Noralta Technologies - Transforming Inventory to Fuel Growth with SAP Business One

SAP Case Study: ProjectLine Customer Stories

Noralta Technologies provides automation, instrumentation and electrical services to the energy industry. To continue its rapid growth, the firm had to remove obstacles posed by its inventory and financials processes, which in turn called for better business software. SAP Business One provided a sound basis for the process re-engineering that the firm was seeking. With its highly scalable new processes, Noralta is continuing its growth with confidence.

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, Noralta’s business processes became more complex, especially in inventory management and financials. They maintained separate inventory records at each of its locations, which often used different terminology for identical items. Managing overall company inventory was arduous and carrying costs were excessive. Accounting processes were equally laborious, with over 12,000 general ledger accounts to maintain and accuracy a growing concern.

About Noralta

Location: Lloydminster, AB

Industry: Oil and Gas

Revenue: US $14 Million

Employees: 80



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, a firm with substantial SAP Business One experience. Using its well-established practices, ProjectLine went live on schedule and within budget in 3 months.

Faster, More Complete Information Enables Better Decisions

With its entire inventory finally on one screen, 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 its 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 4 hours. Overall ledger records had been 9 months out of date, but now they have closed the gap to 3 months and are on track to reach their goal of 1 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.

Our first year-end close with SAP Business One was so smooth that I called our implementer afterward to make sure that was all there was to it.

Leana Ross, Controller

Growth Continues Without Concern for Business Processes

With their revised processes, Noralta smoothly absorbed the Calgary location 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.”


Project Overview Selector

Key Challenges

Operational Benefits

Low Total Cost of Ownership

Why SAP Was Selected

Financial Benefits

Project Best Practices

Key Challenges

  • Facilitate growth, especially the addition of new locations.
  • Unify inventory records and make them more manageable.
  • Speed the reporting of information to decision makers.
  • Shorten financial close periods.
  • Simplify accounting.
  • Involve managers more directly in using their solution.


Operational Benefits

  • Reduced number of distinct inventory item names by 38%.
  • Decreased inventory carrying costs by 20%.
  • Time to perform period-end close function reduced by 96%.
  • Number of general ledger accounts cut by 95%.
  • Reduced time in arrears in overall financial records by 67%.


Low Total Cost of Ownership

  • Completed implementation on schedule and within budget.
  • Used industry standard hardware for the installation.
  • Experienced high reliability, with no need for rush-charge support.


Why SAP Was Selected

  • User friendliness and learning ease.
  • SAP's reputation for software excellence.
  • Success achieved by similar industry firms with the SAP Business One application.
  • Compatibility with customer's software.
  • Functionality for inventory management and financials.


Financial Benefits

  • Simplified the addition of new corporate locations.
  • Provided a single-screen view of all locations’ inventory.
  • Streamlined accounting processes.
  • Sped up management reporting.
  • Increased management involvement in using business software directly.
  • Eliminated reliance on software usage specialists and their paper reports.


Project Best Practices

  • Employed standardized, proven implementation methodology.
  • Communicated constantly throughout the project.
  • Conducted a one-week training course to ensure adoption and smooth transition.


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