Nuovo Parts | Compressor Distributor

SituationNuovo Parts, Blue Link Client

Nuovo Parts Inc., a wholly owned subsidiary of Wiseworth Canada, opened in 2005 to provide Nuovo Pignone spare parts for U.S. Nuovo Pignone (NP) customers. Nuovo Parts provides custom-made parts, typically made in Italy, for various uses in the Oil & Gas industry. Their products include parts used for oil pipelines and other large projects. Nuovo Parts is currently the only distributor in the world for General Electric-Nuovo Pignone giant recip compressors and turbines. Nuovo Parts Canada, another subsidiary of Wiseworth Canada, provides the full line of NP spare parts to support the entire Canadian market. Together they serve a niche market and are very successful in doing so.

Stan Thompson, President of Wiseworth, Nuovo Parts Canada & Nuovo Parts Inc., decided that a new system was needed in order to improve the efficiency of his businesses. He appointed Laurel Glanfield, Controller for Wiseworth / Nuovo Parts, to conduct the search.

Challenge

The system in place prior to Blue Link Elite was a custom-built application that they had purchased more than 20 years prior. The application provided no real-time information, involved many manual processes and had many other shortcomings, eventually resulting in Laurel Glanfield’s software search. According to Marcel Potter, Customer Service and Purchasing for Nuovo, “The old system was a glorified calculator with no history”.

The Nuovo Parts Companies & Wiseworth experienced spectacular growth, growing annual revenue from $3 million to $25 million. Their old system could not handle this growth and could not offer the reporting and analysis functions that Stan now desired. Both Laurel and Stan understood that they needed to ensure that the right software was in place to help them grow and they wanted a solution that could carry them through the years.

Nuovo staff desperately wanted a new system. “We wanted to reduce the ridiculous amount of time it took for us to research any historical information,” explains Marcel, “and we needed a more user-friendly system.” Before Blue Link, Marcel and others routinely spent many hours in a file room attempting to extract information that was needed for reporting and for ongoing business operations. Clearly something needed to be done to improve efficiency.

Solution

Nuovo considered several possible solutions to implement in place of their current manual and cumbersome system. Like most businesses, they believed they had a number of unique processes that were imperative for the new system to address. These unique needs allowed them to rule-out a number of solutions immediately. One important requirement of the system was that it needed to support multiple companies. Blue Link offers this support at no additional cost – simply charging based on number of users, regardless of number of locations or companies. This was seen as one of the many key advantages over other vendors.

The solution chosen would also have to accommodate their aforementioned unique business needs. Nuovo serves a niche market by importing unique and specialized parts from Italy to support the oil and gas industry and these custom parts have lead-times that range from 6 months to over a year. These long lead-times were a problem for their customers that would otherwise remain in the dark as to when a part would be delivered. Any new system implemented would have to automate these processes to keep in touch with customers and update them on the progress of their order. Blue Link’s Automated Report Module was custom-built for Nuovo to solve this problem.

Ultimately, Nuovo saw that Blue Link could address all of their needs while remaining within budget and decided to implement Blue Link Elite. Along with addressing all their technical concerns, Laurel is also pleased that Blue Link is a smaller more personable company – and Canadian! “We didn’t want a large company where we would be passed around, speaking with someone halfway around the world,” Laurel expressed.

Results

The new system implementation was successful in meeting Nuovo’s objectives of eliminating time-consuming business processes, vastly improving reporting functionality and automating unique business needs. When evaluating the success of a new software system, however, it is also important to consider the implementation process as well.

Implementing a modern Enterprise Resource Planning (ERP) system is not always straight-forward, however, implementing the system for Nuovo was routine for the Blue Link team. “Every business has unique needs and we have experience in dealing with a variety of businesses and customizing our solution to their needs when required,” reflects Mike Miner, Senior Consultant for Blue Link. Nuovo was very pleased with the implementation – especially the on-site set-up. “It was very valuable having Mike on-site,” says Laurel, “he was very good at understanding the company’s needs.”

Blue Link created the Automated Report Module (ARM) – now available to other Blue Link customers as well – for Nuovo, designed to completely automate specific customer communication. ARM was used to expedite the communication to Nuovo’s customers, sending them statements automatically. This helped Nuovo save 2-3 working days a month as well as saving paper and postage. These statements are created from an automated report that is generated straight from data available in Blue Link. This report is rendered as a PDF and sent automatically via email to the appropriate contacts. Blue Link also provided a number of other specific customized features for Nuovo.

Blue Link also provided a number of other specific customized features for Nuovo. Custom reports were created within Blue Link to provide specific information that Stan requested. Additional custom reports were created with Crystal reports – which Blue Link easily integrates with. Blue Link also provided the ability to import and export specific product data of a unique data structure, making it possible to work directly with information gathered from Nuovo Pignone in Italy.

As a direct result of the new Blue Link system, Nuovo was able to reduce a full-time worker to part-time. This employee now only works 1-2 days a week instead of 5; saving Nuovo a lot of money. The entire system has now saved Nuovo about 100 days a year; clearly demonstrating the return on investment and very short pay-back period for the purchase of the software.

Improving business operations is an evolutionary process and Blue Link continues to provide additional updates and functionality to accomplish this, occasionally making on-site visits cross-country to ensure that everything is still running smoothly. “I love visiting Stan,” Mike Miner of Blue Link exclaims, “they are great to work with over there and it is always nice to get out of the office and go to a beautiful place like B.C.”

The Nuovo team reflects on their favourite aspects of the software:

  • Flexibility of the software and the Blue Link team
  • Customization
  • Ability to make small tweaks and modifications
  • The advanced and customizable reporting functions
  • Ability to handle foreign exchange
  • Integration of accounting and inventory functions