An expanding business and a hands-on approach to data

APP is a wholly-owned subsidiary of Lords Group Trading plc, an Aim-listed group with businesses in merchanting and plumbing and heating, and revenues in excess of £360m. APP serves both independent merchants and installers through the APP Wholesale Ltd brand and the general public through the Mr Central Heating brand. The business has experienced strong growth, recently opening it’s 10th branch. As it has grown it has increasingly looked to systemise processes and data collection to operate efficiently and consistently across its branches.  

Alex
We came on board in January 2021, initiating our advisory practice to review the implementation of your ERP system, Microsoft Navision. Subsequently, we formed a core team consisting of Metyis and APP resource to optimise the system as well as transform the associated data and processes. 

Michael
We had a partial implementation. We still had some very manual processes that we needed to move onto the digital side of the ERP. That first three-month project was about nailing down those core processes including purchase orders, sales orders, inter-branch transfers, and subsequently, the implementation of perpetual inventory with a full stock count.

Alex
That was the success, getting the perpetual stock counts accurate. It was validation that the data was accurate and that the core processes were working.

Craig
The system is central to how we operate, so it was effectively the start of getting all the stock on the system rather than loads of manual processes trying to come together.

Alex
Yes, we came in and brought that capacity and experience of doing similar things. The approach we took was to almost audit each of the branches. That involved visiting, calling and interviewing a lot of the staff who either worked at the branches or had worked on the implementation, getting access to the system and looking at the data and what were some of the outputs there, looking at the processes and how they worked currently. It then entailed coming up with an action plan for how we were going to digitise those and bring them on to Microsoft Navision. That first three-month piece assessed the processes as they were versus how we wanted to get them, and what some of those outputs would be in terms of data. We had a subsequent three to four months, called ‘Fix the Basics’, which was cleansing and improving data capture and quality and implementing those processes across all branches. The success or the measure of success was the perpetual inventory counts you mentioned, initiating or instigating a daily inventory count because it was the best indication that all the processes were working as they'd been designed.

Overcoming change to achieve results

The idiosyncrasies of each site presented the challenge of defining a harmonised system that APP could eventually roll out across all branches, a task that required patience, collaboration, and communication as some locations were operationally different with site-specific protocols that had previously worked well for employees. A key accomplishment here was building the confidence and trust of staff members when faced with change. An extraordinary effort from both parties led to a smooth transition as staff embraced new methods and mindsets.

Alex
When you brought Metyis in initially, what were you looking to get from us?

Michael
I suppose there were a number of things, apart from the extra capacity your team provided, which is the biggest bit, it was culturally landing the message and the communication piece, which I think Metyis helped us with massively. There were only so many of us within the organisation, and you can only get that message out to so many people so quickly. Metyis helped us to land the importance of the change because we were challenging methods that had been tried and tested. It was about landing the message of not just this is what we’re doing but also explaining why, so they understood where we were coming from, where we were going, and what was happening in between.

Craig
I think what Metyis did really well for me was that you guys had a really good mix of the project execution support and the governance; you gave us regular updates and really precise detail right down to the branch level. You pushed us along as much as pulled us along, but at the same time, your guys would be available on the phone or even in the depot during the week between the updates showing our staff how to do the process. When you were working with us, you were part of APP.

Michael
Yes, you guys came in and gelled with the people in the branches and made yourself part of their teams; you were on the journey with them as much as they were on that journey.

Craig
But they would see you as the expert, despite the fact that you were probably learning the process at the same time they were. I’ve worked with consultancies in the past, and they are always clever people and hardworking but don’t always integrate in the same way you guys do.

Alex
That’s definitely something we pride ourselves on, is trying to be a partner rather than being a traditional transactional consultancy. There was this change that needed to happen, but the people are such an asset that you have at APP in terms of their experience and their understanding of your customers and going above and beyond with the service. Although we often face that challenge of change and having to bring people onto that journey, you’ve got such an engaged workforce that it didn’t take too much convincing once you explained the benefits for APP because they felt so connected to APP. We work in a way to co-devise a plan with you, not to come in at a time when it’s already been defined. We want to get involved in that initial phase of planning together, how we're going to bring our varied expertise. That first step is talking to you about the vision or the opportunity and then coming together to set it out. So, whether it's getting a better view of stock so that we can use the data or whether it's standardising the processes on a system across multiple sites that you can operate. We look to come in at that stage and help with that strategy, setting in the definition. It helps the process for us both to have skin in the game.

Going Paperless

After optimising all the core processes, and transforming stock accuracy the partnership began work on two further projects. The first was the implementation of a warehouse management system and the second was a stuck reduction initiative after the accurate view of stock enabled us to identify £7mn+ worth of excess stock. Conducting these two projects in tandem allowed APP not only to reduce physical waste and improve efficiency by ‘going paperless’ but also generate cash, and a clear return on their investment into the partnership.

Alex
We also looked at the warehouse management system, it was very paper-based previously, and we were looking at digitising that onto handheld devices.

Michael
We’d moved from having all those core processes down to, “let’s go paperless”. We went from hand-written triplicates to printing, so the paper was still there, and although the processes were a lot slicker, they were still quite clunky, so we wanted to remove the paper from the process altogether.

Alex
Going Digital.

Craig
It became a natural progression. There were so many challenges facing us at that point, obviously external challenges as well as what was going on in the business. We’re incredibly reliant on experience, which is good because we’ve got experience in the business, but if you’re a newbie trying to learn how to pick in our warehouses, it’s really tough; you’ve got so many products to get your head around. So, going paperless was effectively taking a lot of waste out of the process, not just the physical paper.

Michael
Process efficiency.

Craig
It all happens digitally now. It was an overnight opportunity to make sure that at the back shutter, every product that was picked was correct; it was bang on.

Michael
When you bring in new recruits, they require less training because it’s about following the instructions on the screen. The device will take you to the right area of the warehouse, and then you’re going to scan the product, which is going to tell you if you’ve got the right box or the wrong box, and that’s pretty much given us almost a hundred per cent pick accuracy to the back door. As you introduce technology, it takes out that element of human error more and more.

Craig
We always knew we had to do it, but it helped to pinpoint the process.

Michael
Ultimately, everything that we were doing and trying to improve was not just for our own benefit internally; it was also to improve the end piece, which is the customer area.

Craig
We want our customers to have a really slick process, that’s what it’s all about, and we want it to be a nice place to work. We don’t want people bogged down with trivial issues every day; we want them to be able to get on and do higher-value work. It gives us a win for the company because we end up with ten depots all doing the same process in terms of how they pick, deliver and order.

Michael
That was part of the project plan and part of Metyis’ guidance that we implement in one place first, so we have one set of potential problems rather than ten sets of problems on day one.

A Committed Partner

Ensuring the transition came at the correct time was imperative, only occurring when it was certain that APP had a clear understanding of the resources and high competence in using the tools. Even after the official handover, Metyis was available for further support, contributing to the ongoing improvement of the system and extracting additional value post-project. Its unique partnership approach provided a hands-on service dedicated to gaining a thorough understanding of APP’s internal procedures, which through a joint commitment, enabled effective results in a short time frame and provided the architecture for APP to continue evolving.

Alex
For similar businesses considering making an investment in bringing in a partner like Metyis, what would your advice be beyond the value that it has brought you as an organisation?

Michael
I think we were very clear from the outset that if APP didn't commit the time or resources to projects in the way we needed, it would fail and vice-versa. Pre and post-project, both parties put in as much as they possibly could. There was a commitment from both sides.

Craig
It's got to be sustainable. With any consultancy, there's always going to be a period of time when they're around, and when they're around, it's great because we've got an extra pair of hands. But there's a time when you're gone; if we go back to what we were doing before that, the whole thing would have been a waste. I would see a consultancy as an accelerator when you know you want to get a lot of change done in six months.

Alex
What have been some of the steps you put in place to smooth that transition?

Craig
We kept a lot of the project stuff that you started with. Now we've got our own templates for project governance over the warehouse management rollout. We've got a really detailed Gantt chart which is 100 points per branch of detail. The general approach is definitely something that we've lived with and continue to run.

Alex
That's a key learning or recommendation we definitely have. When the support from us does leave the building, do you have the steps to maintain the progress clearly understood? That's essential for all of our clients.

Michael
We've stayed in contact since the project came to an end. We've taken on Abby McCullough, who's our product supply planner, and Jack has come back since then for two or three sessions. You've helped us, post-project, to extract value. We could come back to you, and you were still supporting us.