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Success Story
The Supply Room Cuts Costs, Grows Revenue
with RouteTrak™
The Supply Room Companies, Inc. was one of the first companies to purchase RouteTrak™, ECi’s proof-of-delivery system. But before the Ashland, Virginia-based office supply and furniture dealer signed on the dotted line, company management did their homework.
The Supply Room reviewed both the product itself and the business case for the purchase. Management analyzed the delivery operation and business processes and began crunching numbers.
The Supply Room operates 31 trucks with routes covering Virginia and Maryland. The company estimated that within three years of implementation, savings from RouteTrak would reach $60,000-$70,000 per year.
The Supply Room has experienced efficiency gains in several areas. RouteTrak has simplified processes for the company’s drivers, eliminating paper manifests and cumbersome clipboards. It also provides The Supply Rooms’ director of transportation with the data necessary to better evaluate delivery routes and driver productivity.
However, The Supply Room expected to improve delivery efficiency and reduce paper handling when it implemented the software. Other, more unexpected benefits may be even more important. RouteTrak has not only generated savings in several key areas, but also improved collections and helped generate additional revenue.
According to Vice President of Operations Jeff Schroeder, “You really can’t put a price on the image that your company has from the customer’s standpoint. …[RouteTrak] is really a selling tool…it’s an image-building product that gives people a sense of security…. I think it leads people to believe that the information you’re maintaining for your records is something you take seriously.”
And since customer service has electronic access to the captured delivery information, they can respond quickly, resolving delivery questions before they can turn into disputes.
One of The Supply Room’s goals is to eliminate paper-based processes wherever possible, transitioning customers to electronic transactions. In January 2004, The Supply Room was doing 29 percent of its business over the Internet. By the end of the year, that figure had grown to 40%. Jeff cites RouteTrak as a driving factor.
“[RouteTrak] has encouraged people to do Internet business, so we are able to increase our business at a lower cost,” Jeff says.
For The Supply Room, moving business online includes eliminating paper invoices. Instead, customers print (or simply view) their own invoices through the company’s Web storefront. This type of electronic invoicing benefits both the company and its customers. The Supply Room avoids generating and mailing paper invoices – a significant savings – while customers enjoy a streamlined purchasing process.
“Customers can go to our Web page, pull up their invoice and print it right then in their office,” Jeff explains. “If you’re a purchasing agent for a company, or a main buyer for a corporation, you’re relying on other people to send you invoices so you can take care of the bills. They don’t have to do that any longer.”
The online invoices include the delivery information and captured signatures from RouteTrak. “[Customers] can check and see what’s on their statement, then verify that those orders were delivered. They’re going to be able to process their invoices a lot quicker and be able to clarify any problems or questions they may have,” Jeff says.
The Supply Room is a large company with annual sales of $50 million. However, Jeff believes the benefits of RouteTrak apply to any dealer running a delivery operation. “I don’t care if it’s a small or large environment,” he says. “The trickle-down effect savings are the same. …You’d rather have your people selling and talking to customers instead of filing manifests and delivery tickets.”
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