Pumatech tracks stock in and out for Lambsons

Equipment-hire specialist, Lambsons, has gained powerful functionality across its operations for accurate and flexible tracking of stock items and equipment in the field. For Lambsons, inventory relates very specifically to the billing and maintenance of off-site assets.

The decision to implement Pumatech`s Pumatrack application was based on its ability to provide up-to-the-minute information on equipment utilisation, a key business driver for Lambsons. Where a lot of money is being invested, it is essential to ensure that individual items are being used effectively for cost control and revenue generation purposes, explains Craig Thomas, Managing Director of Lambsons.

Pumatrack was designed from the ground up to service the specialised requirements of the plant hire industry. Thomas says the solution has ensured that a lot of the guess-work around asset management has been eliminated, enabling Lambsons to get accurate information about equipment earnings, as well as new equipment requirements. "We can now highlight very specific areas to make more informed decisions around our core business activity," he adds.

Lambsons has a number of branches around SA, which meant the system had to accommodate information relating to equipment housed at each branch, while ensuring seamless tracking of stock items between its multiple branches. "Equipment goes out from one branch and gets returned to another. This is central to our operation, and ensures effective service delivery without inconveniencing our customers."

Lambsons` previous set-up offered little in the way of providing a complete picture of branch activities, financials and asset tracking. Creditors and spares ordering ran on different systems, calling for tighter integration between these aspects of the business.

"We needed to ensure revenue figures from equipment hire could be reflected back to financials. This would enable us to generate revenue calculations per unit, as well as cost per unit. Timely month-end information was also essential, and had to be available while continuing trading," Thomas says.

Lambsons also operates three centralised workshops around the country and needed to ensure stock moves correctly from the various branches to the repair centres, where repairs need to be reported on and carried out timeously. The system would have to manage all costs associated with equipment maintenance.

"The application has proved powerful from any and every aspect, from spares through to creditors," says Thomas. "Productivity has also improved considerably, with a complete turn-around from before where a lot of running around and guess-work was involved."

From a utilisation perspective, financials are presented very soon after month end. "There is very little point in our line of business getting information months after the fact, and then trying to react. We are now able to complete our journal posting by the tenth of the month, pull financial reports and know exactly where we stand in terms of revenue figures. Invoicing is also done the day after month-end," he adds.

From a cost perspective, Lambsons can now see, by default, the amount of revenue generated by unit as well as the cost of repair per unit. Utilisation issues are accurately reflected at a glance, in terms of which equipment is being made use of and which not.

Product classes can also be viewed for analysis purposes with depreciation integrated into the system, circumventing the need to maintain a fixed asset register for the depreciation period.

Thomas adds that, typically, when items are hired out, a number of complexities arise. "You can have multiple sites against one customer or multiple contracts against one site. From a management perspective, we can now see equipment exposure around a specific area, such as one site with multiple contracts or multiple sites for different areas of the contract. This gives us the flexibility to see where equipment is, and makes billing easier from a customer perspective.

"The system effectively services the requirements of our specific line of business, as all information relates back to a particular item. It has also streamlined rentals via our online ordering system."

For Lambsons, the value of a `locally made` application could not be underplayed. While price played a part, a system developed in SA would offer flexibility to adapt the system to user requirements.

Furthermore, having the backup of both IBM and the U2 distributor Workgroup, in SA, provides Lambsons with the knowledge and security that its IT investment is supported locally and up the channel.

"We looked at a number of overseas alternatives, but wanted to avoid any concerns with fitting business practices around the system. Pumatrack was developed from the South African market`s perspective, based on the way hire operates here. We also have the flexibility to change elements as our needs dictate," says Thomas.

Pumatrack is furthermore designed to address anything from basic plant hire, through to more diverse business needs. With this in mind, and knowing the extent of Lambson`s business operations, Pumatech ensured the application would allow for growth in this direction.

"While the current system design was driven by our requirements, Pumatech had a good understanding of how our industry works. From the outset, they have not let us down and delivered on everything they promised."

Pumatrack, developed on IBM U2, has facilitated the costing and maintenance of equipment and currently covers every aspect of Lambsons` business. Application functionality includes creditors, debtors, cash book, inventory, fixed asset management, utilisation, hire, sales, purchasing, workshop repair cost analysis, contract costing and comprehensive reporting.

Says Sean McDermott of Pumatech: "The strength of IBM U2 at the back-end has facilitated the required degree of flexibility in the solution design. It has also provided the power to action requests and brings in new product functionality within a relatively short period of time."

The application is front-ended with Visual Basic and integrates with multiple common applications, such as Microsoft Excel and Outlook.