Case Study
Tracking Innovation Helps Company Improve Profit Margins
Acumatica’s customizable tracking tools monitor Diversified’s profit margins in real time, enabling adjustments to help improve margins.
Organization
Diversified Fall Protection, a manufacturer of fall protection systems.
Need
A comprehensive ERP system to track metrics across its multiple divisions.
Outcome
Acumatica monitors profit margins in real time, allowing for adjustments.
Understanding the situation
Diversified Fall Protection, a manufacturer and installer of fall protection systems to keep workers safe, was going through a major growth period. Following private equity investment, the company had acquired four new companies.
While the acquisitions offered new opportunities for additional growth, all four companies operated different ERP systems, and Diversified was running two separate systems for its manufacturing and construction divisions. Compiling consolidated financial statements or tracking intercompany transactions — really usable data of any sort — was nearly impossible with the disjointed systems.
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Exploring the challenge
Diversified knew it needed a comprehensive ERP system to handle its many divisions and reporting needs. None of the systems the company was using at the time were well suited for handling construction project tracking, so Diversified knew a new system would be far more useful.
The company’s CFO knew a CLA principal through a local Construction Financial Management Association. Knowing CLA’s significant experience in financial reporting in the construction industry,
Diversified’s CFO asked the CLA principal for ideas.
Acumatica was the obvious choice. It is a comprehensive ERP system that also offers industry-specific tracking for Diversified’s three divisions: construction, manufacturing, and distribution.
Acumatica makes comprehensive financial reporting incredibly easy. Its customizable tracking tools monitor our profit margins in real time, enabling us to adjust to increase revenues. CLA’s guidance has been key to unlocking the many benefits.
Achieving results
Diversified now has easy-to-access, automated comprehensive data on every division within its company.
Its biggest return on investment may be Acumatica’s automated alerts. Diversified has more than 60 automated alerts set up in Acumatica. Project managers receive alerts if the projects they’re overseeing drop below a certain gross profit margin. With real-time alerts, Diversified is often able to make adjustments to retain profit margin goals.
Some of the other key benefits of Acumatica for Diversified include:
- With its previous systems, Diversified only had a handful of employees who could extract data and reports. Now, the company has more than 100 active Acumatica users who are able to pull real-time reports and dashboards.
- The reports and dashboards can even easily be pulled up on cell phones through Acumatica’s mobile app.
- Acumatica allows Diversified to create a P&L for every division, providing detailed insights into how each department is performing.
- Diversified’s project managers use Acumatica’s dashboards throughout their day to track their progress and analyze metrics.
- Acumatica’s connection with Velixo simplifies Excel importing, along with the system’s ability to connect with almost any other tool. Imports and automation that the company previously would have to hire a developer to create are now easy with Acumatica.
