ERP Replacement as a Catalyst for Business Change and Growth
There is no better time to re-evaluate your business processes than
when you are about to select and implement a new business system. While
you’ll need a distribution software
solution that conforms to your business, many distributors overlook the
fact that today's technology and industry best practices can allow them
to do things more productively. You should use this opportunity to
architect new processes that will immediately impact your profitability
and customer service levels.
According to a study performed by Cisco Systems, "Companies that
changed their business processes at the same time they implemented new
technology saw a 25-30 percent increase in productivity. Without
changing their business processes to fit the new technology, businesses
actually lost productivity at a rate of 6-9 percent."
As discussed in previous Connected Distributor blog posts,
the best solution providers adhere to lean methodology when it comes to
distribution functionality and processes. Be sure to inquire with each
prospective solutions provider if they have staff certified in lean
methodology. You must be convinced that the solution will help you
achieve your objectives to keep your business lean and competitive.
You also need to be sure that your company’s distribution software
solution will be able to grow with the organization and adapt to changes
in the business, as well as continue to offer the best in ERP
functionality as the technology evolves. For those business processes
that are truly unique to your company, your new technology should be
modifiable to handle exceptions.
Keep in mind that there is a big difference between modifying and
customizing. The former, by common definition, should not require
tampering with the source code at all. Often, distributors insist on
custom development for a process that they later admit could have been
handled using the existing software capabilities. Be sure you are
comfortable with the amount of flexibility your selected solution offers
from day one.
Replacing your distribution software system involves a certain amount
of innovation, as well as risk. Innovation creates market leaders, and
market leaders are the first to achieve a return on their
investment—usually a significant return. Look for a solutions partner
that is passionate about inspiring that innovation in their customers,
and knows how to manage the risk associated with it.
To learn more, read our white paper, 5 Mistakes Distributors Make When Selecting an Enterprise Software System.
Posted by Epicor Social Media Team