RedPrairie Corporation, a productivity software provider, has implemented its Duty and Warehouse Management solutions at Adnams, an independent brewery located in Southwold, UK. The new solution has enabled Adnams to set up its own bonded warehouse, manage inventory more efficiently and cut costs.
RedPrairie’s Duty Management enables Adnams to delay payment of all Customs duties and Value Added Tax until the latest possible time, usually after the goods have left the warehouse. Andrew Brookes, Brewing and Brands Business Accountant, Adnams, explained, “When we built our new warehouse, it was designed to store more goods. We wanted to fully utilise this space and reduce our costs. As we were storing product at a third party facility, we were paying someone else to do something we could easily do ourselves. We also realised that we could make significant cost savings by running our own bonded warehouse, and to do this, we needed a fully compliant duty management solution.”
Brookes continued, “We chose the RedPrairie solution as it’s extremely user friendly, guiding the user through all processes. It is functionally rich, with great tools that did exactly what we wanted. However, the key factor was the level of RedPrairie’s experience regarding the legal requirements. We were confident that they had the expertise required to ensure we were fully compliant with the HM Revenue and Customs legislation required to run a bonded warehouse.”
The project commenced just before Christmas 2008, and went live just after Easter 2009, when Adnams started to pull stock back from the third party warehouse. In two weeks Adnams had enough stock available in its warehouse to pick orders. Brookes said, “We needed to be completely confident with the go-live, as it was vital we continued to fulfil customer orders.”
Adnams is using the Warehouse Management module that is integrated within the Duty Management solution. Before rolling this out, Adnams was using a stock control system that was part of its accounts package. Brookes said, “Although we have only recently gone live, we can see that our cost savings predictions are on track. We can manage our inventory much more tightly as we have greater stock control, which is vital when you’re working with products such as vintage wine, which isn’t a low-cost product. We’re also delighted about bringing the process back in house.”
Martin Hiscox, Vice Chairman of the Board, Managing Director and President International, RedPrairie, said, “Adnams has realised the financial advantage of running a bonded warehouse, and we’re delighted that they have selected RedPrairie’s Duty Management solution to manage the process. Adnams is already seeing the benefits of the new system, and I’m confident that they will continue to get a strong return.”
Adnams is a much-loved, progressive brewer and leisure retailer, renowned for its award winning beers, wines, pubs and hotels, which offers a comprehensive range of employment opportunities. Adnams serves guests with pride and enthusiasm in its hotels. In 2008 Adnams reported sales of £47.1 million. www.adnams.co.uk
RedPrairie delivers productivity solutions to help companies around the world in three categories – inventory, transportation and workforce. RedPrairie provides these solutions to manufacturers, distributors and retailers looking to reduce cost, increase sales and create competitive advantage.
Tel: 01494 486500