Why QMH Switched from Sage 100 to Acumatica Cloud ERP

Located in Rancho Cucamonga, California, Quality Material Handling, Inc. (QMH) is a family-run business that specializes in providing end-to-end warehouse solutions. Founded in 1991 by Hector Pinto and his wife Brenda, QMH has grown from a small startup into a key player in the logistics and distribution sector. The company offers a variety of services, from designing and installing racking systems to managing complete warehouse setups. 

Their commitment to quick and effective solutions has made them a preferred partner for businesses looking to optimize their warehousing operations.

Due to its rapid growth, QMH faced challenges. The company's use of the outdated Sage 100 system and manual processes started hampering its operational efficiency. To tackle this issue, QMH implemented Acumatica Cloud ERP. This single solution helped the company operate its business more efficiently, leading to better inventory management, greater data transparency, and numerous operational efficiencies.

Challenges

As QMH's operations expanded, the limitations of their existing systems began to show. The company relied on Sage 100, an on-premises ERP system, along with a mix of Excel spreadsheets and manual paper processes. 

These tools, once sufficient for a small startup, were now impediments to efficiency as QMH grew into a larger entity dealing with complex warehouse setups and multifaceted distribution channels. The outdated Sage 100 system proved inflexible, unable to integrate smoothly with other modern software solutions essential for streamlined operations. 

Reporting was tedious and error-prone, and the lack of real-time data made responsive decision-making difficult. Most transactions were accomplished through email, scheduling with Outlook, and multiple spreadsheets tracked everything else. “It was a lot of manual, double-entry, which was error-prone and wasted a lot of time,” says Julia Pinto. 

The accounting department was months behind. 

In addition, Hector, the lead salesman, refused to use Sage because it wasn’t user-friendly. “I never found Sage 100 easy to work with,” he says. “I’m not very savvy with computers and technology. I would rather use a piece of paper than do something in the complicated system.”

“He went 19 years never using the software,” adds Julia. “He didn’t even have a log-in.”

One more reason for a migration from Sage

In a previous location, Julia faced a problem when the internet went down for a whole day. As they heavily relied on cloud-based services, including VOIP and email, they were not able to use them without the Internet. So, Julia decided to find a better financial software solution to avoid such situations in the future.

According to a recent statement from QMH, the company faced some significant challenges due to the limited number of Sage user licenses it had available. As a result, the legacy software it was using was running very slowly, causing frustration and inefficiency among employees. 

In order to address this issue, QMH decided to purchase 13 additional seat licenses, which helped to alleviate some of the strain. However, the company still faced challenges with managing who could work in Sage at any given time. 

Additionally, since the software was hosted on an aging server located on-premises, employees were unable to access it from outside the office. These issues had a negative impact on productivity and made it difficult for the company to keep up with its competitors.

Solution

In their search for a new ERP solution, QMH evaluated several options, including Oracle NetSuite and upgraded versions of Sage. However, these solutions either required extensive customization or offered cloud versions that still relied on legacy architectures not designed for modern, scalable operations. 

Acumatica Cloud ERP emerged as a standout option, offering a true cloud-based platform with comprehensive mobile support and a unique licensing model that allowed unlimited users without additional costs. This approach meant that QMH could scale its operations without worrying about escalating costs related to user access or system upgrades.

Acumatica's robust ERP system was designed with flexibility at its core. It enables seamless integration with other business applications and provides real-time visibility into all aspects of QMH’s operations. 

The mobile functionality means warehouse managers and sales teams can access the necessary information on the go, enhancing responsiveness and operational control. 

The decision to choose Acumatica was driven by its ability to meet the specific needs of a growing logistics and warehousing company like QMH. It offered scalability and cost efficiency that were unmatched by other ERP systems on the market.

Outcome

Streamlined Operations

After transitioning to Acumatica Cloud ERP, QMH saw immediate improvements across its business operations. Reporting and data retrieval processes that once took hours or even days were reduced to mere minutes, allowing management to make informed decisions promptly. 

This newfound efficiency significantly impacted their inventory accuracy, reducing manual errors and ensuring seamless warehouse operations. By integrating Acumatica’s comprehensive suite, QMH eliminated the need for countless spreadsheets, centralizing their business functions and boosting overall productivity.

Faster Financial Closing

Another significant benefit QMH realized was the drastic reduction in month-end closing time, from months to just 11 days. This rapid turnaround freed up valuable time for the company's CFO and accounting team, allowing them to focus on strategic financial planning and analysis. 

Having access to real-time business information enabled QMH to make informed decisions about which products to expand and which to cull. “We were also able to see an increase in revenue across certain product lines with the access to the data,” Julia says.

As you can see, Acumatica has empowered QMH to make more informed decisions, bolstering the company's strategic planning and overall growth.

Seamless Expansion

Acumatica's cloud-based nature allowed QMH to expand its salesforce nationally, unencumbered by the limitations of its previous on-premises system.  

The Acumatica solution’s user-friendly interface and intuitive mobile app further empowered staff across the organization to access crucial information from anywhere, ensuring smooth collaboration and execution.

This newfound agility helped QMH broaden its reach and capture new markets, contributing to steady revenue growth. 

They are now a national player offering various warehouse solutions, including turnkey systems from concrete installation to lighting to sprinkler systems, among other efficiency-enhancing warehousing products and services.

Conclusion

QMH's journey with Acumatica Cloud ERP showcases the transformative benefits of transitioning to a comprehensive, cloud-based solution. The improvements in operational efficiency, financial closing speed, and scalability have driven QMH's growth and positioned it for further success. 

AcuPower LTD, an Acumatica-certified partner, offers a comprehensive range of services to guide you through every step of your ERP journey. We specialize in seamless implementations, and customizations of Acumatica to perfectly match your operations, ongoing support, and strategic consulting tailored to your business needs. 

Our team’s deep expertise ensures you leverage Acumatica’s full potential, providing a smooth transition from legacy systems or integrating seamlessly with existing applications. 

Contact us today to learn how Acumatica Cloud ERP can enhance your operations and scale your business to new heights.