{"id":9072,"date":"2016-03-08T09:55:16","date_gmt":"2016-03-08T09:55:16","guid":{"rendered":"https:\/\/ca.syspro.com\/blog\/4-ways-to-maximize-the-value-of-your-erp\/"},"modified":"2021-03-04T14:49:12","modified_gmt":"2021-03-04T14:49:12","slug":"4-ways-to-maximize-the-value-of-your-erp","status":"publish","type":"post","link":"https:\/\/ca.syspro.com\/blog\/owning-or-running-erp\/4-ways-to-maximize-the-value-of-your-erp\/","title":{"rendered":"4 Ways to Maximize the Value of your ERP"},"content":{"rendered":"

Yesterday afternoon I had a phone call from a relatively new customer, James Briggs, who \u2018went live\u2019 with SYSPRO a few months ago. \u201cRight,\u201d the CFO said, \u201cwe need you to come in and talk to us about how we can really start to use SYSPRO now.\u201d<\/p>\n

James Briggs recognized that the project didn\u2019t end when they started using SYSPRO, rather this was just the first step in generating a return on investment. James Briggs is a growing company, so they need to make sure they can utilize the features and functions in SYSPRO to increase their productivity, enabling them to generate more revenue from the same resources.<\/p>\n

James Briggs need to understand where their growth potential lies, matching external market data with their own internal sales trend data. Finally, they need to understand the cost structure of each product, to ensure that the choices they make maximize their margins.<\/p>\n

Simplifying Processes<\/strong><\/p>\n

Many organizations go live with a very similar process to what they had before. Changing the system and the process can be too much at once for staff and can lead to more business disruption than a business can handle, particularly a growing business.<\/p>\n

Until a new system is embedded, sometimes the best way to run a process isn\u2019t clear. Employees trying to design a new process are naturally constrained by the knowledge that they already have about \u2018the way we do things\u2019.<\/p>\n

Returning to the processes after go live is a good way to increase efficiency. Ask the ERP users what they think they could do better? Are there any processes that seem to take longer in the new ERP system? Are there improvements they would like to see, and how do they think they can be achieved?<\/p>\n

Review the system with your ERP vendor. Which processes can be automated? Where can you use workflow? Can you integrate to your Manufacturing Execution Systems (MES)? Can you implement more EDI with your customers and automatically generate consignments for your carriers?<\/p>\n

Gaining Insight<\/strong><\/p>\n

The implementation of an ERP system is not just about generating transactional data and facilitating efficient processes.\u00a0 Businesses have to be able to get the information back out.\u00a0 Look at your reporting packs, do they give you the information you need?\u00a0 Are they out of date before they are finalized?\u00a0 Can you only see information at the end of the month?\u00a0 Do you have to be at your desk to see it?<\/p>\n

Review the many mobile options available now to view data, like SYSPRO Espresso, showing you exactly how your business is performing at any point in time.\u00a0 Speak to your ERP vendor about changing your printed reports to dashboards which give you the ability to slice and dice data and roll these dashboards out widely so all users see the impact of their decisions.<\/p>\n

Finally, engage with system professionals about the opportunities for big data. What analytics can you derive from your data and how can it help your business grow?\u00a0 Look for trends and patterns that aren\u2019t yet obvious in the business to understand where you can gain competitive advantage in the market place.<\/p>\n

Cost Control<\/strong><\/p>\n

Understanding demand is an important element of creating a targeted growth strategy, but the cost structure must also be understood on a detailed level in order to secure already tight margins.<\/p>\n

The first step is ensuring all the data already in the system is accurate: operation times, waiting times between jobs, moving items around the shop floor all have an impact on costs, as well as the usual labor, overhead and material figures.<\/p>\n

Build robust cost analysis models so that you can quickly judge the impact on the bottom line of producing more or less or a certain product line, or the consequences of a renegotiated supplier contract or a change in a commodity price.<\/p>\n

Look at your working capital costs. How much have you tied up in inventory, what could you do with that additional cash \u2013 what investments could you make and what return would they generate?\u00a0 Could a module such as SYSPRO Inventory Optimization help to better forecast and plan inventory?\u00a0 Could debtors be better managed with slicker credit management processes implemented and automated through SYSPRO?\u00a0 Is there scope for getting better control over your supplier payment runs?<\/p>\n

Achieving Return on Investment<\/strong><\/p>\n

There are many ways to achieve a substantial return on investment from your ERP system but you don\u2019t get the return without the investment.\u00a0 The first stage is securing a solid ERP platform, ensuring you have an up-to-date product that can take you where you want to go.\u00a0 But you have to follow through with the second stage and actually realize the returns.<\/p>\n

    \n
  1. Examine your processes, automate and integrate, simplify<\/li>\n
  2. Make your data work for you, gain insight<\/li>\n
  3. Get your costs understood and under control<\/li>\n<\/ol>\n

    And once you have finished, start on the next round.\u00a0 Continually improve your business, to fuel growth and secure your return on investment.<\/p>\n


    \n
    \n\"Measuring<\/a>
    \n<\/span>
    \n<\/span>
    \n<\/p>\n","protected":false},"excerpt":{"rendered":"

    Reading Time: <\/span> 3<\/span> minutes<\/span><\/span>Yesterday afternoon I had a phone call from a relatively new customer, James Briggs, who \u2018went live\u2019 with SYSPRO a few months ago. \u201cRight,\u201d the CFO said, \u201cwe need you to come in and talk to us about how we can really start to use SYSPRO now.\u201d<\/p>\n","protected":false},"author":139,"featured_media":6572,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[269],"tags":[81],"class_list":["post-9072","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-owning-or-running-erp","tag-maintaining-upgrading-erp"],"acf":[],"yoast_head":"\n4 Ways to Maximize the Value of your ERP<\/title>\n<meta name=\"description\" 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