Author Archives: Brett Mundell

About Brett Mundell

Brett has more than 20 years of business software sales and company management experience. Brett has been involved in more than 300 ERP projects. His passion is customer satisfaction, making sure every client is more than just satisfied. Brett wants our customers to be driven to refer their friends and peers because we offer the best services and technology available and because we exceeded their expectations.

The ubersiation of supply chain in Australia

What does the ‘uberisation’ of the supply chain look like?

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Getting a product from production into a customer’s hands requires many steps, but the processes and channels involved are changing dramatically.

Customer-focused approaches and peer-to-peer transactions facilitated by technology are causing many industries to re-think traditional business models.

One template for success is characterised by technology-driven startups like Uber, who achieved rapid growth while competing in an established market by providing greater convenience, with zero investment in assets and by leveraging the ‘gig economy’.

It’s clear companies can learn from the success of Uber—but just how much ‘uberisation’ is possible within industries such as manufacturing, wholesale distribution and retail?

 

What did Uber do that made them a success?

Uber simplified a system that didn’t seem open to change: making it easier to order a lift, easier to track when your ride will arrive, improved transparency around who is providing the service, and enabling cashless payments via one platform that works across different locations. Plus the ability to rate their experience and quickly get a sense of quality based on others’ reviews.

In a nutshell, Uber gives consumers control and convenience.

Influential management consultant and author of The Innovator’s Dilemma, Clayton Christensen describes Uber’s competitive assault on the taxi industry as a sustaining innovation rather than what’s typically known as disruptive innovation.

“Uber targeted mainstream markets with a better service for existing customers, and it succeeded in serving them better than the incumbents,” according to Christensen.

It goes to show that it’s possible to increase your market share rapidly by improving existing approaches—making customers’ lives better will allow you to gain their business and their loyalty.

 

How has ‘Uberisation’ affected the supply chain so far?

Experienced Australian supply chain consultant Rob O’Byrne says the Uber model has obvious appeal for ‘last mile delivery’ services for retailers and pointed out that some third-party logistics (3PL) providers already provide similar on-demand services.

Further, he suggests the digitalisation of many aspects of the supply chain will enable more companies to use web-based systems and non-specialised personnel to complete one-off tasks inexpensively.

“Whether it’s because of the smart digital platforms and their operating efficiencies, the access to a workforce and assets as and when required, or simply because it’s the only way of staying competitive and satisfying existing customers, uberisation of logistics is set to grow,” O’Byrne said.

Writing for Industry Week, Stephen Gold points to the possibility of on-demand manufacturing. This could mean connecting your available machinery and resources with people or businesses that need them, as a service delivered via a digital platform.

“In addition, manufacturers are adopting the use of mobile devices to design, build, sell, and service products – in effect, orchestrating production and sales in real-time,” Gold writes.

He also suggests manufacturers could use the model internally. For instance, using digital platforms to book technicians to respond to on-demand shop floor servicing needs, and collect ‘reviews’ on service quality.

 

Do you have to destroy your core business or reinvent the wheel?

The short answer is no.

But for some businesses, a major shift in thinking is required. It’s important to understand that satisfying customers is about more than what you procure, produce, sell, package, and transport. It’s also heavily dependent on the ‘how’.

Uber delivers the same end result as a taxi company, but they deliver it differently. They focus on the customer experience in ways that reduce friction and frustration.

Specifically, that begins with being able to add your credit card details into a mobile app that’s easy and engaging to use, provides real-time updates, and eliminates the need to think about paying—customers simply get a ride, with no fuss.

 

How can growing mid-market business’ start applying ‘uberisation’?

Finding and keeping customers that want what you offer remains fundamental to success. But your offering is so much more than the goods you make, sell, store, and distribute.

Where Uber stands apart is in the details of how they combined technology and human resources to enhance the customer experience.

What are the unmet needs that your customers have? Where are the opportunities for your manufacturing or distribution business to provide greater convenience, speed, and control to customers?

In many cases, digital transformation that genuinely equips your business to become customer-centric lies at the heart of using technology to deliver value differently.

Modern Enterprise Resource Planning (ERP) solutions are enabling the digital supply chain by allowing manufacturers and distributors to draw on data and customer analytics, engage directly with customers and suppliers online, more efficiently produce customised products, and collaborate across teams and external partners more holistically.  

We understand how to leverage technology to help companies grow—it’s what we do best. Talk to our team today about how an ERP solution could benefit your business.

How to successfully manage change during your ERP implementation

How to successfully manage change during your ERP implementation

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Getting people onboard with the new ways of working enabled by a new ERP solution requires change management: here are our tips for more effective change initiatives.

They are two key elements to managing change when it comes to introducing a new Enterprise Resource Planning (ERP) solution into your business: the practical implications of new tools and processes, and people’s behaviours and attitudes.

We’ve written in the past about the importance of effective project management to ensure your ERP implementation happens successfully:

Project management and change management are two different processes, but they often occur in tandem and may have many areas of overlap.

The project work—in this case executing a new enterprise solution—is characterised by a focus on tasks and processes required to set-up the software, re-engineer processes, and train your team in how to use the solution. Change management focuses on engaging and informing people affected by the project to ensure the transition is a smooth and sustainable one.

 

Change is hard: it requires planning, resources, and communication

Change requires taking people out of their comfort zone. Some people will be open to change and others less so, but with a well-planned approach, it is possible to create an atmosphere of excitement rather than trepidation.

You want employees to use your new ERP software solution correctly, but also to proactively embrace the intent of working smarter and more productively, sharing and leveraging data to make decisions, and using your ERP system to identify and act on new opportunities.

Remember to communicate the reasons behind the change and the broader business benefits that the new system brings, not only ‘what’ is happening. Communicate both factual information and key messages repeatedly—assume that not everyone will see every piece of communication or digest it fully the first time.

Factors that contribute to change management success include:

  • Involving your team: The people most affected by the change should be involved in deciding what tools and information will help them work through disruption. A top-down approach won’t fully capture the day-to-day concerns and needs of frontline staff.
  • Strategy first, then tactics: Define what success looks like first, identify and involve all the relevant stakeholders, and then plan and implement the events, documents, and communications that will help you achieve your strategy.
  • Understand the lifecycle of change: Recognise that change management doesn’t necessarily end when an ERP implementation project is finished. Check in on how people feel and adjust timelines and activities accordingly.
  • Leadership participation: Even though you may appoint a person to manage the change initiative, visible and active sponsorship by your C-suite is essential. When leaders use their influence to generate enthusiasm for the desired future state, it’s easier to overcome resistance and concern.
  • Take a phased approach to ERP implementation: Avoid the pitfalls associated with multiple changes in your organisation and phase your ERP implementation so that employees can adapt to the new system, learn, gain confidence, see benefits and then get ready for the next phase of improvements.
  • Confidence is important: Ensure that team members have the confidence to embrace change, voice their opinions and want to make a difference. Get team members excited about the project and the expected outcomes.
  • Communicate regularly: Keep team members updated on new initiatives, project progress, updates, and solutions.

 

Is it time to embrace a more continuous approach to change for business growth?

Whether you’re moving from paper-based records, replacing a legacy ERP system, or stepping up from basic accounting software, your new ERP solution is a big shift. But if you’re serious about gaining a competitive advantage in the digital economy, the changes won’t stop there.

Modern ERP systems are built with flexibility and growth in mind—allowing businesses to add new functionality as needed or take advantage of emerging technologies like IoT.

Writing for Forbes, Bain and Company consultant David Michels said, “Traditional change management as we know it is obsolete. Even the very notion that change can be managed feels absurd given the reality and pace of business today.”

He argues that managing change is now a continuous activity and must become a fundamental part of how you lead, engage, and develop employees—giving your team the confidence and know-how to readily adapt to technological advances or new workflows.

Technology is a facilitator: a tool that makes different approaches and insights possible. The true power of your ERP solution—and other business tools—is realised by people. It pays to foster more adaptable and skilled employees that are motivated to leverage your systems to deliver business improvements.

Looking for guidance during your ERP solution implementation? Our team has decades of experience, hundreds of successful projects, and many satisfied clients behind us. Call 1300 045 046 or email [email protected].

What to consider when choosing your first inventory management ERP solution

What to consider when choosing your first inventory management ERP solution

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Struggling to manage stock levels and satisfy customers using paper-based systems or spreadsheets? Here’s what you need to know about opting for inventory management ERP software.

Managing inventory is complicated. When your business starts to grow in size, keeping track of a large amount of stock via spreadsheets or paper-based systems is too risky and time-consuming. Inventory management software is key to operating efficiently and optimising stock turnover.

The best inventory management solution also gives you a joined-up look at your whole business. Without a clear view of how much stock you’re holding in the context of your sales, incoming supplies and cash flow—you’re vulnerable to under or over-ordering or losing sight of costs.

Companies seeking to improve inventory management are wise to consider an Enterprise Resource Planning (ERP) solution. But how do you approach the software selection process and what are the must-have features in your first inventory management ERP?

 

Which businesses need an inventory management ERP and why?

The way you move products from the production line to market requires finesse given that today’s consumers are more discriminating and have a greater sense of urgency.

In particular, agility and precision in stock management matter more than ever before in the retail and wholesale distribution industries. Businesses that procure, store, sell and deliver finished goods are a cornerstone of the economy, but competition and consolidation are increasing.

For smaller companies that are growing into mid-market enterprises, streamlining and automating the flow of products to end consumers becomes critical to achieving your goals for continued expansion. That may include adding new product lines, opening extra warehouses interstate or overseas, or bringing more parts of the supply chain in-house.

Whether you sell a variety of products into different industries or have a niche, the inventory management challenges for growing retail and distribution businesses typically include:

  • Managing information and interactions with customers and suppliers.
  • Gaining clarity about your capacity to meet demand now and into the future.
  • Getting accurate data around the amount, location and cost of inventory.
  • Increasing the speed and efficiency of fulfillment processes.
  • Managing multiple warehouses, in multiple countries and currencies.

You need to know what’s driving your sales pipeline, what’s happening in the warehouse, and how all of it affects your balance sheet. It’s all connected, but currently being managed separately—which is holding you back.

Rarely will spreadsheets, entry-level software, or a point solution be effective when inventory lies at the heart of your profitability. Instead, you need a comprehensive ERP solution that helps you manage inventory as part of end-to-end business process management.  

[FEATURE ARTICLE – 6 ERP readiness signs growing businesses will encounter]

 

What functionality do you need in your first inventory management ERP?

Keeping track of stock is a means to an end—the end being happy customers. Your new ERP solution should help you to provide an excellent experience, from the time a business or individual orders through to the delivery of their goods and after-sales care.

Your inventory management ERP should include functionality that allows you to:

  • Capture and use data about customers and vendors to improve sales processes, engagement, and long-term loyalty.
  • Plan with a clear view of your sales pipeline, shipping lead times, costs and supplier performance.
  • Automate re-ordering based on system-wide analysis of supply and demand.
  • Access real-time data on stock amounts and precise location across multiple warehouses and within each warehouse (bin management).
  • Track stock by serial number, batch number, or expiration date for improved traceability.
  • See at a glance how much money is tied up in stock, apply different valuation methods and costing methodologies, and analyse profitability by warehouse, product or location.
  • Easily see what’s ‘available to promise’ taking into account sales, forecast sales, goods stored across multiple warehouses, on consignment, or in-transit.
  • Analyse data to more accurately forecast minimum and maximum stock levels, and reduce wastage and dead stock.
  • Increase the precision and efficiency of picking and packing with pick lists, suggested routes and integration with technologies like barcode scanning and IoT.
  • Seamlessly manage dispatch processes, and support improved logistics or compliance with EDI requirements of large retailers.
  • Track and manage warranties and coordinate after-sales service.

In addition, in order to future-proof your technology investment it’s essential to choose a leading software solution that is:

  • Built on cutting-edge infrastructure and available in the cloud.  
  • Intuitive to use and available on mobile devices.
  • Able to be implemented in stages and easily integrated with complementary technologies.
  • Made by an innovative, established company committed to ongoing development and support.

[FEATURE ARTICLE – Enabling accurate inventory forecasting through a modern ERP solution]

 

Ready to start benefitting from a new inventory management ERP?

Introducing an ERP solution into your business is a major change. It’s important to reflect on whether your business is prepared for the time and effort involved in embedding new systems across your whole enterprise. Poor planning can lead to failed ERP implementations.

If you’re ready to benefit from a digital supply chain, pay close attention to how closely a solution aligns to the actual improvements you’re looking to make—both now and into the future.

Remember too that ERP solutions should be configured for your unique workflows, processes, and financial reporting requirements to deliver maximum value.

Businesses new to the world of ERP software can benefit from third-party advice to choose and implement the ideal solution. Look for a reseller or implementation partner with demonstrated experience, an excellent track record of successful ERP projects, and an approach and team that you can trust.

Do you want to talk to an ERP expert about improving inventory management? Feel free to call us on 1300 045 046 or email [email protected] for more info or to schedule a consultation.

ERP Champion for implementation project

Why your internal “ERP champion” matters more than you realise

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We reveal why the leadership of your ERP solution implementation internally can ‘make or break’ your project’s success.

Well-regarded ERP industry analysts Mint Jutras recently surveyed more than 300 manufacturers and distributors from midsized to large companies about their ERP implementations. The report revealed high rates of failure are a myth but many are leaving potential benefits and ROI unrealised.

What was the most important factor that contributed to ERP implementation success? It wasn’t the software choice. It was the support and commitment of senior leaders (62%) and effective change management within the organisation (48%).

On the flip side, poor quality testing and inadequate business process re-engineering were the top reasons cited for lack of success.

These results do not indicate that the ERP solution you use is inconsequential. Technology is a tool, and selecting the right software is critical. But it’s only half the solution and it’s not usually the limiting factor when it comes to benefitting from greater visibility, automation, and analytics.   

People and processes involved in the implementation are more likely to hold you back and can be hard to coordinate effectively. People and processes ensure that your new solution is implemented, configured and adopted by your team through a process of implementation and change management.

To make that happen your business must dedicate internal resources and managerial support to the ERP implementation and change management process.

 

What kind of internal resources are needed to implement an ERP solution?

A reliable and experienced ERP implementation partner, like Leverage Technologies, is there to guide you through every step of your implementation.

However, high levels of internal commitment and organisation make it easier for your partner to assist you, and the less likely your project is to veer off-track.

The factors a business should focus on to support a successful ERP implementation include:

  • Well-documented processes and functional needs.
  • Accurate data and data conversion requirements for the new system.
  • People with the skills and availability to support each stage of the process.
  • Sufficient time allowed for each stage of the implementation to be finalised.
  • High-level sponsorship and accountability from C-level executives.

When we sit down with a business to begin the implementation process and they can show us clear process diagrams, we can tell they’ve thought about how their new ERP can be applied to deliver improvements. We can build on those ideas based on our expert understanding of the ERP solution—it’s a true partnership approach.

Of course, it’s not possible to introduce a new system that will be used and relied on by your team, without the input of your team. Your team’s involvement is required to:

  • Participate in workshops and brainstorms to clarify what’s important to the business.
  • Articulate tasks and workflows for each functional area so your provider can automate them.
  • Reconcile and clean-up data from multiple sources to ensure it’s ready for the new ERP solution.
  • Conduct other data collection activities like an accurate stock take or update the asset register prior to go-live, ensuring accurate data for the new ERP solution.
  • Identify and act as ‘super users’ that can be involved in training and supporting others.
  • Test specific functionalities by generating reports and other documents as part of user acceptance testing.

As well as people who are ready and willing to engage in each of those activities, it’s important to create a project management position or team that provides overarching direction within the business.

[FEATURE ARTICLE – 8 Reasons you need internal ‘muscle’ to implement an ERP solution]

 

When and how to appoint an ERP implementation project manager

A strong and savvy internal project manager will make a big difference in your ability to implement your new ERP solution on time and within budget. They set realistic expectations, manage project tasks, and provide an interface to the business for your ERP implementation partner.

Decide early about the allocation of resources to project management. A full or part-time resource sitting within your team to manage the project affects the costs, timing, and methodology of the implementation. Ask your reseller how the appointment of an internal project manager can expedite the implementation process and lead to better outcomes.

Because executive buy-in is so critical, it makes sense for a senior leader to champion the project, and choose and supervise a suitable project manager.

Your implementation partner can’t be privy to all the internal activities, time pressures, and machinations that may negatively influence the progress of your implementation project. Your project manager should be. They should have the skill and standing required to get answers, resolve issues, and generally keep the project on an even keel.

You might appoint a person/people specifically to run the project for a set length of time. Or you could choose existing team members to step out of—or expand—their day-to-day roles. The appointment of a full time or part time internal project manager will depend on the scale and complexity of the project and the timelines defined.

The skill set required of your internal project manager will vary somewhat based on the complexity of the project. For smaller, less complex projects, the project manager will need to be very hands-on—with the technical skill set to assist with data uploads, user training and setting up super users. With larger, more complex projects, the internal project manager will need to be more focused on the task of project, timeline and resource management – a less hands-on role.

Looking for an experienced ERP provider that can help you prepare for a successful implementation? Talk to an expert Leverage Technologies consultant today.

Replacing your legacy ERP- Should you upgrade or switch?

Replacing your legacy ERP: Should you upgrade or switch?

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Is your legacy ERP system starting to pose a barrier to functioning at your best or embracing new opportunities? This post will help you determine whether to upgrade or switch to a new software solution.

When your legacy Enterprise Resource Planning (ERP) solution is letting your business down, it’s important to weigh your options carefully before you decide whether to upgrade to a new version or make the switch to different software.

Your ERP system unifies business process management and the flow of information across every part of your business, and the wrong choice can have serious consequences.

 

Why legacy ERP systems create problems for evolving businesses

There are a number of reasons your organisation might be reliant on older technologies or systems that don’t take full advantage of modern approaches.

Business-critical data may be stored and managed in systems that are now outdated, but still in working order. The effort and cost of changing software may not seem worthwhile at first, especially when it may necessitate establishing new processes and the change management work that comes with that.

But the issues that may eventually arise include:

  • Slow, lagging processes and lack of automation reduces a team’s productivity.
  • Cost and risk of maintaining legacy systems running on obsolete technology.
  • Growing skills gap when it comes to knowledge of working with legacy systems.
  • Legacy systems are incompatible with the adoption of technology like AI and IoT.

 

How to decide between an upgrade or a completely new ERP solution

Change is only worthwhile if it delivers business value: that means better performance, lower costs, or features that will improve your offering or competitive advantage.

If you’re torn between the idea of upgrading to more recent software offered by your existing vendor or switching to a completely new ERP solution—there are two important factors to keep front of mind:

  1. Technology is changing at lightning speed: Some of the most advanced ERP software solutions may be relatively mature. All that really matters is whether vendors have progressed in line with changes in the available technology: cutting-edge software must provide powerful native functionality as well as enable your business to gain a competitive advantage through advances like cloud computing, machine learning, mobility, AI, IoT, e-commerce, and EDI.
  2. Implementing a new ERP solution is a big investment: Implementing a new ERP solution requires careful planning, a significant financial and time investment, and internal resources, training and project management skill. It’s not a decision to be taken lightly. Implementing an ERP has long-term consequences, but that also means it has the potential to boost your performance over the long-term if the solution is right for you.

 

Leaning towards an ERP upgrade: the pros and cons

If an upgrade is available for your legacy ERP, you may feel like this is the simplest option. Sticking with your current software provider or re-seller means you can deal with people you already know, it may require less training, or prove to be less expensive.

Upgrading your current legacy ERP is well-founded when and if:

  • Your team is happy with the current system even though it lacks some capability.
  • The upgraded version of your software is up-to-date with current technology and functionality.
  • The technology vendor is reliable, keeping pace with emerging trends, and investing in research and development to improve the solution.
  • Your current ERP was implemented well, you’ve always received great support, and you’re confident that the level of support will continue.

But if all of those statements don’t ring true, that’s a red flag.

It doesn’t make sense to hitch your wagon to a solution that your team doesn’t like and has always been a mismatch with your business needs; has historically been poorly implemented or supported; and potentially won’t allow you to take full advantage of cloud computing, analytics and emerging technologies.

If upgrading doesn’t offer a clear path to improved cash flow, customer satisfaction, and clarity for better decision-making—you should seriously be thinking about switching to a new ERP solution.

Ask yourself if an upgrade of the ERP software you already have will actually see your business through the next 10-15 years: or is it a bandaid solution?

 

Is a new solution the best fix for your legacy ERP issues?

Switching solutions may be the best way forward if an upgrade won’t deliver the capabilities you need to run a better business.

The speed of technological change is astounding. The Internet of Things is real and will only become more embedded within the industry and our daily life. Already in distribution supply chains, smart packaging that contains sensors that generate data is being used to enable better tracking, engagement with customers and deeper insights into supply chain efficiency.  

Machine learning and AI is already part of the way modern ERP solutions deliver automation and forecasting dashboards that alert you to trends. If you don’t move to an ERP solution that empowers you to take advantage, and your competitors do—it could seriously impact your business’ viability in a short timeframe.

The difference that a new system will make must be significant enough to justify the time and effort to go through a comprehensive ERP software selection and implementation process.

Carefully assess your internal needs, gaps and inter-dependencies around the legacy system, so you can judge new software options against specific criteria. Look for a vendor that is large and innovative enough to sustain the R&D required to remain at the forefront of technology so you’re always ahead of the curve and know your product will remain current.

And finally, pay attention to the experience, industry knowledge, methodology and personal approach of any re-seller or implementation partner—you’ll work with them closely to achieve a successful implementation.

Leverage Technologies are highly experienced ERP solution providers with more than 300 successful projects to our name. Call us on 1300 045 046 for a no-obligation consultation or email [email protected].

7 Beginner questions about ERP answered

7 Beginner Questions About ERP Answered

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If you’re not really sure what ERP means or why it matters, this post is for you.

There’s a lot of jargon, acronyms and initialisms in the business world: it’s easy to lose track. Maybe you’ve heard the term ERP used in relation to managing a business and wondered, ‘what exactly is an ERP?’.

For people new to the concept, we answer seven of the most common questions about ERP to save you time searching the web:

 

1. What does ERP stand for?

ERP stands for Enterprise Resource Planning.

Enterprise Resource Planning refers to a process of organising and managing all the resources and activities that help a business function, through an integrated system. You’ll almost always hear the term ERP in the same breath as ‘system’, ‘software’ or ‘solution’, because Enterprise Resource Planning is achieved through the application of software and associated technologies.  

 

2. What is the purpose of ERP systems?

ERP systems exist to bring daily workflows, tasks and data from various business functions together into a coherent whole. The software helps to link and standardise processes and makes information available across all parts of a business, to inform related activities and allow for high-level consolidation, analysis and reporting.

In business, there’s a lot of emphasis on setting a strategy so that you can make plans with a clear end point in mind. This idea recognises that although you may have different people working on different tasks in different parts of an organisation, collectively you’re working towards a common goal.

But how do you coordinate the practical, day-to-day flow of tasks, materials, information and procedures involved, especially when your business has grown in size and scope—or operates across multiple business entities, several stages of a supply chain, numerous branches and warehouses, or multiple countries?

Traditionally, different departments or business functions create and use their own systems, and store their own information separately—whether that’s on paper, in spreadsheets, or bespoke software. But this ignores the fact that each part of a business is dependent on the others in order for an entire enterprise to operate well.

That’s especially true when complex structures or processes are involved. As your business gets bigger or more complicated, it gets harder to gain a complete picture of how each aspect of the operation contributes to overall performance, and to communicate effectively across teams.  

That’s the reason that ERP solutions were created. In the very early days, ERP systems were mostly used by large manufacturers looking to coordinate and plan the required resources for each stage of production. Now they are used by businesses in all kinds of industries that want a more unified approach to managing their core business functions.

[FEATURE ARTICLE – A Brief history of the ERP]

 

3. What does an ERP system do & how does it work?

An ERP solution is sophisticated software that, when successfully implemented, should make it easier to manage workflows, collect and share information, and make insight-driven decisions.

You have a choice of how to deploy and implement your ERP system, whether that’s on-premise, in the cloud, or via a hosted, private cloud. Modern ERP systems make it simple to adopt a cloud-first, SaaS subscription model where your business pays by-the-month and benefits from real-time data, true mobility, data security without the hassle of maintaining a server, and automated updates to ensure your software is always current.

ERP systems are not the kind of software where you can sign-up and start using it straight away. They need to be configured for your specific business requirements and reporting needs. While you may choose software from a particular vendor, many businesses work with a re-seller or implementation partner (like Leverage Technologies, a highly-awarded and experienced partner working with vendors including MYOB, Sage, and SAP) to guide them through the implementation and make custom modifications.  

Typically ERP systems use one database to store and share information across the whole business. Most systems are modular, with a variety of different modules that cater to different business functions or activities, such as accounting and finance, inventory management, customer management, production, business intelligence, and HR. Modules are designed to work seamlessly together. Add-ons and complementary applications can be integrated where necessary.

Employees can be given access to some or all modules or specific functionality, with different permission based on their role and responsibilities.

In addition, newer ERP systems apply technologies including AI and machine learning to automate processes and eliminate some repetitive, manual tasks, as well as analyse data to help you forecast and plan with greater precision.

The interconnected nature of an ERP means that information about a customer is available across the business as a person moves through their buyer journey: from adding them into the system as a lead, the progress of their order, through to managing returns and warranties, and reporting on aggregated sales and profits at the regional or national level. Similarly, every stage in the life cycle of creating and delivering a product can be seen, tracked and analysed to improve your purchasing, quality assurance, cost management or supply chain efficiency.

 

4. What’s the difference between an ERP and a CRM or Accounting software?

A Customer Relationship Management (CRM) system focuses solely on that specific aspect of your business—managing your sales funnel, customer journey and marketing efforts. An accounting program helps you balance the books, manage payroll and invoices and some reporting.

Both systems are useful in their own right, but are designed to manage isolated aspects of your business. On the other hand, an ERP system can include both of these areas of functionality (and much more) and ensure that information can be easily shared between them.

Once a customer is created within an ERP system, all of your interactions, orders, balances and dealings with that individual or organisation is linked across every part of your system. For instance, when someone in the sales team adds a customer’s details and includes attributes like their location, that information will flow through and allow your CFO to generate accurate reports by sales region that help the business analyse profitability.

Accounting and finance functionality is usually a fundamental inclusion in an ERP solution, because data from across the business is required for your business to create accurate, consolidated financial reports, and to gain clarity about overall costs, margins, and the performance of different teams, processes and product lines.

 

5. What are the benefits of an ERP?

High-level visibility and the ability to manage processes across your whole enterprise are the key benefits of an ERP system.

Greater visibility of what is happening allows you to identify bottlenecks, cost blowouts, and inefficiencies—plus it gives you a better vantage point to see opportunities to grow, enter new markets or develop new products and services.

An ERP system can help you answer questions like: Who are my best customers? Where am I losing money on dead stock? What product lines are most profitable?

Integrated systems and data means there’s less room for error, smoother workflows, and less effort required to aggregate information so reporting becomes faster—with instant access to a lot of key data via intuitive dashboards.

 

6. Do I need an ERP?

The top three misconceptions about ERP systems is that they’re only for large businesses, or only for manufacturers and that they are too expensive. We break down these myths in detail in a previous post.

The fact is, your need for an ERP will be driven by the problems your business is currently experiencing in terms of information silos or inaccurate record-keeping, poor productivity due to manual processes, lack of coordination across your supply chain, and lack of consolidated financial reporting.

For many businesses on a growth trajectory, the cost of not implementing an ERP is the real concern because their current disparate systems are holding them back. Are you displaying any of the seven ERP readiness signs?

These problems can impact small to medium businesses just as badly as large businesses. The return on investment when your business is firing on all cylinders can more than justify the expense of a modern ERP system (particularly given that you can pay monthly using operational budget).

Implementing an ERP solution does require time, a significant investment, and project management muscle within your organisation. Learn more about what you should consider and the kinds of questions we ask new clients to determine their readiness.

If you think you do need an ERP solution, take your time and choose wisely.

[LEARN MORE – Your 2019 ERP software selection guide]  

 

7. How much does an ERP cost?

The cost will vary depending on the software you choose, the functionality you want, how you deploy the software, your configuration needs, number of users, and other factors unique to your business.

We’ve created an indicative reference price chart that you can use to scope the size of your ERP project and allocate a tentative budget based on the size of your organization (employees and turnover).

 

A few bonus answers about ERP!

Another query many people have is who uses ERP? What kinds of companies and what kinds of software? Here’s a few case studies of real businesses that use ERP systems that you might find helpful:

Still have more questions about why an ERP system is important, its main characteristics or functional areas? Our expert team would be happy to help: call 1300 045 046 or email [email protected].

Caution required- Key consideration before choosing an ERP software

Caution required: Key consideration before choosing an ERP software

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Don’t let short-term thinking force you into a bad decision when it comes to choosing and implementing an ERP solution. We explain why the decision requires forethought.

Implementing a new Enterprise Resource Planning (ERP) solution or upgrading your legacy system is a big move.

It also has the potential to make a big difference in your business. Unified systems help you to centralise data, improve workflows and cash flow, understand performance and continually innovate to better service customers.

But how do you know if, and when, you need to invest in the feature-rich capabilities that modern ERP software can offer? And why is it seemingly such a big, costly and time-consuming project?

 

Two key things to keep in mind when you’re considering a new ERP solution

Before you take the plunge or even start your research, let these two concepts sink in:

  1. An ERP solution is designed to work across every part of your business management processes, customer service, operations, financial management, and reporting. It’s a fundamental change to your business. You need to be careful about the software you select.
  2. The providers and methods used to apply new systems will affect your ability to operate in the short and long-term, so it’s essential to be thorough in vetting implementation partners. If you fail to implement your ERP successfully, it puts your business at risk.

The perception held by many business leaders considering the need for ERP software is that you will hand over your business and that your new ERP provider will simply upgrade you to a new and improved system when the opposite is true.

An effective ERP solution implementation is about customising a system to your needs: to both enhance your current business approaches and help you advance towards a better functioning future. Technology is the enabler—you and your business remain in the driver’s seat.

 

Just because ERP software is first-class, doesn’t mean it’s right for you

Here’s a situation that occurred recently. A business contacted us to consult on their ERP solution and implementation, after becoming uncomfortable with the approach of another provider.

They’d been persuaded by the other consultants, and were leaning towards a particular piece of software and all its bells and whistles, but they weren’t 100 percent convinced. Wisely, they sought out a second opinion.

After taking this business through the initial stages of our consultative approach, I had to be honest—I wasn’t sure they were ready to implement the functionality that had been suggested or even the specific solution they had been sold on.

It’s not because the software wasn’t high quality: it was. It’s not because I wanted to contradict the other consultants. I’m in the business of helping people embrace ERP solutions, not turning them away.

But…I gave them that feedback because adopting an ERP that isn’t right for your business and doesn’t have an excellent chance of successful implementation is a recipe for disaster.

 

How do you determine your readiness and the right ERP system?

Even if you’re a technologically savvy leader, you’ll probably only implement a new ERP system once or twice in your career. Our team does this work day in, day out.

So let me share with you some aspects of what’s practically involved in our consultation process.

When a Leverage Technologies consultant sits down with a new customer, we ask a lot of questions. It’s not a grilling, just an in-depth conversation.

We’re positive and enthused about helping you, but we’re also pragmatists and we need to get a clear idea of your business needs; budget; how your project aligns to our skill set and work we’ve done previously; and your internal resources and readiness to implement.

Some questions will be about your overarching structure and complexity, like:

  • How do you organise teams and divisions?
  • Do you have an overseas presence?
  • How many offices and companies, brands, legal entities and ABNs do you have?

Some questions will relate to how you manage finances, such as:

  • Do you do a lot of inter-inter-company trading?
  • Do you need consolidated reporting?
  • Do you trade or purchase in different currencies?

Of course, many questions will be about the day-to-day operational needs of your business that must be supported by functionality within the ERP solution. Our consultants might ask 10-20 questions per business function, depending on your industry and scale.

For example, let’s say you have a service department. We’d clarify if your service to clients includes technicians that are often on the road and therefore mobility is essential. Do you need to be able to schedule their time? Are you thinking about geotagging your service vehicles and need the ability to track that? Is the service you offer reactive or pre-emptive, in-warranty or out of warranty—and how must the system support that?

[FEATURE ARTICLE – Your 2019 ERP software selection guide]

 

ERP selection puts your business under the magnifying glass: don’t get burnt!

Asking these questions and having an honest discussion about the role technology will play, can expose gaps in your current management approaches, policies and procedures.

A business that’s still reaching maturity, or has a team that’s so flat out they can’t manage daily workloads, probably isn’t fully prepared to undergo a comprehensive digital transformation.

Granted, no business brings a perfect set of internal processes to the table. Our consultative approach allows us to add value, identify easy-fixes, and refine existing approaches through digital tools—that’s what we do best.

Achieving the ERP system your business deserves requires in-depth understanding to inform a rigorous software selection process; internal resolve and project management muscle; and an implementation partner with the experience and methodologies to tailor a solution for you and implement it with care.

It doesn’t take an in-depth discussion to get started—get obligation-free advice from one of our friendly consultants today. Call 1300 045 046 or email [email protected].