How this Houston-based alcohol importer, distributor uses tech to stay ahead of the curve
You might say that Mexcor International, a Houston-based importer and distributor of wine, spirits, and other types of alcohol, relies on a single bottle of vodka rather than a case of vodka when it comes to its tech capabilities.
The annual tech budget for the 300-employee company, founded in 1989, falls well below $500,000. Mexcor International's annual revenue hovers around $300 million.
"We do have a decent size tech budget, but it's tiny in comparison to large distributors with multimillion-dollar tech budgets," says Chris Quintanilla, chief sales officer at Mexcor International.
The company leans on an IT director, an IT specialist, and an IT support company to handle tech needs. In other words, Mexcor International's in-house tech resources are minimal.
So, when the company's sales and administration sales team needed to step up its tech game, Quintanilla created a cloud-based software system combining customer relationship management (CRM) and enterprise resource planning (ERP) functions to churn out real-time reporting on inventory, deliveries, and other business matters. He took on the project equipped with IT knowledge he picked up online and at a three-day training session in Colorado, coupled with some simple tech tinkering.
On his own, Quintanilla has developed 46 dashboards that supply details about things such as wine and beer inventory, contacts for account managers, product catalogs, and key performance indicators (KPIs) for the sales team. About 230 employees, or roughly three-fourths of the company's workforce, can access these dashboards. Information on these dashboards can help employees answer myriad questions, such as "Which delivery trucks are arriving today?" or "What percentage of orders are being picked up tonight?"
Quintanilla says one of the key benefits of the dashboards is the ability to see how soon the company will run out of various products at its Texas, California, Florida, and Louisiana warehouses. This functionality enables the company to swiftly head off shortages. It has come in especially handy amid ongoing supply chain snags triggered by the COVID-19 pandemic, he says.
The dashboards also let Mexcor International track which customers' sales have risen or fallen compared with the same time a month or a year ago. With this information at their fingertips, salespeople can chat with customers about whether, for instance, they might like to substitute a brand of poorly selling tequila for another brand of tequila, according to Quintanilla.
In short, the innovation spearheaded by Quintanilla has helped propel Mexcor International well beyond the old days of pen and paper, photocopies, and faxes.
So, why are companies like Quintanilla's turning to in-house capabilities to push past the pen-and-paper approach?
"Companies that develop their own technology have more control over their strategic direction and can better respond to the needs of the market. This can mean a significant competitive advantage when a company develops a compulsory technology before the competition," technology and innovation strategist Evans Baiya wrote for AllBusiness.com.
In a 2020 survey by Boston Consulting Group, 46 percent of corporate executives around the world planned to invest more in their in-house tech capabilities.
"Every enterprise must re-evaluate the capabilities that it can develop in-house with the talent it has and determine which ones to procure from service providers," the consulting giant says. "By building capabilities in-house, companies can reduce the risk of their transformation projects stalling and turn to service providers in areas where they suffer from talent gaps."
At Mexcor International, Quintanilla has stepped in to fill much of the company's gap in tech talent.
Mexcor International established the new cloud-based CRM and ERP system in 2019. It replaced a clunky network-based setup hampered by unwieldy financial, sales, delivery, and routing modules.
"It was just so slow. You could not get the information you needed, and the network was always down," says Quintanilla, adding that the company's network-based system had sustained ransomware and malware attacks.
With the cloud-based system now in place, Mexcor International employees can perform an array of tasks via laptop, desktop, tablet, or smartphone, he says.
Quintanilla says in-house creation of this system aligns with Mexcor International's culture of "wearing multiple hats" to move the business forward, demanding in-house innovation on the tech front.
"If you want to see something happen, you have to grab the bull by the horns and do it yourself," he says. "We are a medium-sized company. We just hired a true IT person in the last two or three years. We don't have million-dollar budgets for big IT departments. We kind of figure it out as we go."