Tag Archive: upgrade

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.



When Is It Time to Upgrade?

July 5th, 2019

A Client Question
A client didn’t feel prepared to launch into an ERP system upgrade as they had just bought the business and had invested significant funds into the transition.  Yet, this client was also starting to worry about scalability and the risk associated with old technology. After all, this old technology was directly supporting their day-to-day business and customer experience. Although the CEO was reluctant, he agreed to an assessment of his ERP system and readiness.

The Answer
In their case, they needed to upgrade to modernize their technology infrastructure and gain additional functionality that is required to support their business growth and meet current standards. However, we found a way to make small key improvements to their ancient system to support enough progress to ‘buy time’ for the teams to gain an understanding of process disciplines required to support a successful upgrade. It also gave them time to educate the workforce.

During the next year, significant efforts were made to roll out process improvements and system functionality to standardize functions such as pricing and raw material ordering. About a year into the process, we “hit a wall” in terms of the ERP capabilities with critical functionality considered a “must” in supporting the business. Thus, we were prepared to make a quick selection of an ERP system and partner and eventually gained corporate alignment to pursue the upgrade to support continued growth and profitability.

Food For Thought
We are often asked to look at ERP systems that clients think they should throw out.  It turns out that that were perfectly fine and scalable, just poorly implemented.  We usually aren’t asked to look at ERP systems on their last leg where we had to make a strong case to executives to even look at the topic. And whether a new system was needed or not, the organization might not be prepared. Determining whether there is time to prepare or whether you should follow a rapid preparation route can be tricky. There are typically risks on both sides, whether you move too slow or too fast. Take time to assess what makes sense in your case. Be careful of ‘shark’ salespeople as there are tons in this field. It is quite confusing so that even well-intentioned executives and salespeople can mislead organizations. If you are interested in running your situation by us, contact us.

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

ERP Selection: Why It Has Become a Strategic Priority



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.

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Systems Pragmatist
ERP Selection: Why It Has Become a Strategic Priority
Are You Leveraging ERP Fully?



Are You Leveraging ERP Fully?

December 10th, 2017

LMA Consulting Group elevates business performance.80% of our clients only utilize 20% of their ERP system, and they are not alone.  So, if this is common across typical companies, why do so many of them call to throw out their current system and find one that will resolve their challenges?  It’s a good question!   

Changing Systems and Keeping Service Levels
When clients call with this dilemma, we make sure pursuing a new ERP system makes sense.  It is NO easy initiative to change systems and keep customer service levels intact.  It requires a significant outlay of funds to not only purchase the system but also to implement.  Contrary to popular belief, the software cost is SMALL in comparison to the implementation cost.  Thus it pays to take a second look at whether it would make sense to more fully leverage your ERP system.

There are some situations that dictate an upgraded ERP system.  For example, a few include the following: a recent merger or acquisition; an outdated, unsupported system; a highly customized system that isn’t scalable (and/or dependent on key resources); a system such as QuickBooks that easy to outgrow…  It pays to take another look regardless, but especially at the rest of the scenarios that arise.  Are there ways to leverage your ERP system more fully?  Most importantly, can you leverage the system to support your customer and profit differentiators?  What could you learn from the user group community?  LinkedIn can provide some answers.  

Is it time to take another look at your ERP system?
In our consulting practice, we have seen a few examples of ERP systems that were “hard to imagine” in terms of being outdated and non-functional in terms of basic business tenets.  Even in these situations, there were opportunities to further leverage the ERP system to achieve business outcomes while pursuing an upgrade.  Why not take a second look?  Even if you are above average, you likely have 50-70% opportunity to expand functionality.

Improvement in service levels alone can make a second look well worthwhile.



System Strategies to Kick Off a New Year

January 19th, 2016
system strategies

Kick start your new year with business strategies that are more focused, faster and improve overall relationships. The 5P Accelerator is a new way to take a critical step toward success.

Since I work with clients ranging in size from small, family-owned businesses to multi-billion dollar corporations, industries ranging from aerospace to building products to value-add distribution and on topics ranging from growth to service level improvement to increasing business performance, I have the opportunity to see countless businesses — and what works and what doesn’t work.

It seems like a great time to share what is important as we head into a new year, new quarter or even new day. There is always opportunity to take that critical step towards success.

From a systems standpoint, here a few of the top strategies/areas to consider as a next step in driving business success:

  1. Leverage what you have – Even though I dedicate a portion of my practice to selecting the “right” system to best meet business objectives, I find that 80% of the time, the current system (almost no matter how bad it seems) can be further leveraged to drive results. There are two situations I can think of where the client was extremely system challenged but we found a few ways to improve upon processes, even in the worst of cases. Start by thinking about what is most important to your business. Then dig into the areas of the system that could support that critical business process. It can be as simple as that.
  2. Upgrade when it makes sense – As I said earlier, every business can be improved with its current system; however, there is a limit. If you are in a high-growth mode and leveraging a system geared to small business, you’ll begin to run into the wall in terms of capabilities. It might be time to upgrade. If you have gone through a merger or acquisition, it is likely you’ll need to consider upgrading to have a common platform. If you have a highly customized system to support your business with limited growth potential without continuing down the customization path, it is likely time to consider upgrading. If you want to make a leap forward with your technology and are using an outdated system that has weak support and might be bought up by the next software giant to come along, it might be time to consider an upgrade.
  3. Select the “right” system to drive business results – I have helped many clients select the best system to meet their business objectives the last several years. It can be a dog-eat-dog world with radically different estimates and smooth-talking salespeople; however, there are also great suppliers selling highly functional and flexible systems to bring your business to the next level of performance. The bottom line is that it boils down to how well the software options support your critical business factors (which should be a short list; not 100 items) and how well the software suppliers will partner with you for success. Implementation will cost more than software and it will cost more than you expect to do it well, yet it will deliver substantial results after things smooth out.
  4. CRM – In today’s Amazon-impacted marketplace, service is of critical importance. My clients are expected to deliver faster, provide more options, suggest value-additions, be available 24/7 — and the list goes on. CRM software can help you keep track of your relationships, potential business and provide extra value to your customers.
  5. Warehouse automation – As e-commerce continues to grow in importance around the globe, many manufacturers and distributors must rise to the occasion. It isn’t as easy as using the same processes that work effectively for your regular business. E-commerce drives significant differences to warehouse operations if you want to be able to provide the level of service consumers have become accustomed to at the price they are willing to pay. These changes are driving significant investments in different equipment and technology for those companies with heavy e-commerce business. Bring in experts. Do your research. It will make or break success.
  6. SIOP functionality – More and more of my clients are further leveraging their planning, capacity planning, demand planning/forecasting, MPS/MRP and advanced planning systems to better align demand and supply for improved service levels, reduced lead times, improved margins, accelerated cash flow and to support growth.

Think about which of these might benefit your business. Leveraging systems is one way to grow without adding overhead and it will improve your business performance by utilizing an already-existing asset in most cases. Give it a try. Contact me for support with these strategies and/or to let me know how it goes. Sharing success stories and even failures can propel you to success.

Did you like this article? Continue reading on how to become a Systems Pragmatist:

6 Process & Systems Trends for Success 

The Value of CRM