Why choose an ERP Solution?

Ryan Anderson Director, Q2S

Table of Contents

Executive Summary Introduction

Five KeyQuestions Conclusion

Executive Summary

When your business is beginning to suffer, how can you determine the cause? When your business is maintaining the status quo, is it really worth the time and resources to make a change? What can you expect when you implement an ERP solution?

The decision to choose an ERP solution to run your business

is daunting at the very least, especially if you’re wondering if making such an investment would yield a noticeable return.

Introduction You’re one of those plant managers who is often heard

saying, “If it aint broke, don’t fix it.” You're wary of change. Why

throw a monkey wrench into an operation that is working?

Maybe you’re looking at stagnant spreadsheets, evidence that your operation is maintaining the status quo, but wondering if things could improve. And you’re not quite sure how to make that happen. Your company has not experienced any growth and you see others in the industry surpassing you and you’re not sure why. Would making a major investment in an ERP system change this?

Or, on the positive side, you’re experiencing unprecedented growth and are having trouble keeping up with production. Maybe your customers are asking for a wider range of options and variations of your products—that’s a good problem to have. You need help keeping it all together before your hard work turns into a logistical and analytical nightmare.

Do each of your processes have their own set of standards or protocols? Is Helen in the front office entering orders using an altogether different database than JoAnn uses in scheduling or Diane in shipping?

Is your inventory in sync with production requirements? Are you shuffling a mountain of spreadsheets trying to reconcile numbers? Do you have too much inventory? Not enough? If the answer to these questions is “We’re all over the place” then you need to consider consolidating to one system that does everything. When each of your processes uses the same standards, speaks the same language, and operates using the same database, your operation will run smoothly. Fully integrated processes guarantee that all the stakeholders of your business are utilizing the same playbook.

Undoubtedly, choosing to run your production using an ERP system that marries each of your processes is not a decision that can be made overnight. First, you must determine if an ERP system is right for you. Will it solve your current list of problems? Or will it only cause more confusion, misappropriation of assets, or anxiety among your workforce? Knowing ahead of time what obstacles and challenges you will face when implementing an ERP system is key, but determining, once and for all, if this is something your business requires to be competitive, is the first step. Below are five key questions you must ask yourself before deciding to invest in an ERP system.

Five KeyQuestions 1 Are you running each

of your processes in a vacuum?

Five KeyQuestions 2 Is managing IT nearly

impossible?

With everyone running their own show, your IT department is frenetically trying to manage different systems. The process of customizing each system, attempting to integrate them with one another, and keeping them running with upgrades and work-arounds is complex at best; at worst, is an exercise in futility. However, an integrated ERP system that handles the sales, manufacturing, inventory, purchasing, quality, and shipping aspects of your business—and uses a common language—will make the job of managing IT not only easier, but will provide a much better level of consistency. Channeling your company’s IT resources into maintaining one robust system will save time, money, and personnel.

You have several systems in place running an assortment of processes within your business. How do you keep up with the latest technological advancements? If you’re not using an ERP system, the answer is, ‘you don’t.’

While it is true that you don’t have to be running MS-DOS to be dumped in the category of old folks’ technology, any outdated system—especially one is considered obsolete because updating it would be more cost prohibitive than replacing it—falls into the rusty bucket of legacy technology. Choosing an ERP system that regularly monitors trends and changes in technology and applies their development hours toward improving the efficacy of their software is a far greater investment than patching up an outdated dinosaur.

3 Are you running your production with

legacy technology?Five Key

Questions

4 Can you readily access Business

Intelligence?

Is the task of gathering business data mired in a mindless shuffle of spreadsheets and outdated reports? Keeping your finger on the pulse of your business is crucial. An ERP system can provide cus-tomized reporting in real-time with the utmost accuracy. Imagine reporting that uses the same database and that allows you to analyze trends, work status, and business resources, freeing you to make decisions based on the most up-to-date and accurate information. Furthermore, you can control who has access to this date—with executives maintaining access to all reports while others within the company gaining access through permission-based protocols.

Five KeyQuestions

Five KeyQuestions

5 What are your customers saying?

Or, what are they not saying? Are orders being taken accurately and delivered on time? Are you sensing frustration among customers who have been, in the past, satisfied with your products and service? Is there a way for customers to enter their own orders and configure options? How about your prospects? Does your sales team have a reliable system in place to contact potential customers? A company that relies on a disjointed hodgepodge of systems is unable to take care of their customers the way a company running their production with an ERP system can.

Conclusion

Implementing an ERP solution is not an easy decision—from deciding whether it’s worth it to finding the solution that best fits your needs to actually employing the system itself, all of these require a careful analysis of your business’ needs.