Tag Archives: ERP

Interpreting ERP Investment Proposals: Are You Comparing Apples With Apples?

ERP investment proposals can vary greatly even for the same project.

If your business is considering implementing an Enterprise Resource Planning (ERP) solution you might be wondering why there is such a substantial difference in price between the ERP investment proposals provided by different companies.

After all, your business’ requirements are unique and clearly defined. So, where exactly does the difference in price come from?

Here is our advice on understanding the differences between ERP investment proposals from various solution providers so to always compare apples for apples when it comes choosing the best fit for your business.

Receiving the perfect ERP investment proposals: It all starts with your requirements

First of all, it is highly likely that you will be considering multiple different ERP solutions and possibly different providers, including resellers and implementation partners of the same solution. Analysing different solutions gives you the ability to compare what’s available on the market:

Cloud vs On-premise;
Different user interfaces, look and feel;
Generic vs best of breed solutions;
Different functional solutions;
Alternative implementation and support options;

Let’s explore the key reasons why you might get very different proposals, at very different price points from alternative ERP solution providers.

#1. Are you comparing similar ERP Solutions?

ERP Solutions vary greatly in complexity and functional “footprint”. The more functional the ERP solution the longer and more expensive (consultancy) will be to implement the solution. Greater “standard” functionality is a double-edged sword – more functionality to use and more to implement.

More functionality requiring implementation will stretch out the time to deliver and will cost more in consultancy dollars to get the job done. Generally speaking, ERP solutions are available in tier one, tier two and tier three markets. Make sure that the solutions you are comparing are fit for purpose (there is a strong functional footprint that aligns closely with your requirements).

If you are not comparing similar solutions you are likely to see a substantial difference in investment required. This is particularly true of implementation pricing which varies vastly between tier one (Enterprise Solutions for large multi-national organizations), tier two (Mid-market ERP) and tier three solutions aimed at smaller businesses. We are often contacted by companies comparing five different ERP solutions, two from the mid-market (tier two) space and three from the small end of the market. This is not comparing “apples with apples”. In summary – when comparing investment summaries make sure that you are comparing ERP Solutions from the same “tier”.

#2. Implementation methodologies vary greatly

Is the ERP implementation partner offering a fixed price or a “do and charge” implementation? These two different approaches will yield quite different investment requirements. A waterfall approach assumes a fixed scope / fixed price implementation. An agile methodology is a “fits like a glove” build and consult on an “open budget” basis. Two very different approaches that will yield two very different budgets and ERP investment proposals.

#3 Assumptions are being made

When providing a proposal for the implementation of ERP solutions, your implementation partner has to make certain assumptions which will affect the ERP investment proposal.

Some examples of such assumptions include:

Availability of internal IT resources;
Current data formats and the “state” of current data from legacy systems;
Internal (company) project management resource;
Technical experience of team members;
Functional requirements (even after a scope of works there can be some areas that are not 100% clear).

How do the assumptions that your implementation partner makes affect your ERP investment proposal? Let’s use data conversion as an example. Data will need to be exported from legacy systems into your new ERP solution. In theory, this is straightforward:

Extract data from legacy solutions;
Put the data into Excel or Excel type templates for “checking”;
Use technical data upload routines within the ERP application to upload data and run data integrity checks;
Reconcile the data for accuracy.

Sounds easy and it can be. But, data transfers can also be complicated and affect the pricing of your ERP project. Factors which can have an effect on the consultancy time needed to upload data from legacy systems include:

Number of data sources;
Availability of internal technical expertise;
Status of legacy data (how “clean” is the data);
Are internal resources available for data checking and reconciliation?
How well has data been maintained?
How well do staff members understand the data?
Data volumes;
Data transfer requirements – for legal reasons (for example warranty or traceability requirements).

The answers to each of these questions will have a substantial impact on ERP implementation pricing. If one provider of ERP makes the wrong assumptions, they might provide a very different proposal to someone that has done their homework correctly and understands exactly what is required to convert your data.

A good ERP provider takes into account all of these factors to ensure an accurate investment proposal.

#4. Has the scope of works been correctly reviewed?

Providing an accurate implementation proposal for ERP requires an accurate assessment of scope. Two different providers might have different views on the scope of the project and can provide two very different proposals for implementation.

Conclusion

Many companies have a hard time interpreting the variance in pricing from different ERP proposals. Your ERP investment proposal can vary due to factors such as the solution being scoped, the assumptions of your implementation partners, the methodology being adopted and more.

Correctly implemented ERP solutions provide improved cash flow, increased customer satisfaction and happier team members. Evaluate potential providers and their proposals carefully to ensure that you make the right decision for your business and also make sure that your providers understand your requirements and lay the right assumptions for scoping your project.

At Leverage Technologies, we help Australian businesses find and implement the right ERP solution to grow smart. For more information or to speak to a consultant call 1300 045 046 or email [email protected].

Accurate inventory is not a myth: Enabling accurate inventory forecasting through ERP

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In today’s post, we are going to explore how Enterprise Resource Planning (ERP) empowers wholesale distribution and manufacturing businesses with advanced inventory forecasting functionalities to resolve internal conflicts between warehouse, sales and finance.

The debate between your Sales, Finance and Inventory/Logistics Managers may sound something like this:

Logistics Manager; “If sales forecast more accurately and sell to a plan we will be able to hold the right inventory levels…”

Sales Manager; “If purchasing and the warehouse team held the correct stock levels and kept us informed we would be able to sell more…”

Finance Manager; “We need more accurate stock holdings and we must reduce inventory levels to reduce the burden these stock levels place on cash flow…”

These are the three “most seen” competing points of view from most small to medium-sized businesses in the wholesale/distribution and manufacturing sector. The good news is, accurate inventory forecasting is not a myth!

So, how can an ERP solution help you manage these conflicting points of view and forecast inventory demand at any given point in time?

Accurate inventory forecasting is not a myth

ERP solutions give you the functionality to provide faster, better access to information for better decision making. This is particularly true with regards to inventory management for wholesale distribution and manufacturing.

Here is how an ERP solution can help resolve your internal conflict and give you accurate inventory forecasting functionalities.

Planning

The essence of an ERP solution goes well beyond invoicing, customers, financials and suppliers. Planning is at the heart of a good distribution and manufacturing ERP solution.

Planning tools for purchasing and production planning will help balance the supply and demand equation to consider thousands of transactions and recommend a plan. Think of the elements of any plan for a wholesale distribution or manufacturing business:

Lead times;
Economic order quantities;
Container and shipping management;
managing multiple suppliers;
forecasts and min/max stock levels.

It is impossible to manage all of these “moving parts” without the automation that an ERP solution provides.

A good planning solution will map out all relevant components to recommend purchase orders for raw materials and works orders for production planning. A good planning solution balances thousands of transactions to make the right recommendations.

Information

Decision making requires information; timely, relevant information. A good ERP solution provides relevant information such as lead times, current stock levels, historical sales, supplier on-time/in full reporting and expected delivery dates with detailed available to promise.

When your various business departments get access to all the information in real-time from your supply chain, your staff is empowered with the accurate data they need to make informed decisions.

Analytics

As mentioned, data empowers our staff with accurate information to make informed decisions. In today’s world, we have access to “big data” from multiple sources.

Let’s put this data to good use through analytics to help us with decision making. Decision making is about timely, accurate information. A well-implemented ERP analytics toolset will give you the information that you need when you need it to help you with the planning and forecasting.

Forecasting

Tough to get right in any business. Not to worry, ERP gives you access to automated forecasting tools and relevant data for forecasting historical sales, market trends and product updates.

Mobility

We live in a mobile world. All of the functionality that we require from our ERP solution should be available from a mobility device. Once again, the emphasis is on timely, accurate information.

Decision making can’t wait, and neither should you!

Access to information where and when you need it means that mobility remains important.

Conclusion

The debate between sales, warehouse management and finance can be solved by implementing an ERP solution to empower your business with advanced inventory forecasting functionalities.

Implement an ERP solution to provide your business with the information, analytics and planning tools to close the gap between planning, scheduling, sales, inventory management and finance.

At Leverage Technologies, we have been helping Australian businesses choose and implement the right ERP software to grow smart. For more information feel free to call us on 1300 045 046 or email [email protected].

Is Sage X3 The Ideal Discrete Manufacturing ERP?

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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].

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].

How To Choose The Best ERP Solution: A Guide For Small To Medium Sized Business

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There is no quick, easy answer to the question “which is the best ERP software solution for my business?”

There are multiple different Enterprise Resource Planning (ERP) and Business Management Solutions (BMS) to choose from in the Australian SME market.

Rather than focusing on which is the best solution, in this article we will focus on the best process to ensure that your business implements the right ERP solution.

When it comes to ERP, every business is different

The first thing to understand is that when it comes to ERP software solutions, every business is slightly different. Even if your functional requirements are similar to another business, there are other influencing factors when it comes to choosing an ERP solution:

Internal resource skill set and availability;
Current systems;
Processes and structures within your business;
Budget;
Timelines;

Each of these factors and a number of other elements can influence which ERP solution is best for your business.

How functional requirements influence your ERP choice

Choosing an ERP solution that is well suited to your functional requirements is what the decision is all about. Aim for a solution that has the standard, out of the box functionalities that you are looking for.

List your core functional requirements and short-list ERP solutions that have a close functional fit to those requirements. Start at a high level then drill down to more detail as your investigation into ERP continues.

As an example, you might list your major requirements as follows:

Multi-company, multi-country with consolidation;
Inventory control across multiple warehouses;
- Bar-code scanning / paperless warehouse;
Simple manufacturing;
- Works order;
- Bill of materials;
- Basic MRP / planning;
Service and repairs;
- Management of the repairs and returns process;

Start with a high-level list of requirements (usually a one-page document). Align this to the vendors that believe that they are well suited to your functional requirements and budget. The ERP vendor will need to align the budget with expectations.

Keep it simple

Don’t over-complicate things. If your business does not require complex manufacturing or complicated supply chain management then, don’t buy it or try and implement it. Take baby steps, grow into your ERP solution and keep it simple – automated, but not over-complicated.

Cloud vs on-premise

Choose Cloud vs on-premise based on your company’s specific situation and requirements.

It is true that in 2018, about 90% of enquiries that the team at Leverage Technologies received are for Cloud-based ERP solutions. But, this does not mean that Cloud is the only way to go. Assess your company’s requirements and infrastructure before making a decision:

Internet reliability and speed;
Five-year cost structure review;
Remote access;
Growth plans;
Standard ERP vs bespoke (how “standard” are your requirements?).

Technology is becoming increasingly important

In an ever-changing world where technology is moving at a more rapid pace than ever before do not ignore the benefits that you might be missing out on.

Think about some of the advantages of a technically advanced, modern ERP application:

Cloud – More computing power available than ever before for a simple monthly fee. Pay as you go and add more computing power as you need it;
Mobility – We can’t be competitive in today’s world unless you offer true mobility apps, web client access and the ability to get the information that we want, when and where we want it;
E-commerce – Easy, integrated and available 24 x 7;
EDI – Integration for order taking and a whole lot more. Integrated into the Australian major retailers and extended (in some form) through your supply chain. Make it easy to manage orders and the delivery process;
AP Automation – Automate your AP process and approvals using OCR technology;
Internet of Things (IoT) – The connectivity of multiple devices across the internet to share data. Think of the multiple internet connected devices that we use daily and now, consider all of that data being shared. How can this data help us to make better-informed decisions with regards to customers, marketing, suppliers and team members to help us run a better business?
Artificial Intelligence (AI) – It’s coming to ERP. With massive data volumes being collected from multiple different sources, Artificial Intelligence will help us sort through data to pick trends and help make better decisions from machine learning.

Partnership matters

Choose your ERP software and Cloud solution carefully but choose your ERP implementation partner even more carefully! Your ERP implementation partner will take responsibility for transforming an off the shelf ERP solution into a tightly integrated solution for your business. Choose a partner that has previous experience in your industry and is a good cultural fit for your business.

Specifically look at your ERP providers:

Previous experience in similar industries with similar size organisations;
Support options;
Implementation methodology and process;
Team size, experience and how long team members have been with the organisation;

Take a medium to long-term view

This is surprisingly difficult to manage. If you take a view which is too “short-term” you risk having to re-implement a new ERP solution again in 3-5 years to cater for your growing business and the associated requirements.

Take a view which is too “long-term” and you risk over-complicating your implementation and choice of ERP as you try an implement functionality that you don’t yet need.

Balance these requirements for the best chance at success.

Conclusion

“Which is the best ERP software solution for my business?” Follow the steps in this article to narrow down your research and make sure that you focus on the right success factors.

There are a number of outstanding ERP providers and resellers in the Australian market and there is an ever-growing amount of competition for Cloud-based ERP. The winner is you, the customer!

As technology continues to advance at a more rapid rate than ever before and as the world of ERP solutions demands more value for money you will be able to choose from several competing solutions to choose the best ERP offering for your SME business.

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.