In September, 2004 , 3R spoke to Graham Mulhern, founder and managing director of MXI Software. Since 1994, MXI has been working with Irish Manufacturers providing easy to use and affordable integrated manufacturing software, which helps them become more efficient and ultimately delivers more to their bottom line.
Graham, tell me what made you set up MXI Software?
It was very simple really. I had returned home after working overseas for a decade or so. I joined a firm which sadly went out of business very shortly after my joining. All of which meant either they made a mistake or I did. It was this point I decided to start my own business rather than looking for a new job. Necessity as opposed to any great plan.
Tell me about your customers, what key problems does EFACS, your industry leading manufacturing solution, solve?
Our customer set tends to be mid sized manufacturers who are looking to make the jump from being mid sized to big. The technologies that we supply let them use the same technology that big firms use, such as oracle manufacturing or SAP. It's considerably easier for most of our customers to run these systems successfully.Our ERP solution EFACS, enables them to use the latest truly Web based open source technology to introduce real business efficiencies. These include lean manufacturing, Just in time Stock control, better customer relations, better cash control and increased margins. In short we can make a company use its money and resources, more profitable and better value for the investors and owners.
What does solving those problems enable them to do?
Our customers tell us that EFACS has delivered remarkable increase in operational efficiency, as measured in stock turnover, lower material costs, return on assets, and improved working capital positions. EFACS is proven to increase sales and reduce the time taken to fulfil orders.
How do your customers put a value on that?
We have found that an integrated system as EFACS can be 25% less expensive to run that having multiple systems for sales production and finance. Most of our customers have achieved a return on investment of between 10-15% saving in annual material and labour costs compared to pre-installation costs in the first year alone, as a direct result of using EFACS. We proved by studying company office data that manufacturers running EFACS are more likely to produce higher returns way above the industry average.
Once your customers have identified the positive aspects of installing EFACS, do they realise the cost of not implementing EFACS?
Or to put it more positively than that, users tell us of the benefits realized since going live. Many talk being to expand production up to 50% without increasing the clerical or operation resource. One customer said it was like getting three new members of staff as he was able to release from the unproductive to productive tasks and that was a €80,000 saving. But the best was the client who told he used to be always overdrawn and now he generally has €300,000 in his no.1 account and that he worried much less about things now. He was always struggling now he feels profitable and told me that we played the largest part in that.
What piece of sales advice that you have learnt at the coal face, would you like to pass on to other Business Owners?
As the song says “you got to know when to hold them, know when to fold them”. I think that I am still learning myself.
Finally, this newsletter is called Success, what is your definition of success with MXI Software?
I wish to build on a base of success with our customers to grow profitably which can be re-invested in the company’s future development. I think therefore “Success” means being able to take advantage of these opportunities when they come your way.
This article was written by Peter Lawless, founder of 3R Sales and Marketing - www.3r.ie. For previous articles or interviews like this, visit 3R's Resources. Alternatively, subscribe to Success our free monthly Information Bulletin with sales and marketing articles.
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