Activant Eagle Helps Increase Profitability and Cash Flow in A Competitive Market
Executive Summary
Dunn Lumber is a family-owned lumberyard in Lake Geneva,
Wisconsin dating back to 1894. The fourth-generation team of
Roger Pagel, Pat Flood, Terry Dunn and Mike Dunn now run the
business. In recent years, a nearby Home Depot, along with a couple
of other large lumberyards, has made its market extremely
competitive. Dunn Lumber’s management team has been both
keeping pace with and leading the market during this time of transition. The company
attributes its success in this environment to its professional staff, competitive prices and
outstanding service—all of which are enhanced with its Activant Eagle® system.
Eagle Accounts Receivable Improves Cash Flow
Approximately 75% of Dunn Lumber’s business is on account, and Eagle™ Accounts
Receivable helps the company track its accounts to effectively manage cash flow. “One of my
favorite features is the ability to see up-to-the-minute information on customer charges and
payments. President Mike Dunn, explains, “We look at invoices, statements, account
balances and recent purchases. The information in the Eagle system allows us to identify
customers that pay within our credit terms and those that are habitually late. Eagle also
makes it easy for us to keep track of lien rights and the various steps required to perfect our
liens.” “Eagle data helps identify which customers are the most profitable and those that
drain profitability. We then adjust customer pricing to reflect risk. Everything we need to
know is in our Eagle system.”
Dunn Lumber has also seen dramatic improvements in the statement-production process. It
used to take two to three people at least one day to produce and mail statements by sorting
invoices and then stapling them to the statements. With Eagle, it now takes two people only
four hours, saving more than one-half the time and labor.
iNet is a Win-Win: Customers Love It, and Dunn Lumber Loves It
Taking account management efficiencies one step further, Dunn Lumber implemented the
Activant iNet® solution and now e-mails statements and invoices to many of its customers.
With iNet, Dunn Lumber saves paper costs and further reduces its back office staffing
requirements. “Our customers love iNet. They receive invoices every time something is
purchased on their account and can better manage their business and cash flow. Those
accounts call us less frequently because they have the information they need to answer their
questions. And if they find a problem, they let us know right away, and we can resolve it,before it grows. Monthly statements with iNet are instant. We press a button at the
end of the month, and statements—along with the supporting invoices—are
instantly sent via e-mail to our customers. There is no delay or manpower
consumed,” describes Mike.
Fast and Accurate Labels Increase Margins and Competitiveness
The ability to print labels with Eagle helps Dunn Lumber keep accurate pricing on
its shelves. When price changes are downloaded from True Value, or managers decide to
change prices based on competitive information, they can have the new prices in the system
and new labels on the shelves very quickly. This price agility helps to increase Dunn
Lumber’s margins and helps the company be more competitive.
Business Advisor Maximizes Sales and Profits
Dunn Lumber uses Activant Business Advisor all day long to look at current sales, sales by
departments and classes, inventory levels and turns, gross margin return on investment and
accounts receivable aging. “Business Advisor is a wonderful tool. We see what products are
moving and need to be ordered, and what products need to be replaced or deleted. Viewers
within Business Advisor give us the ability to drill into the data which allows us to manage
inventory, increase turns, improve margins, and maximize our investment,” explains Mike.
“We use the alert function to track stock-outs and to remind us to send out collection letters
at the end of the month. This is another tool that helps us stay on top of our business and
better manage cash flow.”
“Whenever we have a question about our business, Business Advisor has the answers.” Mike
continues, “Sometimes we’ll ‘play’ with the information by moving columns or other
manipulations to help uncover the answers. Whatever we are looking for, we find it in
Business Advisor.”
Eagle is Critical for Success
“In order to remain competitive and continue to grow, we have to do more with less. The
information and efficiencies we gain from Eagle keeps our costs down and keeps us
competitive. We rely on Eagle to help us understand our business and run it efficiently and
profitably. I don’t believe that we could achieve what we do without Eagle,” asserts Mike.
“Eagle data helps identify which customers are the most profitable and those that drain profitability. We then adjust customer pricing to reflect risk.”
