Tag Archive: information

Is CRM Valuable?

July 30th, 2019

A Client Question
When clients decide to upgrade ERP, they also look at CRM (customer relationship management) because it makes sense to align the technology infrastructure into a common platform that will be fully integrated and scalable. However, what if it isn’t part of an ERP project? When does it make sense to jump into the CRM world? One client asked us just this question.

The Answer
In their case, they could achieve a powerful return on investment with CRM. It provided the tools and technology that would strengthen their relationship with their current customers, as well as help them expand sales with current customers and create a pipeline of new customers. Specifically, when meeting with customers, the sales reps gained insights into customer preferences and ways to strengthen the relationship. If they captured those ideas into CRM on the spot, the next person who interacted with that customer could see the notes and tailor the conversation. These seemingly small preferences can go a long way!

In terms of expanding business, they needed robust sales reporting that would tell them if they were falling off in a particular area or if they sold one product without its complimentary product so that the sales rep could follow up. Last but not least, they wanted a way to track potential new customers and expansions of business. For example, if a reseller was opening a new facility, they wanted to track it in CRM so that everyone had access to the timing, forecast, and other critical information. Also, since it was a collaborative sales environment, they wanted a way to track potential new customers and where they were in the sales cycle so that they could forecast future sales and the likelihood of it occurring. Sales forecasts were the 80/20 of success in this client because it was in a high growth mode where cash forecasting is of critical importance.

 A simple CRM solution fit the bill. A few years later, they were ready to upgrade their ERP infrastructure. At that time, they had the base CRM disciplines functioning and so it was an easy transition to a fully integrated system with CRM functionality. This client has been recognized multiple times for its substantial growth and success.

Food For Thought
Although CRM systems can be a great idea (as it was in our client’s case), if your sales and support teams aren’t ready to enter at least the key data, you’ve just bought an Audi that sits in your garage.

Start implementing process disciplines early. Enter information about your customers that will be handy at a later date.

Start tracking key meetings and prospects. Are you able to make good decisions from what you are tracking? If not, wait!

Aggressively push to start tracking vital information about your customers, even if you put it in Outlook or a spreadsheet to start. Soon you’ll be ready for a simple CRM solution, followed by more powerful ones as you get used to driving your car on city streets, you’ll be ready to brave the freeways.

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

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Obsession with Your Customer
A Systems Checkup


How Are You Keeping Up?

July 9th, 2019

In today’s Amazon-impacted, data overloaded world, it is one BIG challenge to just “keep up”. How are you keeping up with the latest industry trends, noteworthy products, emerging technologies and more?

It would be easy to spend 40 hours a week just “keeping up”. Of course, I wouldn’t recommend that as your competition would be happy to speed on by. However, this idea got me thinking about how executives should “keep up”.

Time isn’t a resource. We cannot make more time. On the other hand, time is a matter of priority. When we answer, “I don’t have time for that,” it means we aren’t prioritizing that topic or that person. We cannot prioritize everyone and every topic including how to stay up-to-speed.       

A few recommendations for executives to stay up-to-date on relevant information without taking “too much” time:

  • Make it a priority for your team to stay up-to-date.  If each of your team members is up-to-date on relevant information for his/her area, it will be half the battle. Ask for a bullet point summary of highlights.
  • Talk with customers.  One priority you cannot delegate is a certain amount of customer interaction and discussion on trending topics. How else will you steer the ship?
  • Attend key industry conferences. Typically, there is a flagship industry event our clients attend. No matter how busy, make room in your schedule to attend, meet with customers and suppliers and find out what is trending.
  • Focus some attention on your strategic differentiation. For example, a few clients are expert at sourcing. Thus, they better put some focus on this topic. Others are expert at manufacturing, e-commerce or a technical topic. Stay abreast of key trends.
  • Skim industry articles & the Wall Street Journal. Staying current on key events and how they could impact your industry and your company is essential.



The Strategic Benefit of SIOP

June 26th, 2019

SIOP (Sales, Inventory, Operations Planning) should not be relegated to the Planning Department. Although the planning group is a key participant and might lead the process, SIOP touches upon several strategic issues while creating alignment with Sales, Operations, R&D/ New Product Development, Finance, Purchasing, and others. As a CEO, you must become interested!

We have worked on countless SIOP projects with clients across industries as diverse as building products, food and beverage, healthcare, and aerospace.  It has proven to be the most effective at achieving the win-win-win of enabling growth while maximizing service, cash flow (inventory) and profit. For example, at one aerospace client, we put the fundamentals in place to support SIOP (scheduling, planning systems MRP/MPS, forecasting) and then rolled out a SIOP process involving all key aspects of the organization. Although our objective was to bring service levels from the 60%’s to the high 90%s, we not only accomplished that metric but we also improved margins by 5% and increased morale and engagement. What’s not to like with these results!

Critical Aspects of SIOP
Let’s start with just those elements that are most important to achieving results:

  • Can you get executives involved? Of course, it is better to gain executive involvement upfront.  However, I have found that it is quite doable to gain the involvement over time as well. For example, in one client situation, a key executive was not on board at any level at the start.  So, as we rolled out a pilot process, we convinced him to give the process a try. Once he sat in on the executive SIOP meeting, he became more interested because strategic issues arise such as make vs. buy, changes in sourcing, impacts to sales strategies and more.
  • What do you have to do to get directionally-correct information for making decisions? By NO means do you need perfect information.  In fact, if you wait for perfect information, your decision will be long past. Yet directionally correct information is imperative so that you can make fact-based decisions and/or gain approval from corporate or your Board for what you know must be done to succeed. I cannot think of a client situation where I couldn’t gain access to at least directionally correct information after an assessment, no matter how ancient their ERP system.
  • Will you involve all relevant departments in the SIOP process? If you focus on data and not the people, you will not succeed. The 80/20 of success is to bring typically disparate groups together to align on 1 plan/ path forward. It is much easier to say than to accomplish, and so those clients that do this well have a far higher success rate than the rest. You should involve Planning, Purchasing, Operations, Logistics, Customer Service, Sales, Finance, New Product Development, and any key area of your operation.

SIOP is not a quick resolution.  However, you can make quick interim progress . Similar to safety, it must become part of your day-to-day culture. As business conditions change, roadblocks naturally arise through the process. We’ve found that they have a FAR higher chance of being averted or minimized when they arise as part of the process instead of related to one person or department who typically is seen as the “problem”. Strategic issues also arise naturally through the process so that they are proactively addressed instead of resulting in a reactionary panic.

You can start the SIOP journey with an assessment of readiness with recommendations for improvement. Several clients have started with this approach so that they knew which building blocks to put in place and whether the benefits would drive a substantial return on investment at this juncture. If you are interested in this type of assessment, contact us.

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