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 gain build value in the business instead of suffering endlessly.
The Answer
In their case, there was no need for a new ERP system which 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. Thus, we found a new partner that was a significant upgrade who helped them navigate through cleaning up their system, upgrading to the latest version as well as how to utilize the upgraded functionality that 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 who I have known 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.