Why ERP? It’s all about making the most of your time
As a manager of small and/or growing manufacturing and distribution companies in the past I have seen many spread sheets, hours wasted maintaining, entering and re-entering data and people walking around looking for inventory. As every other manage before me said “there has to be a better way”. We must make the most of our time, these tasks are clearly not doing that.
Early on in my career I didn’t even know what ERP was. All I knew was that managing the spreadsheets was giving me a headache. Being focused on the operations side, what accounting needed or wanted wasn’t as important to me as what production, purchasing, planning ect needed. Now saying that I also realized early on that the more connected everything was the easier it would be in the end.
So as you look into the possibilities you quickly realize you can buy packages that do specific things, like accounting, CRM, scheduling, are good at what they do but that is all they do. These vertical or focused packages only service one department creating silo’s of information. You can make different things talk to each other but it is not the same and it can be costly. Again we are trying to make the most of our time, to create the most efficient system.
So then you look at ERP. If it is real ERP you should be able to do just about everything your company needs in one system. So things like accounting are fully integrated with shipping and purchasing. Inventory is controlled by work orders, receivables and shipments. Double entries should be eliminated as should the spread sheets. ERP is truly the best way to create an efficient flow of information, and to create an environment of communication between your departments. The result, automating processes and creating an environment where your staff is being productive and making good use of their time.
Ultra efficiencydoesn’t come on day one, its a process and a learning curve for your staff. The ERP software you select is important, it must be able to handle your business needs for today and the future. It is just as important to select a vendor that will provide you with what you need. It is crucial to know if you are buying from a software sales man or a vendor who will provide you with sound business advice and guidance. Do they know your business and its processes? Can they give you advice on how others in your industry do things?
Once you are through the purchasing process be sure to implement the system at a pace you and your staff can handle. Biting of the right sized chunks during implementation is imperative to success. And remember the whole process of implementing ERP is about making the most of your time, this includes during the implementation process. It is great to think you will do as much as you can internally, and we promote that, but not at the risk of missing deadlines or wasting time. Your internal resources cost money too, they need to be involved in the implementation process, but overwhelming them with tasks is counter productive. Be sure to utilize the expertise of your vendor where you need to. It might cost a little more now but the stress and frustration level will be much lower, and in the long run it costs less.
In the end it is all about making the most of the time people spend at work. From the President to the lift truck driver.
To often small companies get caught up managing the fires when they should be managing the business. ERP provides a path to ensure that your organization is utilizes your resources.
Too learn more about ERP visit our site at www.erp123.biz/erp-guide. To learn about ERP123 visit www.erp123.biz
