VALUE-BENEFIT ANALYSIS OF EBIZFRAME ERP IMPLEMENTATION AT GHANA’S LEADING RETAIL CUSTOMER HAVING 3 RETAIL OUTLETS AND 1 CENTRALIZED WAREHOUSE OPERATIONS
The client is a leading retail operator in Ghana having 3 retail marts and 1 centralized warehouse. All the locations are operating on ebizframe ERP.
ESS’ Project Managers with the help of the client’s team conducted a detailed Value-Benefit Analysis after the implementation of ebizframe ERP to understand and quantify the actual benefits accruing to our customer from the usage of ebizframe ERP.
Description Before ebizframe After ebizframe Benefits Value Legacy System v/s ebizframe ERP The Legacy System was addressing PoS and Back Office operations using distributed system architecture. ebizframe being a fully integrated ERP system has integrated both front office and back office operations seamlessly. The Point of Sales (PoS) Module deployed has the capability of performing on both de-centralized as well as centralized architectural model. The entire operation is now fully integrated with data consistency across all functions and branches. All processes and policies are well implemented and enforced. Data is available to the managers on a real time basis. There is no more delay and wait time. Qualitative Right Selling Price Analysis Selling price revision process was done manually based on every purchase and hence it was a time consuming, cumbersome and erroneous process at times. Selling price revision process has been fully automated with real time integration with the landed cost computation process, such that with any variance in the landed cost of an item the system automatically notifies the concerned managers for selling price updations. This has facilitated definition and revision of fast and accurate selling price thereby saving lot of time and increasing accuracy. This has also completely eliminated the probability of selling goods below the cost price. The usage of this functionality has enabled the client to save approx. US$ 2,500 annually from the effort to compute and it has also increased the revenue by approx. US$ 4,000 annually. Branch Offices Data Management Every day users were sending backup files from respective branches to the HO. A dedicated manpower at HO used to upload the data on the back-office system for consolidation. With the help of the data synchronization function of ebizframe ERP, the data from respective branches can be synced easily with the click of a button at any given time thereby consolidating automatically at the main central server. This feature has saved significant amount of processing time. The usage of this functionality itself has enabled the client to save about 52 man-days effort annually. In terms of costs this translates to annual savings of approx. US$ 2,500. Dedicated Manpower for System Management All requirements used to be handled by an in-house Senior IT Manager. Post Implementation of ebizframe ERP the system is now managed by an assistant IT support employee backed by our Support mechanism They have been able to replace the dedicated expensive senior IT resource from the solution provider with an in-house IT assistant. Saving of approx. US$ 26,000 annually on manpower cost. Shop and warehouse Supplies Separate systems were used at multiple shops and the warehouse. Therefore master data had to be created separately for every system. Shop Stock Request once created on the shop system had to be entered again on the warehouse system for delivery. ebizframe ERP performs as a single integrated web based system which allows all shop requests to be entered at the Head Office server and the warehouse prints the request by accessing the system online and supplies goods against each request. Supplies and receipts processing time reduced by 50%. Saving of approx. US $ 700 annually on manpower cost. Shop Timing Shop operational hours used to be between 7:30am to 22:00pm ebizframe ERP now provides hourly sales analysis. They could determine from the system that they were not making significant sales between 7:30 to 8:30 in the morning and between 21:30 to 22:00 in the evening. Hence they decided to change their operational hours. Saving of 45 operational hours per month or 547.5 operational hours annually (42 operational days every year) Saving of approx. US$ 6,000 annually on ECG cost. Consolidation of Reports Client was operating on multiple applications for each department. Data consolidation was very difficult and was a time consuming process. Data inconsistency was the biggest challenge due to multiple sources of information, delaying decision making The system covers every aspect of the business covering all departments providing authentic, reliable and accurate information. Decision making has become data driven and faster on stock, sales and cash management Saving of 22 man days effort which used to go into data consolidation and report preparation Saving of approx. US$ 1,500 annually on manpower cost. Branch-wise / Project-wise Traceability and profitability The previous system only provided branch level and group level consolidated profitability only ebizframe ERP provides not only branch and group-wise profitability but also project-wise profitability of every branch.
This function has given traceability and profit margin for stocks and values thereby adding huge value to the system
Example of Profitability by Divisions: Shops, Butchery, Bakery & Consumer Durables, etc.
Qualitative Imports Landed Cost Computation Functionality was not available in the earlier system. Manual calculations were done for each import. ebizframe ERP is complaint with Ghana norms and provides accurate calculations for all import taxes and duties. Right expense distribution for each import component is identified and monitored by this feature. Saving of approx. US$ 1,500 annually on manpower cost.