For years, Abatix, a Dallas, TX-based industrial distributor, relied on FACTS to run their business. Eventually, the need for adaptability and flexibility forced Abatix to move to a new software solution -- Activant Prophet 21. Not only has the company found a partner they can rely on, they increased sales by 40 percent with less than a 10 percent increase in staff."
To serve its customers, Acme Architectural Hardware, the Houston, TX-based distributor of commerical architectural hardware needed to know what was going on in its warehouse. When its enterprise solution couldn't tell it that, the company chose one that could out of the box: Activant Prophet 21. The result: more accurate inventory data and labor cost savings of 15 percent. "It changed the whole way we do business," said Acme Comptroller Larry Rice.
Activant Prophet 21 helped ACO Medical improve inventory management, boost profitability and handle an increase in sales without increasing resources.
With Activant Prophet 21's integrated and real-time modules powering their operations, Active Screw & Fastener can access the most up-to-date information and deliver high-quality, cost-effective services.
"If you don't manage your inventory well, your sales, your customer service levels - everything - suffers," says Steve Rairdon, IT manager for Adel Wholesalers Inc., a plumbing and HVAC distributor based in Bettendorf, IA. Looking to improve their inventory management capabilities and increase efficiencies across the board, the company implemented Activant Prophet 21.
When double-digit annual growth swamped the Lexington, KY-based industrial automation and components distributor's old enterprise solution, Advanced Industrial Products got back out in front of its rapid growth with Activant Prophet 21 - and then some. "We were told we would be able to do 40 percent more business with our current staff with Prophet 21, and we have," said AIP President Dennis Stephens. The solution proved robust enough that AIP went five years before having to expand its sales force.
"We had a tremendous amount of inventory control problems with our old system," says Howard Edelman, vice president of marketing for American Packaging. Since implementing Activant Prophet 21, their inventory accuracy has improved from 25 to 99 percent.
All Fasteners, the Franklinville, WI, fastener and industrial tool distributor knew it had the right technology for its fastener business in Activant Faspac, but it wanted the ability to run all aspects of their entire operation with a single package. In Activant Prophet 21, it found that package -- and thanks to the improved technology incorporated into its Wireless Warehouse Management Solution, even the fastener business runs better too.
Matthew Bell, president of Appliance Replacement Inc., once paid his sales representatives revenue-based commissions because it was almost impossible to maintain any other payment structure. Using Prophet 21, Mr. Bell created a profit margin-based commission structure, resulting in a 19 percent increase in company profits.
Arbill Safety Products needed a well-rounded, highly functional enterprise software solution. Only one company, and one solution, met its stringent criteria: Activant Prophet 21.
Becker Electric chose Activant Prophet 21 to manage its substantial inventory and vast customer base because of Activant's commitment to the electrical marketplace and the distribution industry. What they discovered in ROI proves they made the right decision: a 24 percent decrease in direct labor costs and a 15 percent decrease in inventory without affecting service levels.
Using Knowledge Management Center has helped Beerman Precision employees obtain easy to understand, up-to-date business information. "It's really given us a better understanding of our business," says manager Mitzi McCann.
"Doing more with less" has proven a blessing rather than a curse for the Santa Clara, CA-based electrical distributor, and Activant Prophet 21 made it possible. Its data management and reporting capabilities have also allowed Bell Electrical Supply to run its business smarter, giving the company better leverage with suppliers, and its power gives Bell plenty of room for future growth.
Don Blackburn and Company faced a slowing economy. Rather than hide and wait for better times, they chose to move to Activant Prophet 21 and position themselves for long-term success.
Staff at Don Blackburn and Co. wanted a seamless, smooth transition from Activant Acclaim to Activant Prophet 21. With the help of Activant's Professional Services teams, they got what they wanted, plus ongoing support after go-live.
For Dwight Weatherhead, owner of Bosworth Industrial Supply, being successful means flourishing in a shrinking market. With features like Prophet 21's front counter signature capture, Weatherhead has been able to maintain efficient operations, while eliminating overhead and costly tasks. "Adding signature capture has reduced the number of pick tickets we file to zero, and since there's no question about whether or not something was signed for, we no longer receive proof of delivery requests," he says.
Brennan Tools and Fastening Systems was intent on maintaining the highest levels of customer service while maximising daily operational efficiency. They sought a business solution that would better their inventory planning and replenishment. What they found was Activ
ant Prophet 21.
Burmeister Electric Company implemented Activant's Knowledge Management Center (KMC), an executive information system with the hopes of gaining a new understanding of their business at every level. According to Business Development Manager Brad Slocum, "KMC throws spotlights on every aspect of our business - from inventory levels and turns to sales - to alert us to trends and help us achieve our goals."
Care Safety, LLC wanted to stay on the leading edge of technology and enter the world of e-commerce without a full-time IT department. Now, with Activant Prophet 21, Trading Partner Connect, and ASP, they have quick and easy access to information and unlimited opportunities for Internet trading.
Implementing Prophet 21 has helped Cascade Orthopedic Supply reduce days sales outstanding and inventory levels by 7 percent, cut annual payroll expenses by $50,000, and decrease outstanding accounts receivable by $20,000 - in just one month after going live on the solution.
Customers are not demanding, says Ken Mynes, executive vice president of Control Corporation of America. Instead, they just have high expectations -- and CCA employees use Activant Prophet 21 to meet and exceed those expectations.
An Activant customer since 1986, Chandler & Farquhar looks to continue its growth and evolution with Activant Prophet 21. Says CEO Kathy Hersey, "We're on our way, and we know Activant will be with us for the long haul."
Because Prophet 21 automatically tracks every cost involved in importing product - from foreign and domestic port charges to freight costs - Custom Molded Products executives can price items accurately to maintain peak profitability.
Colonial Saw understands that customer service can make or break a company. That's why this distributor and importer of industrial woodworking machinery supplies chose Activant Prophet 21 to provide real-time access to business critical information and manage its continuing growth.
DCT Industrial Supply Co. leverages Activant solutions - including Prophet 21, Trading Partner Connect, and B2B Seller - to maintain its competitive edge, improve supply chain relationships, and forge ahead with its acquisition strategy. "Putting Activant technology in place in our company - and in the companies we've acquired - has positioned us for a great future," says company president Jamie Gahwiler.
By moving from Activant Acclaim to Activant Prophet 21, DeeTag Ltd., the London, ON-based fluid power equipment and supplies distributor took several giant steps forward towards meeting its pledge to deliver customers "the right product, on time, every time": Merchandise returns dropped by one-third in the first year after go-live, and the wireless warehouse management solution was so simple, the boss' son was pulling orders on his first day as a summer intern.
Prophet 21, paired with Trading Partner Connect B2B Seller, has helped Diamond Paper Company increase sales of key product lines by 20 percent, increase overall sales to existing customers by 5 percent, and improve customer service. 'Prophet 21 and B2B Seller have really helped me drive my business in the right direction,' says Charles Kurzweg, president.
Duncan Equipment Company recognizes that the role of distributors is changing as customers demand more in the way of services. To stay ahead of the curve, the company has embraced technology. Trading Partner Connect allows them to provide the services their customers demand while streamlining the supply chain without sacrificing relationships.
DXP Enterprises, Inc., through a series of mergers and acquisitions, inherited a variety of computerised management systems that needed to be consolidated under one technology platform. The ultimate solution, the company believed, would meet three main criteria: it should be easy-to-use and operate across many branches, it must be e-commerce ready, and it must excel in data mining and reporting capabilities.
"After doing the diligence, we collectively decided that Prophet 21 made the most sense for us as we moved forward," explains Kathy Wallace of Englewood Marketing Group, Inc. "Prophet 21 fit because it was designed for our industry, so we knew nothing would need to be retrofitted to match our business model."
According to Jim Derry, general manager of Field Fastener Supply, technology is an indispensable tool an organisation must harness to handle their internal and external challenges, so when the time came to examine the technology that would catapult Field into the future, Derry had to look no further than Activant Prophet 21. "It came down to improving on what we had built, and the functionality and distribution expertise of Prophet 21 meant that it would be the solution we could use for a long time," he says.
G & C Supply Co., Inc. wanted more efficient ways to track orders and shipments and an opportunity to enter the new world of e-commerce. With Activant Prophet 21 and Trading Partner Connect B2B Seller, they've done both.
Glauber Equipment Corporation wanted real-time, easy-to-access information so they could make on-the-fly decisions more confidently. With Activant Knowledge Management Center, they have the power to make determinations with real, current, hard numbers.
GMG Distributors realised many improvements after moving to Prophet 21, including enhanced inventory management capabilities - resulting in a 2 percent increase in fill rates - and more powerful reporting functionality, which helped the company realise a 2 percent bottom line increase.
"I can't pass production costs or price increases on to our customers," says Joel Lovell, general manager at Great Lakes Fasteners and Supply. Looking to make up ground through an increase in productivity, Great Lakes recently implemented Prophet 21 and its optional Wireless Warehouse Management Solution.
Grinstead Group, a distributor of automotive paint and suppliers, saw a 90 percent increase in their purchase processing speed after moving to Prophet 21.
Activant Prophet 21 has helped G.S. Hydraulic streamline operations and maintain competitive prices and healthy profit margins. The solution has enabled the company grow by 25 percent without increasing labor expenses, save 2,000 hours per year as a result of database consolidation, and boost inventory turns by 15 percent.
With Activant Prophet 21, Haggard and Stocking, an Indiana-based industrial distributor, has decreased inventory levels by 20 percent, reduced direct labor costs by 35 percent, and cut operating expenses by $1 million over two years.
For any distributor, managing thousands of customers, hundreds of thousands of stock items, and millions of part numbers is no minor undertaking. Prophet 21 and B2B Seller have helped Herman Electronics simplify those tasks while improving customer service, increasing efficiencies, and reducing costs.
Nobody needed to sell H. J. Kirby Corp. on the benefits of technology for its operations. It was an early adopter of personal computers, automating its order entry, inventory management, purchasing and billing in the 1980s, and a Web pioneer among distributors, with a site dating to 1999. But as the Westlake, OH-based manufacturer and master distributor of instrumentation and control products entered the new millennium, it realised that if it was to continue to grow, it needed to bring its technology out of the old one.
Less than a year after going live on Activant Prophet 21, H.J. Oldenkamp Company saw a substantial decrease in paper and paperwork-related expenses, and they improved customer service and streamlined communications.
Hodges Supply Company, a Michigan-based plumbing wholesaler, depends on Activant Prophet 21 to streamline quote and order processing and improve customer service. "Prophet 21 works really well for us," says Greg Brown, company vice president.
Hughes-Peters was a struggling distributorship - until a fresh management team implemented new business strategies and Activant Prophet 21. The results: a 275 percent jump in revenue and a 30 percent increase in inventory turns, with only a 10 percent increase in headcount.
HVAC Sales implemented Activant Prophet 21 to help them compete on a larger scale and increased their efficiencies and decreased their costs in the process.
As a result of increased efficiencies and better access to business information using Activant Prophet 21, HVAC Sales & Supply, a Memphis, TN-based distributorship, has decreased stock levels by almost 20 percent and reduced operating expenditures by $500,000 over 18 months - all while developing a strategy for growth.
Jack Bailey, president and CEO of IDC-USA, the world's largest bearing and power transmission cooperative, believes that good technology can combat the commoditisation and shrinking margins inherent to his industry. It was with this in mind that Bailey decided to implement Activant Prophet 21 and its executive information solution, Knowledge Management Center. "You've got to keep costs down by improving efficiencies," he says. "That's what Prophet 21 has brought to the table."
Impact Industrial Supplies, the Tampa, FL-based industrial supplies distributor's customers expected to do business with the company electronically. When the company couldn't modify its old solution to offer that power, it chose one that had it built in from the start -- Activant Prophet 21. With it, IIS has not only met its customers' expectations, it has exceeded them, along with their own.
"We purchased Prophet 21 because we needed a solution that we could grow with and would grow with us," says Pete James, vice president of Industrial Paper Products. Prophet 21 gives this janitorial distributor the flexibility it needs to serve multiple industries.
Don Ireland, president of Industrial Supply Co, knows the importance of evolving with the times and with technology. To help his business grow, he's moved from Acclaim to Prophet 21.
"In our first year on the solution, our sales grew over 25 percent, and we haven't looked back. Prophet 21 is a no-brainer - I don't know what we would've done without it," says Scott Jacobs, CEO of Interstate Connecting Components, Inc. After its founding in 1985, ICC quickly outgrew their first enterprise solution. Since implementing Activant Prophet 21, ICC has expanded their operations, increased their sales, and improved customer service.
J.W. Winco executives minimise miscommunications while cutting the amount of time they spend chasing reports and other important business data and documentation. The solution transmits information seamlessly - in real time - throughout the company, enabling executives to view up-to-the minute customer, financial, and inventory information
Katzke Paper, the Denver, CO-based paper distributor is in the business of selling paper, not filing it -- yet filing it was what the company spent way too much time and effort doing with its archaic microcomputer system. So the company decided to end the paper chase by implementing Activant Prophet 21 with the DocMan document imaging solution. Now staff can answer customers' questions faster and find documents in a snap. Next on its agenda: Getting rid of more than 20 file cabinets.
To transform three companies on three different systems into one unit, Lee Mathews Equipment invested in Activant Prophet 21. Almost immediately, the company saw a freer flow of information between the branches and a shortened learning curve.
Prophet 21 helps Manufactured Duct employees carry out the company's mission: 'We're focused on customer service and getting things out to the customers when they need them,' says Kenny Simpson. It has also helped the company reduce paperwork by 50 percent, cut inactive stock levels by $20,000, and improve inventory management.
Before investing in Activant Prophet 21, almost half of Mechanical Equipment Co.'s employees - including the owner - had never used a PC. But now, everyone is proficient on the solution - and the owner is said to be one of the top five users.
Executives at Mercedes Medical credit a lot of their success to the company's sales tactics, along with a team of great people armed with the right technology - Activant Prophet 21.
Looking to both improve his company's ability to interact with a technologically complex business world and create an easier path to communicate with customers, James Meyer, vice president of Meyer Gage Company, Inc., chose to implement Activant Prophet 21. "Our sales have gone up 20 to 23 percent over two years, and we haven't had any price increases," he says. "And there isn't a facet of the solution that isn't saving us time."
"The amount of information our guys have at their fingertips is leagues different than what it used to be," says Dan Niehaus, vice president of finance for The Miami Corporation, a distributor of trim products for the automotive, marine, and upholstery trades. Since implementing Activant Prophet 21, the company has reduced their AR days and watched their bottom line increase by 50 percent.
Upgrading to Activant Prophet 21 from XL helped Midwest Factory Warehouse improve inventory accuracy by 75 percent, cut purchasing time by 50 percent, and reduce inventory levels by 10 percent.
Missouri-Kansas Supply Company has improved productivity and increased profit margins by 5 percent, simply by taking advantage of the technology available in Activant Prophet 21 and B2B Seller.
At one time, Mor Electric Heating employees had to manually check inventory every time a customer called to place an order. That's all changed now, thanks to Activant Prophet 21.
Mustang Electric, a start-up in a competitive marketplace, had already made the decision that they needed a strong, yet flexible Microsoft Windows-based solution that adapted well to the electrical industry when they heard about the advantages of Activant Prophet 21.
"We've been with Prophet 21 since the beginning - as we have grown so have our expectations of the solution, and it has performed admirably every step of the way." Bill Jett and Wink Benbow, co-owners of Mustang Electric, an electric equipment and supplies wholesaler based in Texas, talk about how Prophet 21 has helped their company grow steadily since its inception.
Luckily, Activant Prophet 21 has enabled Bob Mitchell, owner of Northwest Bearings, to cut the number of hours he logs at the office without jeopardising the business he has sacrificed so much for.
To keep things running smoothly for the next half-century, NorthWest Electrical enlisted the help of Activant Prophet 21 and the Wireless Warehouse Management System. "We chose the WWMS because it could help us control our growing inventory and reduce the need to use paperwork as our primary accounting record, which led to improved customer service and the elimination of some of our manual filing systems," says Lynn Carlson, NorthWest Electrical's CFO.
Activant Prophet 21 helps Norton Supply improve customer service and inventory management while increasing sales by 5 percent.
Prophet 21 version 10.5, the latest release of Activant's Windows-based, SQL Server solution, includes features and functionality that help fastener distributors like NSK Industries streamline operations so they can offer what customers want - without sacrificing service or profits.
"We wanted state-of-the-art," explains Lee Eagan, CEO of Oliver H. Van Horn Co. LLC, "and I'm glad we had it in place before Katrina. It would have been much more difficult for us to rebound as fast as we did without Prophet 21."
"We'll be able to fill twice as many orders with the same number of people," says president of Oregon Bolt, Inc., Mike Tiedemann. Activant's Wireless Warehouse Management solution helps the bolts and nuts wholesaler streamline its warehouse processes.
Outdoor Equipment Distributors, faced with the emergence of mass-market retailers who were competing in their niche, sought a Microsoft certified solution that would allow them to improve cumbersome business processes and streamline their supply chain. Enter Activant Prophet 21.
Michael Madden's Irvine, CA-based distributorship is really a paper tiger, but you couldn't have known it from the quality of the forms it sent out using Activant Stanpak. By switching to Activant Prophet 21 with its integrated Forms Design solution, The Paper Company was able to project its distinctiveness to its customers far more effectively. Oh, and it also improved the quality of information available to both employees and customers -- with positive results for the bottom line.
An Activant customer since 1993, Perrigo has seen a 20 percent increase in sales each of the last four years. Says president Charles Clark, "There's no doubt that Activant Prophet 21 has been instrumental in helping us change from a small, city-wide supply house to one of the larger pharmaceutical processing equipment suppliers in New England."
Pneumatic Technology, a small distributor based in Center Line, MI, needed a dependable solution from a one-stop technology provider. Activant and Prophet 21 offered what they needed.
As the vice president of Productive Tool Products, John Ebert works to maintain a well-balanced warehouse and a well-organised business. Activant Prophet 21 helps: With the solution, Ebert has reduced inventory levels by 30 percent, streamlined processes, and stabilised operating expenses.
"We're a very small company, with only six people using our enterprise solution," Tony Adamczyk explained when asked why he initially hesitated to implement Prophet 21. Now that Quality Tooling has been live with Prophet 21 for a while, he has come to realise that it was actually the cheaper option: "The expenditure to implement Prophet 21 was high, but with all the money we spent trying to fix problems we encountered with the various other systems we used, it would have been more cost-effective to go with Prophet 21 in the first place."
"I don't think there's anything we haven't been able to do with Prophet 21, and many of the things we could do before, we do better now." Ted Hoffman, project manager at Reed City Power Line Supply, counts on the one-two punch of Prophet 21 and its Wireless Warehouse Management Solution to increase efficiencies and improve productivity.
Sage Parts Plus selected Activant Prophet 21 to build a sound technological infrastructure to support the robust growth in the airline ground support equipment market.
"If one of my customers was looking at me versus a competitor, and the competitor has his literature, and I have my literature and Web address, then I'm one step ahead," explains David Shaw, CIO of Selecta Products. With Prophet 21 and B2B Seller, Shaw has a tool that allows Selecta to gain a competitive advantage while offering an unmatched level of customer service.
Prophet 21 enables management at Shelby-Skipwith, Inc. to access all of the information they need without printing dozens of reports. The Windows-based enterprise software solution has also increased the HVAC distributor's profitability, and helps the company control administrative costs.
When Owner Bill Sheppard and his employees opened the doors of Sheppard Enterprises, Inc., for the first time in 2004, they knew it would be a little while before the company became profitable. What they didn't expect, however, was the company turning a profit nine months ahead of schedule - a milestone Sheppard believes was accelerated with Activant Prophet 21.
To battle common challenges - like shrinking margins and the expenses associated with endless manual tasks, S.L. Fusco invested in Activant Prophet 21. Already, the solution has helped increase gross margins by 1 percent, cut accounts payable costs by 25 percent, and reduce dead and slow-moving stock by $100,000.
Prophet 21 has helped Sonny's Enterprises improve inventory accuracy rates by 70 percent and reduce accounts receivable days by 30 percent. "Prophet 21 is a tool that will continue to help us become better, faster, more profitable, and easier to deal with," says company president Paul Fazio.
Southern Marketing Affiliates saw a dynamic shift in the mindset of the agricultural market as new generation farmers began to embrace the power of transacting online. With a vision of e-commerce and a need for a Windows-based solution, Southern Marketing Affiliates has embraced Activant Prophet 21 and seen enormous financial growth by transacting with its customers on the Web.
To ensure that staffers offer top-notch customer service, Richard Austin, president of South Shore Oil Heat Supply, regularly invests in continuing education -- like Activant's Computer-Based Training courses. Computer-Based Training Courses have helped Austin implement a consistent educational program as well as improve customer service.
After more than 20 years using a green-screen enterprise software system, the leadership at PM Industrial Supply Company, a leading supplier of metalworking cutting tools, coolants, and machine shop inventory in Southern California, knew it was time to advance to a modern solution designed to better meet their needs. They chose Activant Prophet 21.
To keep ahead of their intense competition, State Supply Co. invested in Activant Prophet 21 - and reduced inventory levels by 15 percent while increasing service levels.
"Anyone should be able to pick an order," says Rene Savage, chief technology officer at Stellar Industrial Supply, an industrial and safety supply distributor based in Tacoma, WA. The employees at Stellar count on Activant's Wireless Warehouse Management Solution to help increase efficiencies in the warehouse.
Todd Losee of Strong Industrial Supply turned to Activant when he needed a technology partner with a strong background in providing solutions for the distribution industry. "Prophet 21 is a solution that's going to help us now and down the road," Losee says.
Because they use Activant Prophet 21, a Windows-based, SQL Server enterprise software solution that includes key functionality for tile distributors, Sunderland Brothers can view real-time inventory availability at any of the company's seven locations - and transfer material efficiently and cost-effectively.
Sunderland Supply, one of the oldest and largest distributors of tile, cabinetry, and laminates, demanded a flexible computer system to market three completely different types of products, resulting in more than 13 million potential order combinations. Prophet 21 was a perfect fit.
"We chose Prophet 21 because we could work in real-time, fax and e-mail from the solution, and use automated alerts to monitor each area of the business both separately and as a whole," recalls Carolyn Huston, CFO of Superior Electric Supply Company. "It presented us with the most scalable interface available, one that has streamlined our operations, allowed us to be proactive, and eliminated many of the process problems we had with our old system."
Team Packaging's success depends on maintaining a balance between positive cash flow and keeping the right inventory on-hand for customers, they invested in Activant Prophet 21.
"Wherever the technology trends were going - I wanted to be ready for them," says Karl Anderson, president of TECO Pneumatic, a full-line supplier of pneumatic components and electro-pneumatic control systems. Anderson felt that Activant Prophet 21 was the right solution to keep his company on the cutting edge of technology.
What had Steve Williams, chairman and CEO of Tri-State Distributors of Royston, GA, all hot and bothered was that his Infor FACTS solution couldn't give them to him fast enough or in enough detail. With eight locations, the distributor of heating, cooling and ventilation equipment needed a solution that would allow the company to stay on top of business in a territory that spanned four states.
All the data Triad Services Solutions, the Littleton, CO-based janitorial supplier, contractor and repair shop needed was right where Activant Stanpak put it, but that didn't matter much to the company president when it came time to find it. To tidy things up, he turned to Activant Prophet 21, and as a result, Triad now reaps the benefits of easier access, better and more detailed reporting, and the ability for the company's divisions to communicate and share data with one another.
To gain the leading edge in the industry, Tropic Fasteners, Inc. offered customers innovative customer service. To keep ahead of the competition and maintain the leading edge, management invested in Activant Prophet 21.
Activant Prophet 21 has enabled Turbotek to reduce inventory and expand business without adding additional staff because it has streamlined and simplified processes. "Activant has given me the opportunity to grow without growing my overhead at the same time," says partner Steve Nolan.
Activant Prophet 21 helps Turenne PharMed Co. manage inventory information and exceed customer expectations. Craig Miller, vice president of operations for the distributor says, "Prophet 21 offers us the tools we need to do just about whatever we do better."
Valin Corporation, a Silicon Valley-based fluid and gas handling, measurement, and control components supplier, migrated to Activant Prophet 21.
"We do all we can to add value to everything that moves through our business," says Mike Armbruster, vice president of Valley Belting & Hose, Inc., an Ohio-based fluid power distributor. Activant Prophet 21 helps the employees at Valley Belting streamline operations and improve customer service.
Wake Supply knows that rapid financial and employee growth isn't always a good thing. Although in four short years, their revenue had increased by 50 percent, their accounting system simply couldn't keep up. In search of a software solution that could post inventory in each of their warehouses in real time and would take Wake Supply far into the future, it was easy to choose Activant Prophet 21.
The Whelan Company bought a software system that was marketed to distributors, but not built for them. After a two-and-a-half year struggle, they moved to Prophet 21, and have seen improved processes and customer service and increased profit margins.
