Muehlbauer: Owner Commitment Key to Software Success

Jason Sandefur

How important is good software to a distributor? According to consultant Bill Muehlbauer of Distribution Strategies, good software is essential to success.
“With the pace of business, you can’t get away without it,” Muehlbauer told FastenerNews.com. “You’ll be hobbled without good software.”

Muehlbauer, the keynote speaker at the Western Association of Fastener Distributors distribution software showcase, finds only about 30% of distributors use their business software effectively.
Is your current vendor going out of business or failing to provide upgrades? Those are solid reasons to look at new software. Likewise, duplicate document handling, including “work-a-rounds,” keeping logs in spreadsheets, or copying data from reports into spreadsheets could signal that you need new software. In addition, dramatic business growth could reveal a need to incorporate new software to continue your business success.
However, if your computers need to be replaced to handle your current software, replacing the computers might be a simple economic decision. Software won’t boost computer speed or memory capacity. Another misguided reason to buy software is a high rate of errors, returns and complaints. Muehlbauer said those issues have more to do with work processes and training than software.
If there’s one thing his 30 years in the business has taught Muehlbauer, it’s that newer isn’t always better. Some of the best success comes from older software that’s well utilized and is a good fit for the company using it.
If you still think you need new software, look for a profitable vendor that services other customers like you and keeps up with technology. A good software package should also meet your company’s top five needs.
The risks of integrating new software are considerable. The wrong software could shut your operation down or force you to waste a lot of money trying to fix the problem. The transition could also take considerable time and burn out key personnel.
“If things go well, it will be a major disruption for six to nine months.”
Reasonable expectations are another important part of software success, Muehlbauer said.
Surprisingly, it’s not software or even a reliable vendor that determines the success of a transition to a new system. Muehlbauer said owner commitment is key to software success. The owner has to believe the new software is essential to the company’s survival in order to get employees to help make a successful transition. “Otherwise, don’t even bother.”
Bill Muehlbauer can be reached at 1592 Bellevue Blvd., Fond de Lac, WI 54935. Tel: 920 922-7499 E-mail: Bill@distributionstrategies.net �2006 FastenerNews.com