Alsco buys Kiwi software

Auckland's Abel Software has won a multimillion-dollar deal to supply its enterprise resource planning software to United States uniform and textile rental company Alsco, which employs 15,000 staff and turned over US$1 billion last year.

Abel Software employs six staff, making it a speck in a market dominated by Oracle and SAP.

It was founded in 1996 when its present head of development, Allan Baird, assembled an "experienced team with the aim of developing the best ERP product in the market".

Chief executive Peter Garnett says companies tend to turn to its software, Abel, as a cost-effective alternative to the big ERP packages.

Its strengths are in manufacturing, distribution and warehousing and it sells Abel as an all-inclusive system for a monthly fee, which appeals to small and medium-sized firms. "We are able to offer a good economic proposition."

Alsco bought NZ Towel Supply, which had been using Abel. Alsco's Australian arm then began using Abel and persuaded the company's head office in Salt Lake City to view a demonstration.

The company had been planning to consolidate its ERP systems and decided Abel met its needs, Mr Garnett says.

It has so far been installed in 86 of Alsco's 140 worldwide branches, where it is used by 2200 staff to process more than a million daily transactions.

Abel is built on a database developed by Christchurch firm Jade Software, so the fortunes of the two companies are interlinked.

Jade's future appeared uncertain in 2003 when it posted a $15.6 million loss and was forced to lay off 71 of its 383 staff, but Mr Garnett says it has now returned to success. "Jade is in very good shape now. We are delighted by some of the successes they have been having and they are going from strength to strength. It is great to see what they are achieving."

Abel Software has other deals in the pipeline, he says, and plans to open a branch in Sydney in April.