It's no secret that ERP solutions are a driving factor for success in many companies. For small to midsize growing companies, switching to automated ERP software makes tracking growth simpler and easier to manage.
But when it comes to specifics, how exactly does an ERP system help a company?
Here are two stories of companies whose businesses were transformed by ERP. Their names (pseudonyms) are ChemTeck and Ethiopian Industrial Engineering.
ERP Solutions at ChemTeck
ChemTeck is a multinational chemical company with a branch located in Egypt. The company had a struggling branch in Cairo, Egypt which had to shut down multiple production lines due to a lack of profitability. As a result of their decreasing profits they had to reduce the number of workers from 150 to just 83.
At the beginning of the ERP implementation, multiple modules were excluded as they were not needed for the chemical plant's needs. Conveniently, ERP programs come in modules that allowed the plant manager to decide which modules he wanted to incorporate.
Many times, it takes about 2 years for a company to begin seeing returns and the full benefit of an ERP implementation. In this case, ChemTeck implemented its ERP system in 2009. In the years since, the company consistently succeeded in closing account balances and never missed a single account. In follow-up interviews, plant managers noted how ERP systems helped save time by reducing the number of tasks needed to complete business processes.
In addition, the software was able to provide financial managers with more information about business processes and how they worked. Operations managers reported less time needed to deliver products to customers, thereby allowing faster sales and increased profits.
ERP Solutions at an Ethiopian Industrial Engineering Firm
Ethiopian Industrial Engineering (EIE) was a large metal and electromechanical engineering company in Ethiopia. EIE was initially struggling to operate efficiently due to five different internally implemented and locally sourced applications. The systems were clunky and didn't work in unison leading to delays, improper data and scheduling issues. As a result, meeting deadlines and interacting with vendors and their customer base was a significant challenge.
To fix their problems, EIE chose to scrap their multiple systems in favor of a single ERP system. To this end they hired an outside consulting company that would help them make the switch. There were initial hurdles to tackle, however. Implementing a new ERP system required time to reorganize the old data and to install it into the new ERP framework. Transferring data, which was largely inaccurate, was a major hurdle for the company. Eventually these and other problems were solved and the Go Live date was reached.
Once EIE finished implementation, they found that IT costs were dramatically reduced as information was able to flow easily between departments. More immediately, the company was able to meet deadlines and supply customers with the required material on time. This, undoubtedly led to improved sales and better customer care.
ERP software like SAP Business One are powerful tools that have been adopted by companies all over the world since the past two decades. ERP solutions deliver faster, more streamlined growth for small to midsize companies looking to make their leap into larger markets and growth.