Comfort, Peace of Mind, and Transformation for Your Business and Family
Comfort, Peace of Mind, and Transformation for Your Business and Family
Comfort, peace of mind, and transformation for your business and family is my wish for you as I reflect on a year unlike any other in our three decades of software design and development that led to the creation of our transformative business software. I want to first pause and express our heartfelt gratitude to our customers, partners, and all of you who took the time to consider our cloud-based Kechie ERP solution.
I also want to acknowledge the sting we all feel with the inability to gather with family and friends the way we enjoy, especially during the holidays. We have, and I’m sure most of you have suffered losses, whether family members, employees, customers, or business. Please know that you have the support of the entire My Office Apps team in any way we can help you and your business, and you have our deepest sympathy and prayers for healing.
Like many companies, we didn’t hit all the targets I imagined a year ago, but we have had important successes that have sustained us amid the shutdowns and remote work. Because we are a cloud-based solution, all our customers and we could immediately implement remote access to all critical inventory, purchase order, CRM, sales, WMS, logistics, procurement, manufacturing, and financial information. While we never imagined a global pandemic being the driver for the cloud-based digital transformation of manufacturers and distributors, we feel especially grateful for our design decisions when customers tell us Kechie has been a “godsend” in the current remote work environment.
We are in awe of all our customers and the companies that have worked with us over the past year. Thank you for all you’ve contributed to the collective spirit of innovation and perseverance that helps us weather the current conditions.
As we move into 2021, that spirit motivates our mission even more to serve and support businesses like yours. We will continue developing and implementing Kechie ERP to empower and propel your businesses to new heights by maximizing efficiency, strengthening company-wide collaboration, and empowering you to make timely, accurate business decisions. You can count on the team at My Office Apps to deliver a solution tuned to your business and how you need to operate during these challenging times.
And finally, thank you for being a part of our family. It’s my sincere hope that you can spend meaningful time with your loved ones in any way you can and that you get some much-needed relaxation.
Sending you warm wishes this holiday season, and may the new year bring you peace, prosperity, and good health.
Best Wishes,
Mariam Komeili, CEO
How to Get the Best ROI from Your ERP Investment
How to Get the Best ROI from Your ERP Investment
There is no doubt that installing a new ERP software can be a big step. Whenever a business invests, the first thing to consider is the ROI (Return on Investment) to ensure the benefits are worth the capital and resources being invested.
Below are some of the factors that should be considered when analyzing the ROI of such an investment.
Initial Installation Costs
The initial installation costs can vary considerably depending upon the deployment of cloud-based software vs. on-premise software. For an on-premise, a software license fee can be a considerable amount, not to mention the costs involved in configuring or customizing the software to fit your business. Some ERP vendors may recommend that you hire expensive consultants to help you with this process. The installation will likely require some amount of effort from your own staff to review your business needs and provide the requirements for how the ERP system should be configured to match your business.
Besides software and consulting costs, installing on-premise software will likely require that you purchase hardware to host the system. The computers themselves can be quite expensive and may even require some refurbishments to your facility to make space for the computers and handle the additional electrical power required. Cloud installations that provide the ERP software as a service through the cloud do not have any of these expenses and represent significant savings.
Finally, when you have decided on the type of deployment and configured the software, you need to migrate your existing data to the new software. These include customer & vendor lists, bills-of-materials, purchase orders, accounts receivable, inventories, etc. It is crucial to migrate your data correctly and quickly so that no transactions are lost, and any company downtime is minimal.
On-Going Operational Costs
The on-going operational costs can also vary significantly depending upon the type of deployment. For an on-premise installation, there are other costs to consider, such as electricity, a proportion of the rent for space the hardware is using, and an on-going IT staff to maintain the system, including data backups and applying software updates. The vendor may also require on-going payments for software updates and support to answer any questions that your staff may have.
Typically, the costs for a cloud installation are much simpler. You will likely need to pay a monthly subscription fee for access to the software. Most vendors offer backups and software updates included in the monthly subscription. Plus, there are no additional expenses for electricity, rent, or IT staff to maintain the hardware.
Benefits of Increased Efficiency
A key reason for installing a new ERP system is to achieve increased efficiency in your company and reduce your business operations cost. By automating processes that used to be performed manually, your staff can be more efficient, and their time can be allocated to helping the company grow. Also, inventory management processes can be improved to increase your inventory turnover and reduce waste. When it comes to manufacturing, scheduling will be done more efficiently, allowing you to reduce overtime and other operational expenditures.
Benefits of Improved Sales
A benefit of choosing the right ERP system that is often overlooked is that it will allow you to provide better customer service and increase your sales. By having the needed information at their fingertips, your sales staff can provide quotes for prices and inform customers of available inventory and lead times faster than current manual methods. They may also increase each customer order's size by suggesting additional products that can be purchased along with the main product (cross-selling and/or upselling).
Benefits of Increased Flexibility in Your Operations
A good ERP system will allow you to access information in real-time from anywhere, as long as you have a good internet connection. This allows a warehouse manager to query inventory status on a tablet computer while walking through the warehouse. You can have employees work from home and be as effective (if not more) than working in the office. Employees can travel and visit customers face-to-face without worrying about missing out on updates back at the office. The company’s operations can be handled anywhere from the cloud.
Better Overall Management and More Confidence in Your Operations
Although this benefit may be hard to quantify, it can be very significant. Having the information in real-time on what is happening in your business will give you greater confidence and help you decide on your business's direction. Perhaps you have been thinking about adding a new product line or expanding a current sales strategy. With a more capable management system, you will have greater visibility and streamline the needed steps to bring it on board and monitor the ROI. Furthermore, you will have the information needed on costs, equipment utilization, vendor performance, etc., that will allow you to increase your bottom line and grow your business.
Summary
There are many things to consider when considering a potential investment in an ERP system and figuring out if you will get a good return on your investment. My Office Apps has business specialists available to help you evaluate your business and find ways to minimize the costs and maximize the benefits with our Kechie ERP system. Folks on our team have been using ERP systems for many years under all sorts of different situations. We have been in your shoes, and we can leverage our experience to show how much of a positive impact a reliable ERP system can make for your business.
For more information and advice on how to upgrade your management software without it being a major pain, visit www.myofficeapps.com. Or schedule a demo to see how we can help solve the business issues you face, both today and tomorrow.
When is the Best Time to Bring on a New ERP System?
When is the Best Time to Bring on a New ERP System?
A key to successfully manage a company is to learn how to manage change. A good manager is proactive and anticipates changes in the company’s external environment to better prepare ahead of time. A manager who is unable to anticipate change is reactive, causing unnecessary errors and adjustments. In some cases, they are forced to make sudden changes, leading to an overreactive response that can be detrimental to the company’s health.
Bringing on a new ERP system will create change in your company. However, if done thoughtfully and strategically, it is a great boon to your company. It will allow you to be more efficient, effective, and even boost your financial results. This article will discuss various scenarios when it makes sense to bring on a new ERP system and how to recognize those scenarios.
When You Are Considering Other Changes to Your Business
Companies are ever-changing and seeking new ways to build and grow their business. A company may open a new manufacturing site, relocate to a larger facility, introduce a new product line, or acquire another company. A company may want to revamp its internal processes to ensure continuity and streamline.
If you are going through one or more of these changes, upgrading your ERP capabilities is a natural part of this change process. It is often more efficient to do these changes together. One of the opportunities during an ERP upgrade is that it will allow you to rethink your business processes and help make improvements. Oftentimes, a company may repeat the same inefficient processes and find manual workarounds. They discover their current software cannot support or change with advanced technologies. One prime example is a barcode system's technological capabilities, which your current software cannot support or is too expensive to build out. If you upgrade to a software system that can handle this feature, you will improve productivity not only for your administrative activities but also for your physical activities.
Perhaps you are planning a major expansion and anticipate you will be required to onboard a large staff of employees to handle the increased business. Do you really want to bring on the new employees, train them in an existing ERP system and then find out that the old system cannot handle the increased business? You may have to install a new ERP system to handle the increased business and then train them again just a short time later in the new system. Consider adding a new ERP system that is efficient and can automate certain aspects of your business processes to justify low headcount costs.
For Cyclical Businesses, Transition to a New System During One of Your Slow Periods
Many businesses are cyclical, with both busy and slow periods. If your old system had difficulty keeping up during your last busy period, taking advantage of the slow period to onboard a new effective ERP system is a great strategy.
When Your Administrative Costs are Higher than Your Operational Costs
A well-run business should have more people and resources devoted to operating your company than keeping track of it. These people consist of sales, production, and warehouse staff. The business will require other administrative people who execute indirect tasks such as keeping track of inventory, accounting, purchasing production planning, etc.
Inefficient ERP systems can cause more harm than good. You may find yourself in a position to hire more people to keep up with manual methods and workarounds due to the lack of ERP capabilities. These costs include the additional salaries and benefits and the costs of errors made by manual data entry, missed shipments, or having the wrong levels of inventory. A modern ERP system can help you keep these administrative costs under control. It will allow you to do more with higher accuracy and fewer headcount.
The team at My Office Apps has great experience making changes in a business and using more advanced software to improve business operations. We have been doing this for many decades, both for our own business and our Kechie software clients. Contact us, and we can discuss the challenges you face in your business and how we can help you develop a plan to make improvements using advanced software tools. To learn more, you can visit us at www.myofficeapps.com. Or better yet, give us a call at (714) 486-1487 and ask to schedule a demo to show how we can help solve the business issues you face, both today and tomorrow.