When Los Angeles-based American DJ opened for business in 1985, the business landscape was much different.  Starting out as a small provider of special effects lighting for DJs, small clubs and other parts of the entertainment industry, the company rapidly grew into a seven-division business offering solutions for everything from their original small-venue market to large scale concert lighting, aluminum truss systems for concerts and trade shows, and LED lighting for cruise ships and architectural applications. 

Longtime Sage Customer
American DJ had been a Sage customer from the early days, and as the company’s operational needs changed, they upgraded to more powerful ERP software, jumping from early products to MAS 90 and then MAS 200.  “I knew the capabilities of the Sage products,” said Scott Davies, General Manager of American DJ.  “In all these years, in spite of several hardware crashes, I’ve never lost any data with a Sage product.”  He attributes much of his success to the integrity of the Sage data structure, and wanted to stick with a business partner that supported his Sage investment.

Going Online
Approximately eight years ago, Davies knew that he would need a specialized e-commerce solution that tightly integrated with the existing Sage software that kept his business running.  He was referred to CompuData through a web developer.  That referral gave him visibility into an interface and e-commerce solution that CompuData alone could offer, one that worked with his existing MAS 200 investment.

The CompuData system enabled custom B2B and B2C interfaces, and integrated American DJ’s web presence with its existing MAS 200 back office systems.  With the e-commerce system, B2B customers are able to check stock status, verify pricing and place orders.  Similarly, B2C customers are able to create accounts, purchase and pay via credit card.  This custom CompuData web interface was exactly what American DJ needed.

Explosive Growth
“Our growth has been so continuous that we always underplanned,” Davies admitted.  “Since 1992, we’ve moved our warehouse space four times, each time doubling the previous space.”  By 2007, housed in two large, neighboring warehouses, and having pushed the limits of MAS 200, the company worked with CompuData to upgrade to MAS 500. 

While MAS 200 offers core accounting and distribution services, MAS 500 goes a step beyond and acts as a complete enterprise management solution.  Built on Microsoft SQL Server architecture, Sage MAS 500 ERP is a complete enterprise management solution. Sage MAS 500 integrates business intelligence, order processing, distribution and manufacturing to streamline operations. 

Streamlined Operations
With the help of the CompuData implementation of MAS 500, American DJ has seen noticeable changes in its operational efficiency.  The company is now running paperless warehouse operations at its multi-building Los Angeles facility, with 30 guns to electronically track inventory.

Prior to MAS 500, American DJ struggled with inventory accuracy.  “Sometimes a pallet would come in from a manufacturer, and our people would pull product off the pallet for immediate shipment to customers,” he said.  While this meant that customers received their shipments as soon as possible, it made it nearly impossible to get an accurate inventory count.  Product was out the door and in customers’ hands before ever having the chance to be cataloged. 

Now, with MAS 500, every piece in their 6000-item inventory is checked in and out, and the company is fine-tuning processes to maximize operational efficiency.  “Most orders have no regularity,” Davies notes.  Customers will often need two of this and six of that.  Thanks to the warehouse automation, they not only know whether needed items are in stock, but they can also tell where the item is, from the warehouse bin right down to the tracking number on the package.

“Because we scan each item as it’s packed, and we know what was in each box, customers can now log on themselves and keep track of shipments if they choose.” With MAS 200 they got the email that a shipment was en route, but couldn’t tell what items were coming in which box. 

Davies has also been impressed with the reporting and analysis capabilities of MAS 500.  “I like the open structure of it,” he says.  He’s found that he can create and export customized analysis reports, giving him a different level of visibility into the business and its operations.  “You’re only limited by your imagination.”  He adds that “CompuData has always been responsive to our needs,” helping them to find the right solution at the right time.

Planning for the Future
With the Sage MAS 500 implementation, Davies feels that there are no operational constraints limiting growth.  “We’re still growing,” he says.  He expects that by 2010 the Elation business—the high-end division that serves major concerts and events—should surpass the original American DJ group as the biggest source of revenue. 

“With MAS 500 there are no constraints,” Davies says.  “The CompuData solutions have enabled us to scale our business as much as necessary to meet our growing customer demand.”  With growth expectations like that, American DJ is a welcome bright spot in today’s economy.