Tag Archive: ERP

Collaboration for Advanced Manufacturing & Supply Chain Success

November 30th, 2019

Our Association for Supply Chain Management (ASCM/ APICS) Inland Empire Chapter is knee-deep in planning for our fall executive panel and networking symposium on the topic, “Collaboration for Advanced Manufacturing & Supply Chain Success“. We are finding this to be a powerful topic as executives must not only collaborate with their customers and suppliers to achieve scalable, profitable growth but they also need to collaborate with industry groups, trusted advisors, software providers (ERP experts), and other partners if they want to succeed in today’s Amazon-impacted, globally volatile, complex regulation environment.

We’d love for you to join in on the discussion and Q&A with experts in the end-to-end supply chain. We have manufacturing experts, logistics experts, technology experts and end-to-end supply chain experts on our panel to talk about trends, issues, and how they have collaborated to drive results. Our attendees include students, planners, buyers, operations and supply chain managers, finance and IT resources related to the supply chain as well as executives and the media.

One Tip to Implement This Week:
When I first started consulting over 14 years ago, collaboration was seen as a “fluffy” topic. I always found that the most powerful results came via collaboration but it wasn’t seen as important. Fast-forward 14 years, and if you aren’t collaborating, you aren’t thriving. No one can handle the level of complexity in today’s manufacturing and logistics environments alone while still servicing customers and driving profitable growth.
Of course, there is no point to collaborating for the sake of collaboration. In fact, as my consulting mentor says, if you want someone to like you, get a dog. Instead, collaboration is for turning 1+1 = 22 by taking the best of different ideas and combining into exponential success. For example, when I was VP of Operations & Supply Chain for a mid-market manufacturer, we had to redesign products to show customers we were on the leading edge and “back” (a force in the market) while offsetting significant material price increases due to oil and gas price pressure as well as optimizing our ability to save money on freight. There was no way for one person, 1 department or even 1 company to accomplish this task without collaboration. Instead, we involved customers, material suppliers, freight carriers, packaging experts, equipment suppliers and more. In the end, we achieved the trifecta. You should even add competitors to your thought process as the most successful executives consider this option for certain situations.
Why not pick a “hot topic” and start thinking about collaboration partners where you could achieve a win-win-win? Just asking folks to think outside the box in new ways can stir some powerful energy and bottom line results. If you are interested in discussing an assessment to help find a few of these powerful ideas to prioritize, contact us. Let us know how it goes!

 

 



Should I Upgrade Now or Later?

October 10th, 2019

A Client Question
Since we have a simple reorder point system largely in place and we plan to focus on an ERP upgrade in the coming year, should we continue to roll out MRP (material requirements planning) and DRP (distribution requirements planning) or should we just put our efforts into the new ERP system?

In this case, there is still much of the planning process that is done manually. However, a manual process could be good or bad. Employees forced to perform manual processes learn the process in detail yet they might not understand why they are doing what they are doing. Would there be a larger benefit in learning the process in the current system and then re-learning in the new one or vice-versa? After all, resources are limited and the people performing these roles understand key customer requirements in detail. How should we best utilize their time for maximum benefit?

The Answer
In this case, resources are limited. So, the key question becomes how to best leverage the planners to meet customer expectations while getting ready to support the future. Since the simple reorder point works but only to a degree (since they cannot see their bill of materials explosion) in this case, the rest has to be manually calculated. When looking at a configure-to-order situation across multiple sites not connected by DRP, inventory disappears and the complexity of planning materials increases. Also, unfortunately, the only resource that gains an understanding of MRP / DRP concepts is the material planner. The production planners remain unclear as to how these concepts apply. So, it makes sense to roll out the concepts in the current system so that the team gains exposure to how it works. This understanding will prove valuable in implementing the new system, and most importantly, if the material planners do not have to spend countless hours manually calculating numbers, they can provide better service to customers, as well as contribute valuable input in setting up the new system for success.

Food For Thought
Although the MPS/ MRP module of ERP systems can be valuable in improving service and reducing inventory, they do not always make sense. Take a step back to look at the complexities in your planning process. Have you overbuilt the process? We also find that simplifying creates substantial improvement for almost every client. Perhaps you should simplify rather than add complexity, even if you already own the system or your key resources think complexity is needed. At least 80% of the time, we simplify to some degree.  We might take what seems like a step back to simplify in order to take a giant leap forward.

If you are interested in running your situation by us, contact us.

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

Which Inventory Planning Method is Best?
Systems Pragmatist



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
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