Friends Don’t Let Friends Hire Their Friends

Friends Don’t Let Friends Hire Their Friends Jeff Hyman, Forbes  Balancing relationships in and outside of the workplace can be a difficult juggling act; however, when a friend is hired in the workplace, that makes the juggling even more difficult.  This new co-worker who is seen as an emotional confidant outside of work, might receive office favoritism and act as a person to confide in.  Northwestern Business School professor Jeff Hyman believes that mixing friendships and work isn’t the best practice, but gives several steps/things to consider if you are going to hire a friend.     read more

Social Media Strategies

Social Media Strategies Brendan Kane, Entrepreneur Building exposure for your brand or company is no easy task.  Brendan Kane, a noted social media advisor to the likes of Taylor Swift, Rihanna, and Disney, walks us through several strategies to build a large social media following in a short amount of time with high levels of engagement.  Learn five helpful tips on steps you can take with more robust posts and better content, using strategies that apply to multiple social media platforms. read more

Technology for Growth

First things first, the obvious, smaller companies have smaller budgets and less resources to implement technology changes.   Even changes that increase efficiencies and throughput.   The challenges are similar for large and small organizations, it is just larger organizations generally have more resources available.  The relative impact is generally equal though.

For smaller organizations the stakes are relatively greater and the margin for error much smaller.  For example, a budget overrun or deadline exception will have a negative impact on a budget for a larger organization, but it can be devastating for a smaller organization and effectively put them out of business.

Ironically technology itself can help.

When it comes to Enterprise Resource Planning (ERP) solutions, there are many different variations that are tailor made for many industries.  Often the variations came from home-grown solutions from companies that could not find the right solution and built their own and over time starting selling that to other companies in their industry.

With so many solutions and so much history now, you have to wonder why budget and time overruns occur.  The reality is it happens all the time.  Much too often.  Somewhere there was a breakdown in communication.

There are three basic categories to ERP solutions.  Each category has many components, but they all funnel into these three.  

The software or programs are module oriented where modules are based on departmental or functional roles in the organization. It is responsible for the collection and presentation of the information the solution stores.  ERP software typically has an initial license fee and annual maintenance.  I have had conversations where a prospect just could not justify why the software cost so much, after all it was already written.  I did my best to explain that the annual fee, perhaps more so than the initial fee was for future support and not so much for what was already written.  Business needs change and ERP software solutions need to change to match the business landscape.    

Remember that ERP solutions are designed to integrate the organization, the entire organization.  The more of your company that is included in the solution, the greater the efficiencies can be and therefore cost savings and increased profits.

The second component is the hardware or physical equipment the software is designed to run on.  This includes a central database of information that is shared by a server and distributed to clients.  The clients are everyone that accesses the information at one level or another including web delivery.

In some cases companies will choose a Software-as-a-Service (SaaS) solution which is a subscription based solution where someone else manages the infrastructure.  This type of solution is talked about a lot lately and is referred to as Cloud solutions.  For many, if they are not already using a hosted solution, they are one or two generations of software or hardware away from this type of solution either in part or in whole. 

On premise or hosted in the Cloud is a personal choice that really is dependent on more details than can be discussed in an online column.  It is not the point of this writing and there is no one right answer.  Each challenge needs to be matched with an appropriate solution. 

Cloud is irrelevant.  The solution as a whole is the important part.

Here is the point.  With some careful planning and analysis the software and hardware costs can be estimated fairly well.  The solution usually falls into a range that is predictable and can be clearly documented as to why it is smaller or larger than estimated.  For example, the solution is now expanded to cover another division and there are more users, clients and the need for more robust database server solution.  This, by the way, is a particularly great benefit of Cloud solutions in that the vendor should be able to scale the solution resources easily (either up or down).

So where is the problem?  What is the third component?  Where do so many organizations lose control of their budget, their time, their patience?

Implementation.

Implementation which includes training, conversion and support.  In a rush to close deals or fear of limited budgets and losing a deal this component of the solution is often given too little analysis.  Granted some of the components are harder than others.  How much training do your users need?  Do you learn to swim by jumping in the water?  That is sink or swim.  Sinking is not a good option for most companies. 

Conversion, if it has been done before between the From-Solution to the To-Solution can be estimated fairly well.  If it is a new conversion, there is still historical averages that can be used.  Some solutions are programed, some are re-keyed, and some are a combination of both methods.  A big category is the decision on how much and which type of history should be converted.  Do you phase out one system and build history in the new solution or do you convert everything so everyone uses the new system.

Support is relative to everything else.  Too little training and planning means more support later.  More support up front usually means less hiccups later.  You cannot bypass support.  New ERP solutions are a series of complex interrelated components.  They are not off the shelf box or quick download solutions. 

Your organization is not simple and neither will your ERP solution be simple.

Technology can help collect and organize information.  Information you need to make decisions in deciding what solution to select and implement as well as manage the implementation project.  Information you collect and analyze to manage your business with the solution you select. 

Information is key and technology is a vehicle for collection and delivery.  The solution is the important part and the technology is the delivery mechanism.  There are no shortcuts in implementation and it is the most variable component in a solution and therefore needs the most attention to prevent unpredictable budget overruns.

Dolvin Consulting works with your team and brings together industry experts to help you manage the chaos associated with ERP solutions.  Contact us today to learn how we can help.

ERP Disaster Recovery

Today’s economy is no different than yesterdays.  There are plenty of pressures to keep current, catch up, and compete.  Add to that the lack of budget, compliance mandates and a false sense of security and you have all the ingredients that drive a disaster recovery situation into a financial meltdown. 

 

Many technology providers are changing their mantra from disaster recovery to business continuity.  The concept is good.  Do we want to recover or do we want to continue operating?  Failing to plan is planning to fail.

 

Many providers now have real, viable, and proven solutions for Microsoft Windows server technology.  What about solutions or applications that do not run on Windows?  They leave that up to your Enterprise Resource Planning (ERP) solution provider.  That may be the first bit of good news.  You ERP solution provider knows your system and has experience in recovery procedures that should include both hardware and software.  If your ERP selection was done right they have taken into account your risk quotient and have addressed your specific needs.  You did have that conversation, right?

 

A Disaster Recovery (DR) plan starts with the plan and that is little good unless the plan actually exists and it is practiced and takes into account the changes that are occurring almost daily.  Does the DR plan take into account the actual business requirements?  Sure you have backups, do you have a hot site that you can restore to?  Does the plan include a reverse recovery plan?  How do you transition back to your production environment? 

 

Does the plan take into account that during most testing it is under a controlled circumstances and the testing is planned in advance when in reality a real disaster is rarely a planned event.  Getting key people in place, getting needed resources to the recovery point is not so easy when everyone in your region is doing the same thing at the same time.   The problem with disasters is that they often affect a region at a time and not necessarily a single organization.

 

How much time will it take to actually restore your entire system?  Or, is it systems?  What interdependencies exist?  The priority is typically the ERP system, but what about user accounts, email, communications?  What about user data, spread sheets and documents?  Do you keep both sites in sync so that in a disaster situation only current data needs to be refreshed?  Do you try to do all of this yourself or do you hire a firm that has experience and resources to manage the process when you need it most. 

 

You might need help.  Think of a management organization like a paramedic when you have an accident.  As you are lying there, at that point in time you really do not care how much experience the help has or how much it costs, you just do not want to die.  What would be different if your own professionally trained and experienced healthcare team followed you around?

 

At this point we do know that we need a plan and we have to test it regularly.  Take into account that in a real emergency it will not go as you hope, but your contingency plans will help accommodate the chaos.  The DR plan cannot just scratch the surface.  The plan also needs to address the switch back to the normal production environment. 

 

On of the hardest things to address is the constant evolution of your processing.  Your team must have up to date run books.  A simple program change or update to increase operational efficiency can have a dramatic impact on documentation.  It is inevitable that documentation can lag behind.  The question is what impact it will have when you are in a recovery situation.  One of the best things to be done is to cross train personnel and periodically let a person from a different department run through the instructions to ensure that in a recovery situation the most critical operations will continue.

 

Remember, a backup tape is not a disaster recovery solution.  How long does it take to backup?  How long will it take to restore?  Where and what will you restore to?  It is the same hardware?

 

Are cloud solutions an exception to disaster recovery?  The data resources may be safe, but can you get to it and with what client?  What bandwidth will be available when power and communication lines are down?  In the case of a regional weather impact your people will be concerned about their families and homes.  Who will make your business a priority over their family?

  

Remember, just because you trained does not mean you are qualified.  Practice, practice and yes of course, practice.  Test, test and yes test.  Test not just one system, but your entire infrastructure.  Test the restoration to production.  Plan, plan, and plan.  In a real disaster recovery situation, there will be situations that you cannot plan for, but you can have contingency plans. 

 

At Dolvin Consulting, we would like to know what your organization doing in the area of disaster recovery and business continuity.  We would like to know, your colleagues would like to know.  Share your ideas, best practices and checklists.  The one you help will be yourself.  As you share, you validate your efforts and get much needed feedback.  Contact us today to see how we can help with your plans.

 

ERP Failures and Your Job

Thanks to a friend of mine I was able to read a blog post this week by a CFO who says they lost their job, because of an Enterprise Resource Planning (ERP) failure.  Someone has to be responsible and if this person actually lost their job due to a failed implementation, I am sorry for that company.  I do care for the person in general, I do not know them personally, but he/she is probably lucky to be out of that company. 

 

 

The buck certainly has to stop somewhere, but can the failure in something as involved as an ERP implementation really one person’s fault? 

 

I think not.  Falling on the sword is something characters did in times past.  The CFO should have looked at the numbers.  There is an initial investment and annual maintenance fees.  This should be known before signing.  The ERP solution should have had some examples of typical Return on Investment (ROI) and certainly he/she should have looked at the Total Cost of Ownership (TCO).  You might not know all of the details, but for the most part this is pretty straight forward analysis.  It is what a CFO should do.

 

My guess is that there was a communication issue and there was not a realistic budget put together for the implementation.  Hardware is straight forward and so is software licensing.  What is difficult to pin point is the amount of time it should take versus how much time it actually takes to transition from an old system to a new one.  A “slick” Salesrep might brush this aside.  From experience we know it is appropriate to double the hardware and software for the implementation. 

 

Correct, implementation is typically half the cost of a new solution.

 

I have had an actual, real conversation with a business owner where they tried to convert systems in the past on-their-own and have suffered miserably, took way too much time, invested too much money, and have sworn they would never do that again.  The next sentence had to do with the budgeting numbers proposed as being too high.  The software, he commented, was already written, the hardware he acknowledged was what it was and probably had margin imbedded in it, so that should be negotiable too.  However, the implementation number just seemed too high.  Really?  What happened when “you” tried to do this on your own in the past? 

 

Yes, the software is already written.  You are not paying for what has been written.  You are investing in an organization that is maintaining the software and constantly making improvements for the way businesses are changing.  We use new technology all the time.  First punch cards, then magnetic media, then modems, fax machines, Electronic data exchange, the Internet.  All in an effort to provide better customer service. 

Why, because the competition is already doing that and your customers expect more.

 

Yes, the hardware has some margin in it.  “Your” business buys stuff, processes it, marks it up, and sells it for a profit.  ERP solution providers do the same thing.  Most are not greedy, margins are slim on equipment, but they are in the business of being in business.  As a business owner that should be understood.  Yes, question the number, check the Internet, and ask others if the numbers are reasonable.  It is okay for a company to make a profit.  Granted it should not be their whole year’s make up, but it is not unreasonable for them to make money.

 

Implementation. 

 

Would you want the number to sound optimistic and then have overruns?  At that point you are so far into the process you may not feel like you have any options.  You have come so far, right?  It should only take a little more.  They thought your people would be more involved and that is what they based their number on.  They made assumptions and so did you.

 

There are two camps and most companies fall somewhere in between.  On one side, a company has little monetary resources, but is able to take their time, rekey information, practice, practice and practice.  When the conversion time comes, it is almost a non conversion, because they have already been using the system.  This works, significantly lengthens the ROI time, but it works, because the people are working the system.

 

In the other camp the company has monetary resources, but little time.  Caution, this sounds great, but think about the last time someone forced you to do what you always have done in some other way.  Did you care?  Still, this does work, but the investment can be significant.  You are typically hiring others to do the heavy lifting and they are absorbing the learning curve. 

 

The in between balance of investing enough monetarily and investing in your people is the better choice. 

 

The exact balance is more art than science and some care is needed here.  Ask the vendor if they have worked with other businesses like yours or similar to yours and where improvement could have been made.  Be sure to ask for references.  Nothing is perfect and you should not look for it, but you can educate yourself on common pitfalls and either avoid them or lessen the impact knowing you are going to hit them too.

 

There has to be a realistic budget and a look at the resources available. 

 

One challenge here is that the economy has been so tough lately that a lot of people are already doing two or three jobs and do not have a lot of spare time.  You might need temporary help in the interim.  Not a bad idea, just make sure that the knowledge curve absorbed does not go out the door when they are done.

 

Anyone could write days worth of material here, the point to acknowledge is that it will take both time and money to have a successful conversion and this is not an area where you should cut too much.  You will need a dedicated project manager with experience to guide you through the process.  Your fee includes this person’s time.  They are knowledgeable and their experience invaluable. 

 

You might want to compromise in what software you purchase.  Most ERP solutions are based on modules.  You may not be able to implement all of them all at once anyway.  So pick what you need and weigh the others.  Some ERP vendors offer discounts to get everything all at once, but again, this is an area where you actually have control.  You know your budget, be open and honest.  Let the provider help you.  They may come up with ideas you never thought about.

 

The article I read asked readers about their thoughts.  A lot of good answers came up.  Below is a partial list that you may find helpful.  Contact us for more details.

Define the expected benefits earlier and more clearly and then use as a compass going forward and a benchmark of success at the end.

Assume it will cost more and take longer.  If it doesn't, you're a hero and if it does you're realistic.

Rigorously avoid project creep.  Otherwise the scope will always expand.

Avoid unnecessary customization.

Admit and move on from mistakes faster.

Review the project on a regular basis and often.

Plan on more testing.

Plan on more staff education.

Delegate and verify more.

Don't try to replicate everything from a legacy system.

An ounce of package selection will save you more than a pound of implementation

Focus on business goals and not systems to start.

Document business processes.

Do not accept non-involvement.

Think about systems strategically.

Build a change management process into your approach.

Get all stakeholders in the room early to identify the requirements.

Understand that being part of the core implementation team should be considered a full time job.

Everyone needs to understand it is a project that will involve the entire organization.
 

One thing most companies learn from trial and error it that while the ERP vendor should provide a project manager, they too should have a trusted advisor.  They need an advocate that can help guide them and prepare them for the bumpy ride ahead.  ERP transitions are like a heart transplant.  Done right and a long life awaits.  Done wrong and you never feel right again.

 

Contact us today to see how we can help.  That is what we do.   Dolvin Consulting works with companies just like yours to help them find and implement solutions for real world challenges.

 

No Shortcuts to a Better ERP Solution

Well, not really anyway, but there may be a few tools to help you with the journey. 

 

Take for instance the recipe for “Spaghetti alla puttanesca” (literally "whore's style spaghetti" in Italian) which is a tangy, somewhat salty Italian pasta dish invented in the mid-20th century. The ingredients are typical of Southern Italian cuisine: tomatoes, olive oil, olives, capers, and garlic.

 

Various accounts exist as to when and how the dish originated, but it likely dates to the mid-twentieth century. The earliest known mention of it is in a 1961 Italian novel which mentions spaghetti alla puttanesca come li fanno a Siracusa (spaghetti alla puttanesca as they make it in Syracuse).  According to the Professional Union of Italian Pasta Makers the sauce became popular in the 1960s.

 

The 1971 edition of the Cucchiaio d’argento has no recipe with this name, but two which are similar. The Neapolitan Spaghetti alla partenopea, is made with anchovies and generous quantities of oregano, while spaghetti alla siciliana is distinguished by the addition of green peppers.

 

According to Annarita Cuomo, writer for Il Golfo, a newspaper serving the Italian islands of Ischia and Procida, sugo alla puttanesca was invented in the 1950s by Sandro Petti, co-owner of Rancio Fellone, a famous Ischian restaurant and nightspot.

Basic recipe

 

The sauce alone is called sugo alla puttanesca in Italian. Recipes may differ according to preferences; for instance the Neapolitan version is prepared without anchovies, unlike the version popular in Lazio, and chili pepper is sometimes added. In most cases, however, the sugo is a little salty (from the capers, olives, and anchovies) and quite fragrant (from the garlic). Traditionally, the sauce is served with spaghetti, although it also goes well with penne, bucatini, linguine and vermicelli.

Chopped garlic and anchovies (omitted in the Neapolitan version) are sautéed in olive oil. Chopped chili peppers, olives, capers, diced tomatoes and oregano are added along with salt and black pepper to taste. The cook then reduces this mixture by simmering and it is poured over spaghetti cooked al dente. The final touch is a topping of parsley.

  

So, thanks to Wikipedia for the insightful recipe.  Our family version is a little different as it is likely different in many homes.  What is consistent here is the recipe for a quick, filling, hot meal for a hungry family.  It is a quick dinner sauce served over pasta.  Pasta, a starch staple of so many people, like rice and potatoes.

 

So how does this relate to Enterprise Resource Planning (ERP) solutions?

 

We so often look for a quick solution, something easy, something to ease the pain.  And sometimes we luck out and find an individual or organization that is worth the investment that takes your company on a new journey, like a tour guide.  As you can imagine there are all different levels of competency in tour guides and associated budgets. 

 

The key is finding a guide or trusted advisor that you feel comfortable with that takes the time to get to know you, your business and objectives and balances that with the available solutions and is able to recommend and show you potential solutions to your challenges.

Just a good guide can make your journey enjoyable and a quick meal filling, a bad guide or a guide that goes too quick or does not invest the time needed or simply just does not understand your industry, your business, your people or culture, can make a ERP search seem like the something from the dead zone. 

 

At Dolvin Consulting, we are proud to receive your requests for help.  That is why we are here.  To help your company navigate the seas of constant change and flux in technology.  We leverage our industry relationships to bring comprehensive solutions to you.  Contact us today to see how we can help.

 

Out with the old, in with the new

I am not sure where everyone is located who reads this article.  For me, I am located in New Jersey, United States of America.  “Joysey” as we often refer to it and no, it is nothing like the Jersey Shore television show (those are visiting New Yorkers and could be the subject of a whole book). 

We have not had a terrible winter season, yet there have been cold spells.  This weekend overall has given us a taste of spring weather.  Warmer, more moderate temperatures, sunny skies, and a light breeze.  Ideal weather to see how well in-shape we are from the winter to go out and start cleaning up the yard, fighting the weeds, pruning the bushes and pondering where our lawn went and if it will ever be the same.

 

My neighbor, after saying hello, said he did not know what he was going to do with his back yard.  I agreed, saying that I really did not have grass any more, just weeds.  At least he has grass in his front yard.  I do not have much of anything that looks like grass.  In truth the soil has run through many seasons and it is just not workable anymore.  The weeds seem to like it fine.  Yet, there are even a few dead spots the weeds do not even like to venture.

 

 

As interesting as this may sound (insert laugh sound here), it relates to a few of my customers who recently decided to replace their entire infrastructure.   Everything.  Servers, workstations, laptops, switches, operating systems, office software, etc. 

 

I am not sure if it is a matter of the economy being so bad for so long, that no one did any maintenance and the future all-of-a-sudden caught up, like in a time warp.  Or, if there was no one at the helm directing or deciding on what needed to be done.  In one case the organization decided on new software which had new requirements.  The old equipment just could not keep up and was painfully slow. 

For many smaller companies it may be a matter of not having a Technology Department or budget.  The companies are too small to have a dedicated person.  They operate on a break-fix method instead of being proactive.  Sometimes they have Enterprise Resource Planning (ERP) systems, but the vendor does not force updates and they end up getting left behind. 

No one seems to want to take responsibility.

 

Now, I am not advocating that once an organization has a solution that they should be forced to stay current, yet there is some thought that is why you select an outside solution provider versus developing the code in-house.  Someone to keep you current and invest the resources needed to keep current with today’s trends and changes and demands, demands of their customers.

 

Software as a service (SaaS) solutions have the advantage of keeping you current.  They can sometimes be limited in that you cannot make all of the changes you want and you need to mold your business to the software.  A big advantage is that you are always current.  Small incremental changes instead of dramatic culture changes.

As a solution provider I run up against the challenge of whether or not I need to keep after my smaller clients or devote my time and energies, not to mention income, towards companies that are actively looking for help.  I really do care, but how many times can I go to management and let them know they are at risk for not keeping current.  I hear all the time that “we are not a target”, “no one is trying to break in”, “we do not have any money”, “everything is fine”, well at least not until after-the-fact.  Then they have that puzzled look. 

 

I do not ever say “I told you so”, I ask how I can help. 

 

There was a time when things were simpler.  The challenge usually was not enough disk space or a workstation that was disconnected or not communicating.  You know, simple, not like there has been a data breach, our employee identities have been compromised and the regulators are calling.

 

There have been a few ideas on getting my clients current.  Depending on just how bad things are helps to determine if upgrading incrementally is an option or if replacing everything is the solution.

 

When the decision is made to replace everything, there are virtualization options.  The technology has come a long way and takes advantage of the older workstations being used as clients to a central system.  There are a number of advantages, central administration, backup, disaster recovery, easily creating new workstations from templates.  Another significant benefit is that all of the data resides in-house and for people traveling with laptop computers, this is a big advantage in cases where the device is lost or stolen. 

 

The downside of virtualization seems to be in a few main areas.  One, they has to be enough infrastructure to make it worthwhile.  Virtualization has upfront costs and there has to be enough “stuff” to offset those startup costs.  Two, you need someone on the technical side to help administer the system.  Yes, these systems are fairly well automated, but there are needs that require knowledgeable people.  These are powerful and sophisticated server systems.  Three, there are virtualization systems that run in-house and others are hosted.  The hosted ones take care of a lot of the administration and upkeep, however, if there are any connectivity issues, then this can be a dangerous combination.  If everything is virtualized and “out-there”, then what happens when you cannot connect?

 

Last fall on the East coast, right here in NJ, hurricane Sandy came running through.  Some businesses were completely unprepared.  Still, others thought they had everything covered, because their servers were in the “cloud”.  Great, but no one could connect.  The Internet is growing and hosts valuable resources, but they are only good, if you can get to them.

 

Another option for the smaller organizations is leasing.  If all of the equipment needs to be replaced, then it can all be leased.  At the end of three years, purchase two thirds of it at fair market value, and then lease one third every year thereafter.  At that point in time you will be replacing your workstations every three years and you can feel relatively confident that you will be current or not that far behind.  Every three years you will be all-new.  The servers can be leased as well, but you may want more time on them.  One advantage of a shorter term lease is that you can configure the hardware more to your immediate needs and not worry too much about the future, because you will be replacing it in a few years. 

 

Leasing also has the advantage of deferring the costs.  A smaller monthly payment than having to come up with all that money at once.  Cap-ex versus Op-ex expenditures.  There is a cost to leasing, but the administration reduction typically pays for it. 

 

I cannot say leasing is right for you, but I do suggest you take a look at the option.

 

So how is my yard and your computing infrastructure similar?  Well, I have been “doing” my yard for decades, feel I have a good feel for what it needs, fertilizer, water, mowing, weeding, etc.,  just like you do with your equipment and software.  I also know that a little knowledge and being knowledgeable are two different things.  Perhaps if I let the lawn care to someone, i.e. a business, that does lawn care for a business that I might not only free up my time for things that only I can do, but I might also end up with a great lawn that I do not have to worry about. 

 

At Dolvin Consulting we either have expertise or we work with industry experts that do have the expertise to help you understand your challenges, develop a reasonable plan of action direct you into a profitable future.  Contact us today to see how we can help.

 

Seamless Integration, High ROI

With Agile and VAI working together, Berk has gained a seamless transportation and ERP system. As Dan Bivona, Sales Director at VAI, says; “VAI strives to incorporate innovative solutions such as provided by Agile to help our customers become more profitable. We believe the Agile solution interfaced to VAI S2K Enterprise enhances our offerings to existing customers and prospects considering an ERP Solution.”

Thoughts:

Ø  Key words here are “working together”, “VAI strives”, “help customers”, “enhances our offerings”. 

Ø  VAI is a company that is always looking to improve operational efficiency which drives profitability for their customers.  A win-win.  If there customers do well, then they do, but the key is the customer comes first.

 

 Read the full story by clicking this link.

 

RESULTS:
       

The integration of AgileElite and VAI’s S2K has so far vastly improved rating, routing, planning, optimization, execution and reconciliation capabilities. This has resulted in a reduction of employee resources and errors in invoice reconciliation, and has provided transportation visibility and control that will set the stage for renegotiation of their carrier contracts providing a 10-20% reduction of transportation costs.

Thoughts:

Ø  “Vastly improved…” is an indication the results are significant.

Ø  Reduction of employee resources and errors is a good thing.

Ø  Greater visibility and control resulting in reduction of costs is also a good thing.

 

 

The return on investment is estimated to be less than one year.

Berk’s old approach involved manual processes such as using carrier-supplied systems and third party freight brokers.  There was no method of comparing transportation options across multiple modes of delivery and no routing to determine the best cost or time in transit.  All processes were previously conducted offline from VAI’s S2K ERP application.  After consulting with VAI, Berk identified Agile Network as a prime candidate to provide a comprehensive transportation solution.

Thoughts:

Ø  Manual anything is a gap that will increase costs, errors and overhead in any operation regardless of the solution.  This is an industry constant.

Ø  Having more information to compare improves decision making.

Ø  Comprehensive, in this case, means we are looking at more information in a consolidated way.

 

 

Agile was selected based on their best practices approach to measuring, controlling and reducing transportation costs by leveraging their AgileElite transportation management system. Close attention was also paid to Agile’s ability to implement rapidly and provide seamless integration to VAI’s S2K ERP application.

Thoughts:

Ø  I would select them too, if they could actually deliver consolidated industry information, offer seamless integration and great ROI.

SITUATION SUMMARY

·         Manual and offline processes used.

·         No control or visibility of transportation costs.

·         No method of comparing options across multiple modes of delivery.

·         No method to measure, verify or contain carrier costs.

Thoughts:

Ø  These are common traits distribution and manufacturing companies deal with.

Ø  None of them are good.

Ø  All of them increase costs, errors, and overhead.

 

KEY BENEFITS

·         Rapid implementation.

·         Seamless integration to VAI S2K.

·         Reduction of transportation costs.

·         Control and standardization of processes.

·         Accurate freight quotes up front.

·         Reduction of employee resources and errors in invoice reconciliation.

·         Eliminated the need for an LTL freight broker.

 

Thoughts:

Ø  Rapid implementation means a greater and quicker ROI (the money you invest is returned with interest).

Ø  Seamless integration means your people do not have to do anything to make it work.

Ø  Reduction in costs means more profits.

Ø  Control is good.

Ø  Accuracy is good.  Customers get what the expect, when they expect it, at the cost quoted.

Ø  Reallocate employee resources to areas that need more manpower.

Ø  Eliminate unnecessary resources also controls costs and increases profit.s

 

CAPABILITIES REQUIRED (Berk identified the following key system requirements):

·         Tight integration to VAI’s S2K ERP application, residing on the IBM iSeries.

·         Deployment of Agile software as invisible components behind the scenes of VAI's S2K application.

·         Control and visibility of transportation costs using a best practices methodology.

·         Ability to control the parcel life cycle process.

·         Ability to identify late and lost shipments and provide complete reconciliations.

Thoughts:

Ø  Tight, seamless integration means less overhead, a system that works and has great return potential.

Ø  Behind the scenes means someone has done their job.  It means that a coordinated effort has resulted in positive growth.

Ø  Control and visibility are key components that management needs to make quicker more accurate decisions.

Ø  Increased accuracy and observability of the inevitable errors means the profits stay in house.

 

Conclusion:

It is obvious why VAI has highlighted this success story.  What may not be so clear at first glance is what happened behind the scenes.  Berks has a true, trusted partner with VAI.  This is an invaluable business relationship.  Who do you work with now that you consider a trusted advisor?  Do you trust them to give you solid advice or to point you in the right direction, even if they cannot help? 

 
Berks took the time to identify an area in need of improvement and worked with their trusted advisor to come up with a solution that did not increase their operational overhead and did what was promised.

Who are you trusting now? 

At Dolvin Consulting we cannot promise the world or that you can even achieve results like what was noted in this article.  We can promise to do our very best to connect you with the resources you need to move forward.  Remember that the result is evident in the return on investment and that there will always be upfront costs, but in the end should you should be able to sleep better at night. 

Contact us today to see how we can help.