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From its beginnings in the village of Milton near Abingdon,
Oxfordshire to a modern integrated logistics and distribution network, Cannon
traces its origins to the early 1900’s. Most of its customers have been with it
a long time, whether it is packing automotive parts for MG Rover Limited,
distributing packed lubricants for Total UK Limited or transporting pre-stressed
concrete from Bison Concrete Products Limited to build the country’s latest
football stadia.
More recently the various Cannon businesses were consolidated
under the heading Cannon Group Limited, still based in Oxfordshire but with
three parts to the business – packing, transportation and distribution and
warehousing. These operations have important synergies, and the disconnected,
disparate systems that previously supported them quickly started to look
outdated.
As well as building on the success of this £20m plus turnover,
300-strong workforce private company, its focus on meeting customer requirements
has helped shape it. “Our relationships with customers are true partnerships,”
says Finance Director Ian Doye. “We don’t provide a standard service, we ask
customers what they need and tailor our offering to their particular
requirements. And we’ve been doing that for over 40 years. You could argue we do
too much for customers.”
Because that approach required Cannon to tailor its IT systems to
each of its customer’s needs, it was left with a range of different standalone
systems covering location, stock, distribution and planning. These legacy
systems dated back many years and were developed in-house, based on
non-relational database technology.
Standardising
the platform
Cannon originally brought in Navision, the mid-market enterprise
application provider subsequently acquired by Microsoft Business Solutions, to
run its accounts, but Cannon quickly decided to make it the platform to connect
its different standalone systems. “One of the reasons we wanted to use Navision
for this was that everything could be connected together easily,” says Doye.
“And everything we’ve done so far has been. Any integration issues we’ve had
have not been with the technology but with the business.”
He adds: “Both within the three separate individual operations,
we do distinctly different things although they all follow similar business
processes. If a company wants their own individual warehousing system, then we’d
build them a warehousing system.”
The trick for Cannon has been to replicate its client-centric
philosophy at the front-end, while connecting up its business at the back-end.
Navision Solution Centre Metaphorix built a communication framework based on
Microsoft BizTalk Server and Commerce Gateway, giving each client a tailored
front-end running on a standardised Navision backbone.
Handling a huge amount of complex orders per week through
electronic data interchange, the system handles distribution planning, picks in
the warehouse, shipping details and displays Proof of Delivery, order delivery
status, stock enquiries and even warehouse location on the website.
Performance analysis
For a company working on very tight margins, the ability to
perform real-time analysis on drops, throughput, price and so forth is crucial
and Doye puts its 99 per cent plus on-time delivery performance partly down to
the system. “Our profit driver is not directly from the customer. It’s getting
the highest effectiveness and utilisation out of our resources used to perform
their work.”
Periodic analysis on performance has turned into a rolling
exercise. “There are reasons why you run vehicles in certain ways. Profiles
develop over time, in terms of regions and date. Now we can get the information
out of the system on a daily basis and do any changes we need.”
As well as equipping the company with a platform for the future,
making connections with new clients more easily and mapping existing business
processes and best practices, the new system has helped Cannon internally
communicate more effectively. “Now we are smarter and we spend time on things
that should have time spent on them.”
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