The Open ERP effect

The Open ERP effect... Richard's Success

Richard is a brilliant manager...

he founded his manufacturing company in 1985...

In 2000 he reached 45 employees

In 2000 he reached 45 employees ...to fulfill 4500 orders a day = 100 orders / employee

This is George, Richard's CFO

George likes his Accounting software ...

But he wastes hours each day on...

But he wastes hours each day on... Creating invoices based on data from their logistics application

But he wastes hours each day on... Synchronizing timesheets with his analytic accounting

But he wastes hours each day on... Encoding Refund Invoices based on emails from after-sales services

But he wastes hours each day on... Preparing consolidated reporting for Richard

But he wastes hours each day on... Pushing documents to their internal Document Management System

But he wastes hours each day on... Processing payments through bank interfaces...

So it is for all other employees on their respective applications.

Richard's IT infrastructure exploded in a few years...

In 2006 they reached 90 employees ...but they fulfill only 5000 orders a day = 55 orders per employee

The overhead makes them fulfill 45% fewer orders per employee than they did 6 years ago ! That growth makes Richard's margins decrease !

Tina is the HR Manager Her business life became difficult when the company grew to 90 people in 2007.

So she asked Richard for new software to manage employees' leave and holidays .

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

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.

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

The new infrastructure looked like this... Annual Maintenance: 45.000 $ Annual Licenses: 39.000 $

Tina was so happy with her HR management system that Richard decided to use other modules from Open ERP.

They first activated the CRM modules to replace Ms. Dynamics CRM Annual Maintenance: 45.000 $ Annual Licenses: 39.000 $

They first activated the CRM modules to replace Ms. Dynamics CRM Annual Maintenance: 40.000 $ Annual Licenses: 33.000 $

Then, they activated modules for manufacturing, sales, BI and projects Annual Maintenance: 20.000 $ Annual Licenses: 13.000 $

Then, they activated modules for accounting and human resources mgt. Annual Maintenance: 12.000 $ Annual Licenses: 7.000 $

And they did the same for all other services in 2008. Their new infrastructure looks like......

A fully integrated management system: Annual Maintenance: 10.000 $ Annual Licenses: 0 $

Now Richard is a happy manager... He r educed licenses and maintenance costs to 1/8 of their previous cost !

... 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.

And all of this while keeping and improving his visibility and control of all the enterprise processes

And Tina likes his new way of working... She has a unique and integrated system for the shared calendar, the vacation management, the planning, ...

This allowed the company to grow quickly, while keeping and controlling its efficiency

And Richard was able to launch new off-shored organizations in only 2 weeks . He controls all offices from one system .

And to extend their new way of working to suppliers and customers, Richard activated Open ERP's portals

... all customer and supplier processes are fully integrated with the Company.

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

http://www.enova-tech.net	5002
http://www.zemerli.com	1441
http://www.openerp.tv	1352
http://almacom.co.th	1057
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http://novapointgroup.com	68
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http://jujo00obo2o234ungd3t8qjfcjrs3o6k-a-sites-opensocial.googleusercontent.com	38
http://opensourceconsulting.wordpress.com	36
http://openware.ba	28
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The Open ERP effect

by Fabien Pinckaers

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