Ezy Build Order To Cash Process Streamlined

A recurring frustration for users of customer relationship management systems is that while CRM does a great job of streamlining dealings with clients, it can expose shortcomings elsewhere in their business processes.

Notably, while CRM systems typically automate product-or service-ordering, delivery and invoicing, they don’t usually like to get their hands dirty on the accounting side of the business.

This means sales recorded in the CRM system have to be manually entered into an accounting package, at the cost of staff time and, not infrequently, mistakes.

Software developer Magnetism, a specialist xRM consultancy, spotted the opportunity this represented. The company, which helps businesses manage their databases, using Microsoft Dynamics CRM, has developed software that bridges the CRM-accounting gap.

Ezy Automation

Ezy Build Products, a supplier to the building trade, has put this new system into action. The Auckland-based company sells a range of products designed to speed the fixing of weather-boards and other building cladding.

Magnetism has put together a back-office system that brings the same sort of automated functionality to Ezy Build’s ordering, invoicing and accounting that Ezy’s Builds cleverly designed fixing products bring to builders.

The system means the new business can concentrate on selling, says managing director Cameron Grant – and it can keep its administrative headcount to a minimum.

“We love it — it’s fantastic,” Grant says. “It saves us needing another person.”

The key to such efficiency is end-to-end automation, says Magnetism director Mark Smith.

Ezy Build has a 12-month exclusive supply agreement with ITM. When one of its reps takes an order at an ITM store, he or she records and submits it using a smartphone that transmits the details, via the Vodafone network, to Dynamics CRM, Ezy Build’s customer relationship management system.

Once the order is fulfilled, which is taken care of by a contracted warehouse, the financial details are automatically passed through to Ezy Build’s web-based Xero accounting system.

“There’s a portal at the warehouse, which refreshes every 10 seconds, that connects to Ezy Build’s system,” Smith says.

“When a new order arrives, it appears on-screen, with the customer details. This creates a pick-slip, so the goods can be gathered up and packaged for couriering, and a packing slip is then printed out.”

The system knows the order is complete when a courier-tracking number is entered, at which point an electronic invoice is sent to ITM using EDI.

“Apart from the rep on the road placing the order, and the people in the warehouse, there has been no other human intervention.”

If the requested product happens to be out of stock that doesn’t faze the system either, Smith says.

“What happens then is a pre-set workflow in the system sends a request for more product to the appropriate one of three different manufacturers.”

A purchase order is then generated by the system which is sent to the manufacturer in an email. The warehouse is also automatically notified that a manufacturing order has been placed and, stock availability records are updated once the products are received.

The final link in this seamless workflow is provided by bridging software developed by Magnetism that sees sales data make its way from Ezy Build’s CRM system into its Xero web-based accounting package.

The beauty of all this, says Xero Network product manager Tony Rule, is that it removes the need to reenter any figures, eliminating the associated labour costs and avoiding the introduction of errors.

“What’s really nice about the integration is the ability to generate invoices in Dynamics CRM, and then being able to sync them with Xero, which ensures data accuracy and cuts out the need to manually enter data in two different systems.”

And the data flow is two-way — once ITM pays the bill, Xero updates Dynamics with that information, Rule says.

“Dynamics CRM sees when payments have been made against invoices in Xero by using an automated syncing process that happens in the background.”

What’s more, when Ezy Build begins supplying overseas markets, as it intends to do from next year, no system modification will be required, since Xero can handle multiple currencies.

Smith says the company is viewing options in Australia in the first instance, followed by the United States, and will merely need to make sales and warehousing arrangements to break into the two markets.

For Magnetism, overseas opportunities also beckon. The Dynamics CRM-Xero bridging product is designed to go wherever these two packages go, and, with Xero rapidly expanding in the UK and Australian markets, Smith sees plenty of potential.

“Xero is rolling out in the UK, where there are a lot of Dynamics CRM users, and we’ve built this product so any implementer can resell it,” Smith says.

In Australia, meanwhile, dominant telco Telstra is selling both Dynamics CRM and Xero.

“Telstra is selling two products which ours goes between. It actually makes it possible to automate the entire back office system.”

Rule says many Xero customers are asking for integration with CRM software.

“The integration work Magnetism has done using our developer API has focussed on some popular feature requests from our customers – these being the ability to easily manage contacts, invoices and payments between a CRM system and Xero.”

Magnetism can slot into Xero’s Network partner programme, which means its solution will be promoted to Xero customers in more than 50 countries, as well as its network of accounting partners. This will be done via Xero’s marketing website, email newsletters, a blog and webinars to Xero partners.

“We’re always on the lookout for easy-to-use solutions which complement our software. Our developer API allows software developers to easily integrate their software with Xero.”

Xero requires prospective partners to run a pilot with some of its customers to ensure the integration works well and meets their expectations.

“We’ve been really impressed with the attitude and proactive approach of the Magnetism team,” Rule says. “Their Dynamics CRM and Xero solution will appeal to a wide range of existing and future Xero customers.”