Cloud-based ERP Software Enhances Quantum Group's Accounting And Financial Reporting
High-tech specialty fabrics and yarns manufacturer selects cost-effective, flexible, scalable ERP system that is accessible to users across all of its locations.
TW Special Report
Q
uantum Group Inc. is no stranger to being on the cutting edge. The Colfax, N.C.-based
company is recognized as one of the world's leading manufacturers of custom-engineered, tech-style
fabrics used for various commercial and industrial applications. Quantum has committed itself to
total quality and continuous enhancement in order to develop and supply the highest quality
products and services. Today, other industries are turning to Quantum as they see the possibilities
of improved products, improved competitiveness and reduced production costs.
Quantum has taken pride in promoting an environment in which new business concepts can thrive, so when it came to implementing the latest cloud-based enterprise resource planning (ERP) technology to better manage its complex corporate accounting and financial processes, the company embraced the opportunity.
The Business Challenge
With seven companies in three different locations, Quantum relies on its ERP system to control financials -- including general ledgers, receivables, purchase orders, and payables -- across a distributed environment; delegate work assignments and provide the necessary functionality and security settings for multiple users; and conduct custom reporting.
Maintaining this system, however, has come with a high price. Quantum was an early adopter of cloud technology, realizing the benefits of accounting software without the need to purchase and maintain servers. For a number of years, the company had used a major Web-based ERP platform for its accounting and financial processes, but that solution didn't provide the kind of flexibility needed to make changes and control costs associated with support or user licensing. Quantum was required to pay a fee for each user across its distributed business locations and corporate entities, which became extremely costly as more users were added. Therefore, the company had to limit the number of users in order to keep costs down. Managing the timing of upgrades and getting the customer support it needed to answer technical questions also proved difficult.
With operations quickly growing, the manufacturer realized it needed an ERP software solution that could scale with the business and be accessible to staff from any location and anytime -- without the need for excessive technical investment.
A jacquard loom in one of Quantum's plants weaves a customer's logo into the fabric.
Switching to a New Solution
After careful consideration, Quantum decided to make the move to a new software as a service (SaaS) ERP solution deployed in the cloud. The company selected Bethesda, Md.-based Acumatica's SaaS solution deployed on Microsoft's Windows Azure™ cloud computing platform. Using that solution, Quantum could automate its operations by quickly adding users to its business processes without implementing client software or paying additional license fees. From wherever they are located, all users now can access real-time data, advanced financial features and reports. Further, running on the cloud, the manufacturer can leverage disaster recovery capabilities and not have to worry about managing operating systems, hardware, and other datacenter complexities.
"Quantum has always prided itself on being innovative and staying ahead of the curve, so it seemed only natural for us to leverage the power of the latest cloud and SaaS ERP technology to enhance our business efficiencies and increase market competitiveness," said Barbara Page, controller, Quantum Group. "We're already seeing the significant cost savings, flexibility and support benefits that advanced on-demand solutions like Acumatica can deliver across our multiple enterprises, and we believe the best is yet to come."
M2 Technologies, a Greenville, S.C.-based value-added reseller (VAR) and implementation specialist, helped Quantum migrate from its previous ERP system to Acumatica. In just 30 days, the system was deployed. Acumatica's migration tools, which are specially designed for importing files or building direct connections to other systems using Web services, made the process of moving Quantum's data easy and straightforward. These tools can be used to reduce the cost of migrations from legacy systems or Web solutions.
The migration process involved exporting entity lists -- including customers, vendors, chart of accounts and such -- to text files. Leveraging the advanced toolset, Quantum customized the new ERP software to match its existing business processes. Next, the company printed monthly trial balance reports from December 2008 in order to populate the Acumatica general ledger with past balances and activities. For the most recent financial period, Quantum moved all accounts payable and account receivable details. Once these actions were completed, the company officially switched over to the new system.
The dashboard shown above illustrates examples of business processes that can be managed using the Acumatica cloud ERP software.
Key Lessons Learned and Future Goals
Quantum quickly recognized that the new cloud ERP platform provided the critical power the company didn't have before, including:
There are significant benefits to be gained from Web-based solutions that run on either public or private clouds. The cloud enables cost-effective SaaS solutions that can adapt to business requirements easily, quickly and securely in terms of deployment strategies, acquisition strategies and business/market changes. Enterprises such as Quantum will continue to recognize the cloud's tremendous power in helping them deploy web-based IT systems/applications and drive processes without unwarranted rigor. In addition, they can change their systems as needed without heavy amounts of investment in infrastructure.
Some Quick Facts About Cloud Technology, Web-Based Software and SaaS
Cloud Computing: Use of the Internet to access hardware, software, and other resources that are provided on-demand to perform work
Benefits: Rapid software application deployment, reduced hardware costs, rapid scale-up and scale-down, payment only for what you use
Web-based software: Use of a browser, or thin client, to access a software application over the Internet to perform work
Benefits: No client software install, no client software maintenance, real-time data, access from anywhere, cross platform compatibility.
Software as a Service (SaaS): Software that is delivered on-demand over a network through a rental ownership model.
Benefits: Rapid software application deployment, lower up-front expenses, no servers to buy and maintain, fewer maintenance hassles, reduced dependency on internal IT.
October 19, 2010
Quantum has taken pride in promoting an environment in which new business concepts can thrive, so when it came to implementing the latest cloud-based enterprise resource planning (ERP) technology to better manage its complex corporate accounting and financial processes, the company embraced the opportunity.
The Business Challenge
With seven companies in three different locations, Quantum relies on its ERP system to control financials -- including general ledgers, receivables, purchase orders, and payables -- across a distributed environment; delegate work assignments and provide the necessary functionality and security settings for multiple users; and conduct custom reporting.
Maintaining this system, however, has come with a high price. Quantum was an early adopter of cloud technology, realizing the benefits of accounting software without the need to purchase and maintain servers. For a number of years, the company had used a major Web-based ERP platform for its accounting and financial processes, but that solution didn't provide the kind of flexibility needed to make changes and control costs associated with support or user licensing. Quantum was required to pay a fee for each user across its distributed business locations and corporate entities, which became extremely costly as more users were added. Therefore, the company had to limit the number of users in order to keep costs down. Managing the timing of upgrades and getting the customer support it needed to answer technical questions also proved difficult.
With operations quickly growing, the manufacturer realized it needed an ERP software solution that could scale with the business and be accessible to staff from any location and anytime -- without the need for excessive technical investment.
A jacquard loom in one of Quantum's plants weaves a customer's logo into the fabric.
Switching to a New Solution
After careful consideration, Quantum decided to make the move to a new software as a service (SaaS) ERP solution deployed in the cloud. The company selected Bethesda, Md.-based Acumatica's SaaS solution deployed on Microsoft's Windows Azure™ cloud computing platform. Using that solution, Quantum could automate its operations by quickly adding users to its business processes without implementing client software or paying additional license fees. From wherever they are located, all users now can access real-time data, advanced financial features and reports. Further, running on the cloud, the manufacturer can leverage disaster recovery capabilities and not have to worry about managing operating systems, hardware, and other datacenter complexities.
"Quantum has always prided itself on being innovative and staying ahead of the curve, so it seemed only natural for us to leverage the power of the latest cloud and SaaS ERP technology to enhance our business efficiencies and increase market competitiveness," said Barbara Page, controller, Quantum Group. "We're already seeing the significant cost savings, flexibility and support benefits that advanced on-demand solutions like Acumatica can deliver across our multiple enterprises, and we believe the best is yet to come."
M2 Technologies, a Greenville, S.C.-based value-added reseller (VAR) and implementation specialist, helped Quantum migrate from its previous ERP system to Acumatica. In just 30 days, the system was deployed. Acumatica's migration tools, which are specially designed for importing files or building direct connections to other systems using Web services, made the process of moving Quantum's data easy and straightforward. These tools can be used to reduce the cost of migrations from legacy systems or Web solutions.
The migration process involved exporting entity lists -- including customers, vendors, chart of accounts and such -- to text files. Leveraging the advanced toolset, Quantum customized the new ERP software to match its existing business processes. Next, the company printed monthly trial balance reports from December 2008 in order to populate the Acumatica general ledger with past balances and activities. For the most recent financial period, Quantum moved all accounts payable and account receivable details. Once these actions were completed, the company officially switched over to the new system.
The dashboard shown above illustrates examples of business processes that can be managed using the Acumatica cloud ERP software.
Key Lessons Learned and Future Goals
Quantum quickly recognized that the new cloud ERP platform provided the critical power the company didn't have before, including:
- Control over costs: Since Acumatica is priced for unlimited users, Quantum can add as many users as needed, both as a combined corporate group and as individual companies. Employees have unlimited access to modules across the different companies and the enterprise pays only for the resources it actually uses.
- Control over deployment: Acumatica's SaaS offering delivers complete control over information technology (IT) infrastructure maintenance by automating software delivery, updates, changes, and ongoing configuration across the enterprise. If Quantum's needs change in the future, the company can move deployment onto an internal server so it can easily and quickly expand and adjust its IT requirements without significant expense.
- Control over upgrades: Cloud-based ERP solutions can grow around the specific needs of a business. While Quantum is currently using an accounting module, it has the flexibility to add other applications -- for example, manufacturing and inventory management -- in a more cost-effective manner than before. Most importantly, additional modules and software updates can be implemented at a time that is convenient to Quantum, so training, parallel testing, and other considerations can be managed.
- Control over support: SaaS solutions running on the cloud often provide limited support options offered by a single vendor. By working with a VAR, Quantum receives local support from a company that understands its business. Enterprises don't have to be locked in to a particular support provider.
There are significant benefits to be gained from Web-based solutions that run on either public or private clouds. The cloud enables cost-effective SaaS solutions that can adapt to business requirements easily, quickly and securely in terms of deployment strategies, acquisition strategies and business/market changes. Enterprises such as Quantum will continue to recognize the cloud's tremendous power in helping them deploy web-based IT systems/applications and drive processes without unwarranted rigor. In addition, they can change their systems as needed without heavy amounts of investment in infrastructure.
Some Quick Facts About Cloud Technology, Web-Based Software and SaaS
Cloud Computing: Use of the Internet to access hardware, software, and other resources that are provided on-demand to perform work
Benefits: Rapid software application deployment, reduced hardware costs, rapid scale-up and scale-down, payment only for what you use
Web-based software: Use of a browser, or thin client, to access a software application over the Internet to perform work
Benefits: No client software install, no client software maintenance, real-time data, access from anywhere, cross platform compatibility.
Software as a Service (SaaS): Software that is delivered on-demand over a network through a rental ownership model.
Benefits: Rapid software application deployment, lower up-front expenses, no servers to buy and maintain, fewer maintenance hassles, reduced dependency on internal IT.
October 19, 2010
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