Wednesday, March 7, 2012

Most Mid Size Companies Already Have an ERP System

To remain competitive organizations of all sizes, but in particular, midsize companies must integrate their operations across their enterprise.  This integration should include as many department or function roles as possible.  The tighter and more completely your company communicates, the greater the potential Return on Investment (ROI). 

Separate systems or systems loosely connected with manual procedures are obvious candidates for updates.  What may not be obvious is the effect of Mergers and Acquisitions has on the industry or having an older system.  Older is relative, but if your system is more than five years old, your team should at least be talking with your advisor to learn what is available.  You do not necessarily have to make changes, but you should be aware they exist.

Has your organization created its own application extensions to meet your needs?  Custom solutions are great, because they are built to your specifications and needs.  Bad, in the sense that now you have something that must be re-integrated, re-engineered, or thrown away with an upgrade or new system.  A new system that already has those functions built-in is insurance against obsolescence.

What you may find is that your current software vendor already has upgraded your software and it is the most logical solution for your growth.  Same equipment and familiar interface methods reduce the impact of the learning curve and speed adoption of new features to enhance productivity.

Standardization of systems, reduction of power usage, simplification of management and maintenance are also components to consider when calculating your Total Cost of Ownership (TCO).  Of course there are upfront costs associated with anything new, but these can often be offset by savings and increased efficiency.  Why else would you consider making such an impactful change?

Your advisor is a critical component.  There is just too much information to sort through on the Internet.  Your advisor knows you best and can help narrow the field of interest.  This narrowed field is more easily researched, because you now know what you are looking for.  Let your advisor pick the weeds out of your garden.  That is why you invest in one. 

Are you looking for better ways to service your customers?  Better ways of communicating with your suppliers?  Implementing EDI, Barcodes, Wireless technologies, RFID, Voice picking?  Does your purchasing team need a better way to calculate suggested purchases?  Perhaps your system works, but you need a better way to schedule routine tasks or receive notifications of critical events. 

Maybe you need the same output in a more user friendly format such as PDF’s or Spread sheets.  How fast does it take to check someone out at your Retail/POS stations?  After checkout does your Ecommerce site know the inventory is gone or do you have to manually update availability? 

Do you need integration with shipping companies or truck routing?  Perhaps knowing and tracking your Landed costs and rolling them up in your product costs is a factor worth investigating.  Do you know how much your product costs and therefore your profit margins?  Does management have the tools to determine trends in your sales?

If you want specifics, then we need to talk.  No one knows your business better than you do.  It takes time to build a relationship of trust and understanding. Time to know what the impact of change will be to your organization.

No short or long article online will replace a face-to-face meeting.  There is no commitment other than to look, ask questions, and see what alternatives you have.  Contact Dolvin Consultingtoday.  You have challenges, we havesolutions.  Let us determine if there is a match.

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