Surviving and Adapting in a Down Market

3
X REDUCTION IN TIME TO INVENTORY

ABOUT CLR SOLUTIONS:

CLR Solutions is a technology services firm that also offers specialized electronics recycling/refurbishing services. CLR specializes in secure data destruction and disposal of obsolete and surplus electronic equipment. CLR Solutions is based in New Jersey serving the tri-state area with national capabilities.

THE CHALLENGE:

CLR Solutions was fighting two external threats in the form of a downward spiral of commodity prices and the cost of New Jersey state e-waste regulations rising. Many reputable electronics recycling companies had been closing down in the state as a result.   The cost of labor in their region is also high and training staff to be able to deliver effectively on customer requirements was time consuming and costly as well.  The business itself was dealing with challenges related to managing inventory, offering demanded services, and needing to improve their checks and balances. Implementing a warehouse management system, exploring new ways of generating revenue, and reducing costs were all imperative.

THE SOLUTION:

CLR Solutions looked into many possible solutions and landed on the Makor ERP™ to address their challenges. To address the need, the Makor Solutions Top Tier Implementation team focused efforts on implementing the complete end-to-end solution connecting each key business unit. This meant configuration of all key modules and training CLR Solutions managers as to how best implement each one.  By improving communication from the sales team to the floor and guiding efficient ways of handling material through to inventory, much of the overhead needed to process material would be reduced. Productivity tracking tools were put in place to measure performance and improve accountability. To combat the downward spiral of commodity pricing, more attention was given to the process of part harvest and part inventory tracking.  This would allow CLR Solutions to shift their de-manufacturing focus to value harvesting.

THE RESULT:

Makor Solutions was able to deliver a solution beyond what CLR Solutions had anticipated was available in the market. CLR Solutions has reported seeing a three time reduction in the time it takes to accept receipt of inventory, sort material, bar code and ready material for resale.

“Within the first six months of implementation we can confidently state that all of the challenges we implemented the Makor ERP™ to address have been resolved. We now have a proper system in place to take us to the next level and compete with anyone,” stated Chris Regan, President, CLR Solutions.

IMPROVED INVENTORY PROCESSES

The Makor ERP™ has considerably helped the inventorying processes. “With the Makor ERP™ I have really implanted a management system I use to manage many different inventories. Not only do I know what’s here, where it’s at, how long it’s been on the shelf, but also, and most importantly, where it came from.  Knowing this, combined with what we paid and sold it for is the key to analyzing profitability and prioritizing who we do business with,” stated Mr. Regan.

The system’s advanced part management functionality has allowed CLR Solutions to transition their focus of processing of commodities to high value parts. “The tightly connected production, part/asset inventory and downstream sales tools in place allow us to prioritize and push the high-value material through the process first to be able to connect to buyers within 24 hours of receipt,” pointed out Mr. Regan.

QUALITY CONTROL AND COST OF LABOR

Cost of labor is the number one challenge to showing a profit for companies in the electronics recycling and ITAD market. The implementation of the Makor ERP™ has both eliminated the need to employ certain positions and has made staff more efficient. “In these slower times I have been able to reduce staff and get the same output – but with higher efficiency and quality. For example, I used to pay a number of employees for countless hours of reconciliation – now I have a single employee spending limited time once a month on this,” stated Mr. Regan.  “There are checks and balances in place.  Productivity is measured, quality is measured and security has been tightened.”

CLR Solutions reported that customer requirements are being delivered on with greater efficiency and accuracy for all data related services performed. “With the tools in place to communicate and, in some cases, enforce customer requirements, things just don’t get lost in the shuffle anymore. “ We can track the weight of every job from start to finish, accounting for each pound. The benefits of this for us are improved customer service, reduction in overpayments, integrity of inventory and mass balance,” said Mr. Regan.

COMPETITIVE ADVANTAGE

Running their business on the Makor ERP™ has provided competitive advantage as well. “Most of the competition can’t factually provide what we can: chain of custody; detailed accurate reports; real-time customer portal, and tracking of secure HDD services from delivery to destruction or sanitization and resale,” claimed Mr. Regan.

The ability to offer the services that are needed to compete has been enhanced tremendously with the implementation. “Given that the industry has been trained to receive high-end services for little or nothing, without the Makor ERP™ we would have to turn away a high volume of this business.  With the system in place, we can compete with anyone and even provide a better level of reporting and access to our customer than our competitors can,” said Mr. Regan. “We have found that our competition promises a lot but often under-delivers.  By using this system we show our prospects and customers what they can expect.  When we exceed expectations, repeat business is the result.”

“The external challenges are still present but everything we are doing today is more efficient. Our system is accurate, scalable, compliant and drives us to do more,” concluded Mr. Regan..