Tag Archive: ERP

What’s Ahead in Technology?

January 30th, 2019

To think about what’s ahead in technology, it is important to put it in perspective with what’s ahead in business.  Read our article, “What’s Ahead in Business?” for details on the key trends impacting business:

  1. Importance of the customer experience
  2. Taking the holistic view has become a “must”
  3. Volatility is the new norm
  4. The coming power of manufacturing and supply chain

What’s ahead in technology lines up with these same themes. In order to achieve scalable, profitable growth, technology is an important enabler. The most relevant technology trends include:

  1. ERP Upgrades – More and more companies are realizing that their system infrastructure must keep up with business requirements and customer expectations. As tough as an ERP upgrade can be, it is one of the only ways to make the leap from manual, labor-intensive processes to providing a superior customer experience efficiently.
  2. E-commerce/ Customer Portals – Amazon. Alibaba. Customer collaboration. Need we say more?
  3. Business Intelligence & Data Analytics – We are overwhelmed by mountains of data. We are so anxious to gather data yet we don’t seem to have the appropriate information at our fingertips when we need it. That’s where data analytics comes into the picture. Beyond that, predictive analytics is gaining steam.
  4. Artificial Intelligence – Even my Mom counts on Alexa! In addition, who wouldn’t want a car that self corrects? Predicting customer patterns and behaviors is becoming more important. AI is set to transform many industries over the next several years.
  5. IoT– Smart factories. Smart homes. Connected devices and machines. According to NEWGENAPPS, 60% of global manufacturers will use analytics data tracked using connected devices to analyze and and optimize processes.
  6. Robotics & Automation – Robots may not be taking over the universe tomorrow morning, but they are working hand-in-hand with people to achieve many benefits – improve safety, increase speed and consistency, improve customer satisfaction, fill capacity shortfalls and and increase productivity.
  7. Autonomous Vehicles – Beyond self-driving cars and trucks, autonomous vehicles are used widely in manufacturing and distribution environments.

Are you thinking about which of these technologies will support your business objectives?  Or which are likely to impact your industry?  Consider technology as a key part of your strategy and plans. If you’d like an expert to evaluate which, if any, of these technologies will be relevant to your business, contact us.

Did you like this article? Continue reading on this topic:

Systems Pragmatist

The Resilient Supply Chain: Should We Invest in Technology? 

AI, Robots, IoT, Blockchain, Hike!



The Resilient Supply Chain: Top Requests from Clients on Technology

January 11th, 2019

Next in our supply chain resiliency value series, we are sharing a short video on the relevance of ERP and e-commerce systems from the Manufacturing Summit’s panel “Amazon Effect: Pass or Play – the New Sales & Distribution Game and How it Affects Manufacturing”.

I’m responding to a question on what manufacturers and distributors need when it comes to systems and technology.  Every client in the last few years has requested a project objective that goes back to the overarching goal of scalable, profitable growth.  The trick is how to achieve BOTH a superior customer experience (with increasing pressure from disruptors such as Amazon and Uber) AND profitable growth. Of course, there is no easy answer, and it depends on a multitude of factors. With that said, there is an ever increasing need to scale with technology inclusive of ERP, e-commerce and more.

ERP has become much more of a strategic topic. It isn’t about blocking and tackling and using ERP to achieve tactics.  Instead, it is about whether a business has the technology and systems to scale in a scalable, profitable way.

Do your systems support your customers’ needs?  If not, you had better jump into the fray or the next disruptor will eat your lunch.  If your answer was, ‘yes but I have to do x, y and z to make it work,’ our next question is will this process be repeatable, reliable and profitable?  If not, perhaps you better think twice. It is likely your competitor will answer yes.  Lastly, have you thought about your customers’ needs a year into the future?  If you aren’t prepared to handle them currently, you are getting behind.

Our most successful clients don’t wait so long that they lag behind. Is it time for an upgrade?  You are most welcome to our free resources to determine whether it is  the ‘right’ time. As you debate the benefits vs. costs, keep in mind that as hard as it is to take the leap, the most successful executives are willing to take on prudent risk to make leaps forward.  Are you?

If you would like an expert to assess your situation to determine whether you should further leverage your current software, put the effort into upgrading or simply focus on people and process improvement opportunities, contact us.

 



The Resilient Supply Chain: Should We Invest in Technology

December 7th, 2018

In today’s Amazon-impacted, Uberian environment, technology opportunities abound!  Beyond ERP and related subsystems, there is IoT, blockchain, robotics, autonomous vehicles, predictive analytics and much more.  Should we invest or not?

Clearly, if we invest in every one of these opportunities, we could “go broke”. How do we decide? And, will it help us create a resilient supply chain?

 

The answer:  It depends!
Our best clients follow a similar process and answer the following questions:

  1.  What is the state of the industry?  What disruptors are likely to impact the industry?  What trends are occurring? Where do we see it going?
  2.  How do we stand in the industry?  How are we positioned?  What is our unique value proposition?  What differentiates us from the competition?
  3.  What is our technology/ IT infrastructure?  Does our ERP system support our current needs?  Does it support our growth? Is our ERP partner aligned with technology partners that can help in expanding our future technology capabilities?  The bottom line – where are we starting?
  4.  What is our vision?  Understanding where we want to go is relevant.  What will it take to achieve our vision? Do we know what people, processes, systems/ technologies and culture change will be required to attain our vision?
  5.  Is the technology required to achieve the vision? (given our competitive differentiators and changes occurring in the industry)  Adding technology that doesn’t support our vision might be exciting but doesn’t support the future whereas not investing in technology required to support our vision is also problematic.
  6.  What are the priorities?  If there are several technologies required to support progress, which are required first in terms of sequence (if relevant), which have the greatest impact, and which are urgent to meet a customer need or avoid a negative consequence?

The Bottom Line:
Don’t invest because everyone is investing.  Invest because it supports scalable, profitable growth.

 



AI, Robots, IoT, Blockchain, Hike!

July 16th, 2018

AI (artificial intelligence), Robots, IoT (internet of things), Blockchain, hike! Doesn’t it sound like a foreign language?  It certainly does to my mother! Yet it is the language of the future.

business intelligence

Which of these technologies should we pay attention to?  Let’s look at some of the more popular ones:

  1.  AIDepending on your industry, AI will most certainly impact it.  Service industries such as accounting are definitely impacted. After all, if a program like Alexa can learn how to put together your taxes, it is bound to disrupt.  Machine learning and artificial intelligence can be powerful – preventative maintenance can be completely redefined in a proactive, predictive way.
  2. Robots – Isn’t everyone talking about robots?  Of course, this is partially because they are fun to talk about.  Is a robot good in all situations? NO! We’ve seen many manufacturers and distributors try robots and end up slowing the process down because they didn’t think about the full impacts.
  3.  IoT  We don’t even think about all the devices that are connected in our everyday lives.  Smoke alarms, security systems, phones, refrigerators, Amazon Alexa, our car, traffic signals, manufacturing machines, RFID tags and much more.  Connecting devices because we can yet for no valuable use just adds to the mountain of data to analyze. Instead, we should think about the strategic use of IoT for our business.
  4.  Blockchain Talk about another buzzword!  Isn’t a phone call, an email, EDI, lot traceability in ERP or a customer portal sufficient?  Many times – yes. Again, the value of blockchain should be evaluated before jumping on board with the latest and greatest trend; however, there will be uses.  When instantly visible, irrefutable and non-changeable (think avoidance of high potential fraud), traceable transactions are required, it might be just the medicine.
  5.  Autonomous vehiclesForklifts, cars, trucks, and more.  Again, let’s think ‘fit’ to our business.  In trucking, it is likely to make all sorts of sense.  Rates continue to rise. There is a shortage of drivers. Baby boomers are retiring. Environmental rules continue to increase. It does seem to fill a potential gap.

The underlying bottom line when it comes to technology remains – let’s not use technology for technology’s sake!
Instead, think smart. How does it fit with your business requirements? Will it provide a superior customer experience?  Purse those with a strong return on investment, ignore the rest and success will follow while your competition chases ‘shiny objects’.



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.