Tag Archive: ERP

Use a dollar focus to measure the performance of your ERP System

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Profit and cash flow are the most important measures of a business. Planned orders and exception messages are the most important way ERP affects those measures. The best way to determine how well your ERP system is being used is a dollarized measure of planned orders and exception messages that are not being worked.
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Three reasons to implement a new ERP system

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In my experience, implementing a new Enterprise Requirements Planning (ERP) system can be an expensive and risky undertaking. I advise my clients that the decision to replace the existing system or to implement their first ERP system should be driven by one or more of the following three factors. To improve profitability and cash flow To solve problems with existing systems To improve operations  1. Improve profitability and cash flow Executive are always looking for ways to improve profitability and cash flow. Good ERP systems can help by reducing costs of material and labor, and driving faster through put.  A…
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Ensuring Success with Your ERP Initiative: Tools and Techniques for Driving Change

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When you’re implementing a new ERP system, you want people to use new tools, screens and reports, and to work in new collaborative ways. In other words, you want people to change, and that makes an ERP implementation a change management project. Most of the time initiatives that require people to change the way they behave fall into two camps. We either assume people will naturally change from the old way to the new way, or we say how important change management is, and then assume someone else is doing that because we don’t have a clue how to get…
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The Problems with Inventory Turns

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Though inventory turns is the standard measure of inventory performance, inventory turns is limited as a metric. I’d go further to say, a good measure is one that causes the people involved to take action and therefore inventory turns is not a good measure. The first problem with turns as a measure is the question people always ask about it, what is the right number of turns? It is impossible to define the perfect number of turns. Some people say 52 turns, meaning I should turn my inventory once a week, is a great goal for turns. My experience is…
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Lessons Learned: ERP Failure

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ERP system implementations fell off the grid during the recession; however, I’ve seen resurgence in the last year. Companies are thinking about investing again. However, although businesses are picking up, they are by no means out of the woods – every dollar invested must provide a solid return.

Implementing a new ERP system can provide you with upgraded tools to run your business or it can devastate your business – it all depends on the effectiveness of your ERP selection and implementation processes. It is not nearly as simple as it seems. Unfortunately, in my experience, 80% of the time, it fails to achieve the expected results. Worse yet, I’ve seen some horrific customer service impacts. Thus, when you choose to implement an ERP system, it’s worth taking into consideration the lessons learned from failures.
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