ERP Solutions Enable Automation and Streamlined Operations

When you boil down the driving force for Enterprise Resource Planning (ERP) automation and streamlined operations should be at the top of your list.  More data collected and analyzed enable better and quicker decision making.  ERP solutions do not just collect information, it is what that information enables the business to do more quickly and efficiently that is important.   It is through accurate record keeping that we can see trends.  Integrating and connecting more of your business operations is not optional any more.

 

Are we using more labor to pick, pack and ship fewer orders?  Are those orders more or less accurate?  Where we able to find the inventory at the location our system indicated?  Do our customers feel like we are being responsive to their needs?  Are we buying what we need or what we think we need?  Are our customers buying what they did last year?

 

ERP solutions cannot just be bought off the shelf. 

 

Some vendors have hosted or cloud solutions and offer free 30 day trials.  Just sign up and off you go.  Are you really willing to risk your business on this type of solution?  How will you convert, test, and learn any new system in that period of time?  How much time did you invest to see if that would be a good solution?  Did you find them in an Internet search?  How reliable is that vendor?  Do they have a successful track record of serving their customers?  Will they be bought out next week?  What commitment do they have to your success?  Can you meet their company president or even get him on the phone?  Is your business that straight forward?

 

Any solution must be process based like your operations. 

 

You must invest in a Trusted Advisor to help guide you through the jungle and maze of technology.  Weed out the hype and define the metrics necessary to select a new solution and define the criteria needed to implement and gauge its success.

 

A successful solution will be one that integrates or has the ability to integrate over time your entire organization.  You may need to phase in a solution, because of budget, support, or some other resource constraint.  The system you choose needs to have the ability to grow with your growth.  Find out if the software vendor is continuing development so that as new technologies are adopted in the industry you can take advantage of them in a timely manner without replacing all of your systems.

 

Do you need a cloud solution?  How distributed and mobile is your Salesforce or organization for that matter?  Do you need to analyze sales and inventory trends?  What type of integration do you need with your supply chain?  Does procurement need to forecast demand with your suppliers?  Does your finance team have the tools and information to manage your accounts?  Can you produce accurate financial statements in a timely manner?  When was the last time you had accurate inventory counts?  How accurate are your shipments?

Do not forget about people. 

The software must fit your company’s culture.  It cannot be so dramatically different that no one has the capacity to learn how to use it.  If you will integrate the enterprise, do you have buy-in from senior management?  What about the customer service people who deal directly with your customers?  Will the shop floor or warehouse people be able to utilize the system?

Is your organization ready for change? 

 

How will you pay for the solution?  What is the Total Cost of Ownership (TCO)?  How will you determine the Return on Investment (ROI) of the solution?  What are the base requirements for a new solution and what is on your wish list?

 

Where and how do you get started? 

Would my existing consultant or trusted advisor be able to assist me or do I have to find new advisors?  How do I tell if they have my best interest at heart or if they are only interested in a commission?  Do I have to establish a new relationship with the company after the Salesrep leaves or do I work with the same people throughout the entire project?  What if I like the software, but not the Salesrep? 

There are no shortcuts to finding the right solution.   Dolvin Consulting works with your team to determine your needs and match that with an appropriate solution.  Contact us today to get the ball rolling.  It is a process, like your business, and it takes time to make an intelligent decision.  We are here to help.

 

On-demand vs. On-premise ERP

Should your business acquire traditional on-premise enterprise resource planning (ERP) solutions? Or should it invest in emerging software-as-a-service (SaaS) based ERP solutions?

Click here to download the Guide from Ziff Davis

Software as a service (SaaS) is a fast growing alternative to traditional on-premise enterprise resource planning (ERP) solutions. But just because something is hot doesn't mean it's necessarily the right recommendation. For many, on-premise may in fact be the better solution. The key is understanding what's right for your particular business.

This is a comprehensive comparison of both hosted and on-premise solutions.  It certainly will not answer all of your questions, in fact it should actually start you generating your own questions.  Any good paper will do that.  The reality is that after reading this paper, you will not run out and switch your system type.  You might feel comfortable that for the moment that you are doing the best you can with the available resources. 

What you will get beyond the basics from reading this is a new set of questions and possibly concerns that you can share with your trusted advisor.  These will provide great insight as you look to make upgrades or replace your existing systems.

Dolvin Consulting looks forward to helping you navigate the constant flux in technology.  We partner with industry experts to deliver solutions to your challenges.  Contact us today to see how we may help your business.

ERP in the Cloud

Does any Enterprise Resource Planning (ERP) system belong in the Cloud?  There is a lot of discussion in the media about this topic.  The Cloud promises the concept of economy of scale.  Mass produce a product and it becomes more economical.  The compromise is that you do not have control of many options that you once did.  That is both good and bad.  For the smaller business that can be a blessing. 

Why should I have to worry about hardware or the physical stuff?  It would be nice to have someone else worry about disaster recovery, electrical disruptions, heat, cold, water, you know, the weather?  Let them worry about employees and I will worry about running my business. 

Does this thought really make you feel comfortable?

Just how much compromising will my organization have to undergo to implement a Cloud solution?  Could be quite a bit, maybe very little.  It depends.  Some of the constraints are the physical location of the hosting, the type of hardware being hosted, the software application itself, and your employees.  Where are your locations?  How reliable is the Internet connection to the resources you need?  How reliable is their Internet connection(s)?  Is this even appropriate for a manufacturer capturing real-time inventory transactions on the shop floor?  Finance- yes, customer service- yes, inventory- maybe, manufacturing- not so sure. 

How do you even know where to start or what questions to ask?

Will the software or applications be stripped down or lite versions?  Do you even need everything they offer?  There are significant differences today versus just a few years ago.  At what point does it become or stop being cost effective?  Is a non cost effective solution still desirable, because the stuff is someone else’s problem?  You may end up paying a premium for less worry.   

What is the Return on Investment (ROI) and Total Cost of Ownership (TCO)?  Looking at the TCO may be a good place to start.  In order to evaluate this you will need to take time to identify as many cost elements as possible.  Power consumption, acquisition costs, warranty, staffing, reasonable life span. 

Cloud solutions trade the variables for a monthly premium. 

Leasing cars does not always make monetary sense, but the worry free drive of a new car, full warranty and peace of mind that comes along may be worth the trade off.

Do you share the resources or will you have dedicated resources?  How is security implemented?  Just exactly who has access?  I am sure that they will be certified and bonded.  Will the only thing that keeps outsiders out be a user id and password?  They back up the information, but do they provide archive services?  There is a big difference in functionality and recovery options.

There is a growing movement in technology today that negates the old school philosophy of what is behind our doors is safe and what is outside is not.   Today borderless computing is growing.  Administrators need to know who wants access, where they are, what equipment they are using, and what are they trying to access.  The combination of these four entities must be looked at together.  If the cloud solution takes these factors into account then you may actually be better off with a hosted solution than in-house. 

There are many issues to be identified and addressed. 

For an Enterprise, this is a first step.  Cloud or not, technology or not, there needs to be a solid business driver identified first, then comes the selection process for a solution.  You might be surprised to find out that you might still be better with an in-house version.  Train and use that version for a few years, then take advantage of a more mature hosted version. 

Maybe you should jump right in.  Maybe not.  First and foremost, it has to be the right solution.

What chances are you willing to take with the health of your organization?  It is too important to tackle alone.  Select Dolvin Consulting to help you look at your operations, to identify your needs, to listen to your concerns.  Contact us today to see how we can help.  We work with manufacturers, distributors and specialty retailers to help them streamline their operations, reduce costs and become more profitable.

ERP Software Selection

It may sound a little off, but when selecting an Enterprise Resource Planning (ERP) system it is important to consider solutions that actually target your company’s challenges. 
 

Many organizations start out looking for ways to drive efficiency in their operations.  Perhaps by reducing paperwork, minimizing shipment errors, increasing accuracy of their inventory, or tracking inventory movement.  All this in order to increase customer satisfaction, reduce costs, and stabilize and increase profits.  

Makes sense.  

Then how do companies get off track?  There is no shortage of buzz words in the technology field.  Cloud, SaaS, ERP, CRM, EDI, etc.  Every industry and group develops their own language so they can communicate more efficiently within the group.  This is the same goal most organizations have with an ERP solution itself. 

The more complete and efficient the communications, the better for business.  Problem is that when these groups try to connect with outsiders (i.e. prospects or customers) they forget that no one else understands what they are saying.  This leads to people nodding their heads afraid to ask what was meant, because they do not want to look stupid.  Sometimes others will forge ahead and not take the time to find out if they even need any of the talked about features and benefits.  Order too much, or not the right solution. A real disconnect happens.  A real potential for disaster.  An over budget, failed installation.

Who wants to put up their hand in a board, planning or committee meeting and say “I do not understand?”  What does that mean?  How does that solve our challenges?

Any organization needs goals.  They first need to learn what they do not know.  Figure out that the operations they thought were so wonderful and the inefficiencies they thought were just the cost of doing business could be reduced.  You need to know where you are and where you are headed.  How else will you know if you are off course?   How else would you be able to determine if that module in the ERP system will really make sense now, tomorrow or never?

Use the communication and rapport with the solution provider as an indication and starting point of their general strengths and weaknesses.  Every company does some things better or worse than the others in their industry.   That is why there are so many solutions today.  You have to find the supplier that is of like mind.  The one that is responsive to your needs and the culture of the people who work for you as well as your customers. 

Remember happy customers?  That is what you want.  That is what we all want.

Here is a test.  Wait until you get down to two or three candidates, and make a hotline call to each of them.  First one that responds in a way you like and is similar to the way you respond to your customers should get high marks.

Plan for the future.  Buy what you need today and develop a roadmap for the future.  As you hit your benchmarks you can add new modules.  ERP software is modular and typically based on departmental or functional roles.  Get the basics today, learn and implement them, then add more.  The only times it makes sense to do otherwise is if you need to define a competitive edge over your competition or you are in need to catch up to the competition.  In either case you need to be able to allocate the resources needed for training and implementing the new modules.  I have seen plenty of failures, because there simply were insufficient resources to implement the “new stuff” (training being a big part). 

Avoid the finger pointing when that happens.  It just does not help. 

By the way, determine your budget now and allowances.  Nothing is perfect, comes in on time or on budget.  There is always a fudge factor.  Now a good supplier lets you know this up front and its magnitude is often small unless there is a dramatic change in the organization, like new leadership or a merger and acquisition.  Things happen.  Life happens.  Like investing in the markets or heading to a casino for fun.  You have to know when enough is enough. 

At what percentage over budget do you pull the plug and start over?

Few suppliers have an in-house solution for every business challenge.  This might seem to be a contradiction to the all-inclusive ERP integration.  In some respects it is, but then consider that services like Payroll and Human Resources are usually better done by a dedicated organization.  The same is true with other modules or applications.  You just need to find out how well is the integration done.  Who supports the integration?  Does the ERP provider have a solid relationship with the other provider and who do you call for support if there is a problem.  Are the interfaces well defined?

 

Do not get swayed by the upfront costs and annual license maintenance fees. 

We all know when something sounds too good to be true.  Some companies will come in with a low-ball price upfront, but then overcharge and nickel and dime you for everything else.  Take the time to do the best you can in determining the true Total Cost of Ownership (TCO).  This will help when you calculate the Return on Investment (ROI).  How much time is reasonable for a total return on investment?  Some say one year, others two.  Regardless, it is better to figure that out now and budget accordingly.

At this point you should have lots of questions.  Now is the time to get answers.  A consultant or trusted advisor can help in this area.  Dolvin Consulting works with Manufacturers, Distributors and Specialty Retailers to help them make better decisions. 

Not sure of what you know or do not know?  Afraid to look ignorant?  No need that is why we are here.  Contact us today.  In the worse case we make new friendships.  In the best, you find the best fit solution for your challenges and budget and make a new friendship.

Using ERP Solutions to Drive Process Improvements

There has to be a fairly significant reason why a business leader would risk disrupting a working enterprise.  Even if operations are not that efficient, the potential downside of adding additional workload to an already stressed workforce and taking a leap of faith that the Return on Investment (ROI) calculations were correct, still leaves a lot on the line.  The success line here is the difference in creating a more competitive advantage over the competition, driving efficiency and cutting costs versus having to cut their workforce even further, running the risk of a takeover or worse yet bankruptcy. 

You do not need to look out the window to see the economic storm.  We all feel it, personally and professionally.  Many report that one in six families is struggling and my guess the ratio is worse for most businesses.

So out of the many choices one can make, choosing to invest in and implement a new Enterprise Resource Planning (ERP) system cannot be an easy decision.  In actuality it should be easy.  You have taken the time to sit with your trusted advisor, your finance team, your operations staff, and ojji board.  You have done your analysis, narrowed down the choices, and there you sit.  Wondering if this is the right decision at the right time.

There are many reasons not to make changes, but less and more significant ones to actually make a commitment.  Your organization may want to make changes to improve efficiency, decrease the time it takes to bring new products to market, or have more efficient communications both internally with your workforce and externally with your suppliers and customers.  These changes tend to increase the visibility and coordination between the different parts of your business.

What other goals do you have in mind and how will your ERP selection move you closer to achieving them?  What specific problems are you trying to resolve and is new software going to help you address them?  Perhaps you want to reduce your inventory levels.  Even small reductions translate into bottom line savings.  Reduce the need to expand the warehouse, reduce labor costs, and reduce the burden and tax consequences of inventory sitting on the shelves too long.  Minimizing inventory levels is paramount for those organizations that handle inventory.

In order to determine how effective a solution will be, all departments and all employees need to buy into the concept that change, however difficult, is necessary to remain competitive.  There must be a strong project leader that will encourage coordination and cooperation.  This will help to ensure that every part of the company will benefit from the new system.

When everyone “sees” the system working, confidence and productivity rise and this plays a significant role in the return on investment.  People working need and want to follow strong leadership.  The dark days of gloomy outlook have driven many to be too cautious.  Hanging on white knuckled to the life raft does not help the shop floor worker to be more productive, it only gives them incentive to show up and collect a paycheck.

There are many facets to consider when choosing a new solution.  First and foremost the software must fit your industry and company size.  In today’s market there are many ERP solutions.  The solution must fit your industry.  What works well for a hard goods parts distributor may not fit a process manufacturers needs.

Ensuring that you have the right support team made up of a trusted advisor, internal staff and a project manager from the software supplier.  Yes, you must include the ERP solutions team.  They have the in depth knowledge to know if how their solution fits and needs to be implemented.  Today’s systems are too complex to be installed without help.  ERP is not like a desktop application.  These systems need to be installed correctly on hardware or systems that have been set up and configured correctly.  There must be a plan for deployment, training and conversion.

Training is by far the largest variable and most significant portion of the investment you will make.  Do not attempt to skimp in this area.  Some companies have limited budgets and will implement over time.  Some have a pressing need to implement quickly to meet deadlines.  Either way works and budget often plays a significant role in the decision.  Regardless, everyone needs to know what to do and when to do it.  We have seen many nod their heads and testify that they are ready, only to find out no one seems to know what to do when the go-live day comes. 

It just takes one individual or department to panic and lose confidence to infect the rest of the organization with the concept that this was a bad choice that will never work.  Your organization must be united.  Effective training and rehearsing reduces the fear of change.  Shortcuts rarely work.

Buying an ERP software solution is only the first step.  Getting buy is critical for success.  You have challenges and finding the right solution match is not easy work.  Remember an ERP solution is effective when the central repository of information is used to drive efficiency across the organization.  All parts know what the other parts are doing. 

Make sure your solution addressed your challenges.  Dolvin Consulting works with your team to ensure there is a good fit between your challenges and any solution.  Understanding your real needs so that the solution delivers the process improvements needed, fits your budget, and solves the most pressing challenges is our goal.  Contact us today to see how we are different and can help you find your solution.

IBM Systems Magazine - Build or Buy?

IBM Systems Magazine - Build or Buy?

Michael Ryan writes an interesting and timely article about software evolution. The article does not go into great detail, nor should it. This is not the forum, that would be a White-Paper. What is interesting is that we seem to have come full circle in software without realizing what has happened.

In the "old" days computing was relatively expensive so companies used what Michael says was time-sharing. This gave companies a budget amount to schedule each month. They also gave up some flexibility which created a need to develop systems in-house.

Developing systems in-house increased expenses, but gave total flexibility. This sometimes presents the problem in having have enough talent available to take advantage of the latest trends in computing. 

Enter software companies and their evolution of creating prepackaged software. We write about Enterprise Resource Planning (ERP) solutions here, but many exist. These can sometimes have the disadvantage of forcing a company to change their business practice or risk instability in making modifications.

Today we see Software as a Service (SAAS) offerings. There are as many benefits as there are disadvantages to these solutions. Each case needs to be evaluated.

Dolvin works with companies to see what solutions fit specific challenges. We encourage you to read the full article and then contact us to see how we can help you find the best-fit solution.

Cloud Computing and ERP Solutions

Cloud Computing and Enterprise Resource Planning (ERP) Solutions.

A lot of talk abounds today about Cloud computing.  Basically the cloud term comes from the network drawings of the Internet.  Cloud computing refers to hosting the applications offsite and granting access to users. 

Many personal applications are already hosted and often only require a web browser interface.  The browser interface allows hardware platform independance.

This post is not intended to address all the features, benefits and pitfalls of Cloud computing.  IBM has invested quite a bit in this area.    Click here to learn more about how IBM sees cloud computing reduces cost, improves service delivery and enable business innovation.  IBM provides many tools for developers to ready their applications for the cloud.

The cloud solutions are sometimes referred to as Software-as-a-service (SAAS).  There are many hosted services avialble today.  Dolvin partner VAI is one of the leaders in this area for ERP solution providers.  VAI provides a hosted or cloud version of their ERP software S2K.  While no single solution is best for all companies, this solution is a cost effective alternative.  This is especially true when there are multiple locations including a mobile sales force. 


Click here to learn more about Dolvin Consulting and how they work with VAI.