ERP Case Study | Manufacturing

Client Problem

A large, multi-national consumer products company had a fragmented and inefficient operating model. With operations in more than 30 countries, the company was not leveraging its size to achieve process efficiencies or economies of scale. In essence, it was operating as 30 different companies. To address these operational inefficiencies and to build an operating infrastructure that would support very aggressive growth objectives, the CIO decided that the company needed to implement a new business and technology infrastructure.

Panorama Solution

Not knowing which ERP system to choose, the CIO turned to the Panorama team to facilitate a technology-independent evaluation and selection of ERP software and implementation vendors. Panorama managed a six-month evaluation and selection process to identify the ERP software that would best enable its future business requirements and corporate growth objectives.

Solution Highlights

  • Defined and documented global operating business requirements
  • Researched ERP market for organizations of similar size and industry
  • Developed software vendor evaluation criteria and priorities
  • Facilitated vendor software demonstrations and user evaluations
  • Applied quantitative assessment models to evaluate ERP research and demonstration results
  • Developed detailed business case to assess feasibility of ERP investment, including detailed project costs and tangible business cost and revenue improvements
  • Reached final decision on ERP software and implementation partners
  • Developed high-level, 2-year global implementation strategy in conjunction with selected ERP vendors
  • Assisted client with vendor contract negotiations to secure favorable terms and costs for client
  • Developed organizational change management, communications and training strategy for implementation
  • Created resource plan for internal and external resources to support global implementation
  • Established key performance measures and target performance levels to support client’s future growth targets and overall business strategy
  • Developed ERP Benefits Realization plan to enable achievement of projected costs and business benefits
  • Conducted knowledge transfer to key client project team members to empower them to execute against defined implementation and organizational change management strategy

Measurable Business Results

Panorama delivered significant and measurable results to the client to enable a high return on investment.

Highlights of Results

  • Identified ERP software capable of delivering 96% of the functionality required by client, higher than any other evaluated vendor
  • Secured fixed-costs for client’s software licenses and implementation services at 40-percent less cost than benchmark implementation costs for companies of similar size and geographic reach
  • Identified more than $7 million in annual cost savings at full system implementation, resulting in a 20-percent internal rate of return on investment