7 Steps To Implement A Supply Chain ERP System

Supply chain ERP solutions represent an underused approach that distribution companies could take advantage of to increase efficiency.

Supply & Demand Chain Executive reports that many distributors haven’t implemented automated processes to help manage their supply chains. An Aberdeen Group study found that almost half of businesses had yet to make the switch.

The article outlines the steps required to roll out a supply chain ERP system:

1. Assemble the right group of people for the job before you start the project: Every part of the business that will be affected by the change must be involved at some level. This includes employees in planning, procurement, and information technology.
   
   
2. Evaluate existing systems: It’s crucial to examine your operations and identify your goals. The next step is to consider the business requirements that support those goals. The requirements can be broken up into two areas: key requirements and nice-to-haves.
   Key requirements must be included within the system, or else it’s not a candidate for implementation. The nice-to-haves are requirements that you could work around if the system doesn't offer them. Outlining and prioritizing requirements is critical to mapping out your organization’s desired outcome.
   
   
3. See where there are gaps in time, data, and collaboration within your operations: You can find these by asking the right questions. While every business is different, there are some general questions to explore. For example, what will be the benefits of more closely aligned planning and procurement? Can the business work with suppliers in its existing procurement system “using real-time demand and forecast data"?
   
   
4. Review all existing and prospective systems: You need to know in which areas your existing system is falling short as well as what a potential solution brings to the table. Some systems may align well with the new technology, while others may not.
   
   
5. Choose the solution that works best for your organization: “Now that the leg work is completed and a clear picture of the organization’s needs is established, choosing the right technology is a matter of aligning priorities with capabilities and price,” the article says.
   
   
6. Bring suppliers on board: Identify and prioritize steps for integrating with suppliers. It may be best to start with a handful of suppliers, especially if you use the same systems.
   
   
7. Take it one step at a time: Complete the project in increments to ensure you’re putting the right system in place for your organization. Then, evaluate your progress along the way.

Source: Supply & Demand Chain Executive, June 2013

Business Solution Partners will help you find and implement the right ERP solution to increase the efficiency of your distribution company. Contact us today to learn more.