Tag Archives: Enterprise Resource Planning

Is Sage X3 The Ideal Discrete Manufacturing ERP?

Discrete manufacturing encompasses a wide variety of businesses, from the highly technical—such as medical devices, robotics, aeroplanes, computers, smartphones and cars—through to essential everyday items like toys, appliances, furniture, windows and fencing.

While the products vary, one factor remains constant: the need to ensure your processes are efficient and you’re producing high-quality, in-demand goods.

Discrete manufacturers are realising they need to harness technology to improve their whole-of-business operations and gain a competitive edge, which often means implementing a modern Enterprise Resource Planning (ERP) solution.

What do discrete manufacturers need from an ERP solution?

Discrete manufacturing businesses looking for ERP software must prioritise solutions that simplify and automate inventory management and production scheduling.

If you have to wait for a part that’s being shipped in from overseas, or experience a backlog at one step of your process, it can halt the entire assembly line. Too much stock on hand hampers your cash flow, and too little makes life hard for your sales team.

Production is often complex; with detailed BOMs (bill of materials), and different stages of assembly requiring attention to ensure quality in the end product. Not to mention engineering changes, configure-to-order requirements, or versioning to meet the demand for different features or price points.

To reduce costs and meet changing market needs, the best software solution is one that can be customised for your precise production tasks and also delivers clarity on your broader business performance.

Why is Sage X3 an ideal ERP for discrete manufacturing?

If you make products comprising multiple parts to exact specifications, Sage X3 is the ideal ERP.

Sage’s ERP is designed to give manufacturers complete and real-time data to make running a more precise and cost-effective operation possible. For discrete manufacturers, it offers a nuanced ability to:

Plan ahead for ordering raw materials and capacity.
Understand sales demand and manage inventory accordingly.
Schedule and track work and oversee shop floor activities.

The software includes forecasting, which feeds into tailored recommendations that help you optimise inventory levels. Create custom dashboards, monitor work orders, be notified when to buy materials, review data and take action as needed.

Sage adjusts its suggestions based on real-time changes in sales and order information, so you can make proactive decisions that save your business time and money.

Because Sage ERP automates many tasks within an integrated system, it gives you access to better data, fewer islands of information, and a more well-oiled operation.

Innovate with an ERP made to increase your sales

Traditionally making individual products has been harder to scale due to a reliance on components, sequential steps and quality requirements. However, Sage excels in helping discrete manufacturers analyse product line profitability and develop new products.

It’s simple to review and release the same product in different versions or create multiple kinds of the same product. You can quickly and cost-effectively plan for product diversification within the ERP, comparing the cost of variations in parts, change in a production location, or by the batch size.

Sage makes it possible to automate change management workflows to have new product versions approved, and then introduce new products or version information so that it’s available across your business—at the point of sale, BOM, and routing levels.

An effective ERP is now essential for discrete manufacturing

Your business clients and end consumers expect innovation, speed and personalised service. It’s ineffective to rely on outdated legacy systems or paper-based plans.

Systems that don’t give you end-to-end oversight of your manufacturing process are too slow and inexact, leaving your business more vulnerable to mistakes, recalls, and cost blowouts.

On the other hand, with Sage X3 as your ERP solution you can forecast, anticipate and respond to changes in operational and production needs, so you can meet and exceed your consumers’ needs.

For more information on Sage X3 as an ERP for your discrete manufacturing business call us on 1300 045 046 or email [email protected].

ERP for the Food and Beverage Industry: A Recipe for Success

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Looking for a Food ERP Software? In this article, we are going to explore some key aspects to consider when selecting an ERP Software for the food industry.

The Australian food and beverage industry is highly regulated…..HACCP, traceability, quality control – these are just some of the key aspects that organisations operating in this industry have to consider when selecting an ERP system. And the list goes on!

With strict regulation and compliance requirements, it’s important to understand what the challenges in the food and beverage industry are before proceeding any further.

Australian food and beverage industry overview and key challenges

The food industry in Australia is going from strength to strength – with a growing population and an abundance of great locally produced food products the Australian food industry is well equipped for further growth. The industry appears to be split into three core sectors across food processing and food distribution;

Smaller businesses offering food distribution to cafes and restaurants;
Mid-size food processing companies
Larger food processing multinationals.

When considering a new ERP software for the food industry there are multiple complexities – for small and large players. Challenges like traceability of raw materials and finished goods, random weight, weighing scale integration, run/delivery management and sequence-dependent changeover can offer some challenges for ERP providers.

The key for the smaller players in the food processing or food distribution market is to be able to find an ERP provider that offers the required level of functionality and expertise without the associated price tag. The intention of this article is not to recommend any specific ERP application – but more to give general advice on ERP product selection for organizations operating in the food industry.

How to choose the best ERP software solutions for the food and beverage industry

In this short video, we explain the 5 key functionalities that you should be looking for in a modern food ERP software solution for your business.

Things to consider when selecting an ERP software for the food industry

Key takeaways

Functional / requirements – as always when selecting an ERP solution it makes sense to list your functional requirements in each area of the business. This includes functional requirements for finance, sales, purchasing, inventory, manufacturing and all other business processes. In the food industry, your requirements for finance will usually be reasonably standard. As a result, a lot of focus is usually placed on the operational side of the business. Most specifically a lot of focus should be placed on the food industry-specific ERP requirements – expiry dates, random weight, traceability, HACCP etc.

Budget – there are some great ERP products suitable for the food industry available in Australia. These products are offered at very different price points. There is no point investigating a great ERP product for the food industry with lots of reference sites only to find that the implementation would require a budget of three times your intended spend on ERP. Unfortunately, we all need to be realistic and the budget has to play a role.

Generally speaking, ERP products can be divided into three broad categories – tier 1, tier 2 and tier 3.

Tier 1 normally indicates the more advanced, high-end ERP solutions used by multinationals and bigger companies with larger budgets.
Tier 2 is the mid-range sector where many Australian food sector SMEs are looking for ERP products. The ERP players in this sector offer a complete ERP application aimed at medium-sized businesses.
Tier 3 is typically the smaller end of the market – less complexity, lower implementation investment and quicker implementation timeframes.

The challenge with ERP for the food industry is that very often ERP solutions should not be selected purely based on the size of an organization but rather on the complexity of the business requirements. Put another way – what are the business needs? As we have already mentioned the food industry puts forward some relatively complex requirements. The challenge is that a small food processing business can have relatively complex ERP requirements. This will require a higher budget to implement. Even if the ERP software is given away for free experience tells us that more complex requirements by their nature take longer to implement and therefore require greater investment.

Methodology – whatever industry you are in when you implement an ERP solution you need to follow a methodology. The chosen methodology will offer structure and process to the implementation. The methodology should be selected based on the companies’ specific requirements, complexity, budget and size of business. There is no right or wrong answer for ERP implementation methodology. One size does not fit all when it comes to ERP implementation. Agile, waterfall and other ERP implementation methodologies should be selected carefully based on their merits and matched to your companies’ specific business requirements. Remember that ERP is about business – not software. The software is purely an enabler to doing better, smarter, more efficient business.

Timing – implementation timeframes for ERP can range from a couple of months to several years depending on complexity, resource requirements and other factors. Make sure that you set realistic go-live targets which allow for sufficient testing of requirements.

Let’s discuss some of the ERP for food industry requirements in more detail:

HACCP – a food management safety programme. Designed to control food safety through food safety and risk assessment plan. A well-implemented ERP solution can assist with HACCP requirements. Most specifically as these requirements relate to:

Traceability – a good ERP solution will allow batch/lot traceability. This will allow a food processing or distribution company to not only track and trace finished goods but also all components used in processing. This will allow full traceability if there are any product-related issues like contamination.
Monitoring – a principle of HACCP is the monitoring of critical control points. With traceability and manufacturing routing through ERP these critical control points can be monitored.
Procedures – monitoring of procedures and process flows is important in the food industry. An ERP solution can assist with document management and retrieval, automated quality assurance procedures (sample testing of raw materials and finished goods) and the automation of procedures. For example, an ERP solution can force a user to do a QA sample test prior to receiving raw materials into a warehouse.
Data – HACCP requires that food companies have access to data and good record keeping. An ERP solution with good reporting tools makes access to data easy. Even large volumes of data can be kept for several years and accessed at the push of a button.

Weighing scale integration – A common requirement for the food industry is weighing scale integration to the core ERP solution. This weighing scale integration can be relatively simple – providing scales for weighing cartons or boxes in the factory to check the actual weight vs expected weight of a carton of food or raw materials. More advanced ERP implementations might have integrated weighing scale functionality to automate the weighing process as a double-check that the right goods are being shipped.

Proof of delivery – when foods are delivered to a café, restaurant or hotel why not implement an automated and electronic proof of delivery solution on a handheld device – true mobility.

Run management – large and small food distribution and processing companies share a common goal – get your product to your customers on time and in full. Delivery run management involves the scheduling of trucks to make sure that we follow the most economic delivery schedule and that we pack the trucks according. As an example, the items for the first delivery are packed at the back of the truck.

Random weight – one of the more complex areas for ERP solutions in the food processing industry. Random weights indicate that you sell an item (for example rump steak) as a carton (sold by the carton) but you also have a variable weight in each carton. In this instance, the sell item of 1 carton might weigh approximately 10KG’s. The challenge for an ERP software solution is that the weights are very seldom exact. There can be weight loss on the meat and as such a 10KG carton could end up with a net, shipped weight which is variable. There are different ways to handle random or catchweight and your ERP provider will need to be across these solutions.

Reverse bill of materials – most ERP solutions want to treat manufacturing as the building of an item from various raw materials. As an example a bicycle is built from two wheels, a frame, a seat and more. These parts are assembled using the bill of materials. What makes food processing different is that you need a reverse bill of materials. In food processing, you start with one item (a whole cow) and then you cut the item into various finished goods – fillet steak, rump steak, etc. The complexity for ERP is the concept of one item of raw material becoming multiple finished goods.

EDI – if you are selling to the major food retailers in Australia your business will need to be EDI compliant.

We have talked about some of the complexities facing the food industry when implementing ERP – let’s not forget that when we implement a good ERP solution we get a whole lot more than a general ledger and invoicing. A well-implemented and functional ERP solution will open up all sorts of opportunities for improvement:

Instant access to analytics enabling the business to make informed decisions;
mobility for sales teams and delivery drivers (including proof of delivery);
run management to ensure the most efficient delivery to your customers;
on time in full reporting for your customers and suppliers;
better inventory control and
optimized purchase and production planning.

Food ERP Software Demo

Check how a true ERP software that is built for the food and beverage industry looks like in this short software demo of Sage Enterprise Management tailored to the food industry.

Conclusion

It is no secret that the food industry in Australia is going from strength to strength. Although highly regulated there is still room for Australian organisations to innovate on processes and operations to drive efficiencies at multiple levels.

This guide to selecting the right ERP software for the food industry aims to provide a better overview of the key challenges that this type of solution can help you overcome and how.

Do you operate in the food and beverage industry in Australia? Leave a comment below to let us know what challenges you are facing and what key benefits you would be looking for in an Enterprise Resource Planning system.

Sage Enterprise Management Cloud Vs On-premise: Your Rollout Options

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Should you implement Sage Enterprise Management Cloud or On-Premise? After you choose Sage Enterprise Management as your ERP software solution, you now want to decide whether to implement it in the Cloud or On-premise.

The good news is that the options are certainly there for you! In this article, we are going to explain some of the differences and considerations you need to make when evaluating the two options.

First of all, why are so many companies moving their ERP software to the cloud? When compared with an On-premise setup, the Cloud makes perfect sense. Think about the following benefits:

Reduced upfront cash flow requirements;
No need for expensive hardware and infrastructure;
Quicker deployment of ERP and outsourced maintenance of the on-going requirements associated with security, infrastructure and back-up;
Gain access to scalable computing power (more computing power than ever before);
Pay as you use.

Sage Enterprise Management Cloud Vs On-premise

Sage offers you, the customer, choice. When considering Cloud ERP vs On-premise there are a number of factors to consider:

Current infrastructure;
On-going OpEx vs CapEx costs;
Internet speeds and reliability;
Functional requirements.

As an ERP software solution provider, we believe that the Cloud or On-premise deployment choice should be made by the customer, not the vendor.

Yes, there are multiple advantages to moving your ERP software to the Cloud but there might be specific reasons preventing you from doing so or you might have done the maths and you might be of the opinion that an On-premise ERP makes more sense for your business.

Sage Enterprise Management, offers all of the technology that you expect from a modern ERP solution:

Cloud
Mobility
E-commerce
Web client

In fact, Sage Enterprise Management was an early adopter of web client architecture for ERP, leading the way for Cloud and browser independent remote access from anywhere.

I am a huge fan and supporter of Cloud ERP solutions but let’s not forget that the Cloud is not always right for every business. We can still access Mobility, eCommerce and Big Data analytics from an On-premise ERP solution. As stated earlier, there might be specific reasons for still considering an on-premise solution.

Your deployment choices with Sage Enterprise Management

Here are some of the deployment options offered by Sage for your Sage Enterprise Management ERP software.

Traditional On-premise. Purchase your server, use your existing infrastructure and stay on-premise. In this instance your Sage Enterprise Management licenses are “purchased” and you pay an annual maintenance and support plan to cover your day to day support requirements.

Pros: There is a lower on-going software investment. Most of your software investment is made upfront with the software “purchase”. When calculating investment of On-premise vs Cloud you should consider all costs – hardware, IT resource, back-up and network costs.
Cons: This type of purchase requires a bigger upfront investment. – Maintenance of infrastructure requirements can prove expensive and time-consuming.

Private Cloud. At Leverage Technologies can provide private Cloud options. These private Cloud options include the ability to do an upfront software “purchase” and pay an annual support and maintenance fee or alternatively pay a monthly Software as a Service (SaaS) fee. This is often referred to as a hybrid model. Your Sage Enterprise Management Solution is hosted in the Cloud on infrastructure that is outsourced (you pay a monthly fee). You have access to your own Cloud environment, hence the term “private” cloud.

Pros: All of the advantages of a multi-tenant Cloud (public Cloud) offering. Easier access to specific development tools and customization. Upgrades can be timed to your specific requirements because you have your own environment you can decide on the timing and planning associated with system upgrades. This is particularly useful if you have multiple developments or integration requirements.
Cons: Will be a more expensive option than multi-tenant Cloud.

Multi-tenant Cloud. You are sharing secure infrastructure with multiple other companies.

Pros: Automatic upgrades (reduced on-going cost of ownership), lower monthly fees, no need for your own expensive infrastructure, back-up and security are world class.
Cons: On-going cost of ownership should be compared to other available options (on-premise and private cloud). Remember, as stated earlier, when comparing the investment requirements of on-premise, private and public Cloud one should compare all relevant costs – infrastructure, upgrades, IT staff and security.

Conclusion

As consumers we love choice, so why should ERP be any different?

With an ERP solution from Sage you, the customer, can choose a world class ERP solution with the deployment option that works best for your business.

Whether it’s a traditional On-premise setup, private Cloud or multi-tenant Cloud, Sage Enterprise Management give you the solutions for setting up your ERP the way you prefer.

At Leverage Technologies, we have helped numerous Australian companies understand the various options and implement the solution seamlessly. For more information on the ERP options offered by Sage call us on 1300 045 046 or email [email protected].

Brett Mundell

Managing Director

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.

Template ERP Requirements: Defining Your Implementation Checklist

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Your ERP requirements have to be clearly defined prior to commencing the research and evaluation of your various ERP options.

If you have been tasked with gathering information about possible ERP options for your company and you are about to begin the research phase, follow the instructions below.

You can use this sample ERP requirements checklist to get an idea of what businesses like yours look for and what the ERP research process looks like.

Defining your ERP requirements starts with understanding the vendor selection process

If you are evaluating ERP (Enterprise Resource Planning) solutions you will no doubt be bewildered by the number of choices available in the ERP market. Questions about Cloud vs On-premise, Tier 1, 2 and 3 products, web, E-commerce, EDI, paperless warehouse, choices of the database and a whole lot of other questions will need to be answered.

When evaluating ERP solutions, it is important that you have a process in place for vendor selection.

This process should include a structure that has an emphasis on running a complete evaluation including:

Online investigation of potential solution providers;
High-level requirements analysis;
Demonstration of capability;
The high-level scope of works;
Assessment of implementation methodology;
Interviews with implementation team members;

More information about the appropriate ERP selection process is available here.

Let’s assume you are running the suggested ERP selection process. This is a somewhat formal structure to ensure downstream implementation success. However, you will still require a level of detail associated with defining the functional and technical ERP requirements.

Here are some ideas to get your thinking started with the ERP requirements definition process for your business.

Defining your business’ ERP requirements: sample checklist

We need to start our ERP selection process by looking internally within the business to answer questions about what functionality our business requires from the ERP system.

This starts at a high level and then drills down into each functional area of requirement:

What do we want to achieve by implementing a new ERP solution? It’s always worthwhile to ask the question – what does success look like for our business? In 6 or 12 months’ time, when we have successfully implemented a new ERP solution, how will our business look like?

Improved cash flow. Debtors days reduced from 75 days to 50 days for example;
Automation of tasks. List examples of tasks that you want to automate and how much time will be saved through automation;
Improved customer service. List how you plan to improve customer service through the implementation of an ERP solution. Examples might include giving your sales teams mobility devices and access to CRM for access to customer information before account management visits or the ability for a sales person to instantly access information associated with customer orders, delivery dates and stock availability for customers.
Automated reporting for quicker reporting timeframes. Month-end accounts to be finalised and published within 6 days of month-end. Timely information for better decision making.

When considering a new ERP solution, you will want to prepare your ERP requirements list. The below items (whilst not comprehensive) represent the sort of functionality you might be looking for.

Technical requirements

Consider Cloud vs On-premise, mobility and other technical requirements. A sample list of technical questions includes:

Cloud vs on-premise
Choice of database
Client computing requirements
Integration to MS Office
Server requirements (if you choose an on-premise solution)
Operating system
Development platform
E-commerce integration
Mobility options
Software development kit details
Updates and upgrade process and frequency
Bandwidth requirements
Third party integrated Solutions / complementary Solutions list
Client access with specific reference to remote access requirements – web client vs Remote Desktop
MS outlook integration

Finance requirements

Your ERP questions as they relate to the financial modules should focus on financial reporting, ATO compliance, management reporting, timely processing of information and automation of tasks:

Financial reporting with drill down to source transaction
Cash flow analysis and cash flow forecast reporting
Flexible chart of accounts
Dimensions and cost Centre accounting
Budgets – including the ability to load multiple budgets
Multi-company and consolidation reporting
Payroll integration
ATO reporting requirements – BAS
Fixed assets module
Cash management functionality

Distribution requirements

Focus your questions on purchasing, inventory management and logistics.

Warehouse management options
Bin location functionality
Scanning / paperless warehouse options
Purchase planning and forecasting
Serial number tracking
Batch traceability
Kitting Requirements
Stock take
Goods receipting
Freight management integration
EDI Requirements
Purchase orders with workflow and approvals
Multiple units of measure
Back to back orders
Price lists
Stock ageing reports
Stock expiry dates

For more information on how Enterprise Resource Planning is typically used in the wholesale distribution industry, check our video case study.

Manufacturing requirements

Focus on manufacturing planning and resource allocation. Consider the following sample ERP requirements for manufacturing businesses:

MRP (Material Requirements Planning)
Scheduling
Bill of materials with sub-assemblies
Works orders
Routing
WIP tracking
Shop floor data capture
Resource planning

For more information on how Enterprise Resource Planning is typically used in the manufacturing industry, check our video case study.

Customer Relationship Management (CRM) requirements

Focus on the sales and marketing process. There is a wide range of CRM and sales functionality available, from the very basic to the complex.

Sales force automation
Activities and task lists
Marketing automation
Newsletter emailing
Sales workflow
Reporting
Pipeline management
Mobility
Marketing campaign management
Service
Service management
Allocation of Support tickets
Service scheduling
Mobility capabilities
Service contracts
Timesheets
Warranty management

Reporting requirements

Reporting and analytics are key for most businesses looking to streamline their decision-making process and become proactive about their strategy. Consider reporting requirements such as:

KPIs
Dashboards
Real-time analytics
Pre-built data sources and “cubes”
Pre-built reports

Conclusion

It’s important to run a structured process of ERP selection to ensure success for your business. To do this, you need to define what success looks like for your organisation in the short, medium and long-term.

In this article, we have given some recommendations on what to consider when choosing your ERP requirements. This is a key step that businesses looking to implement a new system should take prior to beginning the selection process.

A Leverage Technologies we have been implementing helping Australian businesses choosing and implementing Enterprise Resource Planning for over a decade.

For more information or to speak to a consultant near you today, call 1300 045 046 or email [email protected].

From Data To Smart Insights: How To Make Sense Of Too Much Data

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There is one consistent trend across Mobile, Cloud, Artificial Intelligence, IoT (and of course privacy) in a world of evolving technologies – data is more important than ever before.

In fact, most of the latest technological advancements have one thing in common – large data volumes.

If we consider the business benefits behind these technological advancements we find that all areas of a business, including marketing, sales, admin and customers service (to name a few) are craving data to make quicker, better decisions.

Data is everywhere and businesses that use it wisely can unlock endless opportunities.

In this post, we are going to explore how businesses can make better use of large data volumes currently available to them and finally generate the smart insights they have been looking for.

What can Data do for your business?

All areas of a business can benefit from data that is meaningfully presented.

Marketing teams want data to understand customer behaviour, buying patterns and consumer trends.

Sales teams and managers want to understand the customer buying journey to anticipate buying patterns. With access to unlimited online information, the consumer is better educated than ever and is usually 80% of the way through the buying cycle before making contact with a sales team. The sales team needs access to data to better understand and manage this buying journey.

Admin teams have always had access to big data volumes coming from invoicing, payments, banking and inventory data. The question has always been what they can do with this data?

Customers and suppliers have access to data from multiple different sources. Social media, review sites, videos and more. This means that suppliers and customers are able to “self-educate” through the buying cycle.

The challenge is how do we make sense of data coming from different sources and presented in different formats?

To answer this question, we need to understand why Data structure is key.

Why “structure” is key to understanding data

Take Artificial Intelligence (AI) as an example. AI needs data – lots of data – to detect trends and to be able to suggest alternatives. Many of the data analysis tools that we have access to are sorting through data to give us insight into trends, and patterns to give us a “new view” of the world.

Connected IoT (Internet of Things) devices, on the other hand, means that we live in a connected world all day, every day. Most of us use multiple devices such as smartphones, tablets, notebooks PCs and we subscribe to multiple channels for day to day use – movies, music, collaboration tools and social media for instance. Think of all those connected devices and platforms. You can tell a lot about someone based on their buying trends and usage through connected devices. You can pick up trends such as how often does someone travel, where and how does the individual shop, what’s important to the individual or company and more.

Your digital footprint says a lot about your buying behaviour – this is true for consumers as well as businesses.

All of this and a whole lot more becomes apparent as you get data from multiple connected sources.

The challenge for companies wanting to leverage data for decision making is that data without structure is meaningless. It’s rows and columns, nothing more.

You need tools to make sense of data, detect trends and make recommendations.

Here are some of the most important aspects to consider when choosing how to structure data for extracting meaningful information.

#1 Data Collection. This is topical at the moment. Obviously, privacy concerns will continue to make headlines. Companies will need to be extremely careful about how they collect and use data – from ethical and “opt-in” sources.
#2 Sorting and analysing data. This is not as easy as it might at first appear. In its simplest form, analysing data requires Business Intelligence type tools to categorize and report on large data volumes. The future of data analysis is Artificial Intelligence. This implies collecting data, analysing the data in seconds or milliseconds and making meaningful recommendations and then learning from that data and those recommendations to constantly refine and improve the outcomes.
#3 Doing something meaningful with data. Lots of data is pointless unless we are making and acting on meaningful decisions associated with the learnings from the data. We are about to make the leap from data volumes being available for business intelligence and reporting to systems that find, sort and recommend actions the refine the results and make better or alternative recommendations to help you run a better business.

A real-life example of the business benefits of Data

Let’s consider a real-life example of the business benefits associated with carefully structured data. After all, we don’t want to implement new technology simply for the sake of having the most up to date technology. What we want is the real business improvement – cash flow, customer satisfaction and increased sales margins for example.

Let’s assume you are a mid-sized distribution business and let’s assume that the goal is on-time in-full delivery to your customers whilst holding the lowest possible inventory.

This has long been the great balancing act for distribution companies. You don’t want to tie up cash flow in inventory, but you do want to hold enough stock to deliver on time in full.

How can you use data to achieve your goal? The connected world, using data from years of trading can be used to detect purchasing, sales and delivery trends.

Enter IoT, AI and Big Data, your systems should be able to sort through years of historical data and trends to show you accurate forecast sales for the next few months.
These numbers can be fed into a Material Requirements Planning (MRP) or purchase planning solution which will look at data from the forecast, lead times, current inventory levels, economic order quantities and make purchase order recommendations.

Analyse historical data to see if estimated lead times are accurate based on historical supplier deliveries;
Consider weather patterns to see if shipping deliveries might be delayed based on bad weather;
Link to the contract manufacturer overseas to monitor the timing of the manufacturing process and timing of your shipment to automatically update your delivery schedule;
When the goods arrive in Australia, data will be provided to your purchasing manager to notify them that the goods have arrived and are clearing customs;
Estimate clearance times based on previous customs clearance timelines for similar shipments;
Customers will be automatically notified of the delivery schedule;
When the truck leaves the depot to deliver the container of goods to your warehouse, the system will estimate the delivery timeline down to the minute based on current traffic and driver schedules. Your warehouse staff will be available to unload the container as it arrives.

At the same time, the system will review all customer orders and will notify your customers of their updated delivery timeframes based on customer location, driver routing and traffic conditions.

Wrapping it up

If you want to get ahead of the pack your business will need to get used to dealing with large data volumes from multiple different sources.

There is a competitive advantage to be had from quicker, better decision making. From better sales and marketing management, customer service, operations, finance and all other areas of a business can benefit from a structured approach to data management.

Want to learn more about how to leverage data to streamline your business and unlock strategic insights? Call us on 1300 045 046 or email [email protected] to get started today.

6 ERP Readiness Signs Growing Businesses Are Likely To Encounter

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If you are a small to medium-sized business you will no doubt have used an accounting type solution for your financials, invoicing, inventory and business reporting.

At some point in time, you will outgrow these entry-level accounting solutions and will be considering a move to a full Enterprise Resource Planning (ERP) or Business Management Solution.

In this article, we are going to reveal 6 signals that you are likely to encounter when your business is ready for an upgrade to a full ERP solution.

6 signs it’s time to upgrade to an ERP solution

Your reasons for moving to a new Business Management Solution will normally go something like this:

We have outgrown our current solution. Often a business will have purchased an entry level accounting system 5-10 years ago when the business was much smaller and when the functional requirements were straightforward. As the business grows so do the requirements and “pressure” on the accounting solution. Eventually, you will get to a point where your business has quite simply outgrown the solution – even if that solution did work well for you when your business was in start-up mode.
We are using too many manual workarounds and spreadsheets because of shortcomings within the existing software solutions. As you outgrow your current systems you will start to use more and more manual workarounds and Excel spreadsheets to get the job done. This will result in decreased productivity and manual data-entry errors.
Our current solution is running slow and becoming less reliable as we add more users and data. Entry-level solutions generally don’t offer a comprehensive database (underlying architecture). As the amount of data grows and the number of users increases these systems slow down and can become less reliable.
We want to expand geographically and need a software solution to support these growth plans. True ERP solutions are usually supported in multiple countries and offer multiple language sets. Expanding into new territories is as easy as setting up the localisation for that country.
We want new channels to market – eCommerce, EDI etc. Full ERP Solutions offer more out of the box and integrated solutions for eCommerce, EDI, AP automation and other functional requirements.
We want a single source of truth. The current systems in place have resulted in islands of information. As the business grows, so do the number of systems that you use internally, resulting in dispersed information across multiple departments and functional areas.

The challenge for most small to medium sized businesses is that the jump in investment and internal muscle to implement an ERP solution is a big leap. The next “step-up” from a basic accounting solution to an Enterprise Resource Planning solution can be daunting.

Is your business ready for an ERP software solution?

So, we have established that your business needs to upgrade to an ERP but how do you know if your business is financially and functionally ready for an ERP solution?

To know whether your business is ready to implement an ERP, you might want to answer the following three questions:

Will you get your Return on Investment (ROI)? There is no point implementing an ERP solution unless you are going to get business advantages such as improved cash flow, better customer service and shorter quote to cash timeframes. In summary, there must be a Return on Investment. Use one of the multiple mechanisms from our previous blog post to evaluate your ERP Return on Investment.
Do you have the required budget? Make sure that you have the budget allocated to effectively implement and support an ERP solution and remember – ERP solutions need budget allocated for implementation and on-going support. In one our latest blog article we assess how the “new era of Cloud-based solutions” has changed the way we pay for and utilise ERP.
Do you have the internal resource to implement ERP? Most likely the single biggest factor to consider for small businesses that have outgrown their accounting solutions. You will need to carefully evaluate your ability to implement and maintain an ERP solution. I know that you will be planning to use an ERP provider to do the implementation but remember that the ERP implementation partner will need a lot of your time to implement the solution. Your internal resource does not have to be full time allocated to the ERP implementation but does need to be available to assist with things like:
- Scope requirements;
- User training;
- Data conversion;
- User acceptance testing;
- Go live super-user support.

Conclusion

The move from entry-level accounting solutions to an ERP solution is a big step.

The rewards for those that make the successful transition to ERP are enormous. Plan correctly and your journey into ERP will be rewarding and will provide your business with the ability to grow without the growing pains.

Need help in choosing the right ERP software for your business? Our experts are here to help! Call us o 1300 045 046 or email [email protected] to get started today.

ERP Implementations For Australian Subsidiaries Of Multi-National Companies

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We often have requests from multi-national companies inbound into Australia that want to implement an Enterprise Resource Planning (ERP) solution as part of a global rollout.

The common challenge is that Australian subsidiaries often find themselves caught between two worlds:

a corporate head office that wants to roll out the corporate standard ERP solution and;
the requirement for local support, training and configuration of the ERP solution.

Does this sound familiar?

In this post, we are going to address some of the key challenges that Australian subsidiaries of multi-national companies face when implementing ERP software.

ERP options available for subsidiaries of inbound multi-national companies

Let’s provide background information and then look at the options available for multi-nationals.

First of all, being a multi-national does not necessarily mean that the local, Australian office is a substantial organization. Sometimes the local, Australian office, is in start-up mode or is a relatively small subsidiary of a global company.

Either way, the global head office will usually want to standardize on IT systems, including ERP.

The challenge is that the two organizations can have very different requirements.

For example, the global head office might be interested in:

standardising the array of IT Solutions used in the group;
achieving economies of scale;
centralising the support;
facilitating the global rollout through a standardized template solution;
minimising ERP implementation and support risk;
consolidating reporting;
consolidating skill sets;
building internal competencies;
reducing the cost of ownership;
getting better visibility and over-site of subsidiary offices.

Meanwhile, the local (Australian) subsidiary might benefit from:

local support;
local legal and fiscal compliance – GST / BAS etc;
local training;
the ability to influence certain elements of the local implementation;
reporting that is customized or at least configured for local requirements;

The question is – how to ensure that all parties get what they want?

Enterprise Resource Planning rollout for multi-nationals: What’s The Best Strategy?

ERP solutions differ with regards to the multi-national rollout strategy.

Some solution providers have a “multi-tier” offering – a mid-market or enterprise solution at the head office and an SME solution for smaller subsidiaries.

Examples of this include SAP. SAP S4 HANA might be used at head office as an enterprise solution, but smaller local subsidiaries might use SAP Business One.

Other ERP providers might only provide a single solution strategy – the same ERP solution at head office and subsidiary.

The choice of localized solution for your subsidiary offices will depend on the size of your subsidiary offices, the complexity of requirements and global rollout strategy.

Assuming the ERP product selection part of the equation has been answered by head office – let’s focus our attention on the methodology and structure for the local Australian subsidiary.

Winning methodologies for implementing an ERP software solution for a local subsidiary of a multi-national company

There are different methodologies for implementing Enterprise Resource Planning Software for subsidiary offices of multi-national companies:

Local office runs the entire ERP implementation

Using this ERP methodology, the local subsidiary runs the entire process with little input from the head office.

Head office might provide basic input and learnings from other global implementations but the local office sources a local implementation partner and gets the job done locally.

Advantages

Local support and local resources for the ERP implementation process;
A “fits like a glove” solution, implemented correctly;
A very happy local subsidiary.

Disadvantages

The ERP implementation will cost more as there are no or limited economies of scale;
Limited learnings from previous ERP implementations can be leveraged for better results;
The corporate structure is not followed. This makes global support and resource swapping more difficult;
Riskier implementation as the local, small office is trying to implement an ERP solution without the support and structure of the head office.

Head office runs the entire ERP implementation

In this scenario, a global partner or an internal competency centre runs the entire implementation. There is little or no involvement from local vendors or implementation partners.

Advantages

Low cost to implement;
A standardised ERP solution is rolled out;
Low risk and reduced timeline to implement the ERP software;
Corporate standards are adhered to.

Disadvantages

Local ERP support is not available;
No technical support at Australian local time for the subsidiary;
No local ERP provider to look after the Australian localization of the ERP software (GST / BAS etc.);

The local team of the subsidiary may feel as though they have not been involved in the implementation process – this can lead to a lack of buy-in for the rollout of the new system.

Hybrid ERP implementation model

This implementation methodology uses elements from both implementation structures referred to above.

What we want to achieve is a mixed model implementation where we consider the advantages and disadvantages referred to above and we look to utilize the corporate structures and experience whilst providing a level of autonomy and “localization” for the Australian subsidiary.

Using this implementation model the corporate head office looks after the core elements of system design, broad system scope, reporting, data conversion templates and core elements of system configuration.

The local, subsidiary works with a local partner to work through their specific requirements. Examples of local requirements include user support and training, legal and fiscal requirements, specific local reporting requirements and any configurations required for the subsidiary office.

Using this hybrid model, communication between the local implementation partner and the overseas head office is important as the two organizations will take a collective responsibility for the successful delivery of the ERP system.

Conclusion

Rolling out an ERP software solution can create efficiency gains and opportunities for further growth. However, when it comes to choosing and implementing the system, finding common ground between head office and local subsidiaries can seem challenging.

In summary, there are no right or wrong answers to the question of Enterprise Resource Planning implementations for small to medium sized subsidiary offices as there are different solutions and methodologies to choose from.

Choose the model that best fits your organization’s requirements, structure and culture to guarantee success.

Are you a multi-national or local Australian subsidiary looking to implement a new ERP system? Let us know your questions, challenges and goals by leaving a comment below!