How do they do IT? A publisher's warehouse and supply chain

How IT helped Parragon Publishing manage going from a $15 million to $35 million company in 18 months

Going from a $15 million to $35 million company in 18 months after an acquisition and taking on a 6500sqm warehouse that sends out 150,000 books per week in 7000 cartons to service 1200 orders is, as you can imagine, no small feat.

And then try doing it for four geographies (Australia, New Zealand, Asia and South Africa) with just 14 people while ensuring your IT environment runs without a hitch.

That was the scenario facing Parragon Publishing, a global provider of illustrated non-fiction books.

After purchasing the publishing division of a publicly listed company called Funtastic in 2008, Parragon was faced with the task of integrating operations and looked to deploy a new Express Mailing System (EMS).

"Prior to that we didn't have any warehousing functionality of our own, all of domestic warehousing was done by 3PL," Parragon Publishing finance and operations director, Mark Camiller, explained. "So we didn't really have a heavy requirement for an EMS system that had a lot of functionality. Basically all we needed was a simple accounting system because we didn't do much ourselves. What we did in those days was use SAGE out of the UK."

While its global operations – headquartered in the UK – run SAGE, the local arm based in Melbourne decided to evaluate different options.

"The problem became that because we went from a 15 to a $35 million business once we bedded the acquisition down we required local warehousing and 3PL was no longer an economical option. So we needed to expand our EMS functionality," Camiller said.

"We had two simultaneous challenges. One was we needed to set up a warehouse. And we had to expand our EMS functionality because we had never received an order in our own right up to that day – they all went via 3PL. Our largest three customers are Kmart, Big W and Target, which obviously are all nationally based. So we had no electronic data interchange (EDI) functionality in the past.

"Funtastic used Pronto and a couple of people within the organisation including myself had some experience with it. From an overall beginning to end solution we looked at SAGE and Pronto. Separately we looked at the option of leaving SAGE in the UK as we were but running the EDI on a more warehouse-specific platform. We looked at three and one was Manhattan and then there were two other local products. The end result was we decided in conjunction with the UK the best solution was Pronto."

So an IBM RS/6000 rack-mounted server was deployed to run the Pronto system in the company's South Yarra office with redundancy located in the warehouse in Derrimut.

"We then have file server, email server and our third server that houses our EDI; they are all HP machines," he added.

While one might expect some push back from the HQ of a global company when one of its regional offices asks to go it alone with their IT, Camiller was aided by a concurrent deployment across all of Parragon's locations of business intelligence solution, Kronos 8.

"That project has been going for 18 months and is almost finished. So there wasn't a major problem come March 2009 because the decision was made to go the Konros 8 route and it could handle multiple data sources in the one data warehouse," he noted.

Now all global Parragon offices hook into the BI system and thus the potential issue of one regional office having a different platform was avoided.

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Tags IBMKronosHow do they do IT?Parragon Publishing

More about Hewlett-Packard AustraliaHPIBM AustraliaIBM AustraliaKronos AustraliaManhattanPronto Software

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