The heart of the project was an upgrade from QAD’s On Premise software to the On Demand SaaS package without adding additional staff.
Kitchen appliance maker finds right recipe with ERP SaaS suite
Dacor, a manufacturer of high-end kitchen appliances including cooktops, wall ovens, ranges, dishwashers, and ventilation systems, needed to improve its supply chain and IT efficiency to better keep up with fluctuations in the economy and the real-estate market. The California-based company cooked up a solution based on QAD’s Enterprise Applications on Demand, a software-as-a-service suite.
Dacor had several major project goals:
- Improve IT and infrastructure performance
- Reduce operational expenses
- Improve delivered service levels
- Mitigate the risks associated with typical ERP implementations by employing the SaaS delivery model
- Improve inventory turns and lower inventory
- Introduce new products to market, faster
This recipe for success yielded some impressive results. Dacor’s system availability jumped to 99.9%, compared to 78% before the implementation; system uptime improved by 14%; and the IT budget shrank by 20%. The company also has saved more than $1 million since the project was implemented due to a 30% inventory reduction. QAD on Demand has also allowed Dacor to initiate a Kanban system that has yielded a 25% efficiency improvement in material planning and work-in-process.
The heart of the project was an upgrade from QAD’s On Premise software to the On Demand SaaS package without adding additional staff. The system’s infrastructure is located at Dacor’s center in Denver, which provides data and hardware backup and redundancy; the project involves a total of eight sites and 250 users.
QAD maintained its help-desk support and administration with the SaaS package. This took the burden off Dacor’s IT group and was instrumental in helping the manufacturer reach its goals, according to the company. The go-live time frame was just three months, Dacor says, with the transition services fee costing between $10,000 and $50,000.
Return on investment was immediate, as Dacor re-allocated resources that had been supporting the ERP system and moved them to projects that directly drive revenue.
Dacor credits QAD Enterprise Applications On Demand in helping it become more responsive to what it calls “aspiring consumers,” for whom it has launched eight new lines of appliances.