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Case Study

ERP Selection

ERP SELECTION

THE CHALLENGE

Our client  manufactures and installs Rock Climbing Walls for a global market. Their exciting and unique business faced a big challenge when the world was hit by the global pandemic, and many fitness gyms were closed and struggling. But our client had faith that the industry and their business would bounce back, so decided to take the opportunity to improve their IT systems. Their information systems were a mess and consisted of various siloed software that were not communicating with each other, or providing the information their staff needed to function effectively.  They hired Building Perspective to review their systems to select the right ERP system to support their next phase of growth. 

 

RESULTS

Over the course of the ERP Selection engagement, some very unintuitive results surfaced:

  • The company had a very high cost for annual software due to the numerous products they were trying to use to manage sales, operations, and engineering.

  • They could actually purchase an entire ERP system for less annual costs than they were already paying in individual software. In fact, they would SAVE $5K per year by purchasing an ERP to replace their existing collection of software. This was definitely an unexpected benefit!

  • Their payback period for the overall implementation of an ERP would be 1.4 years given both the software costs savings and labour savings from the increased efficiency of an ERP system. 

 

INGREDIENTS

The ERP selection assessment consisted of the following analysis:

Process Mapping: Process maps of every key business process were created, and all pain points from users captured. This included Finance, Sales, Operations, Engineering, Inventory and Purchasing procedures. 

➢ Requirements Analysis:  Insights from the process mapping effort were translated into requirements for the ERP system. This process was guided by facilitators deeply experienced in both business process and ERP system functionality.

ERP Vendor Selection:  Using the requirements analysis, ERP systems and vendors were compared and cost estimates made. This was done using a systematic and unique scorecard methodology for selection of a system to ensure an objective comparison between all. 

We wish our client the best with the greater efficiency gained through the ERP system they have now selected!

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