Tag Archive: ERP

Is Your ERP System Scalable?

August 14th, 2019

erp successSince we happen to be working on 3 or 4 ERP system projects concurrently, the topic of ERP is top of mind.

Let’s start by saying upfront that we turn down ERP selection project requests. Not everyone needs a new system. Perhaps a process upgrade and better utilization of your current system will sustain your business for 3-5 years. If so, why divert attention? On the other hand, waiting “too long” will quickly spiral into disaster. How do you know which of these is your situation?

An ERP upgrade is one of the most significant initiatives a company can undertake, and the statistics aren’t good. 80% fail to achieve the expected outcome! Yet, if your ERP system isn’t scalable, hiding your head in the sand will lead straight to unmitigated disaster. Thus, it’s best to be proactive, diligent and strategic when it comes to this topic.

Selecting a system isn’t something to delegate to your IT person. Instead, it is something you must “own”. After all, if your system will support your resources so that you can grow the business with the peace of mind that your system will enable a high level of customer service with additional customer-friendly capabilities (such as a customer portal), support your #1 asset (your employees and partners) behind the scenes and allow your business to scale with minimal if any investment of time and resources, it suddenly becomes quite relevant.

The 80/20 of success relates to just two items:

  • Your critical success factors – what is unique to your company or industry and/or what drives customer differentiation and profitability
  • Your design and implementation partners – although the focus typically goes to the software, as with business, the 80/20 of success is with people and partners.

Having an ERP system that supports your business objectives is another key component of creating a resilient supply chain. If you’d like a rapid assessment on whether your ERP system will support your growth and business objectives, contact us. And please check out our resilient supply chain webpage.



Do You Need An ERP Upgrade?

June 2nd, 2019

A Client Question
A client was getting a lot of complaints from her team about the ERP system used to run the business – from taking orders to ordering materials and producing product to shipping and invoicing customers and reconciling financials. She was ready to throw the computer out the window when she called to find a new system so that they could build value in the business instead of suffering endlessly.

The Answer
In their case, there was no need for a new ERP system.  This was GREAT news as this investment is often-times the most significant undertaking a company can make. When they go wrong, which is statistically over 80% of the time, they go wrong in a BIG way. Lost customers, hundreds of thousands if not millions underwater (depending on the size and scope), unhappy employees and more.

Although the situation was dire with no hope for resolution (financials that didn’t reconcile and it couldn’t be used in any meaningful way to manage production and inventory), all wasn’t lost. The system itself would work for their type of manufacturing environment although the way it was implemented wouldn’t.  As a result, we found a new partner who had significant impact.  The partner helped them navigate through the clean up of their system, upgrade to the latest version and learn how to utilize the upgraded functionality, which was key to going beyond the base to new frontiers that would increase the value of their business.

Food For Thought
This executive is one of my favorite executives.  I’ve known her since I started consulting 14 years ago. She has an extensive background and is a business valuation expert in addition to being a business leader. If she can get caught up in the ERP maze, anyone can. Take a step back and make sure your assumptions make sense. Should you reconsider how you are using your system or whether it is the right time for an upgrade? If you are interested in an ERP assessment, contact us.

Did you like this article?  Continue reading on this topic:
Systems Pragmatist
ERP Selection: Why It Has Become a Strategic Priority
Are You Leveraging ERP Fully?



Manufacturing & Supply Chain Expert, Lisa Anderson Considers ERP, CRM and Related Systems Key to Enabling Growth

May 7th, 2019

Originally published on ExpertClick on May 2, 2019

CLAREMONT, CALIFORNIA (May 2, 2019) –  Manufacturing and Supply Chain Expert Lisa Anderson, MBA, CSCP, CLTD, president of LMA Consulting Group Inc. considers internal and collaborative systems to be critical to short- and long-term growth for manufacturers and distributors. Systems must be able to support scalability and sustainability, enabling a resilient supply chain, superior customer experiences and peak financial performance.

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

ERP, CRM, e-commerce, customer portals and related technologies are integral to success. “Many times, the systems are blamed for internal issues or challenges. Sometimes, it’s because they are out of date or a hodgepodge and don’t support the business.  Other times, the systems have the capabilities but are just not being used properly. We have seen clients ready to ‘throw out’ a perfectly suitable ERP system because they think the system is the problem rather than how it ties with the people and process” she continued.

Ensuring that the executive team is involved in ERP and system evaluations from a strategy viewpoint is critical.  “Since the system will impact market share, customer experiences and bottom line results, it is key treat ERP as a strategic priority,” she said.  Internal systems should reflect business objectives, cultural norms (entrepreneurial vs. approvals) and multi-department requirements and priorities. In today’s Amazonian environment, the only way to thrive is to leverage advanced functionality to automate, collaborate and utilize predictive analytics to make sound business decisions to set strategy,” Ms. Anderson concluded.

LMA Consulting Group works with clients on manufacturing strategy and end-to-end supply chain transformation that maximizes the customer experience and enables profitable, scalable, dramatic business growth, including ERP evaluation and selection. “ERP is a tough topic. Clients worry they are too small, or it will be too expensive. Meanwhile, the competition passes them. Using technology that supports a superior customer experience without breaking the bank is a “must”, regardless of size or industry” she concluded.

LMA Consulting Group just released the findings of manufacturing executive predictions for 2019:  “Manufacturing & Supply Chain in the New Normal” (available at no charge). 

About LMA Consulting Group – Lisa Anderson, MBA, CSCP, CLTD

Lisa Anderson is the founder and president of LMA Consulting Group, Inc., a consulting firm that specializes in manufacturing strategy and end-to-end supply chain transformation.  She focuses on maximizing the customer experience and enabling profitable, scalable, dramatic business growth. Ms. Anderson has been named a Top 40 B2B Tech Influencer by arketi group, a 50 ERP Influencer by Washington-Frank,ranked in the top 46 most influential in Supply Chain by SAP and named a top woman influencer by Solutions Review. She recently published, I’ve Been Thinking, an inspiring collection of 101 strategies for creating bold customer promises and profits. A regular content contributor on topics including providing a superior customer experience with SIOP, advancing innovation and making the supply chain resilient, Ms. Anderson is regularly interviewed and quoted by publications such as Industry Week, tED magazine and the Wall Street Journal.  For information, to sign up for her Profit Through PeopleTM Newsletter or for a copy of her book, visit LMA-ConsultingGroup.com.
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Media Contact
Kathleen McEntee | Kathleen McEntee & Associates, Ltd. | p. (760) 262 – 4080 | KMcEntee@KMcEnteeAssoc.com                                                 



5 ERP Selection Pitfalls

April 27th, 2019

ERP

 

We get “too many” calls to help resolve problems associated with system upgrades and/or new system implementations.

How can some of these disasters be avoided upfront?

 

  1. Navigating ERP sharks – ERP software suppliers must be some of the most aggressive salespeople I’ve seen. Even when you are careful, they’ll likely focus more on the bells & whistles of their system rather than important details of key functionality needed to drive results.
  2. Standard functionality – Standard functionality is the downfall of ERP selection projects. In my experience, 20% of the time should be spent on standard functionality since core suppliers will have it. Reverse the order and spend 80% on unique functionality.
  3. Lopsided team – Although there will be some disciplines more interested than others in the selection project, if they decided for everyone, you shouldn’t be surprised if you end up with a great system in that particular area with the rest left to luck.
  4. Losing track of features – Although it seems obvious while sitting in the demo, it becomes amazingly difficult to figure out which feature went with which software a few days later. Note follow-up questions and compare notes immediately following the demo.
  5. Focusing solely on functionality – Don’t get lost in functionality and forget that the software supplier will be your business partner. They will make or break your success.

 Interested in avoiding these pitfalls? Check out our ACE ERP proprietary process to avoid these pitfalls and achieve endgame results.

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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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