From Spreadsheets to 30 Million Dollar Growth
A multi-million dollar company was running their operations using an elaborate spreadsheet. Not only was it difficult to interpret, it didn’t function at a high level of efficiency.
With the proper use of an ERP, this company was able to pinpoint areas that weren’t functioning optimally and make adjustments. Their business took off, growing over 30 million dollars in 2 years with no additional personnel. The new technology was all they needed to make substantial gains.
Location: Western US
Industry: US DOD Electronics Technology Manufacturing
Precise ERP Implementation
Project Manager With The Right Incentives In Place Ensured ERP Project Success
A Case Study For Moving To A Single Version Of The Truth
This manufacturing client builds classified electronics technology for national defense clients. They were running complex processes based on a series of elaborate spreadsheets. They had stringent compliance and regulatory needs and their processes and methods of manufacturing were manually structured and poorly documented.
EstesGroup sold this client Epicor 9 and delivered the implementation on-time and on-budget over a 9 month timeframe. We were also able to come in and assist with the organization’s change management while creating new repeatable manufacturing processes and storing the data in an integrated ERP. The ERP included Quoting, Sales, Production, and Finance and replaced three point solution products.
Efficiency was primarily increased because more people were able to access relevant data to help them do their jobs better and faster, and the ERP processes that were developed streamlined their complex manufacturing line.
Another major process improvement was in the financials area. The client had disparate systems for inventory, quoting, and their core general ledger systems, making the creation of a proposal, quote or invoice very difficult. EstesGroup configured Epicor 9 to interface with their government compliance systems while integrating the central financials engine to all parts of the company.
A key reason for the success of this effort was executive sponsorship and involvement. The client’s leadership assigned a highly competent senior leader to exclusively support this effort to completion, effectively taking him out of his “day job” for nine months. His dedicated leadership allowed him to “manage the consultants” – EstesGroup – while ramrodding what needed to get done in his own organization. This level of partnership is crucial to the success of any ERP effort given the significant change that occurs.
Overall, our Epicor 9 consulting transformed their business. Revenues increased by 50% over the next two years with no increase in headcount, partially due to the reshuffling of duties with increased efficiencies. Operational costs per piece dropped significantly and payback for this project occurred in under two years. Clearly the ERP system was not the entire reason for this growth and improvement, but it was a solid contributing factor.
EstesGroup completed this effort in 2010 but remains the “go to” partner and resource for this client to this day. Contact us for a confidential introduction to our client and reference if needed.