Tag Archive: data

ERP Selection: Why It Has Become a Strategic Priority

April 18th, 2019

In today’s Amazonian environment, customers expect rapid delivery, over and beyond from cradle to grave, collaborative service, 24/7 accessibility and last-minute changes. Executives are realizing they must upgrade their technology infrastructure to meet and exceed these customer expectations while driving bottom line improvement.

Your ERP decision will be one of the most significant investments your company will undertake, and these projects are wrought with risk. 80% fail to achieve the expected results yet waiting “too long” can put you out of business.

Selecting an ERP System is a Strategic Priority
Because of the significant customer and bottom-line benefit and steep, unintended consequences associated with these projects, the most successful clients realize they must be a strategic priority. By no means should the decision by relegated to a technical expert or project manager. Involve your best and brightest on the team and ensure your executive team is on top of preparation, progress and the inevitable pitfalls – beginning with preparation:

  • Understand business processes: Start by understanding what occurs on a day-to-day basis. One of the top failure points is to assume that people can make the leap from current processes to what every ERP provider claims to be “best practices” on day 1 with no roadmap.
  • Gain strategic and cross-functional input – Since all systems will perform the basics well, success will boil down to what drives your strategy and supports your cross-functional and cross-organization collaboration.
  • Identify critical requirements – Countless hours wasted on typical business requirements (which all systems generally cover); instead, focus 80% of your attention on the requirements unique to your business, industry, and company. Think customer differentiation & profit drivers.
  • Prepare data and be realistic evaluating your process disciplines – No matter how well you prepare, your system will only be as good as your data and process disciplines.
  •  Dedicate appropriate resources – Be an exception. Supplement your resources, bring on appropriate expertise early on and be willing to invest in what will ensure success and mitigate your risk.

5 Critical Factors in Selecting ERP Software

As complicated as most companies seem to make it, the critical factors in software selection boil down to a select few:

  1. Your business objectives – Don’t worry about everything required in every module to run your business. Instead, take a step back and focus on what you need to meet your grow and profit plans.
  2. Cloud or not?  It depends. Dig into the details. Develop your own spreadsheets with paybacks. Consider your technical resources, adeptness with topics like cyber security and the latest technology, and your ability to navigate disruption and risk.
  3. Understand your culture – What are your cultural norms when it comes to change? Do your employees have an entrepreneurial spirit or do they require strict procedures? These answers will be integral to aligning culture and technology.
  4. Think about design upfront – Not thinking through down-the-line implications will derail the best of projects. Incorporate design and a holistic systems-view upfront.
  5. Ballpark estimates and ranges – Get a ballpark upfront, and never accept the first estimate. It’s typically too low! Worse yet, two suppliers that should be within 10% of one another can be 100% different. Ensure you are comparing apples to apples, and remember implementation, not software, is the 80-pound gorilla of ERP success.

ERP is a tough topic! Clients worry they are “too small” or it will be “too expensive”, and in the interim, the competition passes them by since having the technology that supports a superior customer experience without breaking the bank is a “must”, no matter your size or industry. With that said, we have seen clients ready to “throw out” a perfectly suitable ERP system as they think it is the system, not the process or people that is the issue when it isn’t.

If you’d like an expert to assess your situation to partner with you to achieve these types of results, contact us. 

      

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Eagle Eye Strategic Focus

Supply Chain Management is Evolving: How Will It Affect Your Enterprise?

What’s Ahead for Business?

 



Last Mile Has Become Last Minute & the GE Port Optimizer

December 10th, 2018

 

There is no doubt – last mile has become last minute, meaning every customer changes his/her mind.  Whether it is due to consumer preference or supporting an industry that seems rather known (For example, it is clear what will be purchased to build a 737 airplane.  You don’t change that end item at the last minute.), when looking down the supply chain, no matter how clear, it all gets jumbled and becomes “last minute”.  

Thus, the key is to understand where your product is within the extended supply chain, when it will be available and where you sit in terms of the priority customers. There are many strategies to support creating this resilient supply chain including the GE Port Optimizer which is one of the most innovative and expansive technology projects taken on by the ports.  Check out the video on this project:

                             

What Should We Consider and/or What Impacts Could Arise?

The GE Port Optimizer project is an excellent example of the importance of collaboration, the strategic use of data and the impact of the customer experience on creating a resilient supply chain.  Have you thought about how to collaborate with your extended supply chain and related partners for a win-win-win? If you aren’t, your competitor will. Stranger and perhaps smarter yet, have you thought about collaborating with your competitor for a win-win?  

Creating collaborative partnerships of data, visibility and efficiency is a great example of creating a resilient supply chain to navigate disruption and achieve peak performance. Check out our new video and article series as well as our soon-to-be offered Rapid Resilient Supply Chain Assessment service:

 

 

 



Are You Able to be Resilient in Your Decision Making?

November 12th, 2018

 

As we kick off our new series “The Resilient Supply Chain”, we are thinking about all the aspects of resiliency.  It is overwhelming as to the volatility of almost every aspect of the end-to-end supply chain. Just in the last month, there have been many events/ factors that have created disruption:

  • U.S. and Mexico reaching a trade agreement
  • U.S. and Canada still at an impasse with respect to trade negotiations
  • U.S. and China still imposing tariffs on each other
    • Ford cancelled plans to produce a small car in China based on these tariffs.
  • Fires have and are plaguing California – the worst in history
  • The Big Island in Hawaii is just starting to pick up the pieces after the volcano
    • We’ve heard about severe impacts on the businesses and customers in that areAnd earlier this week, although not serious (thank goodness), there was an earthquake in the next town over from our office

The Resilient Supply Chain
Instead of panicking as each of these events or disruptors occur, creating a resilient supply chain can provide a proactive approach to this current state market condition.  One of critical aspects of taking a proactive approach instead of a reactive one is to think about whether you are able to be resilient in your decision making.

Here are some considerations:
1.  People – Good decisions stem from good people.  Thus, it always makes sense to start there.  Do you have people in leadership positions and other key roles that you would want to make decisions in your absence?  (Just this past week, a potential client was killed by a drunk driver while he was on a motorcycle. We would certainly rather be prepared for winning the lottery but the question remains:  Are your people ready to make decisions?)

2.  Data – Although good people can make up for a lot, you also need the “right” information and relevant background to make key decisions.  Do your systems allow you to retrieve meaningful data for decision making? Every single ERP selection client prioritizes business intelligence/dashboard reporting tools as high on their list of priorities for good reason!

3.  Input – Although this can be considered part of people and data, it’s worth calling out on its own.  Do you gain input from trusted sources (colleagues, customers, suppliers, trade association colleagues, industry groups and more)?  Recently, our APICS-IE instructors had an issue arise with updated learning materials – in essence, they were not set up for learning to occur.  Clearly a BIG issue for an education and value-focused organization! Fortunately, after 3 or 4 calls, we had several ideas on how to dramatically improve the process and overcome the obstacle.  In another example that occurred recently for a client project, we had a significant challenge in explaining a complex concept that was critical to success. If we didn’t get past that barrier, results would NOT follow.  It took 5 or 6 calls with excellent input from all as well as testing out ideas before we came up with the ideal way to convey the concept, and it “worked”!

4.  Speed – Slow decision making is worse than no decision making.  In today’s Amazonian marketplace, your customers will be LONG gone if you are slow to make decisions.  I’ve noticed that I am a LOT less tolerant of slow responsiveness even in my own business (and for things I would have been fine with a year ago).  I have to be to remain viable, and so do you! Thus, as it relates to having the ‘right’ people with the ‘right’ data and ‘right’ input, you must also have them at the ‘right’ time.

Have you put thought into your decision-making process before decisions must occur?  Ponder these critical elements, put them in place and you’ll be prepared to successfully navigate the volatility of today’s business decisions.    

 



Warehousing Strategies for Success

July 12th, 2018

The Amazon Effect is creating elevated levels of stress in the warehousing and distribution world. The key question is how to provide immediate deliveries, customized service, easy returns, and more for a reduced cost – a very good question indeed!

A few considerations to ponder:

  •  Storage capacity -What is your storage capacity?  How does that compare with your requirements?  And how can you maximize what you can store in your warehouse?
  • Flow – Are you running in circles around your warehouse to support your customers?  Similar to a manufacturing environment, flow can be an essential ingredient to warehousing success – or not.
  • Productivity – Have you automated what makes sense and will increase your speed/ throughput? If it doesn’t improve speed (and accuracy) to your customers, is it really more productive?  Similarly, is outsourcing truly more productive?
  • Equipment – What equipment is built into your warehousing strategy?  Would an upgrade provide a return on investment?
  • Data – Are you using predictive analytics and data analysis to make informed decisions to stay ahead of your competition?
  • WMS tools – Whether “poor man’s” or sophisticated, do you have a way to pick, put away and sort efficiently?
  • Inventory – Don’t ever forget inventory.  Without having the right product in the right place at the right time at the lowest system-wide inventory (and potentially end-to-end supply chain network inventory), what else will matter?

We have yet to come across a warehousing or distribution client that didn’t have at least a 20% improvement opportunity.  Have you looked into your opportunities lately?  Most likely your competition is!

If you need help thinking through your warehousing and distribution strategy, contact us.

 



Supply Chain Management Is Evolving: How Will It Affect Your Enterprise?

June 12th, 2018

Operational efficiencies, productivity improvements, and cost savings are the top-three strategic advantages of cloud-based supply chain management, according to an IDG survey of senior managers and directors around the world. To gain these advantages, enterprises need to have infrastructure that helps them cost-effectively harness their large data workloads and move to the cloud easily.

In fact, the biggest challenge for most companies is figuring out how to have their on-premises infrastructure engineered in such a way that it mirrors the capabilities of the cloud. This way, when companies are ready, they can take their supply-chain data and make a seamless, fast migration to the cloud. Whether you’re a manufacturer, retailer, or large corporation, companies looking to gain real-time, complete visibility in their supply chain require integrated infrastructure with scalable data storage, processing, and computing power to get the job done.

To better uncover these benefits and how innovation and infrastructure are changing the supply chain, I spoke with Oracle and shared insights around helping businesses maximize value.

You’ve said that the customer experience continues to play a role in the transformation of supply chain management. How is it impacting both B2C and B2B industries?

We’ve all become accustomed to getting whatever we need, whenever we need it, with frequent status updates and easy returns. We’ve raised the bar. And it leads to a host of challenges for vendors, mainly in the sense that they need a wide breadth of products available to meet customer demand at any time.

Even though the vast majority of my clients are not in the retail or B2C world, they’re all impacted by this elevated experience. I was recently talking with a couple of distribution executives who said that, several years ago, there was a small percentage of deliveries that were due on the same day, if any. Now, roughly 80 percent of the orders they receive are expected on the same day. They’ve had to start working on Sundays because customers—including business customers—are expecting these extremely rapid deliveries.

There are several other ecommerce themes that are changing supply chain management. One is 24/7 accessibility: the ability to place orders and look up your order status whenever and wherever you are. Another is rapid customization. One of my clients has become number one in his industry by making sure his company provides not just rapid deliveries, but also quickly customized orders. His company does things like paint on the fly, which doesn’t normally happen in manufacturing.

What is the technology that is making this supply chain management transformation possible?

Blockchain impacts supply chain management by allowing for immediate visibility and transparency of global financial transactions—like electronic data interchange (EDI) on steroids. When products require traceability, such as if you have a recall, you can use blockchain to immediately see where your products are in the supply chain and who paid for what. That traceability can certainly be achieved within ERP software already, but if you require the next layer of complexity and immediate transparency, then blockchain technology could be useful.

Big data is another aspect of technology that is changing the supply chain landscape because companies can better tailor the customer experience when they know more about what the customer wants. IoT comes down to data, because you’re trying to attach the data together between different devices. In manufacturing, IoT shows up in preventive maintenance and anticipating when a machine might break down before it happens. When you see how different elements are working together, you can target what needs to be fixed or maintained, without just following a schedule that may or may not be addressing a real problem. This can reduce waste and improve efficiency.

But data is just as challenging as it is helpful. Before we get to work every day, we receive lots of messages between emails, texts, videos, billboards, and messages from our cars—everything is connected these days. The biggest challenge that my clients face is that they’re overwhelmed with data, but they also want and need the data to provide a better customer experience and understand what their customers really need. And they also want to figure out how to do that in a scalable and profitable way.

The challenge is how to sift through all the data that’s collected and put it all together into something meaningful and provide information at your fingertips. My clients are very interested in solutions like dashboards, and it’s a key ingredient in selecting the software; however, getting it implemented correctly is difficult.

 

It sounds like the right infrastructure that can manage multiple data sources and provide actionable insights can improve the entire supply chain process. What about the role of the ERP system in supply chain management? 

We’ve improved supply chain performance significantly by focusing a lot of effort on the demand plan. Instead of using the older perspective of a monthly forecast and whether it’s accurate as is, we’re looking at how we can do this in a more agile, flexible way. The ERP system needs predictive analytics to be able to modify a demand forecast on the fly.

Also, by using vendor-managed inventory systems, we’ve been able to reduce lead times. We’re able to meet short lead time orders that we couldn’t previously meet, with the same or slightly lower inventory levels, at a 5 percent margin improvement. It wasn’t solely due to demand planning, but that was the first step.

Once you get beyond demand planning, the next element is going to be a more agile production schedule geared to the customer—one that’s going to offer suggestions, give you notices, and be exception-based, so that you don’t have to put as much manual effort into it. The demand plan flows down into the production schedule, and then capacity analysis is the next key topic.

What steps can enterprises do to modernize their supply chain management?

We’re in the era of the customer, so start with the demand side of the equation. There are ways, regardless of what your tool set is, to improve upon your demand now and your prediction of future demand. You may not have a system in place to do this yet, but regardless, you should be doing more to look at the demand within your supply chain.

One other quick tip is to look at what information you are getting out of your system and how you can better utilize that information. I find that no matter what client I’m working with, we can always do a better job of accessing information and taking the most relevant information to make better decisions. Even if your system isn’t yet modernized to the point of predictive analytics, you want to move in that direction. You can do this by just getting information from multiple sources and creating a simplified database.

What will supply chain management look like in five years or 10 years from now, and what technology can help take enterprises there?

We’re going to continue seeing the ecommerce effect: the importance of speed, responsiveness, and agility, and the rise of smaller, more frequent orders. All of my clients are interested in managing their vast supply chain networks with lower costs, but better service. They’re trying to find technology to support these goals and figure out how to automate using AI and data.

One ideal future is with 3D printing, because you can print what you need, where you need it, when you need it, and further extend your supply chain. Even then, distribution is going to have costs associated with it, and the last mile will continue to be one of the biggest challenges. Delivering all these smaller, more frequent orders to both consumers and businesses impacts transportation negatively and your distribution network significantly. You need your inventory strategically located closer to a customer, or to have flexible manufacturing capabilities that can respond quickly to demand. The system comes into the picture when you want to set up your network to have what you need, where you need it. How to improve delivery metrics will continue to be a key consideration in the future.

If we can reduce the cost to manufacture and distribute inventory by leveraging supply chain management tools, we can reduce prices and actually do something as radical as bringing more manufacturing back to the U.S.

Take a Deeper Dive…

Supply chain management professionals are eager for new ways to leverage data to drive business value. It is important to understand, however, that successfully using big data requires the right infrastructure designed to manage multiple data sources and provide the computing power to deliver actionable insights across the entire supply chain process. The key to gaining business value from supply chain data is by using big data infrastructure that can acquire, store, process, and analyze huge amounts of data workloads for supply chain insights.