Wayfarer Consulting, LLC

Selecting an ERP system and Implementation Vendor

The process of selecting an ERP package and implementer has often been described as a marriage. There is a lot of truth in this since a business is making a long-term commitment. Success means selecting software that meets business requirements and an implementer whose style is a good match with your company culture.

Management Commitment

ERP implementations can be transformative for a business so the management team, starting with the president, needs to be involved and supportive.  The whole process will definitely take senior management’s time.  The amount of time will vary over the course of the implementation project. Early in the project and in the approach to going live with the new system will be the busiest times for senior management.

Employee Concerns, Resistance

Changing established routines will always cause concern for those involved. Implementing new processes where operations are automated or greater transparency exists will be areas of greatest concern for existing employees. Management must address this issue head-on by either empowering impacted employees with new responsibilities and additional training, helping them understand how the changes will make their lives better, or finding another place for them.

Computers are here to stay, and while some shop-floor apps will look and feel like ubiquitous cell phone apps, employees must have basic computer skills.  Invest in training for all employees in basic Microsoft Windows operating system and Office application use. Offer multiple training methods to allow employees to choose the most comfortable approach (instructor-led, on-line).

Interpreting Consultant-Speak

Consultants, as any group does, have their own set of acronyms and terminology that can be foreign sounding to many. Often these concepts seem geared towards large enterprises, so they hardly seem relevant to smaller businesses.

The fact is the concepts behind these terms are valid for any size business. ERP systems are built around “best practices” culled from academic research and the operations of many successful companies across industries. The consultant needs to translate the concepts into language for the smaller business and adjust the tools they use to their situation.

We are profitable so we don’t want to change what works

Think about the goals associated with a new or expanded ERP implementation. If there is a need to change ERP systems (or make better use of an existing one), then some change is unavoidable. While a smaller business can be profitable without the integration of an ERP system, taking advantage of the automation and easy access to information can make a business even more profitable.

Big Bang vs. Phased Implementation

A Big Bang implementation starts with all new functions all at once. While this makes for a clean break with the past, it can be overwhelming, especially if new functionality is being added (e.g. Customer Relationship Management or CRM). Some aspects of ERP really do need to be done together; inventory control does need purchasing, sales/shipping, and work orders to control the flow of material without resort to a host of paper and clerks performing manual transactions. Features like CRM, quality management, and Material Requirements Planning (MRP) and scheduling can be added over time if they were not already in use prior to implementation.

Managing multiple businesses/locations

The key to an implementation strategy for multiple businesses and/or locations is the degree to which they are distinct. The more they have parts or operations they have in common, the stronger the case for implementing them together. Investigate the resources required to implement simultaneously and those required to maintain multiple systems and manually track interactions and perform appropriate transactions in each system.

Maintaining an ERP system

Many ERP systems offer cloud-based platforms (some are exclusively in the cloud) as well as traditional on-site installations. Both options have pros and cons. Onsite installations means that the business is not dependent on internet access to be able to operate, but requires local IT support to maintain servers, backups, and support software upgrades. Application support will generally be provided by the ERP vendor as part of annual maintenance fees.

Cloud hosted solutions provide server, backup, and upgrade support as part of associated maintenance fees. A good internet connection, with a backup connection, is required.

In either case, there should be a couple of company employees who become super users. These employees are an internal resource for users to provide training and resolve many problems. Many smaller businesses may not have such a person who can learn the system so well.  That means hiring someone or developing a relationship with a local consultant who can easily come on site to provide support.