Infinity RMS boosts Discount Tyres gross profit by four percent in a matter of months.
Discount Tyres is an established tyre services chain with branches throughout Auckland. It specialises in selling and servicing tyres including wheel alignments and puncture repairs. It also imports product from overseas including its own brand of tyre and bulk purchases from manufacturers like Dunlop, Goodyear and Michelin. The company has expansion plans for the next two years and with the tyre industry being highly competitive, Discount Tyres needs the best systems for success.
The requirements
Businesses need a point of difference to get customers across the forecourt and Discount Tyres owner Ray Coyle, says the best way to do that is to provide great prices and great service. After 35 years of operations the company's existing management system was no longer able to keep up with the demands of modern retail across a multi-site business. It was having issues with stock distribution and pricing of product, making it difficult for staff to maintain margin while simultaneously offering customers high quality service on reasonably-priced premium brands. Discount Tyres needed a retail management system that would provide high visibility of stock levels and distribution which could be monitored and updated in real-time. It also needed to be easy to use and robust - able to survive in a workshop environment.
The solution
Triquestra's Infinity RMS solution had all of the features that Ray and his team required to streamline the business and boost profits. The whole process from data input to going live took less than a week to implement and he and his staff immediately began to see the benefits, especially since the system is quick to learn and easy to use.
With multiple branches that are serviced from a central warehouse, a major problem for the company was having the right products in the right place at the right time. Infinity RMS's live reporting means that all stock levels and movements can be tracked and adjusted in real time. "From my point of view at head office the main attraction was that I could get my finger on the pulse and know exactly where everything was live." With this increased visibility of stock Ray has moved business operations to just-in-time fulfillment and reduced inventory by $80,000. The savings have been reinvested into items that Infinity has shown to be more profitable and fast-moving product.
Another result of the in-depth reporting available through Infinity is an increase in margin at Discount Tyres. "Infinity highlighted the product areas where we were not making enough margin because we were frightened to put the price up as we didn't think the market could stand it," explains Ray. With Infinity, Ray and his team can adjust prices and stock levels on the fly in response to market fluctuations and moves by competitors, transforming the company's competitiveness in the market while freeing up staff to provide high quality customer service. The result has been a four percent increase in gross profit in just a few months!
Expansion plans have also become easier to execute thanks to Infinity RMS. "It’s made it very easy to roll out a new store," says Ray. Now it's simply a matter of putting in some storage racks and a new computer, then loading the stock into Infinity and the new store's performance can be tracked from day one. The durability of the hardware that Infinity RMS is compatible with makes the system even more attractive and scalable. "One of the features that really attracted us was the touchscreen hardware because we are in a dusty environment and a male-dominated industry and sometimes they are quite hard on equipment so we needed something that was going to be robust and last!"
The results
Ray says the impact that the Infinity platform has had on the Discount Tyres brand has been "huge". "The introduction of Infinity has kept our stock very, very tight and we now have a uniform price across all branches, can adjust price in seconds if there is a movement by competitors or we introduce a new product to the market. It’s been very, very beneficial"
The figures speak for themselves, with an $80,000 reduction in inventory and an increase in gross profit of four percent in a matter of months.
“The results have been pleasing. The Infinity RMS solution has been reliable and consistent, we enjoy using it, it’s simple to use, it’s fast and it’s accurate. And Triquestra have been great to deal with – the backup staff, the senior management, at all level’s they have been very professional and easy to deal with."
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