Reasons for not implement ERP:
- effort to implement
- able to continue to function effectively without ERP
- cost of software and services
Criteria for ERP implementation:
- managed by a cross-functional team from operations, finance, and IT
- implementation results are measured including ROI and operational impact
- close collaboration with an implementation partner experienced in manufacturing ERP
- closely aligned with the industry and able to grow as a company changes to meet demand
Reasons to adopt software as a service (SaaS):
- lower total cost of ownership
- reduces the cost and effort of upgrades
- have limited IT resources and no interest in building IT staff
- lower up front costs
- not emotionally attached to having it in house
Alternatives to ERP:
- spreadsheets
- accounting applications
- multiple disparate applications
- legacy applications that would not be considered “ERP”
- home-grown applications
- desktop applications
Business pressures:
- must reduce costs
- need to be easier to do business with (improve overall customer experience)
- must improve customer response time
- need to manage growth expectations
Strategic actions in response to pressures:
- streamline and accelerate processes to improve efficiency and productivity
- standardise business processes
- provide visibility to business processes across functions and departments
- optimise the use of current capacity
- modernise technology infrastructure and applications
Business benefits achieved from ERP:
- reduction in operating costs
- reduction in administrative costs
- reduction in inventory
- improvement in internal schedule compliance
- improvement in complete and on-time shipments
