The MHEDA Journal - First Quarter, 2018 - 31

EXPERT ADVICE

5. Some employees simply like working from printed
copies.
As a non-stocking distributor, it would seem like the
process to go paperless would be fairly straight forward
to accomplish. However, to have a system that allows you
to simply receive, capture, organize, view, and send the
myriad of information that makes up all the information
that flows through your business is a daunting task and
mind-set adjustment. Some sales people won't utilize it as
much as others, because they believe it slows them down.
But there is no doubt in my mind that over time, as they
begin to get in the habit of attaching pertinent documentation, they will see how it simplifies finding the information
at some future date, and how it benefits those who support
the project cycle downstream. We will continue to improve
our productivity and print far fewer pages than we do today.

Tom Duck, Director of
Operations Lift Systems
Division Gregory Poole
Equipment Company
Raleigh, NC

A

To answer the first question, yes,
we are in the middle of a conversion
now. The second creates a little more
discussion as to what successes and challenges a company
faces. There have been quite a few articles on this subject
and it seems the topic is covered in almost every PowerPoint
presentation these days. There are many reasons for this,
including growing revenues, creating business efficiencies,
aligning the various departments into a cohesive unit and
others, I'm sure all of us can mention. The truth is every
company has its own unique set of circumstances and will
require its own way to justify a project like this. In general,
one should look at the investment from a quantitative and
qualitative perspective.
If you look from the quantitative approach first, the thing
most companies examine is how much inventory reduction
or control will be improved, and how much better tech
efficiencies can be tracked and managed with an effective
ERP system. Analysts generally agree that between a 20 to
30% reduction in inventory is achievable and between 10 to
15% increase in tech productivity is achievable. Forecasting
and scheduling improvements resulting from an effective
ERP system will have a positive impact on parts pricing
and stocking as well as improved management of service
GP and profitability. An area often overlooked is the direct
labor and indirect labor costs in the service area. Direct
labor savings flow from improved scheduling that balances
workload and minimizes overtime. Indirect labor savings
resulting from modern ERP systems adds up quickly. Most
analysts believe that a ten percent reduction in labor costs
is easily achievable with the reports available with an
advanced ERP system.

As far as the effect of going paperless, your company can
have immediate savings to the bottom line. The average
office worker uses 10,000 sheets of copy paper each year,
according to reduce.org. Multiply that by the number of
employees you have, and you can see how going paperless
is a no brainer when it comes to cost cuts.
The last quantitative area to discuss is accounts receivable. With the ability to produce error free and timely
invoices, the turns on receivables can be improved five
percent or more, resulting in a significant improvement
in cash flow. Again, each company is unique and the best
advice when developing the economics is to be consistent,
realistic and develop a real world narrative around each
savings category.
From the qualitative approach to making the ERP case,
the best reasons I can give are the ability to provide better
information and analytics in all areas for tracking cost and
productivity. Customization is also a great feature with
a cloud ERP system without losing the benefits of future
upgrades. And the ability to store records and documents
that are essential to your business are now easy to retain
and access.
The scope of the transition to a cloud-based paperless
system can be daunting. A company-wide training is part
of the requirement but the best and most effective way
to implement is with "Super-Users." Within each department, the project managers should identify the tech-fluent
employees who will be able to adopt the new system with
ease, and help create a training cascade that will reach even
the most resistant uses.
The bottom line to purchasing a new software suite,
vendors must show owners and upper management how
the new investment will make money and provide a solid
return on investment.

Roger Troost, Chairman
Morrison Industries
Grand Rapids, MI

A

Morrison started our move more
than six years ago towards the cloud
and as much paperless systems as
practical. The change has been driven
by the need to improve our efficiency,
technology changes, and customers' expectations.

Cloud based systems
Data center
Office 365
Telephone
The most significant issue when we shifted to the cloud
is the fact we no longer have the same control over system
security. Pre-cloud we had total control over the security
of our network versus today as we are depending on the
vendor. We had an IT consulting system do a study of
The MHEDA Journal | First Quar ter 2 018

31


http://www.reduce.org

Table of Contents for the Digital Edition of The MHEDA Journal - First Quarter, 2018

Chairman’s Perspective
From the Desk of Liz Richards
Editor’s Note
MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
Ask A MHEDA-NET Group
MHEDA Calendar
MHEDA MEMBER PROFILE
@WORK
WOMEN IN INDUSTRY
DISTRIBUTOR FORECAST
SUPPLIER FORECAST
MHI FORECAST
ITA FORECAST
CEMA FORECAST
ITR ECONOMICS FORECAST
2018 MHEDA CONVENTION SCHEDULE
THE RULE OF 72
New Members
Spotlight on Association News
MHEDA Milestones
Index to Advertisers by Product Category
Index of Advertisers by Alphabetical
The Last Word
The MHEDA Journal - First Quarter, 2018 - Intro
The MHEDA Journal - First Quarter, 2018 - cover1
The MHEDA Journal - First Quarter, 2018 - cover2
The MHEDA Journal - First Quarter, 2018 - 3
The MHEDA Journal - First Quarter, 2018 - 4
The MHEDA Journal - First Quarter, 2018 - 5
The MHEDA Journal - First Quarter, 2018 - 6
The MHEDA Journal - First Quarter, 2018 - 7
The MHEDA Journal - First Quarter, 2018 - 8
The MHEDA Journal - First Quarter, 2018 - 9
The MHEDA Journal - First Quarter, 2018 - 10
The MHEDA Journal - First Quarter, 2018 - Chairman’s Perspective
The MHEDA Journal - First Quarter, 2018 - 12
The MHEDA Journal - First Quarter, 2018 - From the Desk of Liz Richards
The MHEDA Journal - First Quarter, 2018 - 14
The MHEDA Journal - First Quarter, 2018 - Editor’s Note
The MHEDA Journal - First Quarter, 2018 - 16
The MHEDA Journal - First Quarter, 2018 - MEET MHEDA’S 2018 BOARD OF DIRECTORS AND MBOA
The MHEDA Journal - First Quarter, 2018 - 18
The MHEDA Journal - First Quarter, 2018 - 19
The MHEDA Journal - First Quarter, 2018 - 20
The MHEDA Journal - First Quarter, 2018 - 21
The MHEDA Journal - First Quarter, 2018 - 22
The MHEDA Journal - First Quarter, 2018 - 23
The MHEDA Journal - First Quarter, 2018 - 24
The MHEDA Journal - First Quarter, 2018 - 25
The MHEDA Journal - First Quarter, 2018 - MHEDA’S 2018 MATERIAL HANDLING BUSINESS TRENDS
The MHEDA Journal - First Quarter, 2018 - 27
The MHEDA Journal - First Quarter, 2018 - 28
The MHEDA Journal - First Quarter, 2018 - Ask A MHEDA-NET Group
The MHEDA Journal - First Quarter, 2018 - 30
The MHEDA Journal - First Quarter, 2018 - 31
The MHEDA Journal - First Quarter, 2018 - 32
The MHEDA Journal - First Quarter, 2018 - 33
The MHEDA Journal - First Quarter, 2018 - MHEDA Calendar
The MHEDA Journal - First Quarter, 2018 - 35
The MHEDA Journal - First Quarter, 2018 - MHEDA MEMBER PROFILE
The MHEDA Journal - First Quarter, 2018 - 37
The MHEDA Journal - First Quarter, 2018 - 38
The MHEDA Journal - First Quarter, 2018 - 39
The MHEDA Journal - First Quarter, 2018 - 40
The MHEDA Journal - First Quarter, 2018 - @WORK
The MHEDA Journal - First Quarter, 2018 - 42
The MHEDA Journal - First Quarter, 2018 - WOMEN IN INDUSTRY
The MHEDA Journal - First Quarter, 2018 - DISTRIBUTOR FORECAST
The MHEDA Journal - First Quarter, 2018 - 45
The MHEDA Journal - First Quarter, 2018 - 46
The MHEDA Journal - First Quarter, 2018 - 47
The MHEDA Journal - First Quarter, 2018 - 48
The MHEDA Journal - First Quarter, 2018 - 49
The MHEDA Journal - First Quarter, 2018 - 50
The MHEDA Journal - First Quarter, 2018 - 51
The MHEDA Journal - First Quarter, 2018 - 52
The MHEDA Journal - First Quarter, 2018 - 53
The MHEDA Journal - First Quarter, 2018 - SUPPLIER FORECAST
The MHEDA Journal - First Quarter, 2018 - 55
The MHEDA Journal - First Quarter, 2018 - 56
The MHEDA Journal - First Quarter, 2018 - 57
The MHEDA Journal - First Quarter, 2018 - 58
The MHEDA Journal - First Quarter, 2018 - 59
The MHEDA Journal - First Quarter, 2018 - 60
The MHEDA Journal - First Quarter, 2018 - 61
The MHEDA Journal - First Quarter, 2018 - 62
The MHEDA Journal - First Quarter, 2018 - 63
The MHEDA Journal - First Quarter, 2018 - 64
The MHEDA Journal - First Quarter, 2018 - MHI FORECAST
The MHEDA Journal - First Quarter, 2018 - 66
The MHEDA Journal - First Quarter, 2018 - 67
The MHEDA Journal - First Quarter, 2018 - ITA FORECAST
The MHEDA Journal - First Quarter, 2018 - 69
The MHEDA Journal - First Quarter, 2018 - 70
The MHEDA Journal - First Quarter, 2018 - 71
The MHEDA Journal - First Quarter, 2018 - 72
The MHEDA Journal - First Quarter, 2018 - CEMA FORECAST
The MHEDA Journal - First Quarter, 2018 - ITR ECONOMICS FORECAST
The MHEDA Journal - First Quarter, 2018 - 75
The MHEDA Journal - First Quarter, 2018 - 76
The MHEDA Journal - First Quarter, 2018 - 77
The MHEDA Journal - First Quarter, 2018 - 2018 MHEDA CONVENTION SCHEDULE
The MHEDA Journal - First Quarter, 2018 - 79
The MHEDA Journal - First Quarter, 2018 - THE RULE OF 72
The MHEDA Journal - First Quarter, 2018 - 81
The MHEDA Journal - First Quarter, 2018 - 82
The MHEDA Journal - First Quarter, 2018 - New Members
The MHEDA Journal - First Quarter, 2018 - Spotlight on Association News
The MHEDA Journal - First Quarter, 2018 - 85
The MHEDA Journal - First Quarter, 2018 - MHEDA Milestones
The MHEDA Journal - First Quarter, 2018 - 87
The MHEDA Journal - First Quarter, 2018 - Index to Advertisers by Product Category
The MHEDA Journal - First Quarter, 2018 - Index of Advertisers by Alphabetical
The MHEDA Journal - First Quarter, 2018 - The Last Word
The MHEDA Journal - First Quarter, 2018 - cover3
The MHEDA Journal - First Quarter, 2018 - cover4
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