Jacobson talks a lot about what he calls SAP vanilla the basic functionality of the software that is available immediately, without configuration, right out of the box. What I really appreciate about SAP vanilla, Jacobson says, is the companystructure piece. You set up relationships among entities within the organization all very explicit but flexible at the same time and thats the core benefit. In fact, its an ongoing benefit because its given us the flexibility to adapt quickly as our organizational structure has changed.
Universals ability to model and flexibly manage its organizational structure within the software delivered some unexpected business benefits as well. Jacobson explains, We originally implemented [the software] to get a handle on our core business financials, ERP, that sort of thing. The structure SAP [software] gave us really helped kick our aftermarket parts and service business into high gear. And thats extremely important because that business is high margin. It really became the poster child for the success of the SAP implementation throughout the organization.
Universal Instruments aftermarket business operates on a direct-service model. This means the company itself maintains direct control over operations, whereas competitors may outsource the job to distributors. It keeps us close to the customer, says Jacobson. And it gives us a lot of credibility during the sales phase because we can make promises about service levels that our competitors cant really make due to the fact that they dont have direct control over their aftermarket operations.
Before implementing SAP software, Universals aftermarket business was profitable, but inventory carrying costs continually ateinto margins. We had depots all over the world with parts just piling up, Jacobson explains. But now, with our SAP software, we have so much more visibility. If a customer needs a part, we can get it to almost any place on the planet within 24 hours. And we can do this with lower overhead because now we have the power to forecast demand.
Previously, it would have required a major undertaking to adjust our plans. But now, its just trivial just press a few buttons. Instead of the mechanics of how you change a plan, our focus is on what the market is doing and how this impacts our business strategy. What used to take about 80 work hours a month now takes minutes.
Jim Jacobson, Director of Information Technology and System Software, Universal Instruments
In fact, Universal has been able to reduce cycle times by 30% to 40% and significantly increase inventory turns. This has really given us a market leadership position in the aftermarket business, Jacobson says. And, you know what? It also helps us sell our machines in the first place. Customers need to know that youre going to be there when they need you, and, in very unambiguous terms, we can demonstrate impeccable service capabilities and a clear record of customer satisfaction.
Universals ability to model and flexibly manage its organizational structure within the software delivered some unexpected business benefits as well. Jacobson explains, We originally implemented [the software] to get a handle on our core business financials, ERP, that sort of thing. The structure SAP [software] gave us really helped kick our aftermarket parts and service business into high gear. And thats extremely important because that business is high margin. It really became the poster child for the success of the SAP implementation throughout the organization.
Universal Instruments aftermarket business operates on a direct-service model. This means the company itself maintains direct control over operations, whereas competitors may outsource the job to distributors. It keeps us close to the customer, says Jacobson. And it gives us a lot of credibility during the sales phase because we can make promises about service levels that our competitors cant really make due to the fact that they dont have direct control over their aftermarket operations.
Before implementing SAP software, Universals aftermarket business was profitable, but inventory carrying costs continually ateinto margins. We had depots all over the world with parts just piling up, Jacobson explains. But now, with our SAP software, we have so much more visibility. If a customer needs a part, we can get it to almost any place on the planet within 24 hours. And we can do this with lower overhead because now we have the power to forecast demand.
Previously, it would have required a major undertaking to adjust our plans. But now, its just trivial just press a few buttons. Instead of the mechanics of how you change a plan, our focus is on what the market is doing and how this impacts our business strategy. What used to take about 80 work hours a month now takes minutes.
Jim Jacobson, Director of Information Technology and System Software, Universal Instruments
In fact, Universal has been able to reduce cycle times by 30% to 40% and significantly increase inventory turns. This has really given us a market leadership position in the aftermarket business, Jacobson says. And, you know what? It also helps us sell our machines in the first place. Customers need to know that youre going to be there when they need you, and, in very unambiguous terms, we can demonstrate impeccable service capabilities and a clear record of customer satisfaction.
