Artisan package that could unite back-office functions

Artisan
Hardwood Floors purchased SAP’s Business One ERP (enterprise resource planning
implementation) software in late 2007. The company is located in Austin, Texas
and it is owned by a family and operated with 37 employees and virtually no
in-house IT staff. Like most of the small businesses, it found itself in
running some disconnected software packages for operations and accounting
making it relies on manual processes. In fact, they did not have any network
connection between operations and accounting in the company as recalled the
general manager, Mr. Pat Bailey. Therefore, he started looking for a new
package that could unite back-office functions of Artisan’s three separate
business lines: a flooring installation business; a lumber yard that imports wood
from South America and sells both at retail and wholesale; and a distribution
arm to a network of U.S. dealers.

After
implementing an ERP system, some of SAP’s product sets have earned reputations,
which is opposite regarding usability particularly within large, complex
implementations that required business process change. It has become of the
most comfortable products to operate indeed from both by operations and
accounting purposes implementation (Tsai et al., 2011).

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The
success of the system can be demonstrated by the following statements: Today,
he says, he can see Artisan’s financial and operational picture “much
clearer than I could before. Am I where I want to be? Not yet. The big thing
for me is: the information is being put into the system.” Besides,
“at any point of time, any person can walk up to a station, log in, get a
phone number, fax number, account balance, get an agent report anything like
that,” Bailey says. “That’s what I was shooting for, and I
succeeded.”

The implementation of the ERP
system has enabled the Business One software to offer the most relaxed training
environment since a lot of non-technical people can be educated about the
system, and it is easy to learn.

 

 

 

 

 

 

 

 

Disappointing Experience

Lumber
Liquidators has experienced disappointment in the implementation of ERP system.
Lumber Liquidators can be seen to be attributing a weak performance to a
sophisticated implementation of the system by claiming that the project imposed
a significant drain on worker productivity. In fact, the problems are likely
related to employees having trouble acclimating to the new system, versus
malfunctions in the software.

According
to the company, the net sales rose from $ 6.8 million to $ 147.3 million when
the business continues without interruption. Besides, there was lower
productivity that led to an estimated $ 12 million and $ 14 million in
unrealized net sales, and again net income fell by 45% to $ 4.3 million. It is
a sad situation for Lumber Liquidators because the company cannot efficiently
operate after reduction of its net income. In short, the system has brought an
enormous impact on the economic status of the company but on negative side
which can be associated with employees having difficulties in the application
of the new system (Frimpon, 2012).

However,
the Lumber Liquidators is a valued SAP customer, and they remain strong and
have positive partners. In fact, SAP is actively engaging with the company in
completing their implementation, and they believe that the company is on the
right track. Intrinsically, when the process is complete, Lumber Liquidators
will gain significant benefits from the implementation of the system.

ERP project gives Lumber
Liquidators disappointing experience because of several reasons such as changing
internal requirements by the company that slows down system integrator
implementation that requires employees of the company to adapt to changes
brought by the system, lack of resources for training and system design, and
complexity in the software.

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