Switching over to CovalentWorks was a success in every way."
In 1987 Scott and Mary Sayre started Sayre Enterprises in their garage with a product called the Boot Blouser®. The couple focused on their customers’ needs and expanded their business. Over the past 30 years Sayre Enterprises has grown from a start up to a mature company with 100 employees.
Building on the success of Sayre’s first product, they developed a full line of military uniform accessories and outdoor tactical gear. They continued their expansion with a complete line of military insignia, and embroidered and engraved name tags. Sayre Enterprises takes pride in products that are designed and manufactured for the military and guaranteed to be of the best quality.
A customer of Sayre Enterprises suggested they try using SPS Commerce for EDI service. Using a different provider would have required paying a testing fee. Their EDI costs turned out to be expensive initially, and when they demanded even higher monthly fees, Sayre decided they had to start shopping.
Adding to the cost concerns, Sayre Enterprises was growing very quickly and the volume of order processing had increased. In one year, the purchase order volume doubled to 3,000 orders per month. The growth forecast was for 6,000 orders per month by June of 2016. To process the additional order volume Sayre could hire more people or find a way to use technology to get the work done with their existing staff.
Small orders make up 70% of Sayre Enterprises sales, all of which must be processed accurately. Product returns or exchanges due to order processing errors have a negative impact and the goal was to reduce or eliminate errors. Mistakes are very costly in terms of profit, but more importantly Sayre doesn’t want to disappoint a soldier, sailor, or flyer.
Joe Pagnam, Director of IT, felt they needed to find a different way of processing orders which would dramatically improve productivity and reduce the cost of EDI service.
CovalentWorks demonstrated the ability to provide tools for order processing that were simple to use and greatly improved efficiency. CovalentWorks monthly fees were substantially lower.
The comparison of monthly fees between their EDI service provider and CovalentWorks was easily calculated. CovalentWorks would have cost 75% less than the amount they paid during the previous 12 months. The proposed higher rates would have been approximately ten times greater than CovalentWorks rate.
Major productivity improvements were realized by changing the labor intensive processing of orders which involved printing the orders, then retyping, more printing and then more retyping. Technology was leveraged to increase productivity by reducing labor time and cutting out errors. For example, it used to take six hours to create and submit a day’s invoices. The new method introduced by CovalentWorks cut the time to 15 minutes and eliminated keying errors. The labor time was reduced by 95%.
Joe Pagnam, the IT director at Sayre discovered other significant savings after switching to CovalentWorks. Joe said “We were watching the bills closely and discovered that trading partners had been sending EDI documents called Product Activity Reports. The reports were not useful for the way we run our business. Our Account Executive at CovalentWorks let us know that we had the option to receive these reports or not by communicating with the customer. We contacted the trading partners and requested not to receive them. This decreased our monthly document usage by 25% in addition to the anticipated savings that we were already realizing.”
Joe went on to say “switching over to CovalentWorks was a success in every way. We had support that gave the shipping and accounting staff confidence ahead of the switch. CovalentWorks’ Customer Care was attentive and responded quickly to issues that had not been anticipated so that our every concern was addressed with options to suit our preferences.”
“Sayre Enterprises went live with one customer for a week and then added the other customers. We did not miss a single order or lose a sale during the transition which was a great concern when we first thought about looking for a new solution.”
“In summary, the monthly cost of EDI service was reduced by at least 75% by changing to CovalentWorks. As the business grows the savings continue to increase. And we realized the productivity improvements we were looking for. Fewer workers at Sayre now process twice the number of orders as last year.”