Noralta needed a system that would facilitate growth and new locations.
SAP Business One provided a platform to re-engineer the business processes.
Noralta has streamlined accounting processes and eliminated paper reports.
About Noralta Technologies
Noralta Technologies provides automation, instrumentation and electrical services to the energy industry.
Industry: Oil & Gas
Location: Lloydminster, Alberta
ERP Solution: SAP Business One
Over 13 years, Noralta Technologies has grown from a small instrumentation company to a multi-location supplier of technologies for the oil field. With each expansion step, their business processes became more complex, especially in inventory management and financials. They maintained separate inventory records at each location, which often used different terminology for identical items. Managing overall company inventory was arduous and carrying costs were excessive. Accounting processes were equally labour-intensive, with over 12,000 general ledger accounts to maintain and accuracy a growing concern.
To continue their rapid growth, they had to remove obstacles posed by inventory and financial processes, which in turn called for better business software.
SAP Business One Combines Functionality with User Friendliness
Noralta researched the software used by their customers and suppliers, some of which were growing at a similar pace. “Over and over we encountered the SAP Business One application,” reports Ross. “After looking into its functionality, we knew it would help us re-architect and simplify our processes. And with its user friendliness, we knew our managers could use it.”
For implementation, Noralta engaged ProjectLine, an SAP Business One partner with substantial ERP experience. Using their well-established practices, ProjectLine helped Noralta go-live on schedule and within budget in three months.
Key Results with SAP Business One
- Reduced the number of unique SKUs and decreased inventory carrying costs by 20%.
- Better inventory management with 38% fewer inventory items.
- Streamlined accounting processes, resulting in a 96% decrease in time to perform period-end close.
- Improved financial management with a 67% reduction in time in arrears.
Faster, More Complete Information Enables Better Decisions
With all their inventory finally in one place, Noralta scoured their records, resolved conflicting item names, and shaved many steps out of inventory management – saving time and making records more current and trustworthy. “Full visibility corporate-wide lets us make better inventory management decisions,” says Ross. “As a result, we’re saving 20% of the carrying costs of our inventory, which run about US$2 million at any one time.”
Noralta renovated their financial practices to reduce general ledger accounts from 12,000 to 600, simplifying accounting and improving confidence in financial records. They sped up month-end and year-end closing, which now culminate with a 10-minute final closing function that used to take four hours. Overall, ledger records had been nine months out of date, but now they have closed the gap to three months and are on track to reach their goal of one month. Fine-grained information, like cost of sales on a per-truck basis, is now available for the first time.
Managers who relied on out-of-date paper reports now use strong reporting tools to view the data they need in seconds on their own SAP Business One screens. New users find the software inviting and straightforward to learn, swelling the base of licensed users to 24.
Growth Continues Without Concern for Business Processes
With their revised processes, Noralta smoothly absorbed a location in Calgary and is continuing their rapid growth. “We have two new locations in the plan, but this time there’s no concern about our processes for incorporating them,” Ross concludes. “We’re also doing bigger jobs than ever, and to help manage them, we’re considering the next step in our partnership with SAP – job costing software.”