BFG Supply president and COO Rob Glockner talks about efforts to automate the supply chain and speed order fulfillment.

Q. Can you briefly describe the S.M.A.R.T. Business program?

A. S.M.A.R.T. Business is BFG Supply's initiative to automate our entire supply chain in real time to increase efficiencies throughout the supply chain as well as speed up the order fulfillment process. It started within BFG when we automated our field sales reps with a handheld device that allows them real-time order entry, look up of order status, inventory availability and customer history, as well as exchange of data between our reps in the field and our branches and main office.

That was Phase I. In Phase II, we extended our technology and experience to our suppliers through a Web portal or EDI, depending on their level of technology. We are now in Phase III in which we are leveraging the success that we have experienced so far and customizing it to best suit our customers so that they can benefit from this technology.

Q. How will this program benefit growers?

A. BFG was built on relationships and we will never lose that personal touch. However, there are certain routine functions that lend themselves to automation. By leveraging our system's capabilities to streamline and simplify the communication across the supply chain, we can create a more efficient process with no surprises. Specifically, for growers, our initiative will:

* Simplify the ordering and replenishment process so growers can get a better handle on inventory management and spend more time on the other aspects of their business.

* Give growers direct and real-time access to product information, inventory availability, and the latest order status so they will know exactly when to expect their product and be able to plan accordingly. If there are going to be delivery issues from our suppliers, we will proactively be able to work with the growers to alleviate the situation.

* Ensure accuracy of order -- what was ordered, when it's needed, at the price that was promised.

Phase IV of S.M.A.R.T. Business ties everything together by integrating the retailers with the supply chain to create a pull-through system that flows all the way back through the grower, distributor and supplier. Even though we are still working on Phase III of S.M.A.R.T. Business and focusing on our customers and suppliers, we have already met with some of the major retailers, such as Lowe's, to ensure that we are considering and incorporating the entire supply chain. As we have with every phase of this project, we will be working closely with all of our partners that are affected by these changes to make sure we truly meet their needs.

With the solutions we know we are capable of providing, we will be able to help our customers organize the data they are getting bombarded with everyday so they can translate it into a reliable forecast. They can tie this forecast into a production schedule and an inventory management system and integrate it with their contract grower network in order to grow only what they need, when they need it.

Our goal for our customers is that at the end of the season, they had the product on hand to maximize sales with no waste. The benefits for retailers are more efficient growers that are better planners and organizers which ultimately leads to more sales.

Q. How will this program impact BFG's suppliers?

A. This is a win/win proposition for everyone in the supply chain including suppliers. By instantly sharing data and streamlining mutual processes, we increase accuracy, respond to growers much more quickly and do all this with fewer resources than before.

The suppliers that truly embrace this system will be providing BFG and ultimately our customers with better service. This will drive sales and will result in us doing more business with these suppliers.

Also, we will be constantly measuring and reporting the level of service our suppliers are giving our customers. This information will be available to our suppliers, BFG personnel and, through our "S.M.A.R.T. Choice" seal of approval program, to our customers.

By giving suppliers immediate feedback on their performance, we can work together to improve it. By letting our customers know where they can find the best, most consistent service, we are making sure that they are getting the most value for their dollar.

Q. What type of changes will the average grower need to make to participate in this program?

A. The handheld device that our field sales reps use and our link with suppliers are providing value to our customers today without any changes on their part. In the next phase, in which we apply the success we have had with technology at the grower level, it may mean minor changes for the growers who want to take advantage of it.

Anything that we do for the growers will be driven by the feedback we get from them, and anything we put in place will be at their discretion to use all or part of it. We are still finalizing exactly what functionality we will provide them and the means to use it (PDA, Web, cell phone, etc.).

Q. Will this program be applicable to all of the horticultural products that BFG offers to growers, both live and hard goods?

A. Yes. Our first priority has been on the hard goods side since this is where we do a majority of our business. The same principles apply on the live goods side but there are adjustments that will need to be made in order to make it most effective for everyone.

Q. This program is focused on real-time inventory for all segments involved. What do you see that potentially could become sticking points in the system?

A. The main sticking point is getting the buy-in of the suppliers to use this system as intended. BFG needs to provide solutions that make it easier and more profitable to do business. The responsibility is on us to do this. But once we are able to accomplish this and can demonstrate it to everyone in the supply chain, we will get the cooperation from most of our partners. The initial positive response from our key suppliers has been very encouraging.

Send this article to a friend

Enter your e-mail address:


Enter your friend's e-mail address:


Click the image below to send:

© 2006 Branch-Smith Publishing