ERP Mobility

Your customers are mobile, your sales people are mobile, everyone is talking about the cloud, it must be heaven.  The reality is we are on the ground and there are times when we are connected and when we are not.  Is your Enterprise Resource Planning (ERP) solution running reliable like a sports car on the freeway or is it like an old farm truck with rust, bolted-on additions and constant repairs?

“If it ain't broke, don't fix it” – Bert Lance.

Not broke is not the same thing as fixed.  It means you are getting by.  Simply working is not the same as efficient.  There is a difference when you drive a new car versus a slightly used or old bucket of bolts.  ERP solutions start out shiny and new.  They get a little wear and the physical equipment gets a little older.  You keep up on the maintenance, at least initially when it was bundled in the purchase, and now it is just another line item in your overhead that you wish was not so big.  There are more and more mechanics.  There is more confusion as to where the actual problems exist as the symptoms are misleading.  There are too many aftermarket or third party add-ons and no one source is responsible for the entire solution, except you.

Add to all this mass of confusion the need to mobilize your salesforce.  What?  They have smart phones and we send them out on the road, aren’t they already mobile?  They call us to find out where to go next, what the customer owes, and inventory availability.  We just wish they would actually go where and when they are scheduled.

What?

Mobility software solutions have the ability to work while connected and while disconnected from your systems and synchronize after being disconnected.  Mobility software can exist as a bolt-on to what you are already using and is where many organizations start.  Somebody, somewhere created something that your people will somehow, after too much time and expense, finally figure out how to integrate with your system and then invest a lot of time keeping it integrated.

In contrast your solution provider may have or is developing a fully integrated solution.  This solution is typically clean and simple and has the same interface and conventions as the main ERP solution.  The mobile solution is typically fast and effective for everyday use.  Users can easily search for customer or inventory information, pricing and availability, create and send orders.  In some cases the mobile applications can be utilized by both internal personnel as well as customers. 

Once you are mobile enabled it opens the door to more effective connections with your customers, it is an enhancement to your relationship.  Trade shows, onsite customer visits, on the street.  You are conducting business where and when it needs to happen, not just in your back office.

So what should you look for in your solution?

• Work well online as well as offline.
• Minimal need for additional equipment.
• Minimized data usage on cellular networks.
• Intuitive searching and selecting.
• The ability to take advantage of mobile bar code and image capture applications.
• Connectivity to Bluetooth devices such as scanners, printers, and credit card devices.
• Signature capture.
• Payment collection.
• Geo location and navigation.
• DSD route sales.
• Immediate sales and delivery.

How would your organization compete better with a fully integrated and supported set of applications by your ERP solution provider?

This might all sound futuristic, but these solutions exist now and your customers are expecting these types of solutions.  Why?  Because your customers have their own demands and your products are needed when they need them, on their schedule. 

Mobility or not, you do not need the solution just to have the solution.  You need the solution to service your customers the way you would expect to be serviced.  Remember always that everything you invest in your company should have your end customers in mind.  You could have the best of everything, but if you do not have anyone to purchase your product or if it takes too much effort to do business with you, then they will go somewhere else even if it costs more.

What are your thoughts?  Share them here to benefit your fellow readers.  I am sure they would appreciate it as much as we do.

Navigating your way through the constant flux in technology and how it specifically impacts your business needs takes effort.  A trusted advisor like Dolvin Consulting helps in many ways including helping you to recognized and narrow your focus on critical impact areas.  Contact us today to see how we can help your team drive more efficiency in your operations. 

Inventory Management Visibility

In order to make better decisions management needs good visibility into their inventory.  Financial, operational and purchasing decisions are better when based on accurate and timely information.  Elimination of manual processing increases the timeliness and reporting capabilities which overall increases customer service levels.

 

Customer service matters. 

 

What processes are being implemented at your organization to increase your customer’s satisfaction?  What improvements are your competitors making?

 

The right Enterprise Resource Planning (ERP) solution provides the framework for the different departmental functions to be integrated into one weave.  What makes “it” the right ERP solution?  There are many solutions to choose from today. 

 

It becomes the right solution when culture meats function. 

 

Every organization has a culture, a way of doing business.  Every ERP solution has a process which maps transaction and reporting functions to organization challenge.  The key is finding a solution that addresses the core needs while providing a growth path to future challenges. 

 

When manufacturers deal with inventory they typically will take advantage of a Manufacturing Resource Planning (MRP) module to manage how much inventory they have in their warehouses at any given time.  Real-time or near real-time reporting is optimal, and as a result better suggest how much of any particular inventory item to manufacture or purchase.

 

A consolidated view of historical usage allows both manufacturers and distributors to accurately project and plan for future need and create the optimal production or buying levels.  This accuracy allows the organization to react faster to changes in demand.

 

Companies need the visibility that ERP/MRP solutions provide. 

 

Monitoring and tracking inventory movement on the shop floor as well as in the warehouse allows organizations to plan better and minimize out of stock situations which results in better customer service and ultimately savings through automation and increased efficiencies.

 

Customer service should be a critical component for any organization. 

 

Take your own shopping or purchasing experience in mind.  How often do you like hearing “we can back order that for you” when you try to order supplies.  How competitive can your salesreps be if they have no clear idea of what is available when they are in front of your customers?

 

Greater inventory accuracy increases speed and efficiency.  Efficiency that purchasing, sales and customer service as well as production departments all take advantage of to perform their functions.  Management has the information they need to make decisions with greater confidence.

 

One of the bigger challenges is implementing the changes and new solutions needed with ERP solutions.   It is one thing to write or talk about solutions, it is quite another to commit to the changes.  Inevitably a lot of the effort should be made up front to document the processes currently being used so they can be addressed and mapped to a potential new solution. 

 

This is where the culture piece fits in.  How many steps does it take to perform a function?  A solution could be very capable, but take too much effort to achieve the advertised results.  This is also not to say that just because there are steps involved that they should be avoided.  Look for ways to automate the collection of information.  Even though there may be some additional steps involved compared to what you do now, the accuracy and benefits are usually worth the effort.

 

Making a change to an ERP solution is not comparable to picking box software of a shelf. 

 

It takes a lot of planning and analysis as well as fiscal commitment to implement an ERP solution.  Most people understand the potential benefits of increased inventory visibility and the efficiency of newer ERP solutions.  Many are concerned about the likelihood that they will have to change their operations or will have to make extensive modifications.  Neither is a good choice.  Unless there are unique requirements, you should be looking for a flexible solution that only needs minor modifications.

 

Look for solutions that provide consolidated dashboard views that give you drill-down to details.  Savings come in many forms, but typically involve automation of one type or another and the elimination of manual report processes.  Paper intensive tasks are other areas where organizations can achieve significant savings.  Planning decisions are more effective with accurate information. 

 

Make sure your system collects the right information.

 

Your competitive advantage starts with a comprehensive ERP solution that integrates your Enterprise.  Finding the right solution may take some effort, but in the long run, if you select the right solution you will wonder why you took so long to make the decision.

 

Let Dolvin Consulting help you find the right solution.  Contact us today to see how we can help you find the right solution for your challenges.

 

 

Distribution Success Essentials

Manufacturers and Distributors need to embrace, implement and utilize Enterprise Resource Planning (ERP) solutions in order to grow and thrive.   ERP solutions earn their place by primarily streamlining inventory and warehouse management operations.  ERP also incorporates customer service, procurement, sales analytics and forecasting for and from all of the users in an organization.

 

Yes, these concepts apply to manufacturing too.  Manufacturers have challenges in their manufacturing processing which ERP solutions can help to manage, but they must also distribute their products, they have customers and the same challenges as Distributors.

 

Inventory handling has to be streamlined. 

 

Inventory is the core of any organization that distributes products regardless if they are manufactured or purchased.  ERP solutions need to integrate the entire organization, but grew out of MRP systems that were designed to optimize inventory handling.  Technologies are continuously evolving to address new integration and handling challenges. 

 

The challenges are basically the same as they have always been.  It is the way we interact with inventory that has changed. 

 

Companies need inventory to process, they need orders to create planning, and they need customers.  Companies need to maintain supplier relationships.  They need to determine the right levels of inventory to meet demand, but not just take up space.  ERP Solutions need to address these challenges and provide observability to management, customer service, sales team, procurement and production departments.

 

Everyone needs to know their part of the puzzle.

 

Other areas that today’s ERP solutions must address include compliance regulations.  Your system must have the capability to record transactions and interactions, particularly in industries like food and pharmaceutical.  Business processing must be tracked and traceable.  Who touched it, for how long, what areas processed the inventory, what was the source and where did it go and how did it get there.

 

Customers, suppliers, and internal representatives are all interacting in different ways with the same goal.  Efficiency drives your organization.  They need real-time information and they need it now and are turning to Social media forums and mobile platforms.  Cloud or hosted solutions should be evaluated for fit and function.  Special caution should be evaluated to ensure that they do not introduce synchronization or compliance issues.  The feature and functions sound promising, but the integration can introduce errors and compliance complications.

 

When tying into social, mobile and cloud platforms the need for traceability increases, not decreases.  Just because another organization manages a platform, does not resolve your responsibility to meet compliance mandates, security issues increase and do not go away.  Plus you are adding integration challenges. 

 

This is not to say there is not value in these technologies, it is saying that they have to be approached with caution and due diligence.

 

Automation is certainly the key to streamlining operations and reducing and controlling costs. 

 

A good-fit ERP solution will have the tools and feature needed to automate your processes.  The more the better, but critical ones like inventory must come first and foremost.  Automation reduces the labor associated with data collection and analysis, reduces errors by eliminating manual processing, and frees up time for personnel to concentrate more on core business functions.

 

Ultimately any changes should have the end customer in mind. 

 

Nothing happens that is worthwhile if it does not increase efficiency both internally and externally, especially for your customers.  The customer is the one who writes the check for you product.   It is generally easier to keep an existing customer happy than to acquire a new one.  However, both are critical and your ERP solution must provide the means to service your customers better.  Whether that is done by implementing and Ecommerce solution for self service needs or better tools for your customer service department to answer their questions and concerns or the procurement department to better use forecasting to meet production and delivery demands.

 

Business needs change and evolve in the way we handle information even thought the challenges of the supply chain and customer service are fundamentally the same.  The way we collect and deliver the information is constantly changing.  An effective ERP solution must address your current needs and provide the forum to grow with you and your customers.

 

Organizations must endorse, embrace and incorporate new technologies in order to compete effectively. 

 

Solutions exist, but the challenge increases in selecting a solution that meets your needs, addresses current challenges, and will enable faster growth and grow with you.  There must be buy-in at all levels of your organization from top C-Level, Board members, and to all departments that comprise your organization.

 

Dolvin Consulting works with you and industry experts to help you examine your operations so that you find the right solution to address your specific challenges.  Due diligence and some hard work now will pay off in the future with streamlined operations, reduced costs and greater profits.  Contact us today to see how we can help. 

 

Your comments and suggestions are welcome.  Tell us what you think.

Streamlining Manufacturing Processes and Improving Inventory Management

Any organization that handles inventory at any significant level will struggle at one point or another with inventory control and warehouse management.  Operations start normally enough and growth is accommodated fairly well until a trigger happens.  That trigger can be any number of changes.  They may include a merger or acquisition, new product line, updated manufacturing, new demand or market penetration.

 

 

As business grows the need to address multiple customer and separate industry segments at the same time are examples of growth that many systems cannot handle well.  A given system may have been designed to work with a single industry and its unique needs, but may not scale well to accommodate new industry segments.

 

What happens when there are new lines of business that have different requirements?

 

It becomes increasingly critical to streamline and manage the massive amounts of information being transmitted and processed from various locations such as customers, billing departments, technicians, trucks, and more when hundreds of organizations in a variety of industries rely on your systems for its equipment and supplies services,

 

A common constraint in many older Enterprise Resource Planning (ERP) systems is their limited ability to efficiently and cost-effectively perform critical every day sales and service functions. 

 

These older systems tend to be very labor intensive and involve too much paperwork.  These constraints are multiplied when there is a mobile sales force that needs to have printed materials before traveling to customer locations.  This information has a tendency to go out of date quickly so that Salesreps would not have a clear snapshot of what products customers were using, what they were already billed for and what they already paid.  Delays in billing amplified the gap.

 

Recognizing that your current service billing and inventory processes are leading to increased costs is a first step in finding a solution that will reduce costs and streamline operations.  

 

You first have to recognize you have a problem before you can find a solution. 

 

Finding a system with real-time visibility of its data that has the ability to present it in a meaningful way is a critical step to moving forward and being more competitive.

 

To address efficiency issues companies need to find solutions that help to automate and integrate all of its ERP processes and provide an accurate, real-time view and control of the organization’s customer and inventory data.  Adding to the complexity are businesses that have manufacturing processing to integrate as well.  

 

Any new solution will certainly need easy deployment and real-time data discovery which will result in increased customer satisfaction.  Leveraging mobile technologies is often a key factor especially when a mobile sales force must be supported.  Mobility is important not only in extracting information, but also in updating the backend ERP system automatically.  Tasks such as invoicing can be done directly and automatically through handheld devices to eliminate the expense of time delays, postage and inefficient paper processing.

 

Implementation any new system can have its challenges.  When change is embraced in an organization the process can be seamless and quick.  Seamless integration of the entire organization will provide a seamless view of all data.

 

Key benefits and results of a comprehensive and fully integrated solution can include:

Rapid implementation.

Seamless integration.

More efficient and up-to-the-minute inventory management.

Real-time accounts receivable control and inventory updates.

Transition from paper to electronic records/management.

Reduction of human error, manual processes and employee resources.

Automatic printing of needed forms.

Real time updates and adjustments.

Reduction of operational costs.

 

Working with a responsive ERP solution provider that takes the time to listen and truly understand your challenges is invaluable.  Access to the leadership of that solution provider is equally important.  Having the ability to developing a flexible solution without rewriting the system can transform the way you automate and streamline your organization.   

 

Transformation.

 

How have ERP solutions transformed your operations?  How have implementations of new solutions increased efficiencies, reduced costs and increased profitability in your organization?  We would like to know.  Please share your successes and failures with our readers.

 

Dolvin Consulting works with industry experts to help you find the right solutions that will fit your business and your operational culture.  Contact us today to see how we can help.

 

With truly automated operations and real-time access to critical data, you will be able to offer your customers outstanding service and support that will truly set you apart from your competition.

 

Customer Commitment

Customer commitment is often associated with customer service and vice versa.  Whatever business service or product your company provides, whatever product or service your company purchases, customer service and the relationships surrounding those offerings are paramount to success. 

 

How do you like to be treated?  Many organizations make statements on their web sites and brochures about customer service being their priority.  They most certainly expect equal or better service on their purchases.  But, how well do they actually deliver? 

 

Does your organization give as well as it gets?

 

Customers and those serving them need access to accurate real-time information.

Product and stock status availability.

Delivery time frames.

Invoice status.

Sales history.

Buying patterns.

Sales force automation toolset.

Contact Relationship Management (CRM) database.

 

In regards to Enterprise Resource Planning (ERP) solutions, what tools are in place to track and measure service levels?  Is your organization investing in your own infrastructure so that your staff will have the tools and resources necessary to answer customer inquiries and solve issues?

 

Are you getting the following from your ERP supplier?

 

Totally committed to your needs.

Providing the best possible support.

Maintaining technological superiority.

Will work to keep your company on the leading edge with the latest advancements.

Continue to offer real value, now and for the future.

Offer each client personalized, world-class service.

 

ERP solutions work when they are embraced and allowed to work. 

 

ERP software is organized into modules.  These modules are designed around departmental and/or functional company roles.  For example, Finance department consisting of General Ledger, Accounts Payable, and Accounts Receivable.  A functional role might include Procurement which overlaps Purchasing, Inventory, Warehouse Management and Sales Analysis.

 

All ERP application modules are designed to work together to enable better customer service.  Not all departments have direct customer contact, but all contribute to the overall operational efficiency of the organization. The customer service department and sales force are examples of two departments that do have direct customer contact and highlight the need for real time information.  Purchasing and procurement also have direct contact with the supply chain and also need quick access to accurate information.

 

ERP solutions work better when you trust them to do the jobs they are intended to do. 

 

Trouble can creep in a number of different ways, like when too many modifications are made.  Modifications can be an indication that the particular solution selected is not the right solution.  It does not mean that it is not a good solution, it just means that it is not a good fit for a particular business model.

 

Different business types need different solutions. 

 

Businesses need solutions that are tailored for their particular method of operation.  Just like automobiles, some need a fuel efficient model, some need luxury and comfort, while others need the ability to haul big loads.  They are all good vehicles, it is just each is designed and optimized for a different primary purpose. 

 

Whatever solution your company utilizes now or is considering, the one underlying principal that must be considered is how well will the solution enables your organization to deliver great customer service.  In what way will that improve with a replacement or upgrade?  A lot of effort goes into selecting and implementing a new solution.  Customer service and the tools associated with the collection, analysis and delivery of that information in a useful format must be first and foremost.

 

What changes are you considering?  What features and functions are important to your organization?  How are you preparing for change?  In what way do you measure improvement and success?

 

We would like you to share your thoughts and suggestions.  For additional help, contact Dolvin Consulting.  We team with industry experts to provide you with great customer service.

 

ERP Leaders

 

"If your actions inspire others to dream more, learn more, do more and become more, you are a leader."   John Quincy Adams (6th U.S. President).

 

Can Enterprise Resource Planning (ERP) solutions themselves be leaders?  Is it even possible for software to be a leader or are the companies that provide the solution leaders? 

 

Should ERP solution providers be leaders?  Do they need to be or do they just need to provide workable solutions?

 

People generally want to be on a winning team.  But, after you peel away the layers, if the solution works, then does it matter if you are working with number one or two or some other ranking? 

 

The solution has to be a solution.

 

Call it what you want, rate it however you like, but the bottom line is: it has to work.  The solution needs to provide a platform to generate a positive Return on Investment (ROI).  Without that you would need to have a specialized need or operation to choose a solution that did not provide a basis to generate a good return.

 

What does a “Leader” mean to you, the purchaser?

 

One thing a leader in the software industry offers are direct relationships with hardware providers to ensure their applications take full advantage of available resources, that their software handles upgrades and operating systems updates seamlessly without interruption to business operations. 

 

Another leader quality is a commitment to development, research and support.  Taking feedback from their user base to build better solutions that fulfill their needs (customer service).   Research and development into new technologies to keep current with evolving supply chain demands.

 

What are you paying for?

 

With ERP solutions you typically pay in initial license fee and then an annual maintenance fee.  I had a conversation with a business owner a little while back about these fees.  He thought they did not make sense since the software had already been written.  He understood the hardware costs, but not the software fees.  Conversion and implementation estimates were another discussion.  We discussed that the fees are not really to pay for the software that has already been developed; it is to support the organization that supports your business operations.  It pays for continued improvements, bug fixes, and error/message handling. 

 

Granted the proposed software did have some significant costs associated with its development and the initial fee offsets those costs to the developer.  The annual fee is reasonable when you consider that you need the efforts of a leading developer to keep you current with your industry. 

 

You need a leader in the industry in order to provide training and support. 

 

There are plenty of solutions available and you need to select a solution provider that will be able to help you train, prepare, convert and support you as you transition and grow.  If the supplier it too small, then what happens if the economy turns, or they get really busy or they get hit by a bus?  If the organization is too large, then you can end up being just a number and lose any personal contact.  Most people like to be known to their supplier and have a relationship. 

 

Technology is continuing to develop at a faster and faster pace.  You need a partner that understands your business and is committed to continue growth efforts to both your business and theirs.  You have a mutually vested interest in both succeeding.

 

What do you think of leaders in ERP solutions?  How important is it to your business?  Do you just prefer a low cost solution and are not concerned about upgrades and support?  How do you currently utilize the support services provided by your supplier?  What is important to you?  What does your business need to grow?  What support services are a necessity and what is a luxury?

 

At Dolvin Consulting, we would like to know what you think.  Please share your ideas with us.  Contact us, if you need help.

 

When to Upgrade your ERP Solution

The pain associated with upgrading or replacing an Enterprise Resource Planning (ERP) system can often be equated to open heart surgery without anesthesia.  It is not a comfortable situation.  No way around it, there will be a lot riding on any new implementation.   Carriers can rise or fall on the success of a project of this magnitude.    Upgrades can be a little less strenuous, but that too depends on the amount of time passed since any maintenance has been done and number or releases skipped.

 

In contrast if your organization has picked a solution that matches its enterprise processes and has minimized its modifications, then you are in an enviable position.  It means that you found a good solution, have a great relationship with your ERP vendor and embrace change.  I am not saying any of these things are easy.  When they align with your organization’s mission it becomes easier to stay current.  The work does not go away, but the dues have been paid and the results of staying current are the benefit.  Do you want to work now, upfront or later on an ongoing basis?

 

Staying current is a critical component to great customer service. 

 

In what way are you letting your customers know that you value their business?  Saying thank you is a good start.  Showing them that you recognize their changing needs by keeping current is putting your money where your mouth is.  It is one thing to say you value your customers and it is another to show them.

 

So, when is a good time to upgrade? 

 

Upgrading only for the sake of upgrading is not a very good reason.  The component to consider is the vision of the future of your particular industry.  What is the Star Trek future vision of your industry?  What would go beyond really-cool and actually make doing business with you an opportunity to grow a relationship. 

 

Customer satisfaction goes beyond making it easier to do business with you.  It is all about the relationship. 

 

Ask yourself if you would still purchase from one of your suppliers if their price was a little higher than a new vendor that showed up at your door.  What if the price difference was a lot?  Would the supplier you have used for the last decade work with you to be more competitive, perhaps in ways other than just price, like availability?

 

Upgrade and new installation projects do not exactly have stunning success rates in general.

 

Successful implementations do have a common theme.  A project manager, a lot of planning, research and a tough-love approach.  The last thing that you need is a yes-yes person.   It takes a willingness to get out of your comfort zone and to be willing to look at what you are doing with a new set of eyes.

 

I remember years ago when a friend bought a new red compact pickup truck.  He made sacrifices to get the truck.  I was generally aware that they existed, but it was not until he bought it and was customizing it that I started seeing that type of truck all over the place.  I was now “aware” that there was something else out there.  He wanted a customized solution that represented his vision.  He had vision.  He did not change the truck, it was still a truck.  He changed the way the truck met his needs.  I was now aware of how his customized solution took the basic and tailored it to his needs. 

 

Other indicators of the need to change. 

·         It takes too many steps, and in particular, manual steps to complete a task.

·         There are too many separate systems. 

·         There are significant differences between book inventory and perpetual inventory values.

·         You have a sense that it is takes too many people to complete simple tasks.

·         You spend too much on technology support.

·         Your customers are doing more business with the competition.

·         You signed on to your own web site and could not figure out how to place an order, could not find a phone number to call or you could not find reach a human being that would listen and let you know that they understood your challenge (regardless of how trivial).

·         Is your ERP solution the solution that supports the majority of business applications and is the repository for the corporation’s information?

 

 

When was the last time you called your own customer service department and pretended to be a potential new customer to see how your customers are treated?

 

The decision to upgrade or implement a new solution is not an information technology decision.  It has to be a business, a business process decision.  Senior management must take ownership of the decision process.  Too much rides on the outcome.

 

Upgrades should be periodic and deliberate. 

 

The upgrade decisions must be aligned with the strategy of corporate vision.  The costs must be justified.  They need a project plan and general consensus.  The resources needed must be identified and available.  The alternative is rapid technological obsolescence.

 

ERP solutions are a critical component of any organization on a growth path.  As many business processes need to be incorporated and integrated in the solution.  The more fully an organization is integrated, the more operational efficiencies can be obtained.  Automation and integration is how you stay competitive.

 

ERP changes are also a great time for companies to evaluate their current processes and look for opportunities to eliminate custom software, unneeded modifications, and third-party or legacy systems in order to simplify their environments and lower costs of ownership.

 

Making the decision is not always easy, but the benefits are worth the effort if the process is done right.

 

What are you doing to streamline your organization?   We would like to hear what you have to say and learn what you are doing.  Contact us today.  We are here to help.  Dolvin Consulting works with manufacturing, distribution and specialty retail companies to help them streamline their computer operations, reduce costs and become more profitable.

 

Finance Software Integration

When I describe Enterprise Resource Planning (ERP) software with people I often make the analogy that ERP is to the enterprise what office suites are to the desktop.  ERP integrates an organization based on department or functional roles so that one hand knows what the other is doing.  Similar to how a workstation database, spreadsheet, word processor and presentation programs can share information instead of having to rekey it in each application.  It saves time, increases accuracy and improves efficiency.

 

Within an ERP system the financial application particularly General Ledger tends to be the mortar between the bricks, where the bricks are the other applications.  Sometimes the ERP system consists only of financial applications, however, in today’s highly competitive environment the more functional roles that are included the greater the efficiency.  Having the other applications tie into the financial module really enables meaningful dashboards.  Finances give an unbiased view of business operations.  The more highly integrated with application interfaces and automatic posting, the better management opportunities exist.

 

Finance is often referred to as the Back-Office.  It is the behind the scenes company operations that are critical.  Purchasing cannot operate without payables handling the payments.  It does no good to ship orders if the proper credit application and collection resources do not exist.  Inventory valuation, write off and variance accounts for the company’s ability to borrow and fulfill customer orders.  Too much inventory and there is excess overhead, too little and business opportunities may be missed.  Finance gives an unbiased analysis of the company’s efficiency.

 

Functionality is a critical component of any system. 

 

How well does the software match operations versus how much change in operations are necessary to match the software.  This is no simple statement. 

 

The implementation of software can run from one extreme to another.  At one end the software is implemented and the company updates its processing to match the software.  This provides software stability and enables relatively easy upgrades.  On the downside if the software does not match operations the company will have to make some potentially painful adjustments to the way it operates.

 

At the other end of the spectrum is a company that develops their own system.  This system matches exactly the operations and is like hand in glove.  The problem that typically occurs is that the technology can become outdated.  Upgrades, if they even exist, require reapplication of the modifications and can significantly increase the costs to stay current.  If the software is completely custom, then adding new functionality often requires bringing in experts in new technology to learn and understand how the two can be integrated.     

 

Most companies fall between the extremes.  We like to see a 95% or better match between software and company operations.  At this threshold the software is matching the majority of the way the company operates giving stability and upgrade paths to the business.  The modifications tend to be light in nature and more easily managed.

 

There are cases when custom solutions are necessary, but they should be carefully planned and evaluated to ensure the Total Cost of Ownership (TCO) is evaluated.  

 

Another key question to ask is how well does the new software fit the culture of your organization?  How many steps does it take to process a payment?  Are accounts updated in real time or at some defined batch point in time?  Do you need multi currency support?  Are you working in multiple time zones?  Or, are you a single location facility?  How well does the software meet any industry regulations? 

 

There are software solutions to match each. 

 

Regardless of the match, business growth tends to be the common driver for any change.  Changing systems, finance, ERP or other is not a comfortable process.  It takes careful planning to make a successful transition.   Growth is good, keeping up is the challenge. 

 

The process of change can be painful, but staying put is typically more painful.  How hard is it to operate the current software?  Does it meet your needs?  How many manual processing steps are necessary to keep up?  The fit has to be right.  It has to be relatively easy to operate.  Be flexible enough to address the inevitable future changes you business will face.  Support from your software supplier is very important to consider.  How do they provide training and implementation support?  Are they large enough to develop new enhancements, yet small enough to answer the phone with a real person?

 

Is functionality an issue?  Is out dated technology a driver for change?  Is native growth or merger and acquisition a factor?  What costs are associated with your current solution versus anticipated costs of a new system?  What is your competition doing to serve their customers and win over your customers?  How fast can you react to market change?  Are you now operating in multiple locations? 

 

Cost savings from operational efficiency and reduced maintenance should be included in any analysis as well as departmental or personnel consolidation.  How many people does it take now to manage the finance department and why is that?

 

Your customers are demanding a change whether you realize it or not. 

 

Customer service should be at the heart of any change.  Every person and operation has one goal.  That goal is to serve those who pay the bills, your customers.  What good is a more efficient operation, if you cannot increase your customer’s satisfaction? 

 

Bottom line is that you need a trusted advisor that will take a fresh look at your operations and help you document your operations.  A good match for a new solution is made on knowing what you are doing now and what needs to change.

 

Dolvin Consulting works with industry experts to help you find solutions to the challenges you face.  All organizations struggle somewhere.  All different, but consistent when they want to grow.  Contact us to see how we can help you find new solutions.  We are here to help.