Can You More Fully Utilize Your ERP System?

Undoubtedly, yes. ERP has always been a core specialty of LMA Consulting, and we have worked with every single client on selecting, utilizing, and upgrading ERP capabilities. In our experience, 100% of clients can more fully utilize their ERP system.

Why More Fully Leverage Your ERP System?

Clients only utilize 20% of their ERP system’s functionality on average. There is no reason to utilize 100% of the functionality; however, in every client to date, there was at least 1 additional piece of functionality that would add value to their customers and/or bottom line. Set a goal to find the 20% additional functionality to gain 80% more value.

During times of VUCA (volatility, uncertainty, complexity, ambiguity), it is simply common sense to utilize already existing assets for immediate improvement if feasible. With inflation higher than it has been for decades, talks of pending recessions, and geopolitical uncertainties (Russia/ Ukraine, China/ Taiwan to name a few BIG ones), it should give organizations pause.

There will be more opportunity than ever in history for those companies willing to be bold and invest when everyone else is hiding under a rock; however, the key question is where to focus. Do you need to upgrade your system or can you simply utilize additional functionality and expand capabilities? We’ve yet to find a situation that couldn’t benefit from further utilizing ERP functionality. In most situations, it will buy you a few years at minimum so you can prepare to be successful with an ERP upgrade.

Upgrading your ERP system is not for the faint of heart. It is one of the largest expenditures you’ll undertake, and, more importantly, one of the most disruptive to your people (and hopefully not your customers unless you don’t manage it well). The statistics show that 80% of ERP implementations fail to achieve the intended results. With that said, it is sometimes required for growth. If you need to assess your situation, contact us.

The MacGyver Approach: Leveraging your ERP system

Why not utilize already existing assets and take the MacGyver approach? Of course, you should. Aside from the fun of using paper clips and duct tape to fight off well armed attackers as MacGyver would do, finding functionality that can automate core tasks or provide value to customers can be exciting as well. The question is which functionality should you use?

Bring on experts to explore opportunities to expand the use of the system. Assess your situation to determine what would add the most value for your organization. Consider enhancements that would drive value. There are many areas to review including the following:

  • Customer relationship management (CRM)
  • Planning and scheduling
  • Advanced planning capabilities
  • e-commerce and/or customer portal functionality
  • Supplier collaboration
  • WMS warehouse management
  • TMS transportation management
  • Forecasting/ demand planning
  • MES – manufacturing execution system
  • Order fulfillment and order management functionality
  • Reporting, dashboards, business intelligence (BI) and predictive analytics
  • And many more

The Path Forward in Further Leveraging Your ERP System

Gather your process and systems experts, bring on experts to supplement/ support your team, and put together plans. The most successful clients follow a few steps:

  • Identify key users, process experts, and IT resources (and/or external experts).
  • Company direction will be conveyed by executives so that the team can align with the company’s direction and goals.
  • Evaluate potential functionality and value to the business
  • Assess current utilization, potential utilization, resources/ skills required, benefit and costs
  • Determine path forward with quick wins, rollout schedule, responsibilities and next steps

If you are interested in leveraging already-existing functionality to maximize the value in your ERP system and achieve critical objectives, review our ERP resources and/or contact us to discuss further.

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