The world of business is facing newer challenges every day. Whether it is an automobile business, a chocolate making company, a computer unit provider or the one dealing with Human Resources management, each business has to deal with its own set of challenges. As the needs of these businesses continue to increase with each passing day, they look upto the software companies for solutions and assistance in managing their enterprise resources that is generally done by installing a Systems Applications and Products in Data Processing (SAP) Enterprise Resource Planning (ERP) system.
SAP ERP is a software system that help businesses manage their core functions, be it finance, HR, manufacturing, services, or procurement on one single platform. It helps them maintain a record of their entire organization’s functioning at one, common place.
While there are an increasing number of businesses focusing on the implementation of SAP, it is important to set realistic expectations and timeframe to make the most of the system. There are several case studies from the real world that depict the story of the successful implementation of SAP in various industries. Let us look at some of the well-known examples from the real world.
1. Fulton & Roark
An American independent wholesaler and ecommerce retailer of men’s grooming products, Fulton & Roark is one of the finest examples of successful implementation of SAP ERP. The company felt the need of implementing SAP ERP in its business when the spreadsheets and Sage Live, a desktop accounting software to keep a track of the inventory and financial data, used by its team failed to serve the required purpose.
When the sale began to double every year for the business, maintaining the spreadsheets became inadequate and tiresome for the team. This, in turn, also led to the need of double manual data entry. This made the management realize that Sage Live didn’t have the workflows necessary to record the cost of goods sold (COGS), an important financial metric.
To get rid of all these glitches and centralize data at one place, a NetSuite ERP was implemented by the company’s co-founders. After the successful implementation of the ERP that took almost three weeks, the team members were able to easily identify and avoid any inventory-related bookkeeping mistakes. They also stopped working with external accountants, increased sales by approximately 50 percent every year without making any increase in the total headcount, as well as were able to get a more accurate picture of margins and inventory, which helped to improve its ecommerce operation.
2. Cadbury
Formerly known as Cadbury’s and Cadbury Schweppes, Cadbury is a British multinational confectionery company which is fully owned by Mondelez International, an American snack foods conglomerate, since 2010. The brand is the second largest confectionery brand after Mars at the international level.
Cadbury decided to implement SAP in its organization when it was facing issues with its production and distribution requirements. However, the company was at its peak of success and was also attaining a high level of customer satisfaction. But to handle these issues efficiently, the company’s owners decided to implement SAP ERP that led to significant changes within the organization. This included extension of multi-node resources-management throughout the company’s supply-chain, along with a complete revamping of existing warehouse, and distribution processes.
The changes that took place post SAP implementation were so impactful that these led to a reduction in the company’s overall operating costs. Its newly engaged supply-chain began to produce significantly better production efficiencies throughout its manufacturing chain.
3. N&N Moving Supplies
Founded in 2009, N&N Moving Supplies is a family-run distributor business of moving equipment and supplies. The business decided to implement an ERP system after expanding its services from one location in Georgia to three locations in multiple states and more than quadrupling its workforce.
Initially, the business was running on QuickBooks and a third-party payroll provider. Owing to this, it was next to impossible for them to keep an accurate record of the time and settle payroll with general ledger accounts. This is where the need of implementing an ERP system occurred and they decided to implement NetSuite ERP.
Post implementing the NetSuite ERP, the business was able to manage its accounting and payroll processes better. It was also able to reduce the overall payroll processing time by 84 percent, balance accounts faster, improve the accuracy of hours and vacation time counts, keep a check on the labor-cost trends across its three locations, and give employees access to personalized ERP dashboards on iPads at each of its sites.
Key Takeaways
Apart from these, SAP ERP has been successfully implemented in various other companies such as Nestle, Green Rabbit, Veoneer, and Walmart, to name a few. But its implementation has failed in some other companies as well such as Hershey Candies and PG&E. The implementation of SAP ERP might fail due to multiple reasons such as lack of proper planning & management, lack of awareness regarding risks, inadequate resource management, and lack of right partner.
Therefore, it is important to make sure that these factors are taken care of properly when implementing SAP ERP to ensure its complete success.
It is important for the companies to understand that a successful implementation of SAP ERP can revolutionize the functioning of their business and bring them a lot of profit. Along with this, it can also help boost the employees’ morale by simplifying their roles and aiding them with the tools that may streamline their work. Therefore, make sure that you opt for the right partner to successfully implement an ERP within the desired timeline and attain expected results.
