Wednesday, May 4, 2011

How to tell if your company is ready for a new ERP solution.

There are many reasons why you should and should not consider a new Enterprise Resource Planning (ERP) system.  Many companies fall into one of three main categories and budget is often the biggest driving factor in the decision path:
1.       Give me just the basics.  When I begin to grow I will look at other features and options.  I just need to clean up and streamline my operations.
2.       Give me the basics and add a couple of new application (modules) as a place to start.  I will add more features as time goes by.  I want to be competitive with the option of growth.
3.       Give me everything.  I want to be a leader in my industry and implement new modules quickly so I build my leadership in my industry.

Newer ERP system have the advantage of being fully integrated enhancing information flow to decision makers, enabling better productivity and reducing operating costs.  The major disadvantage is trying to implement a system without the proper resources, especially in the finance area.  Underfunded and poorly managed implementations can be the ruin of what would otherwise have been a great benefit of a new software solution.

Implementation of any solution should be considered a long-term improvement.  Successfully done your Return on Investment (ROI) period will be quick and will generate ongoing savings.  Done incorrectly and costs can run out of control, operations are interupted or stop, shipments are delayed or misdirected, just to name a few of the many problems that cause axes to fall.

So just why would you consider a new solution? 

Number one is that Management lacks critical information they need to make decisions in a timely manner.  Just like journalism today.  It is not news if it takes a day to deliver the news (information) to your readers.   

Number two, your inventory is out of control.  Inventory is so critical to business that mistakes are costly.  Not knowing what you have or where it is, or when its due can cause missed or late shipments, which means unhappy customers and lost revenues.  Not being able to forecast demand impacts decision making leading to inaccurate inventory levels.  The list here can go on and on, but the impact is on the bottom line.

Number three, duplication of effort, silos of disconnected information, left hand not knowing what the right hand is doing.  We see this when manual or separate systems are used instead of fully integrated solutions.

The key in finding the right solution is finding a partner that will take the time to learn about your business and the challenges you face.  Do not try to buy a given technology, find the software that addresses your need for reliability and performance and that will grow with your business.

Dolvin works with manufacturers, distributors and retailers to streamline their operations so they reduce costs and increase profits. 

No comments:

Post a Comment