Monday, May 7, 2012

Do Companies Ever Outgrow ERP Systems?

Excellent customer service, delivery of products quickly and correctly, integration of multiple warehouses in multiple states, and Integration into one seamless system are the driving factors for many organizations.  When there is a need to be competitive and the current system does not address these fundamental requirements, then it may be time to invest in your company’s future.

Businesses that are growing often grow out of their Enterprise Resource Planning (ERP) systems.  Ideally they would have a system updated and maintained by a supplier that listened to their customer’s needs and reinvested in the future by upgrading their software.  This reinvestment is fundamental to success.  There is a constant flux in Technology and solutions continually need to evolve to address the changing landscape.

Distributors need to be able to locate their products in the warehouse and ship them in a timely manner.  At a minimum any ERP solution needs to be able to address this fundamental need.  This leads to greater customer satisfaction.  Satisfied customers are the cornerstone to growth.

Ron Caucutt, Business Analyst, Johnson Plastics, stated, “We’ve doubled our sales since implementing VAI’s S2K.  Not only have we added another location, but we are also shipping 40 to 50 percent more orders with the same amount of people, while continuing to increase our customer service levels. The VAI team has access to numerous resources and their response time is exceptional.  I was very impressed with how well VAI handled our implementation.”

Doubling sales without doubling overhead is a significant achievement.  Add to that increased shipments without more personnel and it is clear that the system being used previously was causing a drain on operations.  How long had this situation been present?  How many other organizations struggle today with similar issues thinking they are already doing the best they can?

Rich VanHelden, Project Manager, VAI, said, “Johnson Plastics needed a major expansion of timely information to run its entire operation, and VAI helped them get there.  With S2K, Johnson is better able to serve its customers, which has always been the company’s top priority.  In addition, the advanced reporting options available with S2K have equipped Johnson with the knowledge to address any business concerns that crop up—now or in the future.”

I am pleased any time I read about increased customer satisfaction.  Just consider the benefits to any organization when customers are happy or a least happier.  Happy customers help to promote your business by word of mouth, referral business.  What is also a certainty is what happens if your customer is unhappy.  They tell everyone and I mean everyone they run into.  In the elevator, the parking lot, the supermarket, anyone, anywhere.

VAI and Johnson Plastics are an example of a good fit between challenge and solution.  Both were okay before working together and now they are a great combination.  Dolvin Consulting works with your business with a goal of equal or better satisfaction.  Contact us today to see how we can help you streamline your operations, reduce costs, and increase profits and customer satisfaction.

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