Tuesday, June 26, 2012

ERP - Integration to success


Good Afternoon Ken,

            It has come to my attention through the IT pipelines that we have some ideas up in the air about outsourcing an ERP Software. Ironically I just received my monthly newsletter from OPN (Oracle Partner Network) and they were discussing the benefits of outsourcing with Oracle’s ERP software. They mention many benefits that could enhance our efficiency. You mentioned that we need to concentrate on reducing costs and increasing sales. Outsourcing our ERP from Oracle can do just that.

            Cost reduction can be seen by the enhancement of efficiency. This software can allow us to control the costs by speeding up order fulfillment based on an accurate basis, reducing inventory levels. Most of the benefits stems from integrating business processes across departments. In the video, they mention that E-Surance took only 60 days to implement so a company of our size should take half the time. This will get us up and running in no time.

            Currently we have a 28 day sales lead time and our goal is to bring that down by 10%. Every day we reduce, we can generate approximately $25,000 in sales. Our accounting department currently experiences many issues for the book close at month end because of the lack of communication through our current software. This results in Alex and John working overtime about an extra 20 hours at month end and that is about $50/hr we have to pay. With the integration of data, they will be able to gather needed information with greater accuracy and time.

            We should schedule a meeting and we can start it off with a video I watched that struck my attention from my newsletter. Let me know what you think.

http://www.youtube.com/watch?v=t4w7wP0C51Q 


Sincerely,

Alex Slavtchev

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