the open erp effect
DESCRIPTION
This story explain why you should use a fully integrated ERP system.TRANSCRIPT
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The Open ERP effect...
Richard's Success
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Richard is abrilliant manager...
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he founded his manufacturing company in 1985...
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In 2000 he reached45 employees
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In 2000 he reached45 employees
...to fulfill 4500 orders a day = 100 orders / employee
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This is George,
Richard's CFO
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George likes his Accounting software...
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But he wastes hours each day on...
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But he wastes hours each day on...
Creating invoices based on datafrom their logistics application
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But he wastes hours each day on...
Synchronizing timesheets withhis analytic accounting
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But he wastes hours each day on...
Encoding Refund Invoices basedon emails from after-sales services
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But he wastes hours each day on...
Preparing consolidated reportingfor Richard
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But he wastes hours each day on...
Pushing documents to their internalDocument Management System
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But he wastes hours each day on...
Processing payments through bank interfaces...
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So it is for all other employees
on their respective applications.
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Richard's IT infrastructure exploded
in a few years...
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In 2006 they reached90 employees
...but they fulfill only 5000 orders a day = 55 orders per employee
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The overhead makes them fulfill 45% fewer orders per employee than they did 6 years ago !
That growth makes Richard's margins decrease !
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Tina is theHR Manager
Her business lifebecame difficult whenthe company grewto 90 people in 2007.
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So she asked Richard fornew software to manageemployees' leave and holidays.
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Richard was afraid of this request because,to be efficient this new software should:
• Process data from employees' timesheets• Integrate with the project management system• Integrate with the payroll software• Display holidays in the enterprise shared calendar
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Richard thought it was time to go for a completely new strategy for their IT structure.
So, he integrated :
They activated the “holidays” module only for an easy and quick integration.
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His motivation was due to:
• License : 0$• Starting costs for On Demand: 0$• One software to fit all business needs• 350+ integrated modules• Fully Open Source
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The new infrastructure looked like this...Annual Maintenance: 45.000 $Annual Licenses: 39.000 $
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Tina was so happy with herHR management system thatRichard decided to useother modules from Open ERP.
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They first activated the CRM modulesto replace Ms. Dynamics CRMAnnual Maintenance: 45.000 $Annual Licenses: 39.000 $
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They first activated the CRM modulesto replace Ms. Dynamics CRMAnnual Maintenance: 40.000 $Annual Licenses: 33.000 $
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Then, they activated modules for manufacturing, sales, BI and projectsAnnual Maintenance: 20.000 $Annual Licenses: 13.000 $
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Then, they activated modules for accounting and human resources mgt.Annual Maintenance: 12.000 $Annual Licenses: 7.000 $
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And they did the same for all other services in 2008.
Their new infrastructure looks like......
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A fully integrated management system:
Annual Maintenance: 10.000 $Annual Licenses: 0 $
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Now Richard is ahappy manager...
He reduced licenses and maintenance costs to 1/8 of their previous cost !
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... he has a system that can evolve with his company's needs...
And employees' recurring tasks have been reduced by 40% due to integration and automation.
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And all of this while keeping and improving his visibility and control of all the enterprise processes
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And Tina likes his new way of working...
She has a unique and integratedsystem for the shared calendar, the vacation management, the planning, ...
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This allowed the company to grow quickly,while keeping and controlling its efficiency
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And Richard was able to launch newoff-shored organizations in only 2 weeks.
He controls all offices from one system.
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And to extend their new way of working to suppliers and customers, Richard activated Open ERP's portals
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... all customer and supplier processes are fully integrated with the Company.
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There are thousands of companies like Richard's ...
If you want to be one of them, check: http://openerp.com
To discover Richard's customers, check: Customers in Action