Businesses Using ERP Solution: Success Stories That You Can’t Afford to Miss Out
Implementation of ERP solution for business doesn't guarantee success for your company but if implemented correctly it can definitely bring in a lot of innovational changes into your business process which will eventually lead to business growth and progress that you were always looking for.
Many people still stay doubtful about the implementation of an ERP solution in their company. They feel it will increase the overall business management & maintenance cost at the end of the year.
But in reality, the proper implementation of an effective ERP solution offers way bigger incentives than just increasing the company expenses.
So let's find out how some of the well-known brands that got tremendous success in their business using ERP solution.
Companies that got Business Success using ERP Solution
A profound appliance delivery service provider introduced since 1998. It got to expand its business by integrating with the last-mile delivery service when a company needed help with delivering its appliances for Home Depot.
Along with the sales of the appliance and furniture sales, Home Depot got bigger so did R.A.S Logistics. Over time more new retail customers were joining in and it started operating from more than 20 locations worldwide.
As the company grew bigger, many customers began to come to them for delivering furniture, spas, mattresses and exercise equipment etc. And soon it started to operate from a single location to 21 locations. So it became quite challenging for the company to manage each of the separate legal entities of each location.
As sales cross the milestone of $40 million, the QuickBooks of the company was unable to coup up with the huge number of entities. So it began to crash more frequently than ever.
And they were unable to handle the consolidations of the financial statements of all the various legal entities of intercompany. The manual account processing and its paperwork by the accounting team became quite a laborsome task
Benefits achieved with ERP Solution
Thus far, the company was doing almost everything manually. And a very few of the accounting functions were integrated with its core system.
So they felt the need for an ERP solution that could provide them with better data insights, easier consolidations, correlated business processes, and financial statement management. So they have turned to a Cloud ERP and experienced the following benefits.
- Automation of the whole account management process
- Complete Integration with the financial system
- Real-time data insights & information
- Web-based solution with internal server
- Flexible as the business changes & grows bigger
- No custom programming required to move SQL database program
- Faster access to any database they want from anywhere
Global Interconnect INC.
A globally-renowned custom-engineered cable assembler, connector, and component providers majorly used for medical applications. Its products are mainly used with electrosurgical tools and devices to monitor critical patients. It has a great reputation for its products having zero failure requirements.
Even though the manufacturing cost was kept low by its outsourcing drill but at the same time it adds a severe complexity and urges in for close monitoring of day to day operational controls.
As there were limitations in the old system of MRP, therefore most of their tasks were needed to be done manually. This made it really difficult to manage and maintain as the business continued to rise and the suppliers kept on increasing.
All the account for inventory was being processed manually. The crosschecking of this by other people used to take up hours at the end of each month. Moreover, in addition to this complexity, its accounting application was also not incorporated with its purchasing so the invoices prepared for each order required manual approval.
So, therefore, since it is highly time-consuming and error friendly as a result of that, the company quickly realized the importance of implementing the ERP solution.
Benefits achieved with ERP Solution
After the implementation of the ERP system, the company was expecting to get a good return on investment over a few years. But just within the first quarter of the implementation, it started to see a tremendous return.
Since then they have kept on adding functionalities in the form of new features, modules and other report generating abilities. And since that, they achieved some great success for the company with the added benefits like:
- Grew sales by 50% within 4 years
- Increased total productivity by 25%
- Reduced time spent on Accounting and Receiving by 50%
- Achieved anywhere, anytime visibility
- Able to grow without adding headcount
- Improved employee morale
- Better handling of medical compliance
- Reduced inventory carrying costs
- Automatic generation of shipping docs
A vastly popular and well-recognized Korean based home appliances & electronic company. With more than 114 subsidiaries and with above 82000 employees across 40+ countries worldwide, the company is certainly one of the successful names in the field of electronics products manufacturers in the world.
Its large number of employees worldwide tried to adapt to the functionalities of Human Resources. But its control over locals was lacking transparency and the maintenance cost was going over the top.
Also, its rise in manual processes, non-proper utilization of its resources and decision-making inefficiency made it quite difficult for the company to act as a global company. This is what led LG to turn to an ERP solution.
Benefits achieved with ERP Solution
It was not easy for LG, for the kind of large scale business it operates to have a smooth ERP solution implementation.
But still, over a period of five years, the company managed to fulfill its objectives and minimize the challenges professed by its widely spread centers world-wide in the department of Human Resource management with the help of ERP solutions. The benefits it got include:
- Minimalistic maintenance cost with a single centrally managed system
- Improved transparency in recruitment & employee assessment program
- Better goal and objective tracking with real-time reporting of the higher management team
- Real-time reporting availability helped in the well-informed decision-making process
- Sounder HR functionality with improved efficiency
- Flexibility for regions into making changes locally due to control over the HR system centrally
- Time-efficient & cost saving
- Various centers got to share all the best practices easily with each other
- Employees got easy accessibility and self-service capacity
- Enhanced learning process among the employees via the sharing of documents, tutorials, etc. that led to time & cost savings
- Boosted productivity, engagement and morale of employees all over the company
Fuze Energy Drinks
Founded in the year 2000, it is a tea and non-carbonated vitamin-filled fruit drink manufacturer. Since the time of the launching of its energy drinks, the company has seen tremendous popularity purely due to its unique and varied flavors with a mixture of the vitamin in it.
Soon, their drinking products started to be known in the industry as ‘New Age' beverages for all. The company soon caught the eyes of another leading beverage company Coca Cola and was bought by them for whooping $250M in 2007.
Within the launch of its first few years, the business growth of this energy drink producer started to see an uprising trail. So soon the existing system seemed outdated to meet the demand of its business requirements. As the business was seeing rapid growth, the managing of its inventory and stocks become quite difficult.
The production growth also changed based on demand and supply, which made its planning and management process complex. Moreover, there was a lack of reporting practices which also led to distress in financial decision making.
Benefits achieved with ERP Solution
As the years past by, the company kept on feeling the need for an ERP solution implementation. Looking at the initial lacking and requirement of the company was looking for a cost-efficient, easily maintainable solution. A solution that didn't have the hassle of computer maintenance.
So the company turned to an ERP solution that is web-hosted and is a certified system suitable mainly for the manufacturing industry. Implementing the solution provided Fuze with the following benefits:
- Complete automation of the inventory management
- Specific modules available based on company needs
- Full and timely production reports
- Stock and expiration date alert
- Real-time data and accounting entries for better decision making
- No need for any in-house computer hardware anymore due to it being a web-hosted solutions
- Easy access from anywhere to the system from wide-range of devices
- Lowered overall maintenance cost significantly due to off-site computer hosting
Get The Best Suited ERP solution for Your Company Today
So far we have established the fact that a proper ERP implementation can actually change the fate of your company. But the implementation process of ERP in your company isn't the only thing to look into. The ERP solution that you are using also matters a lot when you count the overall success of the venture.
So, therefore, choosing the right solution from the right vendor of ERP providers is also something the company owners should emphasis on.
As of now most companies that got success after implementing ERP solutions were by managing any of the single departments i.e. HRM, CRM or Accounting. Moreover, some companies make the mistake of picking the wrong ERP solution from the wrong ERP software providers.
One Solution for All Your ERP Needs
Now if you are thinking about implementing an ERP solution for your company and also looking to have the flexibility of managing your HRM, CRM, and accounting at the same time then WP ERP is definitely the solution to consider. The solution comes with three separate modules of HRM, CRM, Accounting including a separate plugin WP Project Manager to manage all the project management drills of your company.
As mentioned, the suitability of an ERP solution for a company can be a common problem to understand these days. So you might want to take a look at all the features of WP ERP to experience the potentiality of the solution for your company. So here you go.
And if you like its features then you might want to have a closer look at how it actually works choosing all your favorite demo extensions on your WordPress site.
Most case studies suggest that the business success rate of a company increases when you choose the best-suited solution for your company from the best vendor possible. But it is also true that leaving everything on the shoulder of the implementing company wouldn't be the right thing to do either.
As a company only gets the best result out of an ERP implementation when the company works partnering with its producer hand in hand.