Rethinking technology drives recovery
"We've improved our cash flow, productivity, and customer service. And now we're adding revenues," says Jeff Langley, IT director for Southern Fasteners, a 75-employee distributor of industrial fasteners.
Drawn by the cost savings and advanced capabilities of IP phone systems, the seven-site firm invested in a Cisco Smart Business Communications System (SBCS) in 2008. "Our timing with our new voice network was perfect," says Langley.
Southern Fasteners halved its telecommunications expenses. It also improved customer service and increased employee productivity. And it did it all while the recession was shrinking business for its customers-manufacturers and maintenance/repair operations. The new IP phone network also helped Southern Fasteners rebuild revenues by opening two more branches in new markets.
"Rather than stopping growth because setting up and managing new branches had been such a headache, Southern Fasteners began to rethink their way of doing business," says Jen Wong, principal at Dynamic Quest, a Cisco Premiere Certified Partner that is also a Cisco Select Certified Partner (a reseller that specializes in serving small businesses). "We showed them ways new technology could help."
Together, Dynamic Quest and Langley put the voice network to work, speeding Southern Fasteners' business recovery with these strategies:
Raise Revenues by Getting Better and Bigger
- Surpass competitors. "One of our differentiators is that we meet customers' needs proactively and long-term," says Langley. "Communicating and building relationships are key." The voice system and its direct inward dialing capability route hundreds of incoming customer calls daily directly to whatever employee is best able to help the customer, even if that employee is working from home or traveling. It also encourages conversations and conference calls because of their low cost.
- Don't lose revenues. Make sure that customers can place orders; don't lose calls. Southern Fasteners significantly increased its annual sales simply by investing in a reliable network to replace a system that failed periodically.
- Move into new markets. The communications platform at Southern Fasteners headquarters makes expansion cost-effective because it supports up to 50 four-digit extensions; each branch needs only a router, a switch, and IP phones. Customers perceive that the handling of their calls occurs at their local branch.
Control Labour Costs by Increasing Productivity
- Automate recurring tasks. "Our employees can quickly and easily do everything; they have all the tools they need at their fingertips. Four-digit dialing, transferring calls, and unified messaging save everyone time," says Langley.
- Reduce technology-related labour costs. Southern Fasteners' employees no longer must stop work every few months while their system is reconfigured. The new system ended that. The firm has also trimmed its hiring and overtime of IT staff, outsourcing service and support of both its voice network and data network to the expertise of its reseller, Dynamic Quest.
Improve Cash Flow and Profits by Cutting Overhead
- Reduce telecom expenses. With its new system, Southern Fasteners cut its telecommunications expenses by about $2000 monthly. After its 3-year lease ends, it will own the system outright, and the cash flow increase will rise to $3500 monthly.
- Do it yourself, and over the web. Southern Fasteners also saves hundreds of dollars monthly by hosting its own large conference calls. In addition, its IT staff no longer have to travel to branches or manage local providers for simple services such as setting up phones or running call reports. They now do these tasks on the web.
Reevaluate Your IT Suppliers
- Choose a vendor with products and services designed for a business like yours. Do your network solutions demand too much time, skill, coddling, or coordination? Does the vendor offer the warranties and financing you need? "Some small businesses think Cisco is too expensive for them. Our experience is the opposite," says Langley. "Cisco is saving us money, and helping us make money."
- Find a reseller that goes above and beyond. "Unlike 'order takers,' Dynamic Quest is a partner that helps us achieve business strategies," Langley says. "They have a high level of expertise, take time to understand our needs, and are proactive. They recommend the best solutions, and they ensure our network works."
