ERP Support to our Client in Export Business

A client of SBS Global based in Tamil Nadu, India engaged in the Export of Electrical Components had migrated to an ERP system in order to completely integrate their business processes. The client had been facing challenges in inventory valuation and accounting related areas for almost two years since the migration to ERP and did not find an appropriate partner to support the resolution.

Background and Challenge

The client had engaged an implementation partner of an ERP service provider, who apparently did not carry out an in-depth study of the client’s business and requirement.
On the job training to client’s employees on various modules and User Acceptance Test was not conducted in an organised manner.
Post implementation, data between legacy system and ERP was not fully reconciled. Client also did not insist on reconciliation and sign-off by the implementation partner.

Incorrect mapping of Ledger codes and improper processes resulted in incorrect value of inventory in financial records, huge impact on profits, need for additional audit checks and delayed financial audit closure.
Management was not sure of the correct inventory valuation, as two different values were reported in system.
Chart of Accounts in Financial Records were not defined in line with business requirements, as a result appropriate reports could not be generated for review and corrective action.
The client had not signed a post implementation support contract with the implementation partner, who stopped supporting abruptly.

Approach & Solution

The client approached SBS Global for support. The CFO Services Team held discussions with Client’s Operations & Management team to understand the issues and designed a resolution plan in close association with an established service partner for the ERP product and delivered following results:

Reviewed existing configurations of Ledger codes , Identified gaps, re-mapped appropriately.
In-depth training to users on transacting in Inventory and Finance Modules, reconciling transactions between modules.
Re-name and re-group ledgers for ease of tracking and reporting.
Identified ERP version issues, fixed latest patches.
Implemented new features with practical training to increase efficiency of various operational functions.
On-going service support periodic maintenance and issue resolution.

Result

The client could have the following improvements as a result of the solutions offered by SBS Global:

Smooth closure of Audit as data mismatch issues been resolved.
Management has better visibility and control on inventory valuation.
Productivity increase in Finance Staff as less time is spent on reconciliation of data.
Consistency and reliability in financial reports.
New features enabling faster decision making and response to customers.