Tag Archives: ERP Solution

7 things you should be looking for in a modern ERP solution

7 Things You Should Be Looking For In A Modern ERP Solution

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Disruptive technologies that were once seen as “ideas” are today a reality for many businesses.

Given the advancement of these new technologies over the last few years, if we look at how Enterprise Resource Planning has evolved, one thing is clear – the ERP world has changed!

Cloud, Mobility, Artificial Intelligence (AI) and the Internet of Things (IoT) to name a few. What impact is this having on ERP and how do you make sure that you take advantage of these technology shifts when the time comes to implement or choose an ERP software for your business?

Here is a short video on what to look for in modern ERP software.

 

Riding the wave of innovation in ERP

Firstly, a technology that doesn’t translate into meaningful change and associated advantages for your business is absolutely pointless!

You need to make sure that Cloud, Mobility and AI have a positive impact on your ERP solution by providing real business benefits.

Assuming we are in agreement that these technical changes will lead to business benefits and should be taken into account when choosing an ERP, let’s focus our attention on what we should be looking for in a modern ERP software.

  1. Fit for purpose. Let’s start by making sure that we choose an ERP solution that is a good fit for the business. This requires an analysis of multiple components:
  • Budget – can you afford the solution?
  • Does the solution that you are planning to implement offer the required functionality to help run your business better?
  • Make sure you cover all functional requirements (financial, operational, manufacturing, CRM) during a scoping exercise.
  1. Internal muscle. Do you have the internal muscle to implement ERP? If you want to learn more about why you need “internal muscle” to implement and maintain an ERP solution, check this blog post.
  2. Web-based technology. Sounds obvious and it is! Your Cloud-Based ERP solution should have web client technology to allow access from anywhere, anytime via any device.
  3. Mobility. Apps and web client access are critical to give the user a consistent user experience across any device. You should be able to log in via mobility apps or the web from your phone, tablet or pc.
  4. Support. It goes without saying that you will require an ERP partner that offers great support. Without a strong support partner, you might encounter challenges for your day-to-day ERP users and long-term ERP optimisation strategy.
  5. Upgrades. Upgrades should be included as part of your cloud solution. If you are not going with a cloud solution, then find out more about future upgrades. Things like frequency, costs and potential disruption to your day-to-day operations should be taken into account. Technology is moving at a more rapid pace than ever before so make sure that your ERP provider can offer technology enhancements to give your business the competitive edge that you are seeking.
  6. Cloud. The team at Leverage Technologies has written several blogs on the subject of Cloud ERP vs On-Premise ERP. There is no right or wrong answer except to say that more and more companies are moving their ERP solutions to the cloud for all the reasons we know about – lower costs, scalability and access to computing power to provide a more agile environment. Ultimately leading to an easier deployment and maintenance of your ERP system.

 

Conclusion

New technology shifts are making it easier to do business and are providing a competitive edge for organisations that embrace change.

Current technology trends that will provide a competitive advantage include Mobility, Cloud, Artificial Intelligence, IoT and Big Data analytics.

Make sure you are positioned to take advantage of these technologies by having a modern, technology-ready, ERP platform.

Modern ERP solutions can help you run a better business. Invest in the right ERP solution and take advantage of a world of new technology that will provide your business with real day-to-day benefits and strategic, long-term opportunities.

For more information or to learn how modern Cloud ERP can help your business grow, call 1300 045 046 or email [email protected].

 

Implementing ERP or not - the cost of doing nothing

The Secret Cost of Not Implementing an ERP System Revealed

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While the cost of implementing an ERP solution can be scoped out, it’s the cost of NOT implementing an ERP that you should be worrying about.

What do we mean by that?

Using your outdated ERP software, basic accounting package or running your business on spreadsheets can be a dangerous business. In this post, we are going to review the key reasons why the cost of not implementing an ERP system should be top of mind for your organisation.

Why the cost of not implementing an ERP solution should be part of your ERP ROI equation

Companies often ask, “what will my Return on Investment be when implementing an ERP solution?”

There are multiple different methods for calculating ROI including:

  • Increased cash flow
  • Staff retention
  • Better customer satisfaction

An often overlooked calculation and discussion is ‘what is the cost of doing nothing?’ When companies go to the market to find and implement a new ERP solution they do so for a number of reasons:

  • Islands of information – multiple solutions that are not integrated. This creates risk associated with separate silos of data and information. It becomes difficult to get a consolidated view of operations.
  • Reporting – manual or limited reporting options in legacy systems is often cited as a reason for considering a new ERP solution
  • Support – companies using an older ERP application have concerns associated with business continuity and support
  • Company growth – high growth companies outgrow their existing ERP solutions and go to the market to implement an ERP solution to cater for and assist with rapid growth.
  • New technology – wanting to make the most of technological advancements (mobility, cloud and big data analytics are a few examples).

Other key reasons for implementing an ERP system include things like functionality requirements, legacy systems and more.

From our experience in assisting Australian organisations chose and implement ERP solutions, we found out that:

  1. When first entering the market for an ERP solution companies underestimate the budgetary requirements and the work required to implement ERP. This leads to organisations deciding to “do nothing”.
  2. When companies make no decision (do nothing), they regret the decision and re-enter the market for ERP soon after making an initial decision to do nothing.

The question to be answered is “when it comes to ERP – what is the cost of doing nothing?”

The answer to this question will depend on your company’s current systems, growth patterns, geographies and plans. Consider the following scenarios:

1 – Considering ERP because of high growth and the fact that your business has outgrown your current solutions

Companies in this scenario often delay implementing an ERP solution because they are so busy growing their business that they can’t take the time to implement a new solution. This is a false economy.

As your business continues to grow your requirements for better reporting, faster decision making and a more holistic view of operations will increase exponentially. The longer you leave it, the worse the situation will become. The best-run organisations I have seen implement ERP ahead of the curve – before the business grows to a point where the business is desperate and crying out for better systems.

2 – Wanting better support for your ERP solution

Poor or limited options for your ERP support will put your business at risk. There are two elements to this – day-to-day business continuity and missing out on the advantages of a well-supported, modern solution. Business continuity is easy to quantify – not having a good support process and structure in place is like not having an insurance policy for your business.

You might not need the ERP support for many months or even years but, when something goes wrong you could put your entire business at risk. Remember that your ERP solution controls your debtors, customer relationships, suppliers, staff and more – ERP runs your entire business. Even if you do not have a major system failure that requires urgent support think of the day-to-day costs to your business of not having an ERP partner that you can trust to help streamline your operations. A good ERP support partner will be able to offer new technology enhancements, streamlining operations and financials and helping save time and money through the use of technology.

3 – Moving away from islands of information

As businesses grow so to do the number of systems that they use internally. Think of the core accounting system and multiple third-party solutions for CRM, manufacturing, estimating, reporting and more. As your business grows so to do the requirements for information to make faster, better decisions. Growing product ranges, new geographies and additional staff add to these complexities. The more your business grows the more you will want a single source of truth – one single ERP solution that consolidates information across all business units.

4 – You require better reporting for decision making

Modern ERP solutions offer integrated reporting platforms. Integrated KPI, dashboard and analytics to analyse large data volumes is only part of the picture. Modern reporting and analytics including in-memory technology allows two very important advantages –

  1. Sorting through large data volumes to deliver instant reporting
  2. Automated reporting – pre-written data analytics to allow users to write their own reports without the need for advanced technical knowledge or experience.

Delay implementing a modern ERP solution and you will almost certainly not have access to modern reporting platforms for instant decision making.

5 – Technology changes – take advantage of IT

Technology is advancing at a rapid pace – faster than ever before. Modern ERP solutions take advantage of these advances. Think of recent ERP developments including:

  1. Cloud
  2. Big data analytics
  3. Mobility
  4. In-memory technology

If you want to take advantage of these and other developments in technology you will need to act and implement a modern ERP solution.

6 – Missed opportunities

Modern businesses are changing the way they do business – at an ever-increasing rate of change. Marketing, sales, reporting, logistics and manufacturing are all evolving as technology advances. If you don’t implement modern platforms for the change you risk missing out on new opportunities. After all, you don’t implement an ERP solution purely for the new technology. You implement new systems for the advantages that the solution can deliver. Once again, think about:

  1. Improved cash flow
  2. Better customer service
  3. Staff retention

Conclusion

While the cost of implementing an ERP solution can be scoped out, it’s the cost of NOT implementing an ERP that you should be worrying about. The reason is simple.

For growing businesses, using basic management technology may result in performance issues with clear repercussions on operations and cash flow. in addition, poor or limited support options for your outdated technology can really put your business at risk.

Consolidating your dispersed technology systems into one ERP platform can also help your business overcome information asymmetry and reporting/forecasting challenges, giving you the tools you need to gain a 360-degree view of your operations.

To find out more about how we can help your organisation leverage Enterprise Resource Planning call 1300 045 046 or email [email protected].

Warehouse management improvements – the lifeblood of your distribution business (Part 2)

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This is a continuation of a previous blog (available here). We hope that these two blogs help you run your warehouse and inventory better.Warehouse management improvements

  1. Lost orders? Count them. The finance director wants you to hold less stock – after all excess stock ties up cash flow. The sales team wants you to have as much stock as possible to make sure that they always have stock available for that next customer sale. Managing a warehouse and the associated inventory can be a juggling act between these two opposing forces. One often overlooked benchmark is a simple one – how many orders are we loosing because we do not have the stock to complete a customer order? Keep track of these number so that you can start to evaluate the impact of lower inventory levels on lost orders. Now compare the savings from lower inventory holding with the lost revenue / lost sales number to see whether you are making the right decisions with regards to inventory levels.
  2. Give me my usual order? Most companies get this phonecall at least once a day from an existing customer. Can I have ten more of what I ordered last week? Can I please have my usual order? A good ERP solution will give you access to this information when you are on the phone to the customer – quick, easy access to real time information for decision making.
  3. Quality assurance or quality control is important for many wholesale and distribution businesses. Particularly in industries like food and medical. Make sure your ERP solution offers you quality assurance options for the efficient transfer and checking of stock from receipting to QA to available for sale.
  4. Inventory transfers. If you run a multi-warehouse solution across multiple states in Australia you will undoubtedly understand the importance of inter-warehouse transfers. Not only should a good ERP solution accommodate inter-warehouse transfers but think of the other implications of a good multi-warehouse solution:
    • Managing stock whilst in transfer.
    • Understanding the cost of a stock transfer. If you move stock from Brisbane to Perth there is a cost involved in the stock transfer. Make sure you know the true cost of moving stock across Australia.
    • Implications for demand planning. A multi warehouse solution will need to take into account multi-warehouse scenarios when calculating purchase planning. Should demand be created from one warehouse or multiple warehouses? Should demand in one warehouse be compensated for by availability from another, potentially overstocked warehouse?
    • What stock is available in which warehouses?
  5. KPI’s, dashboards, analytics and other related reporting tools are critical for good inventory and warehouse management. Some of these reports can be as simple as a KPI which shows inventory levels, open purchase orders and stock movements. A good ERP solution for inventory management will include these dashboards and multiple others in a user portal or cockpit. Think of the options:
    • On Time in Full reporting – for suppliers and customers;
    • Open purchase order KPI;
    • Goods returned KPI;
    • Inventory ageing report;
    • Fast moving inventory report;
    • Slow moving inventory report;
    • Expiring stock KPI;
    • And more……reporting to help you run your inventory more efficiently whilst maintaining the highest levels of customer satisfaction.
  6. Create an environment where information is shared amongst team members. Most warehouse and logistics managers will debate stock levels, forecasts and delivery with other teams in the business. The finance manager wants us to free up cash flow by holding less stock. The sales team wants us to hold more stock so that we can deliver on time to our customers. When trying to balance these demands the sharing of information among team members becomes increasingly important. A good ERP solution will give the warehouse manager, finance manager and sales teams easy access to forecasts, planning and reporting tools to make the right decisions – collectively.

Managing a warehouse, logistics and purchasing requires a lot of moving parts to be managed. Give your team the help they need with a good ERP solution.

The Secrets of Successful ERP Software / Business Accounting Software Selection – Part 3 of 3

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This is the final part of our blog on ERP software selection (part three of three)….

Step 5 – Scope of works

Arguably the most important aspect of any successful ERP implementation the team at Leverage Technologies believes that there are two stages to a successful scope of works.

  1. Pre-sales high-level scope of works
  2. Detailed implementation scope of works

The focus of this whitepaper is the ERP software selection process and as such we will focus on the pre-sales high-level scope of works.

Having selected two companies on your shortlist and having one as your preferred option you are now ready for the next step. Tell the vendor/reseller (the one that is your preferred option) that you want them to do a high-level pre-sales scope of works. The scope of works for smaller businesses would typically involve one day of on-site work and one day of off-site documenting and testing. For larger businesses, the scope of works could be 3 – 5 or even 10 days. The objectives of this phase are:

  1. Get an opportunity to work with the consultancy team from the reseller,
  2. Give the reseller an opportunity to understand your requirements and to give you a more detailed proposal and accurate assessment of days required to implement your solution,
  3. Give your users an opportunity to discuss their requirements in more detail,
  4. Find out if there are any major functional gaps in the proposed solution.

Once the pre-sales scope of works is complete the prospective vendor should be able to provide you with a well-documented proposal and pricing for :

  • The correct number of licenses required,
  • Hardware and hardware configuration,
  • Database and other related software requirements,
  • Days required for implementation, training and system configuration,
  • Days required for integration and development work (if required).

You should also have the following information :

  • Gaps in functionality should be listed,
  • Service level agreement and end-user license agreement,
  • Methodology for implementation,
  • CV’s of the team who will work on your implementation.

At this point in time, you are ready to ask for a copy of the vendor license agreement and service agreement. Asking for a fixed price implementation based on the scope of works is also a good idea.

Having run this process you are now in a position to make a final decision. If you decide not go with the company that you initially shortlisted and “preferred” ie. did the scope of works with then you should run the scope of works process again with your “second choice” on the shortlist – until you are comfortable that you have the right solution from the right partner.

Final points to note :

  • Ask for a fixed price implementation (based on the agreed scope of works),
  • Ask for milestone-based payments,
  • Ensure sufficient project management (usually 10% – 20% of total project cost),
  • Insist on a structured approach/methodology,
  • Insist on meeting the team members who will work on your site – interview these team members prior to making your final decision (the team members who will be your project manager, implementation consultant, support consultant, etc.).