Confidence in the database, easy access to relevant information, and reports structured according to management needs have provided an accurate, effective strategic planning base for diamond specialist and jewellery designer, manufacturer and retailer, Browns The Diamond Store.
This is one of a number major business benefits that have accrued to Browns following the installation last year of a SAP Business One ERP and financial software solution provided and implemented by 4most, a leading SAP Business One channel partner formed by the merger of Lorge Business One and Britton Solutions.
The solution went live in June last year and Poppie Schoeman, who managed and oversaw the 4most implementation on behalf of Browns, said the need for diversity and integration were major factors in electing to go with the SAP Business One solution.
“We looked at many options and made comparisons with other programs, as Browns in the past had to contend with some poor prior experiences. But SAP has a huge international presence and was strongly supported locally, which would mean the right levels of support would be quickly available to us.”
Browns had experienced doubts about the integrity of its previous system, particularly when it began losing data, the general service was poor and the solution unstable.
“We are dealing with a huge investment in inventory of high value small items,” said Larry Brown, a co-owner of the business, along with brother Gavin. “We therefore need 100% accuracy, accountability and the capability to drill down to the lowest common denominator, all of which is achieved with SAP Business One.”
The jewellery industry also has some unique aspects as far as ERP financial solutions are concerned. For example, data-based pricing is required for gold and diamonds bought by weight in parcels, which are then sorted into different qualities, sizes and colours, after which they are sold within jewellery pieces such as rings, necklaces and bracelets.
Brown adds that pure gold is bought at 24 carats and is then combined with alloys to make 18-carat and 9-carat jewellery. “We also recycle gold. All of these processes need to be kept track of, hence the need for financial software with flexible functionality to cater for non-standard requirements.
“There is a lot of detail that the system has to cope with, and therefore a solution capable of full integration was essential. With SAP we have been able to fully integrate our workshops with our distribution centre and our retail stores.”
One of the features of the solution provided by 4most is CRM functionality that allows Browns to monitor the progress of a jewellery piece that is being made to order. “People are initially cautious with a jeweller and a trusting relationship needs to be established. Once that is in place, they will come back on multiple occasions and it is important that we keep in touch with them,” says Brown.
“The CRM functionality keeps the contact pipeline open and many of the people we keep contact with can become customers for life because we have their trust.”
From a programme management perspective, Schoeman said the greatest challenge was selling the system change to the staff. “However, we convinced them that we were empowering them to give their clients the best experience when they visit our stores and receive top level services.”
She added that exceptional levels of support were received from the 4most team, led by managing director Eugene Olivier. “Three training groups were established and for three days at 'go live' they provided a SAP call centre at our offices that dealt with any problems and got everyone over the initial hump.”
”An area manager oversaw the 'go live' at the stores and provided training manuals to take the system down to store level, which was a great help in bringing the 20 Browns retail outlets, located in major centres and tourist destinations throughout South Africa, into the new system. The branches access the centralised SAP solution on a wide area network (WAN) through terminal servers.”
The full set of SAP software includes general ledger, sales and debtors, procurement and creditors, inventory, materials resource planning (MRP) and customer relationship management (CRM) functionality.
Schoeman added that 4most had been highly attuned to the needs of Browns and developed a true understanding of the specialised requirements of the jewellery business. Specialised software to bring lay-by arrangements with customers into the main SAP solution is currently being developed.
“We won't go back to any other system,” said Brown. “It has been a costly exercise, but well worth it. We're also comfortable with the fact that our system can be extended and we know we can in future do a lot more with it.”
The Browns “Collections” - among them Royal Tanzanite, Heritage, Cognac, Chantilly Lace and African Skies - include unique pieces featuring natural diamonds from colourless to fancy yellow, pink and brown. Some pieces are so intricate that they require several hundred hours of highly skilled craftsmanship to complete.
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