Global expansion in the electronics manufacturing sector demands an increased physical presence and a unified digital backbone. A standardized or unified ERP platform can provide the latter to allow swift, disruption-free rollouts across global locations.
This was also the reality for Asteelflash, a European electronic manufacturing services (EMS) provider, that was challenged by the complexity of geographically diverse sites as it prepared to double its revenue within five years.
Maintaining a balance
The biggest concern for Asteelflash, which already had a strong ERP foundation after harmonizing its global on-premises ERP systems with QAD, was evolving its ERP strategy to align with the company’s growth goals in an industry facing significant disruption.
“Our challenge is to make sure that our cost structure is adapted to our top line. And when you are already very lean, it’s not easy to achieve,” said Nicolas Denis, CEO of Asteelflash.
Another hurdle was delivering a consistent customer experience across all the regions where the company has a presence. This was due to complex electronic manufacturing supply chains, economic headwinds, geopolitical uncertainties, evolving regulations, and consumer demand.
These challenges prompted Asteelflash to work with QAD for an ERP strategy that would enable it to efficiently onboard new factories and facilities to support its growth targets while balancing the needs of its current customers. Considering these parameters, the company opted for a lift and shift to QAD Cloud.
Delivering organic growth with QAD Cloud
Frederic Martin, Business Process Owner at Asteelflash and Head of Accelerate, the Asteelflash initiative that harmonized all sites on QAD ERP, stated that cost savings were among the several reasons for the company to take this step. “We shifted from a licensing model to a revenue-based model, which gives us better predictability,” he said.
Additionally, the move to QAD Cloud helped Asteelflash utilize its internal resources more effectively, as the team could focus on core business needs and benefit from the new functionalities faster. Asteelflash and QAD also established that it was essential to recognize processes, people, and software to become an Adaptive Enterprise.
According to Martin, rolling out QAD Cloud was not only an “IT project but also a company project.”
“We have this skilled team internally that is the interface between the QAD world and the internal world. On the QAD side, there is also a team of individuals who were there 12 years ago, who are still there now,” he said. “This team has also been vital in the success of the common relationship.”
Key benefits of the move
After Asteelflash moved to QAD Cloud with the support of QAD Professional Services, the company has enhanced its efficiency, flexibility, and agility.
The time to roll out ERP to new sites has also reduced significantly. “When I compare with other companies, every time there is a migration from one ERP to another, it usually takes over a year, costs a lot of money, and usually there are a lot of disruptions. At Asteelflash, when we roll out QAD to new sites, it takes less than six months and works from day one,” said Denis.
Asteelflash plans to leverage QAD Cloud’s capabilities to drive sustained growth in the long term. Specifically, it plans to utilize QAD Cloud’s future functionalities, such as advanced web capabilities, to enhance user experience and improve data access.
Moreover, the quick deployment of QAD Cloud to new sites is helping Asteelflash expand its market presence and achieve sustained, cost-effective growth.
What this means for ERP Insiders
Gain efficiency with standardized processes. For Asteelflash, the deployment of QAD Cloud has sped up its time for ERP deployment at a new site and emphasized the value of standardized processes, easily transferable products between locations, and seamless integration of new assets. These factors have helped the company remain on its path of aggressive growth with minimal disruptions.
Configure, don’t customize. QAD’s flexibility allowed Asteelflash to configure the system to fit their specific business model rather than the other way around. This approach is crucial for maintaining agility and reducing the complexity and cost of ERP ownership. It also helps companies more easily adapt to changing market conditions.
Unified operations can help companies achieve global consistency. Asteelflash’s goal of using the “same ERP worldwide” has helped the company streamline operations, improve data accuracy, and enhance customer experience. Thus, for companies with complex, geographically dispersed operations, a cloud ERP solution that provides a single, unified platform is essential for efficient management.
