Open Door Technology Inc.

The Benefit of Mobility Solutions to ERP Systems

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As everyone knows these days, changing out an accounting system will rarely deliver an exceptional return on investment and this is a major reason why executives can be reluctant to invest in a new system.  If we can get financials, invoices sent to clients, collect cash, and pay vendors, why should we spend money on a new system?  Most times an accounting system gets changed because of pain.

An ERP system can generate a credible return on investment by reducing inventory, minimizing waste, and improving processes, but only if someone takes the time to measure the benefits.  Mobility software is an exception to this rule.  By integrating mobile solutions to an accounting or ERP system, there are many direct benefits to be realized by a company, some of which are relatively simple to measure.

First, information can be automatically exchanged between the central system and the remote devices in use by field personnel.  By capturing the field information and synchronizing it with head office, the number of errors and missing invoices or field tickets can be substantially reduced.  Over the nearly twenty years we have been working with field service companies, we have heard numbers ranging from 2% to 5% of revenue in lost revenue because of these reasons.  On $20,000,000 in gross revenue, that is a revenue boost of $400,000 to $1,000,000.

Second, there is a time value of money benefit from the virtually instanteous transfer of customer service work to the invoicing system.  In some situations, invoices have moved from a 45 days cycle to as soon as next day.  On a receivable balance of $5,000,000, an interest rate of 6%, and a time savings of 45 days, that works out to annual savings of $37,000.

And, third, by optimizing routes for service work or delivery, fuel expenses can be reduced by 10% or more.  On an annual fuel bill of $4,000,000, that represents savings of $400,000.

Put your own numbers into these sample scenarios but hopefully you get the picture.  There are huge savings to be had by implementing a mobility solution to integrate to your accounting or ERP system.

By Malcolm Roach of Open Door Technology, Calgary Microsoft Dynamics NAV, formerly Navision, Partner

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