Benefits of ERP
The right technology applied correctly cuts transactional costs and drives out hidden expenses while freeing staff to focus on revenue generating activities. Implementing ERP and the related software can grow business bottom lines anywhere from 5% -12%. We have worked on over 450 projects in the last 26 years. We’ve seen what makes companies successful, we’ve also seen the common pitfalls. We help your team by providing the structure, framework and methodology that has been used time and again by the most successful project teams. ProfitFromERP today – well, not today actually but soon, very soon!
PROBLEM: The software bids they received were millions of dollars more expensive than the solutions we discovered.
SOLUTION: We found several potential software vendors to do the same job at much lower pricing and implemented the ERP within 6 months. This resulted in saving $2.8 million in the first year and more than $4 million over five years.
PROBLEM: While focusing on accounting issues, Operations were ignored, leaving a dual entry purchasing system in place
SOLUTION: A three-week consulting implementation engagement on the project found immediate savings of $180,000 – savings realized three months after go-live. Our full Cost/Revenue Model also developed a project plan to identify $400,000 in annual cost savings.
PROBLEM: They faced a growing complexity of technological offerings and spent countless hours configuring client proposals needing several engineering consultants, sales and service experts.
SOLUTION: We streamlined the business process so what took 5 people two weeks to deliver became a two day deliverable and allowed the company to win more business and grow by nearly 52% the first year, while driving costs down with centralized purchasing.
Customer Success Stories – the secret sauce that turns occasional wins to average wins.
Wonderful customer success stories can be found on the website of any ERP software vendor. But are they highlighting the average company using their software or is it a peak performing customer? Sadly, most customers don’t come anywhere near the returns spotlighted in marketing materials.
When it comes to ProfitFromERP client success stories we actually cheat. Well, it seems like cheating.
For our standard practice, we do exhaustive business analysis before the software and project returns afterwards using our exclusive Cost/Revenue Model.
We go down to the individual transaction level and in every case where cost savings or cost avoidance, even a chance at revenue enhancement – we document and provide an accurate financial impact.
Using past client results as as starting point, we determine learning curves, user adoption and create a time based cash flow model based on actual past performance.
Then, armed with exactly how ERP can affect the bottom line, only then do we begin to evaluate which ERP does the best job with the key performance indicators that will best enhance our client’s bottom line.
Having set the KPI goals and forecast attainable learning and adoption goals, we now set up reporting to let each department know exactly where they are in terms of reaching the time based targets.
Relying heavily on the old adage, ‘whatever is measured improves’, we track how our clients are moving toward success.
We do see some processes that aren’t performing to goal, and the ongoing assessment looks at remediation – do we need additional software add-ons? Is it a training issue? Should we create custom screens or use mobile input devices? It well could be our Cost/Revenue Model missed in this one department – so are other departments fairing well enough to pick up the slack?
You don’t really see this concept of measuring toward success from software vendors or partners – their goal is to sell and implement software. Your job is to deliver the real results.
And our methodology does a couple of things – First of all, measuring success – few ERP adopters do this. Secondly, providing the management consulting that makes the software pay for itself – again, something you don’t often find. It works so well, it’s almost like cheating.
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Case Studies
RESULT: Cut annual software maintenance by $800,000
PROBLEM: 10 years ago, the only solution was a Tier One option that hadn’t grown or updated since 2006.
SOLUTION: Modern, cloud based component ERP created a higher functioning alternative saving the company $800,000 every year in maintenance and avoiding costly upgrades.
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RESULT: Cut time to bid by 400%, which increased win rate by 22%
PROBLEM: Producing bids with various engineering and sales reviews was agonizingly slow during the critical buying phase of their clients.
SOLUTION: ERP with customized engineering configuration functionality cut time to bid by 400%, dramatically increasing sales efficiencies resulting in a 22% higher win ratio.
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RESULT: Sped up implementation by 17% in a highly regulatory environment
PROBLEM: Inexperience with process ERP used for pharma manufacturing, validation attempts kept uncovering flaws and creating re-work for the implementation team
SOLUTION: Fast tracking project plans used repeatedly in past pharma accounts along with careful project management cut implementation time by 17%.
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RESULT: 22% sales increase in the first quarter
PROBLEM: Repeated calls to HQ, hot selling items frequently out of stock, lead time from overseas manufacturer – all resulted in a hit-or-miss season and sales uncertainty
SOLUTION: ERP demand planning identified ‘hot’ items early and accurately forecasted available-to-sell quantities increasing future sales orders and enhanced production planning, dramatically increasing profitability in a short period of time.