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Customer Snapshot: Overview

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Over the past 20 years, ScanSource has grown exponentially, acquiring more companies and resources around the globe. As the company grows, ScanSource makes sure their community support grows, too. When disparate legacy systems became too cumbersome, the company looked to SAP to become the digital core and replace existing systems with a single platform.

Company
ScanSource, Inc.

Revenue
US$3.2 billion

Number of Employees
2,100

Industry
Wholesale Distribution

Visionary Themes

Digital Economy, Run Simple

Headquarters
Greenville, South Carolina, USA

Customer Website
www.scansource.com/

Line of Business
Finance, Human Resources, Manufacturing, Service

SAP Solutions
SAP BusinessObjects business intelligence (BI) solutions, SAP Business Warehouse, SAP ERP Central Component [SAP ECC], SAP Global Trade Services [SAP GTS], SAP Paybacks and Chargebacks by Vistex, SAP HANA

Customer Snapshot: History

Worldwide Presence with Centralized Distribution

Founded in 1992, ScanSource, Inc. is a leading global provider of technology products and solutions. ScanSource has 43 locations in North America, Latin America, and Europe. The Company operates from a centralized distribution model with distribution centers in Southaven, Mississippi, USA; Miami, Florida, USA; Mexico City, Mexico; Curitiba, Brazil; Recife, Brazil; Sao Paulo, Brazil; and Liege, Belgium.

Customer Snapshot: Business Model

 

Focused Expertise

ScanSource is in business to deliver best-of-breed specialty technology products, along with the highest level of service and support, to resellers through their two-tier distribution model, focused experts, centralized logistics, technical and sales support, and their partner enablement programs.

ScanSource, Inc. sells only to resellers and specializes in several markets, including automatic identification and data capture (AIDC) and point-of-sale (POS) solutions through their ScanSource POS and Barcode sales units; voice, video, data, and converged communications equipment through their ScanSource Catalyst and ScanSource Communications sales units; and physical security solutions through their ScanSource Security sales unit.

A fine-tuned network of partnerships.

Customer Snapshot: Success Strategy

Growth in More Ways than the Bottom Line

ScanSource measures their growth beyond numbers, putting great importance on relationships, partnerships, and opportunity—all of which they have been unwaveringly committed to for decades.

That commitment has allowed them to become the largest value-added distributor in the world. And, it’s allowed them to be a partner to the channel’s leading manufacturers and resellers. Whether it’s point-of-sale, barcode, physical security, 3D or communications solutions, ScanSource is focused on growth: their growth, and their partners’ growth.

The Challenge

Out With the Old, In With the New
 

When growth leads to acquisitions, legacy systems are part of the package deal. With legacy systems reaching double digits, ScanSource looked to SAP to centralize operations in to one core solution. Internal product maintenance was a challenge, as were complex financial processes. The company also wanted to enable partners to connect to ScanSource’s software.

Acquiring companies had the negative side-effect of acquiring legacy systems as well.

Enter SAP

 

When keeping up with the company’s growth became a challenge, ScanSource knew their clear choice was SAP. In their search for solid, scalable software that supports collaboration with resellers and vendors, SAP’s Run Simple approach made an 18-month digital transformation a reality.

Building a new system capable of handling all their needs.

Enter SAP: The SAP Experience

 

A Strong Core of Support

ScanSource started with SAP ERP Central Component as the platform, then implemented SAP Business Warehouse powered by SAP HANA® and SAP BusinessObjects™ business intelligence solutions.

Working with SAP to rewrite tools, creating one system for all.

We were very impressed with the quality of people SAP brought to us. With such a powerful team, we were able to move quickly. – Blake Zemp, CIO, ScanSource, Inc.

Better Business

 

Clearing the Decks for Growth

With a new stable platform, ScanSource now runs more efficiently and effectively, making the company ready for future growth. Acquisition and integration will be much simpler moving forward, making it easier to onboard new companies and employees into the corporate structure and culture.

Growth without barriers.

Better Business: Benefits

 

A faster pace of acquisition and integration puts ScanSource on track for higher revenue and greater market share in the form of acquisitions as well as increased internal efficiency.

As the system upgrade continues, the company expects to realize even more value. At only 80% transition, the system upgrade has already proven to hold tremendous value in the company’s newest acquisition. ScanSource bought KBZ Communications Inc. last September for US$61.5 million in cash.

Handling complex claims with speed and agility.

We weren’t sure we could take transactions over the bridge before, because it might have collapsed. Our M&A strategy goes hand-in-hand with the technology. – Charles Mathis, EVP and CFO, ScanSource, Inc.

Better Business: Run Simple

 

The company is now enjoying higher IT proficiency companywide, helping employees perform all aspects of business with greater efficiency and less effort and creating more satisfied customers worldwide. Employees old and new are empowered to provide more customized and personalized service through the company’s digital transformation.

Real-time digital tools are a huge value-add for customers.

Journey Ahead

Faster Growth, Yet Time to Care for Communities
 

It’s clear when you look at ScanSource that their employees and the global community are as well cared for as their customers and vendors. While ScanSource’s prime directive is doing business, with a new system in place, the company will expand supporting employees even further in community outreach participation, proving that having a global footprint is more than just making an impact in the business world.

Growth with confidence is now possible.

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