procurement cards are a good example of this, with both parties working towards the implementation of a fully integrated card payment system allowing the wholesaler to accept major credit cards and online purchasing from government departments. It?s a system that is crucial to the development of the company, particularly if it wants to hold onto key government accounts.
A David?s business development manager Jon Evans explains: ?We were approached by Bristol City Council about this initiative because of a new government directive which will see all local government departments trading online by 2005. We?re working on introducing a system which will enable us to process these payments and are currently in the first phase of our implementation.?
Procurement cards, although not actual cards, work via an online account number with the card details set into the system. ?There?s no authorisation process to go through, but it does ensure that A David is paid within a few working days,? Evans explains. ?Authorisation is obviously a process that you would have if you ordered goods on the internet, but that stage has been omitted. The customer details are already set into the system and controls can be put onto the account to restrict what the purchasers can buy.?
The advantage for the council, says Evans, is that the system optimises the way in which purchasing is carried out and also prevents any abuse of the system. ?The control is obviously a brilliant by-product,? he says, ?but that?s not why it was implemented. It?s an efficient way of purchasing and something that will increasingly be used by many more businesses. Particularly since the directive, there will be many more companies that trade in similar ways.?
Advanced payment systems require significant funding. ?We?ve spent a lot of money on the system ? it?s been a big investment,? Evans says, ?although it is one that will certainly pay off. For example, if we tender for more local authority work then we will already have the necessary system in place. And it?s always an advantage to be credit card enabled.?
Although procurement cards have not yet been rolled out into the sales domain, trialling by Bristol City Council is well underway. ?Only when we are confident that it works from all angles will we roll it out,? Evans concedes. ?That?s from the sales order end and we also need to ensure that it hits sales ledger as it should and that everything is satisfactory from the council?s point of view.?
Electronic systems, particularly when replacing manual processes, can provide significant savings in cost and time and hand held terminals are no exception. A David is planning the introduction of this technology as its next step forward. ?Traditionally, in a wholesale market, processes can be very drawn out and involve writing the sales down and then manually collating the information,? explains Gordon Wilcox, director of Nation Wilcox. ?With the terminals all that work is carried out automatically ? from initial sales to creating an invoice and stock control and best of all this happens in real time.?
Hand-held terminals have been on the market for the last two years and Wilcox, who has installed devices up and down the country, has recorded a ?fantastic response?.
Internet ordering and automatic stock control may be the future as far as many industries are concerned, but it is in formulating systems for the varied nature of the produce industry that Nation Wilcox has achieved an enviable reputation. The next stage of development and one that is being pioneered by A David is in linking the scales system to the computer, a worthwhile investment which will put an end to the problem, inherent in fresh produce, of selling weights that are higher than the customer has asked for.
Business development manager Nigel Hooper explains: ?Everyone in the industry gives slightly over the required weights because obviously produce doesn?t all weigh the same. Retail outlets will charge the exact money, but the produce industry will charge for the nearest, lowest weight. If we proportion this out in terms of turnover, it?s easy to see that a lot of money is lost. Approximately 60 per cent of our products are sold in outers, 40 per cent of produce that is split down. Out of that there are a lot of products we would sell as singles, but kilo products are an issue and they make up about five per cent of the turnover.
A substantial step in moving A David?s business forward has come from the combined efforts of both parties to identify opportunities for improvement within existing procedures. This led A David to sell statistical information to its clients, with Nation Wilcox supplying the system enabling this to happen. Statistical information, product information, rebate information and portion control are the areas in which data is collated.
Hooper explains: ?When clients place their orders we have a system that allows information to be held centrally, and collates it from there. What we?re actually doing is providing what a purchasing company normally provides for the clients but we can provide everything that the client wants using the Nation Wilcox system and it works extremely well. Of course there are occasions that things go wrong, but the backup service is excellent ? it?s both professional and well executed. We?re 24 hours a day, seven days a week. We?re looking for the same commitment and that?s what they give.?
Evans agrees: ?Statistics are fast becoming a requirement. The problem with the fresh produce industry is that prices go up and down. People do come to us, for instance, and want fixed monthly or weekly prices but that?s difficult because of the nature of the industry but what the user statistics do is enable people to evaluate value.?
Such a progressive attitude has taken the business far from its initial set up 49 years ago as a one man, one lorry situation, and now the company has more than seventy vehicles on the road. The business is 100 per cent dedicated to the catering industry and has made the decision to harness the potential of IT in order to move the business forward. ?It?s a large family firm which had always developed organically, but rationalising the business in terms of IT was an important part of moving the sector forward. We needed to meet the required standards because these days it is so much more than supplying fruit and veg,? says Hooper.
The implementation of initiatives to ensure that growth has not expanded beyond the means of control has resulted in a series of measured moves. Dominating the horizon is the imminent relocation away from Bristol fruit market and onto larger premises nearby. ?Fruit and veg stalls aren?t conducive to conducting business in the way that it needs to be done now,? says Hooper. ?As a business, you need to look at your requirements and then at ways of meeting them. Many things have changed in this industry but I feel we?re making great inroads here.?
Undeniably, much has changed in the four years since Hooper?s inception. A number of areas in the business have opened themselves up to modernisation.
?We?ve got a quality control department, working independently from procurement and they QC everything as it comes in. A company scientist, George A Prentice, has been employed for the last three years to maintain the company?s policy of ongoing review of UK and EU food safety and other relevant legislation ensuring that all processes and all foods entering and leaving both the factory and the distribution depot comply with or exceed these testing requirements. The company itself is SGS accredited and is moving towards EFSIS certification with Prentice constructing the ongoing plan.?
?We?ve had to modernise, change and become customer-focused,? Hooper admits, ?because for 45 years the business was carried out in the same way. Without a doubt the catering industry is becoming more demanding and requiring more information particularly in the areas of agrochemical policies, a need to be more aware of who the growers are and also, there are more allergens about than there used to be. It?s paramount to our customers that they know they are dealing with a reputable company.?
Identifying the specific ways in which the produce industry is growing, Hooper admits that the prepared sector is a significant force and as such the 5,000 square foot preparation unit has also undergone significant change and will shortly open 24 hours a day, seven days a week to ensure adequate supply and business efficiency.
The customer care unit is just eight months old and led by Mark Collins, a former customer care manager for Nat West appointed to answer customer queries within a given time frame. ?We were coming across issues that I felt weren?t being dealt with,? Hooper explains. ?As far as I know, it?s a first for the fresh produce industry ? no-one else has this facility so in this respect, A David is at the forefront.?
With queries received in the telesales office and dealt with the next day, the customer care unit has seen what Hooper calls a ?marvellous response?.
But this is just one in a series of communication tools that have recently been installed. ?We circulate a monthly newsletter, updating clients on what?s happening with produce and that?s been happening for eight months now,? Hooper explains. ?The company is now being marketing with a different image and new logo.
?The logistical aspect of our operations is also being tightened up and it?s made a lot of difference to the effectiveness of the way we work. Responsibility for purchasing has also been streamlined and to avoid confusion, improvements such as bringing the accounts office, previously based at Bishop Sutton, to Bristol have been put in place. The result of this is better control and up to date information.?
As a series of improvements, one overriding factor stands out, best illustrated by the effectiveness of IT to seemingly effortlessly transform working situations. ?Hard work isn?t always the key,? says Hooper. ?You need to work effectively and efficiently, and there will always be firms that fall by the wayside.? Unsurprisingly Wilcox has a similar approach. ?A good part of success is adopting the right technologies and the right approach,? Wilcox concludes. ?In that way you?ll end up with a better service to your customers and of course, an improvement in profits.?