Case Study

Summary:

Niehaus’ Wholesale Building Materials (WBM) division needed to find a replacement for its product configurator software, a component of its old ERP system. WBM was looking for a web-based solution that was easy to use, and could be customized to their specific needs. The product configurator had to easily integrate with the company’s new ERP system. WBM found the right fit at the right price in Configure One’s Concept Enterprise Product Configurator®.

After implementing Concept in 2009, WBM has streamlined its quote-to-order process by empowering its dealer network. Today, its dealers generate 40 percent of all configurations and 25 percent of new sales orders. Not only has this implementation reduced errors, but it also has freed up WBM’s internal sales staff from administrative duties so that they are now able to focus on sales and customer service. The fact that WBM is now open for business 24/7 has enabled the division to continue to expand even during the midst of a down market.

Niehaus Companies, Inc. currently operates 11 separate

businesses within the building materials industry. The

Wholesale Building Materials (WBM) division distributes

quality building materials throughout five states; Indiana,

Illinois, Kentucky, Missouri and Tennessee. One of

WBM’s locations is a certified Therma Tru® Distributor

and operates a full service door mill from its Vincennes,

Indiana location.

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On the surface, purchasing a door doesn’t appear to be extremely complicated. However, upon closer scrutiny, there are hundreds of different styles and options available. Therefore, a product configurator is an essential component of the configure, price, and quote (CPQ) process. As a result of changing its ERP system, Niehaus’ WBM division needed to find a new product configurator and quotation solution.

“Previously, we used a product configurator that was a component of our ERP system,” said David Niehaus, Vice President. “Although it was very basic, it was still very cumbersome to use. We changed ERP systems and the one we chose was very specific to our industry, and did not include a product configurator. As result, we had to look for new software to support the quote-to-order process.”

Search for a New SystemThe company was looking for a product configurator that provided a flexible framework so that the ‘look and feel’ could be customized in-house.

“We evaluated a lot of configurators,” said Niehaus. “We didn’t want to rely on an outside company to create the configuration rules. We wanted to be able to customize the ‘look and feel’ of the product to meet our specific needs. A key criterion was the ability to fully integrate with our ERP system, and that requirement excluded a lot of vendors.”

As a certified distributor of Therma Tru doors, the WBM division’s first stop was to evaluate its configurator. “We started testing Therma Tru’s configurator, and there were a

lot of things that we didn’t like,” said Brian Kirwer, Marketing Director. “We needed to be able to customize the user interface, and with Therma Tru’s configurator there were just too many limitations. We needed to integrate with our new ERP system and that wasn’t possible either. It was more of a selling tool. We needed not only a selling tool, but also the ability to generate a BOM and integrate into our ERP system.”

Right Fit, Right PriceAfter a comprehensive evaluation, the WBM division selected Configure One’s Concept Enterprise Product Configurator. Kirwer explained:

“Concept provided the best overall value for us. It’s a great product with great functionality. Configure One has experienced staff who were always available to answer questions. They also provided additional modules that allowed us to grow with the software as we expanded as a company. Configure One continues to evolve and innovate with new releases, and is always developing new functionality.”

Niehaus echoed his colleague’s comments. “Configure One provided the functionality we needed and the value we were seeking. There were other systems that were cheaper, but didn’t have the functionality we needed. In the end, it was the right fit for the right price.”

After a successful implementation, the WBM division went live with Concept in early 2009. “Concept’s admin and setup tools were really easy to use,” said Kirwer. “After just two days of training, we started creating our own configuration rules. Since then we have called Configure One for support, but other than that we have been self-sufficient.”

David Niehaus, Vice PresidentNiehaus Companies, Inc.

Brian Kirwer, Marketing DirectorWholesale Building Materials

“Configure One has experienced staff who

were always available to answer questions.”

“After just two days of training, we started

creating our own configuration rules.”

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New Way of WorkingNiehaus’ customers include independent lumberyards, home centers, and builders. “Home centers do a lot of their business on weekends,” said Kirwer. “Many times our customers needed a quote and to order a door when we were not open. By utilizing Concept, our customers can now access the configurator from their location, configure a door, produce a quote, and place an order 24/7.”

The streamlined quote-to-order process has made the company a lot more efficient. “When a dealer configures a door, Concept generates a professional-looking quote. The dealer can either print the quote or email it to their customer for review. If the quote is accepted, the dealer sends us an order. Concept has streamlined not only the configuration and quote process internally, but also for our dealers as well,” said Kirwer.

Integration with ERPThe WBM division uses an ERP system acquired from Spruce Computers, which is very specific to its industry. It is designed for lumber, hardware and building materials dealers. To automate and streamline as much as the quote-to-order process as possible, Concept had to integrate with WBM’s ERP system.

“We used Concept Connect, Configure One’s integration module,” said Kirwer. In addition to generating a quote and sales order, Concept also creates a smart part number and BOM. A single door may contain 35 separate items. That data is passed to our ERP system to relieve inventory for the individual components.“

BenefitsSince implementing Concept in 2009, the company has grown its business even in the midst of a down market. By empowering its dealers, the company has streamlined the quote-to-order process and reduced the internal workload thereby freeing up sales staff from administrative duties.

“We definitely operate more efficiently,” said Niehaus. “Internally, we have reduced our staff by one person. Even though both our inside sales people and dealers use the system, our dealers now create 40 percent of the configurations and 25 percent of the sales orders since the introduction of Concept. That has been a tremendous help to reduce our internal workload. Furthermore, we have some plans to increase those numbers even further. The result is our inside sales team is not just answering calls, but they now focus on other activities, such as making outbound calls.”

By replacing an outdated system, the WBM division has not only improved efficiency, but also empowered its dealer network to be more responsive to customer requests. “Before Concept, it would have been impossible to allow our customers to use the configurator. We only used it internally and even experienced users found it cumbersome. Today, we have fewer configuration errors because our dealers are entering their own data. They are more accountable and review the data before submitting an order.

“Our dealers now create 40 percent

of the configurations and 25 percent

of the sales orders.”

www.configureone.com

The Americas Offices

Configure One, Inc.Corporate Headquarters

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Oak Brook, Illinois 60523United States

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Configure One is a leading provider of web-based configurator technology. Configure One has enabledboth small and large companies to increase revenues and decrease costs by automating the way theysell, engineer, and manufacture their products.

Concept has definitely streamlined the entire quote-to-order process,” said Niehaus.

The WBM division has continued to grow even in a down market. “During the past few years, our business has grown even with less than optimal market conditions,” said Kirwer. “Concept has made us more competitive, because we now operate 24/7. This has translated into a huge benefit. Many of our dealers work outside our normal business hours and Concept enables them to configure a door, get a price, and place an order even when we’re not open.”

“Concept has made us more competitive,

because we now operate 24/7.”