For most companies, growth is an essential part of survival and one of the hardest things to get right. Growth through the acquisition of other companies, typically the domain of larger, successful organisations, brings its own specific challenges. The K8 business intelligence software from Kerridge Commercial Systems helps companies grow through acquisition seamlessly by standardising the IT platform throughout the organisation.
It is often the case that companies with a clear competitive edge can successfully acquire smaller or less profitable businesses within their industry in order to gain further market share. The owners of the smaller company receive a cash payment for a business which is not performing for them and the company which acquires it benefits from their database of clients and leads, products, manufacturers and suppliers, not to mention having one less competitor in the market place.
Facing growth through acquisition is therefore an enviable position for a company to be in, however it brings with it some challenges which can create problems in both the short- and long-term if not handled correctly, particularly at the critical first stages. One of the primary potential problems is the integration of multiple processes from different business units into one functioning and effective operation. From customer accounts to payroll, warehouse management to sales order processing, the likelihood is the acquired company will have very different processes to the purchasing company. If these processes are not brought into line with one another, customer service could well suffer, with unfulfilled orders, lost payments and increased debtor days.
The K8 system from Kerridge Commercial Systems acts as business intelligence software which allows for the standardisation of all IT processes across the organisation. K8 performs as distributor software, stock management software, point of sale software and in just about every department of a retailer, wholesaler or distributor. This means the entire organisation is running from the same fully integrated software platform, accessing the same real-time information and allowing management to assess the business as a whole.
K8 streamlines not just the acquisition process itself, but also the vital first year of trading and beyond as the new, expanded operation. This allows the company to grow swiftly yet solidly, without sacrificing customer service, professionalism or profitability at any stage.