How to Justify Your QAD Upgrade
You have done your research, know your facts and have made the decision to upgrade to QAD EE. QAD EE is an integrated suite of enterprise resource planning (ERP) solutions designed to streamline and optimize various business processes, including manufacturing, supply chain, finance, and more. An upgrade to QAD EE involves migrating to a newer version of the software that brings forth enhanced features, improved functionality, and increased performance. However, QAD standard edition, although outdated, continues to remain as a bulletproof ERP system. This means that your managers may be reluctant to make a switch even if the outcome provides them with capabilities that are current and extremely advanced. When it comes to initiating this switch, what can you do to justify this upgrade? Learn how to justify your QAD upgrade below:
From experience with our clients, we have found that management is much more agreeable to ERP upgrades when they are presented with benefits that drive improvements in real cash flow. It is understandable that in order to make such a large upgrade, higher level executives want to see quantifiable results. A well implemented ERP system is the transaction engine that provides the foundation that allows any company to drive real business value. This business value can be found in following three business process flows:
1. Quote to Cash
2. Plan to Produce
3. Procure to Pay
Quote to Cash Cycle
In the Quote to Cash Cycle, a well-implemented system can easily and quickly support new pricing initiatives in reaction to market changes and market opportunities. Pricing Optimization is critical because every extra dollar you can increase goes right to the EBITDA bottom line. In addition, a well implemented ERP system can analyze each step of the quote-to-cash process to identify areas of improvement. For example, it can automate the billing and invoice processes. This helps to reduce errors, which allows for more accurate billing, which can help expedite the cash collection process.
Plan to Produce Cycle
In the Plan to Produce Cycle, a well-implemented system can reduce working capital requirements in terms of less inventory required. This cycle will also increase inventory turns and optimize the use of external labor. Real-time visibility will also increase, resulting in less expediting and more customer deliveries.
Procure to Pay Cycle
In the Procure to Pay Cycle, your company can leverage the global buying power of an entire organization, ensuring that all vendors are honoring the best pricing.
Even in cycles such as Recording to Reporting (finance & accounting) a well implemented system can provide real time, timely, and accurate financials that your executive team can use to track key metrics. From experience, when it comes to talking with your key executives about upgrading your current QAD system, your key driver to results will be quantifying the benefits that this change will have for your company. By doing so, a blueprint to success is created.
If you are interested in learning more about how to justify your QAD upgrade, contact us here to find out how we can help you grow your business. You can also email us at firstname.lastname@example.org or call (312) 345-8817.
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