Software as a Solution Case Study
A wholesale apparel company contacted SMG Consulting Group upon their revenue declining from $12 million dollars to $7 million. The company understood the overall reason for the reduction in sales, but realized the company overlooked the importance of detail financial reporting to measure their sale process. The decline of revenue brought a strong awareness to their internal reporting practice.
Upon meeting with the client and performing an assessment of their operations, the company was given a Position 3 rating – Strong Strategy – Weak Operations under SMG’s rating system. The company was very knowledgeable about their industry and their strategy allowed them to sustain within their industry. However, the company had an outdated apparel software program along with a stand alone accounting program. The two systems did not communicate with one another, which the company could not accurately determine any gross profits per sale or within a specific time period. In order to produce key business & financial reports, it required all reports to be manually created in excel. These excel generated reports were susceptible to a notable amount of errors as well as making the company operations paper intense.
SMG Consulting Group recommended the company to consider a Software as a Solution (SaaS) in order to bring the company operations into the cloud. SMG Consulting Group work with the staff to understand their work flow process and researched cloud-based apparel systems compatible to the client’s work flow process. Upon procuring the apparel software, SMG obtained a cloud-based accounting system that integrated with the apparel system. Now, the company can seamlessly generate detailed management and financial reports, which includes the performance of a specific style and the net profit of each sales order. More importantly, the usage of paper has significantly decreased. SMG Consulting Group has been placed on a monthly retainer to assist with the monthly financial reporting and operational consulting.