VALUE-BENEFIT ANALYSIS OF EBIZFRAME ERP IMPLEMENTATION GHANA’S BIGGEST ELECTRONICS AND WHITE GOODS DISTRIBUTOR WITH NATION-WIDE COVERAGE
Our client was established in 2006. Today, they are a part of a multinational group and the biggest distributors of electronics and consumer durable products in Ghana. Their product portfolio includes mobile devices, air conditioners, washing machines, televisions, refrigerators and so much more.
To ascertain the actual benefits accruing to the customer after successful rollout of ebizframe ERP, ESS’ Project Managers with the help of the client conducted a detailed value-benefit analysis which quantifies the benefits being enjoyed by the customer due to the implementation of ebizframe ERP.
Before ERP After ERP Benefits Value Legacy System v/s ebizframe ERP They had a tailor made application to suit their operation, but it had several limitations in terms of reports and process mapping Integration aspect of ebizframe ERP has enabled the client to get a 360° view of all their business with accurate reports and MIS available at the click of a button High level of tracking & accuracy Qualitative Import Purchase Cycle It was managed on Excel and the client did not have adequate tracking of consignments. They had to prepare reports manually to track pending order/processed orders/actual costing etc. No manual order entry process. All the orders are getting captured from PO to costing online in ebizframe. It is generating various combinations of reports to keep track of each and every consignment. ebizframe ERP generates accurate landed cost of goods. The Purchase Order processing time and preparation of its associated reports has got reduced by 50%. Saving of approx. US$ 9,600 every year on manpower cost. Price Master Mostly costing used to be done on spread-sheets and manually this data used to be shared and updated at every branch for lable generation. It used to be a very complicated price management process
Price Master functionality has been specially developed as part of the Sales Module in ebizframe ERP thereby catering to the requirements of automatic price (built-in tax) calculation from the system after clearing and Costing under Import.
Branches can now easily print the updated Price Labels for each of the items
This has facilitated fast and accurate price calculation, regularized the price management aspect of every branch, thereby saving lot of man-hours. Through a simple MS-Excel upload routine price is updated at the HO applicable for all branches. This functionality enabled the client to save 36 days annually. Saving of approx. US$ 1,600 every year on manpower cost. Discount In Invoice There was very little control on the discounts given by the sales team from various sales points in the invoices User-wise control measures in discount have been implemented in ebizframe ERP. The legacy system did not have any limit on the discounts and the sales managers often proceeded with a transaction giving higher % of discounts without the senior management’s approval. An effective discount control policy has been implemented that restricts the users to a maximum level of 5% discounts. For an exceptional case, Senior Management’ approval and authorization is required in the ERP for any additional discounts. Due to this control mechanism revenue shot up by almost US$ 4,000 per month. Saving on discount approx. US$ 4,000 * 12 = US$ 48,000 annually. Branch-wise Report Generation The client had to manage multiple MS-Excel sheets for every branch. Each branch used to spend 1 day every month to prepare the monthly reports. ebizframe ERP generates all the branch-wise reports. Significant savings in man-hour and man-days. Substantial reduction in manpower especially expatriate staff. Saving of approx. US$ 4,800 annually in manpower cost. Mismatch Between Cash Collection and Cash Sales Register Earlier, it was a manual exercise and there was very little control on it leading to a loss of US$600-$700 per month. ebizframe ERP generates these specific reports with 100% accuracy. Saving of US$600-$700 per month. Better control/tracking on cash flow. Saving of approx. US$ 8,000 annually on elimination of cash flow mismatch. Consolidation of Reports There were very few consolidated reports in the system and it used to take 4 days in a month to prepare these reports. ebizframe ERP generates MIS and all consolidated reports required by the client. Saving of 48 man-days effort annually which used to go into data consolidation and report preparation Saving of approx. US$ 2,400 annually in manpower cost. Customer Statement Customer statement preparation in defined and acceptable formats used to consume 2-3 man-days every month Formats fully configured in ebizframe ERP as per the requirements. The manpower has been allocated for a different assignment as the system takes care of the aspect completely. Savings of approx. US$ 12,000 annually in manpower cost. Payroll for Expat It was a manual and lengthy process maintaining payroll of expat staff members The system supports automated journal for salary accruals. Saving of approx. 22 man-days effort every year Saving of approx. US$ 1,000 annually in manpower cost. MIS Report Generation Was maintained in spreadsheet. These reports are now generated from the ERP system. Saving of 36 man-days effort in preparing MIS report every year. Saving of approx. US$ 1,500 annually in manpower cost. Payroll Manual processing of Payroll for 200 employees used to be a big challenge and it used to take at least a week. Automated Payroll processing is now done using ebizframe ERP, and it takes 1 day to process the complete Payroll. Saving of 48 man-days effort every year. Saving of approx. US$2,000 annually in manpower cost. Alerts Manual process of tracking was in place, there was no concept of alerts and messages from the system. Database has been configured with an auto-reminder facility on various renewal based transactions like Insurance, SSNIT Certificate driving licenses and permits. Does not require specific manpower resources. Saving of approx. US$ 12,000 annually. Transport Manual Process
Fully automated process with a complete
monitoring system in place.
Tracking every expense made on every vehicle reduced cash losses. Accrued savings of GHS 2,000 monthly. Saving of approx. US$ 8,000 annually. Workshop Workshop was handled manually; appropriate mechanism of registering and managing customer complaints and job-cards system was not in place. System enabled the usage of job-cards and tracking status of every single stage of the service lifecycle of all appliances at the workshop. Product warranty is maintained and submitting a timely report to the principle for the claims led to approx. savings of 3 man-days per month. Saving of approx. US$ 2,000 annually in manpower costs.