Solutions For Tough Times - Castleton · 2016. 8. 16. · Improve your cashflow and profits with...

Solutions For Tough Times

5 Ways to Leverage ERP in Your Business

www.kineticis.com.au

In difficult times, it is the right time to take stock of your business.

Business conditions have been challenging as Australia's economy transitions from the resources boom that has dominated much of the past twenty years, and post-GFC, many businesses have struggled to adapt to tougher times.


*Content

Adapting to Changing Conditions

Improve your cashflow and profits with proper inventory

control via ERP

Preventing Corporate Fraud: Common Causes and How to

Prevent It

Survival Requires Cash: Top Tips for Collecting Payment

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Difficult times ahead: Growing Your Business in Uncertain Times

Size isn’t everything: Smart ERP Solutions for Business

5 Tips for Transitioning Your Business Through Difficult

Times

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The goal for many businesses should be to seek efficiencies without adversely affecting your business, allowing your actions to put it in a stronger position - both in difficult times and moving foward


Difficult times are an opportunity to make your business shine and outgrow your competitors

Business conditions have been challenging as Australia's economy transitions from the resources boom that has dominated much of the past twenty years, and post-GFC, many businesses have struggled to adapt to tougher times.

Many will fail to adapt and difficult times are the perfect opportunity to grow your business despite adverse conditions.

As a business, Kinetic loves to work in partnership with organisations looking for that competitive advantage and those who look to do the basics well, drive efficiency and growth. Remember, we can no longer rely on business-as-usual.

A change of mindset is required to take us from "this is how things used to be done" (often built up

Adapting to Changing Conditions

over time) to "how do we get out of the unsatisfactory position many organisations find themselves in?"Those that adapt have a greater opportunity to survive and thrive.

So in this first eBook, we investigate a few things that businesses can do in tough times to set up for success. We explore five critical paths to navigate difficult times, focusing on better process management, cost control, cash flow, creating a checklist and ERP.

We hope you find value in Solutions for Tough Times. For more information about how Kinetic Information Systems can assist your business, visit our website at www.kineticis.com.au.

Scott Graham | DirectorKinetic Information [email protected]

Inventory is a classic easy win, so blow the dust off your slow moving inventory and turn it into cash.


Improve your cashflow and profits with proper inventory control via ERPScott Graham, DirectorKinetic Information Systems

Lately I have been working with a number of companies that, in the current climate, have been looking to improve cash flow and improve profits. Times are tough!

Now clearly there are hundreds of improvements organisations across Australia can make to help increase their profits and reduce their need for high working capital.

Inventory, however, is a classic easy win, so blow the dust off your slow moving inventory and turn it into cash.

An example: Process Improvements in Wholesale & Distribution

The example I will use is a wholesale and distribution organisation with a presence across Australia. After two days working with the team, I made 33 recommendations for process

improvements that will lead to tangible savings. No surprises that one of the 33 improvements in this organisation is a reduction in inventory. Current inventory holdings were valued at $29 million. We calculated that we could reduce their inventory holding comfortably by 26% and freeing up $7.5 million to cash flow.

Given this organisation is using borrowings to fund its operations returning $7.5 million back into cash flow is a useful, cost effective thing to do. Now clearly this also adds back to the profit and loss statement.

The interest on $7.5 million is significant and in addition to other costs related to inventory such as storage, handling, obsolescence, insurance, taxes, shrinkage.

These are expenditures that all need to be factored in and – depending on who


you believe – could cost the business 14 to 19%.

Reducing inventory levels while maintaining customer satisfaction did, of course, require some substantial improvements to the company’s current systems.

Following a thorough requirements gathering process, we introduced Greentree ERP Software into the business. The right ERP solution yielded some clear benefits and quick wins.

1. Clear understanding of inventory levels across multiple stock locations and warehouses

The ability to have a clear visual on the inventory numbers and its status is critical to any efficient organisation.

Understanding what stock is due for shipping today, returns, critically low product lines are all essential basics we need to know.

Real-time notifications of inventory issues and current balances are a must. Inventory is a fluid thing, therefore, historic figures from last week or month are useless in meeting your current demand.

By reducing manual processes, such as orders and manually checking inventory, the reduction in time for reordering inventory manually is reduced dramatically again impacting on P&L.

A simple automated process like below was adopted.

2. Know your product rangeUnderstanding the levels of inventory are one thing but having clear visibility of each product line you sell is also critical.

For example, your ERP can ensure you can visualise:

• Fast and slow moving products• Products you need to promote• Which products are imported and take

time to stock• Whether you need to manufacture kits• Product sales trends and issues• Recurring fault or manufacturing

issues.• Issues such as poor packing, damaged

product or courier damage

These are all vital components of delivering customer satisfaction.

3. Find your way around your warehouses

Locate your inventory quickly and you can fulfil your customers’ orders immediately.Maximising accurate and on-time deliveries while maintaining inventory on hand at optimum levels can be a challenge to even the most efficient organisations.

Inventory outages as well as picking and dispatch errors result in customer complaints, unnecessary sales credits, extra shipping costs or lost sales, all costing your staff time and your business money.

The Mobile Warehousing Operations within Greentree software greatly reduces manpower required to do picking and productivity and accuracy is increased


tenfold. Again, the ability to do inventory transfers within the organisation to use inventory that may be spare helps minimise inventory costs.

4. Customer demandForecasting accurately means less need to keep excess inventory.

Effective forecasting is dependent upon having the best available information available, including sales, purchase commitments and expected deliveries.

Maintaining optimal inventory levels throughout ensures an accurate information flow from one distribution or manufacturing process to the next. Managers then have the information they need at their fingertips to accurately plan the materials and resources required to meet the most rigorous customer demands at the most competitive and profitable price.

Understanding key customers’ demand is also essential and being able to offer acceptable substitutes if required. Having your teams prompted during order processing to prompt alternatives to out of stock. The ability to offer different sized packed goods or slightly better/inferior brands.

Again seasonal patterns may also prove to be a factor in terms of short-term demand.

White collar crime fraud costs Australian companies millions of dollars each year and typically increases when business climates get tough.


Preventing Corporate Fraud: Common Causes and How to Prevent ItScott Graham, DirectorKinetic Information Systems

White collar crime fraud costs Australian companies millions of dollars each year and typically increases when business climates get tough.

When wages remain static and the cost of living rises, fraud can be anything from fiddling an expense claim to major organised crime.

Fraud, no matter how small or large, is a problem for public, private and not-for-profit sectors, with both staff and managers represented in those caught (or not) defrauding the organisations they work for.

In working with a number of companies in recent times, it’s an issue of concern for directors and boards, however, closing the loopholes that enable fraud is not rocket science. It’s an opportunity to put processes in place to tackle the main offenders head on and stop loss

from occurring. One thing for sure is that business should be actively promoting a culture of transparency and honesty while actively seeking ways to eliminate opportunities for fraud to occur.

The benefits of doing so are clear: it strengthens business cash flow, improves profits and protects the business.

So where can fraud typically occur and what are the steps business can take to address it?

Issue 1: Fraudulent Procurement/Supplier Invoices

Procurement and supplier invoice fraud are very common areas for higher value fraud and the scale and type of activities are wide and complex.

Goods for personal use are often bought alongside legitimate purchases,


sometimes in collusion with the supplier, and a very common practice is to buy goods from companies owned by family or friends.

One of the more extreme cases I’ve seen is the delivery of an outboard motor instead of engineering machinery.

How can this occur? It’s not hard to miss because of lax accounting practices, for example: Invoices may arrive from a supplier and are not matched to a valid, authorised purchase order or a notification of goods or services being received is a common practice.

Another difficult method to catch is the fictitious invoice that arrives in Accounts Payable which ar paid without authorisation or segregation of duties between processing and payment staff.

Purchase cards are used for private expenditure like holidays, meals and the like.

Solution: The best method to resolving procurement issues is to have a proper procurement and purchasing policy in place, then putting automated and authorisation processes in place.

Simple examples of this include having security rights set at the correct level for each staff member to ensure their duties are properly segregated.

Separating responsibilities of staff who create suppliers from those who pay them is critical and new suppliers should be put through a proper on-boarding process to ensure due diligence is applied.

There are also some straightforward and clear workflow processes that can be put in place for buying or receiving goods, for example:

• Raising purchase orders for goods and services over a certain value need authorisation.

• Receipting processes to confirm the correct goods or services have actually been delivered.

• Approved transactions are matched to the final invoice

• Any discrepancies that are identified should be put through the approval process again.

Procurement terms should ensure that suppliers understand that orders must have a formal purchase order and that any invoice must feature the purchase order reference or will be returned unpaid.

Issue 2: Fiddling the expenses

Everyone knows this one and it’s prevalent. Recent examples show that even our Members of Parliament get caught for this one.

Staff often see expense claims as a perk of the job or a way of making up wages they feel they are entitled to.

Solution: This is a very simple loophole to close. A clear expenses policy ensures that people understand what they can or can’t claim and then the process of working to the policy ensures that it is policed by staff processing claims.

Another way is to adopt a business intelligence layer over your ERP software.


We have deployed this as a solution alongside Greentree ERP software to spot unusual trends in expenditure for a number of clients and it is surprising what gets revealed.

Issue 3: Theft of assets or stock

Taking assets or stock for personal gain is a very common practice in most businesses, whether it’s a stapler from the stationery cupboard or an expensive piece of plant: they can all go missing and often do. These may be for personal use or sold off for financial gain.

Solution: Again the solution comes down to processes that record and manage inventory together with the ability to monitor assets. Knowing where an item of plant is currently located is an important part of maintaining an environment of accountability within the organisation and an asset management tool is vital to keep track.

If staff know that there are controls in place, the temptation to steal is far less.

ERP software such as Greentree is a key part of asset management. An asset module can track physical assets within your organisation and also those that are serviced at external locations. It’s imperative to know what assets you have and where they are at any time to prevent fraud.

Issue 4: Manipulation of the sales teams bonuses/commissions

A scenario: Your sales team is recording sales at the end of the quarter and then

credit them back at the beginning of the new quarter. Booking orders as actual sales is also common practice.

This is a scenario that has serious implications for an organisation’s revenue performance, revenue recognition and tax impacts. It’s also possible to see with the right ERP and sales processes.

Solution: Tackle this head on by automating bonus and sales calculations through the sales process as well as automating bonus or commission accruals. Add in alerts and reporting around this activity will identify culprits and put an end to the practice.

Additional ways to tackle fraud

These are just a handful of the types of fraud that can occur within an organisation. Others include property fraud, changing bank account details before payment, petty cash and so the list goes on. In addition to putting the appropriate technology in place, there are a number of simple steps you can take to


help reduce your chances of fraud:

• Clear company policy and communicate it effectively through your organisation

• Screen employees – Take references up, do police checks where required

• Segregation of duties• Automate controls wherever possible

through well thought out technology solutions such as well proven ERP software solutions

• Have a company fraud line• IT security tightened• Immediate action if something is

discovered, investigate and prosecute

Communicate your strategy to your business

Getting the message out to your organisation that you are doing everything possible to prevent fraudulent activity is important. Do it right and it is

also possible to engage the workforce in helping in out with this process.

Of course, you may never be able to completely eliminate fraud, but as board members, directors, managers and staff, each member of the organisation has a duty to observe policies in place and utilise technology in place to mitigate fraud.

It’s integral to preventing the opportunistic fraud that can affect the organisation’s reputation, profitability and – in the current business climate – possibly survival.

5 Tips for Transitioning Your Business

Through Difficult Times

Seek efficiencies without adversely affecting your business. Your actions should put you in a stronger position in difficult times and moving forward

Understand your customers - are they happy with your services? Are they struggling to pay their bills? Why do they buy from you? Are they price sensitive? How do you establlish & maintain loyalty?

Remember - It is not always possible to increase or maintain revenue during a downturn - Ensure you adjust accordingly

Establish Key Indicators and use them to track how your business is travelling - measure what's important!

Look fornew markets in areas of the economy that are less affected by downturns in the market

Want more tips like this? Visit our website or follow us on Facebook, Linkedin and Twitter

Business conditions have been challenging Australian businesses as the economy transitions from the resources book that has dominated so much of the past twenty years. Post GFC, many businesses have struggled to adapt to toughter times. Here are our 5 top tips for ensuring your business can survive - and thrive.


In managing cash flow, there is nothing like being proactive.


Survival Requires Cash – Top Tips for Collecting Payment

Scott Graham, DirectorKinetic Information Systems

Cash is the lifeblood of any business. As the Australian business climate has toughened, ensuring that your business gets paid is vital, since I believe we may have more tough times yet to come.

Getting cash during difficult times can be a challenge when your debtors start to slow down on the length of time they take to pay your business for the services or goods they buy from it. Less profitable businesses often act to preserve cash flow and unfortunately it can become survival of the fittest.

Ensuring your customers pay on time and keep cash flowing into your business comes down to having efficient and effective credit control procedures in place to protect your business. It also shows your customers that you are on the ball in the fight against late payment.

Putting good processes in place also

sends a message that your business is providing a great service and expects to be paid on time. So what are the things that will help your business withstand tougher economic times?

Have a credit control strategy

While it may seem obvious, many organisations I visit don’t have straightforward credit control processes. It does not have to be complex to ensure it is effective and that your business gets paid on time, every time.

Workflow and automation are key components. Decide on the day-to-day processes and use technology to ensure as much as possible is automated to prevent things slipping through the net.

So what does a Business Process Model look like? I’ve included a screenshot below to show how such a process can be


automated in a tool like Greentree ERP’s BPM Module.

This takes your staff through the process from end-to-end and in tools such as this, the process can be clearly defined for your specific business needs.

BPM Module

Invoice immediately and ensure it is accurate

Issuing your invoices on time and without mistakes is important to managing cash flow in your business.

Wherever possible, moving from paper-based invoicing to electronic forms of invoicing will not only speed up the process, it will also enable your team to catch and correct any mistakes before your invoices are sent.

Make your payment terms clear

Invoicing on time and following up promptly sets expectations.

If your organisation deals in volume, such as a wholesale or distribution company, then it’s important to ensure your customers clearly understand your business and payment terms to keep payments coming in on time.

In a service organisation, you may want to consider staging payments in a contract at key milestones rather than waiting until a job is complete.

Ensure payment terms are clear from the beginning and that they are included on

your invoices and statements, along with conditions of business.

Have visibility of all invoices as they become due

In managing cash flow, there is nothing like being proactive. While you can run an aged debtors report daily to find out what is nearing due, having visibility of outstanding balances in real-time is preferable. The Greentree ERP desktop software, for example, can show this:

Invoice Module

Know your customers

Understanding your customer base and being aware of any potential financial difficulties is important. Due diligence starts with running basic credit checks on a regular basis and not just for new business.

Monitoring payment trends for your clients via your ERP tools, particularly increasing payment terms, can raise potential cash flow flags early so that your business can respond.

Make it easy for customers to pay

Simplifying the ways your customers can pay is a good idea because people – and businesses – prefer simple processes. Supplying your bank details on your invoices encourages electronic fund transfers rather than slowing down payment via cheques that takes time to clear. Another option, depending on the nature of your business, is direct debit.


Don’t wait to chase payments

If your customer payments start to slip, following up sooner rather than later as the debt becomes due is critical. ‘Educating’ your customers by being consistent in how and when you’ll chase payment on a regular basis will ensure that slow payers soon get the message.

Understand your customers’ needs, but don’t let debt get out of hand

It is important to have excellent relationships with your customers and have an understanding of their current position regarding payments. This enables your management team to make judgement calls about issues rather than applying an automatic stop.

However, for the majority of your customers, where you don’t receive payment, stop supply of goods and services immediately, inform them of the action and the reasons why.

Being polite but firm about the situation and reassure them that services will resume as normal on payment. Automating your processes will ensure that your credit control strategy will not let these things slip through.

Cycles are normal in business and it's important to have strategies for good times and not-so-good times


Difficult times ahead: Are you ready for a new financial year?

Scott Graham, DirectorKinetic Information Systems

As we approach a new Financial year, it’s a worthwhile exercise to reflect on what business owners need to address to ensure growth in the year ahead.

Over the past few years, trading conditions have been challenging for our clients and for ourselves, and while we’d like it to be different, there may still be some tough times to come as the fundamentals shift.

Cycles are normal in business and it’s important to have a strategy in place that helps yours to get through both the good times and the not-so-good times.

We often see businesses look to bank finance to facilitate growth, and though the specific drivers may be different, borrowing money can provide essential working capital in leaner times.

It is essential to have a strategy for

growth in place to ensure that the money is used in the best places and in the right way. It’s not enough to focus on a new office, new staff or diversifying outside of your bread and butter business.

If it’s worth doing, it’s worth doing well

Difficult times are an opportunity to shine when the right elements are kept in sight. In my early years as an accountant and in recent years implementing software solutions for business problems, I’ve had the opportunity to sit and learn from very smart people about their successes – and their failures.

It’s a well-established anecdote that smart companies often do well when the economy slows down because they remain focused on the fundamentals such as cash flow, costs, margins, efficient product and services management and their staff.


How do they do it? By focusing on four key areas of business:

• Basic Strategy – You approach and understanding of your markets

• Customers – What do they need and want?

• Technology & Automation – How do you manage more for less with technology?

• Your team – Do you have the right people?

Let’s look at each one in turn.

1. Basic Strategy

Growth

Increasing revenue within your business is possible, however often difficult, during lean times. Deciding how you’ll grow and how you’ll adapt to market conditions is rooted in having clear strategies in place for your business.

A five-year growth plan is an effective starting point: what are the market opportunities? How can you rise to meet them? Do you need to partner to bolster your own service delivery? Do you have the right people in place to drive and manage growth?

These are fundamental questions that ensure your team is keeping the right things in focus to deliver the outcomes you expect, but equally it can help when something unexpected occurs, such as greater growth than anticipated or a sharp change in trading conditions. It is not enough to throw people and dollars at a problem.

What is your competition doing?

It’s important to know what your competition is up to, but it’s not an opportunity to obsess.

If your focus is on being better and smarter, then your job is to look at each problem as an opportunity to deliver value to your clients.

Your arch rival may come out with a product or service your clients desire, however your opportunity is to do it better, with greater value, better service, smarter solutions and targeted results for your customers.

Where do you play – and play best?

Diversification is often seen as a path to growth; however the challenge is to diversify enough without going way outside the lines of your existing business. For example, as a tile wholesaler, it makes sense to bring in complimentary products such as bathroom fittings or better wholesale offerings, but to take the leap to retailing bikes is a bridge too far.

The goal is to align with opportunities that increase your business revenue and foster effective partnerships.

Don’t stagnate

Stagnation is the death knell for more than a few businesses who fail to innovate or evolve to meet or manage changing business conditions.

Continuous improvement within your business is essential to keeping up with


the times and ensuring your business remains competitive.That said, any upsell or improvements need to deliver real value – both to the business and to your customers. Implementing a voice activated phone system in a small business could deliver a genuine improvement, however it could really annoy customers who are used to dealing with human beings when they call your business.

Look at automating where you can and delivering better customer services for greater return, whether it’s the ability to feedback on your business, implement new systems for your customers’ benefit or just to easily be able to connect with the business when things go wrong.

In other words: Be mindful of how your customers like to do business with you.

Be good at being you

No business can be all things to all people: invariably, something will suffer. Be the best at what your business delivers and don’t spread your precious resources too thin.

Customers return to businesses that they have had good experiences with, so by staying on top of what your clients buy, the trends that are influencing their purchase decisions and above all, stay attuned to what your customers actually think and want from you. Act accordingly.

2. Customers

Good customer relationships are a critical place to focus on in challenging times,

because it’s easier to keep satisfied customers than it is to acquire new ones in challenging trading conditions. So what should be the foundation of your strategy?

Deliver the ultimate service

Customer service excellence is one of the most likely reasons your customers will return and keep returning – and it’s the best place to outshine your competition.

Technology is a key asset in delivering better service, particularly utilising an effective CRM, Workflow solutions and automation where it’s relevant.

Greentree’s ERP CRM, coupled with business process management, can ensure that your business captures new leads, opportunities, customer service issues and other process related workflows.

Using a tool such as a CRM can maximise visibility of customer issues and needs, but it can also drive campaigns and programs that foster customer loyalty and retention.


Modelling the ideal customer

What makes a good customer for your business? Doing business is a partnership and it’s important that the relationship works for both your business and the customer.

For example, if a client cannot see the value you provide or complains about the cost of your services constantly, then there’s a mismatch between their needs and your business.

If your is up and running, it’s not difficult to dive into customer data and see who is delivering profit to your business, who could become more profitable with some effort, and whether they cost you more to keep them as clients than is necessary.

Products such as Qlikview and Greentree ERP CRM provide instant information that can shift how you do business.

Be easy to do business with

Customers who value what do or see your business as a strategic partner will want to work closer and more frequently when there is a clear alignment. Building excellent business relationships is vital for a growing business and it pays to put investment into the right places.

Client processes is one area where it’s a no brainer to improve service delivery: Automating processes, service requests via the web, creating drip-feed campaigns or making engagement possible online (web, service desk, social media etc.) are straightforward ways of demonstrating that you are a trusted partner who can

deliver economies of savings.

3. Technology & Automation

The rapid rise of digital as a solution for business engagement is challenging Australian businesses to adopt, adapt and evolve their business technology. In leaner times, it can be the difference a successful business needs to rise above competition.

Making sense of data

Finding signals among the noise of business data is something many Australian businesses struggle with, despite often adopting Big Data as a strategy driver.

Data in and of itself is just that: billions of zeros and ones in code. It’s knowing how to draw out critical insight, sentiment, trends, patterns and other signals that provide management with the capability to make decisions that are right for the business.

Kinetic works with each client to really pull out the nuggets from their data streams, lakes and ponds. Visualising, filtering and collecting the correct data in the first place are just some of the methods that enable a business to see if its core processes function as they should.

For example, imagine walking into your business and knowing from the get go what the position of the business is, for example:

Its cash position

How many orders are in the pipeline


Is order fulfilment keeping up or slipping?How many returns have been made because of poor products or poor vendor service?

Which products are selling and which are stagnant?

Are we in the cash position we need to be?Just having easy access to and the ability to understand this information can make a massive impact on decision making within the business.

Use software to manage workflow, authorisation and escalation

With the business software we have today, there is no excuse for processes not being executed as they should be.

Workflow, workflow desktops, approvals, alerts and business process management all are key components of ensuring that the businesses can run with minimal human error or forgetfulness when things get busy. Customers appreciate efficiency, but often don’t notice until things start going awry.

Getting processes right comes down to matching the need to the way you want to work with your client. Working with a tool like Greentree means you can design the processes that suit your business whilst

having a robust framework to manage them. Your processes can be built to match how you want to work with your customers.

Products like Greentree have a great

suite of these tools.

Documentation: Centralise, Structure and Access

We have all been in the situation where we need a document, but can’t get our hands on it efficiently. Who hasn’t needed the document, contract, support documentation and other types of ‘content’ for a project, only to find it’s not on the server or easy to find.

Scanning documents, pictures and CAD drawings and attaching them with appropriate permissions ensures people in your organisation have access to all important documents anytime and anywhere.

Do your clients pay on time?

Cash, as they say, is king. Without it, your business can’t function, much less grow, and in tough times, many companies find themselves writing off bad debts. Don’t let that be you. The accounts receivable


department needs to be able to see data in real-time, so that if a customer doesn’t pay on time, they can act.

Whether it’s pursuing the payment of an invoice, escalating the issue to senior management or stopping supply, managing cash flow is essential to ensuring that a business can ride out a downturn.

Having good relationships, again, is critical. Proper relationships with customers allows your business to be aware of a customer’s circumstances, enabling you to help if you can, whilst managing minimal risk to the business.

Improved CRM transparency helps keep everyone on the same page and often some of your best customers end up the ones you have helped through an issue.

Customers are precious – show them a little love.

Stocked up

In one of our previous blogs, we discussed the benefits of having the correct levels of inventory for your business to satisfy the order book without holding excess stock.

Inventory is cash that you can’t access and there is nothing worse than customers having to wait for backorders of products they purchase on a regular basis.Ensure your sales team is hungry

If your sales team is occupying an office desk on a regular basis rather than being mobile, then they are difficult to justify. Sales teams should be hungry and looking for new business, both from existing

clients and new business.

Times have changed. Your staff can be mobile if they have the right tools and you can maintain visibility if you do. Tech that grows with you

Scalability and technology that can grow as the business does is a key ingredient to success. A scalable ERP solution is essential as your business adapts and grows.

It should enable you to tailor the workflow and processes relevant to your business both in terms of functionality, changes to regulatory issues, changes to processes and many other operational requirements of a growing business.

The economy is shifting significantly, so any tools you take on board should be adaptable and ‘figure-out-able’ for future needs.

4. Your team

The right people for the job

Temperament, personality and that elusive ‘cultural fit’ are important traits within any business. Having the right people in the right roles is essential, thought it can be enormously challenging to get them.

Get it wrong and you risk damaging your business reputation. Get it right, and you’ll get happy customers.

How can they excel?

Owning a role, having a clear career path and finding ways to advance your team


are key elements of keeping your people happy and likely to stay within your organisation.

These are also important elements that customers see, experience or engage with when doing business.

Long-term employees within a business are often viewed by customers as important relationships: employees who understand the client’s needs, can anticipate them or salve them are key signals about your business.

Encourage hard work but allow for play

Being professional does not stop business from being fun. A culture of fun generates enthusiasm for work and a happy culture in dealing with customers.

Your team’s enthusiasm will be infectious to you customers. It’s important to recognise and reward success for the soft skills within your team.


More often than not, the promise of ERP often gives way to the reality: the ‘out of the box’ capabilities of their new ERP solution ends up being a stamp sized delivery of the promised envelope.


Size isn’t everything: Smart ERP Solutions for BusinessScott Graham, DirectorKinetic Information Systems

As the last in the current series, Solutions for Tough Times it was a difficult decision to decide which topic to choose. I am very lucky in my daily work that I am able to help organisations find solutions to their process, reporting and data visualisation needs.

I have addressed this issue before, but with the current financial climate, revisiting the topic of downsizing ERP solutions to one that is more affordable, offers better functionality and is a closer fit to the client’s true needs is important. There’s no need to use a sledge hammer to crack a nut.

Organisations are currently looking for two major things:

Firstly, true solutions that delivers more value in their business. This could be better customer relationships, improving process to ensure higher

quality of delivery and service, better understanding of what is actually going on in their business, how to drive more profit to the bottom line, etc.

Secondly, they are looking to do this with smaller budgets with the objective of delivering more more for less and in the world of large ERP vendors, being agile is very hard.

In the past six months, Kinetic has seen firsthand how clients are moving away from some of the large ERP vendors to look at more agile players in the market, such as Greentree. To see clients focus on solutions to their problems, rather than looking at software functionality first, is always refreshing.

I personally have been working with three organisations that admitted their implementations over-promised and dramatically under-delivered in matching


solutions to their problems. Comparing solution fit and functionality flexibility, our clients are often staggered how much closer Greentree gets them to the right solutions and easier it is to deliver to their needs.

I have to confess, over the year looking at some of the larger ERP solutions this is no surprise to me!

Prospects are left staggered at the solutions we can deliver quickly and cost effectively to their organisation, as well as the savings that can be delivered to them on an ongoing basis.

More often than not, the promise of ERP often gives way to the reality: the ‘out of the box’ capabilities of their new ERP solution ended up being a stamp sized delivery of the promised envelope.

Here are some recent examples that have left me flabbergasted:

An organisation with 180 users of a system that includes finance, distribution and asset maintenance is costing the client $759,000 per year. WOW! Like-for-like, the equivalent modules of Greentree could be delivered at $56,000 per annum – with bags more standard useful functionality.

A report in this system to be written for them was $30,000 per report. WHAT?

Again using Greentree ERP alongside QlikView, the client could write their own reports or ask Kinetic to write it for them for an estimated $1200 to $2000.

Getting a consultant onsite to support their ERP could take upwards of four months’ notice, which suggests a lack of

resources here in Australia. Additionally, a senior consultant was $3250 per day. CRIKEY!

A critical ERP capability, that is the ability to use custom workflow and BPM processes to visualise and deliver efficiencies, could easily come in at a cost in excess of $100,000 per process. That’s INSANE. Within Greentree, you can write your own or ask us to do it at a fraction of the cost!

These are just a handful of some of the issues we see time and again. Bigger bucks for an ERP solution doesn’t necessarily guarantee better functionality.

Organisations need to give careful and considered attention to the selection of a new or replacement ERP solution, but almost as – if not more – important is a true understanding of the costs beyond initial implementation.

Businesses need to be able to manage those costs in both good times and bad, which means really understanding whether a big cost solution is suitable and scalable for businesses.

Technology alone will not deliver the all solutions to all problems, particularly if business fundamentals aren’t right.

However with time, effort and working with vendors in a partnership, it’s possible to get the right solution for the right price, with the ability to scale cost-effectively as the business grows.


About Kinetic Information SystemsKinetic has a simple belief: technology can transform business. Combining a depth of technology and market expertise with unrivalled service delivery, Kinetic enables companies across both public and private sectors to exploit new technologies, realise ROI goals and achieve business transformation

Kinetic Information Systems specialises in software that delivers business transformation. For over a decade, Kinetic has built an unrivalled reputation working with Australian organisations in both the public and private sectors.

Combining extensive technical expertise with broad market knowledge, Kinetic works with customers to deliver quantifiable business value by streamlining processes, reducing operational cost and improving decision making through data visualisation.

Using market leading solutions including Business Intelligence (BI), Enterprise Resource Planning (ERP), and Spend Control from partners Qlikview, Greentree and Proactis, Kinetic combines a proven implementation methodology with unrivalled service and support to deliver rapid and effective business change.

Technology can transform business, realise ROI goals and achieve business transformation

Solutions For Tough Times - Castleton · 2016. 8. 16. · Improve your cashflow and profits with...

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