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ERP System Implementation Continues After Initial Go-Live

June 16th, 2009 by admin

OK – you’ve made it! After months of evaluating various ERP systems followed by more months of implementation, your business is now up and running on your new ERP software. Now you and your team can go back to business as usual and not give your software another thought – right? As Lee Corso, sports broadcaster and football analyst for ESPN, would say, “Not so fast, my friend!” Read More…

The only way this would be correct is if the following were all true:

You were able to take advantage of virtually 100% of the functionality the new software provided that was pertinent to your business day 1 at go-live.
The software vendor never produced any software updates and fixes that provided any business value.
Your personnel grasped and retained 100% of the possible knowledge through the implementation and training process.
Absolutely nothing ever changed in your business – there were never any new personnel or resources that moved into new positions, and your business and industry as a whole never changed.

Since these statements are never true, even after initial go-live with your new software, there is an ongoing need to evolve business strategy and tactics to gain and keep a compelling competitive advantage in one’s industry, to improve business processes to gain business efficiencies, and train and retrain personnel.

Project goals are established and baseline metrics are documented as part of the business’ justification to move forward with the software evaluation and implementation projects. Some 3-6 months after initial go-live with the new system, the current business metrics should be compared with the baseline metrics to gauge progress made to date. Ideally, all of the targeted business metrics will have been met; however, it may be that there are areas where these objectives have not been achieved.

Whether or not the initial targets have been met, the business should perform an ROI Workshop to determine what can be done to drive additional return on investment from the new business software. An ROI Workshop would typically produce 3-5 key actions where substantial additional ROI can be derived by taking further advantage of the software that has already been acquired and implemented.

Another recommendation is to establish quarterly objectives to take advantage of additional software functionality. This can provide a rolling 12+ month calendar stating what advancements will be made over time. As part of this process, businesses should evaluate new software releases produced by their software vendors to determine the value of upgrading to the latest software releases. Companies are encouraged to create a measureable business case for upgrades just as was done for the initial software implementation and to evaluate the results against those targets 3-6 months after the upgrade has been put into production.

We also highly encourage companies to establish an ongoing training schedule for their employees. This should include refresher and more in-depth functional training for personnel who have been using the software for some period of time so these resources can become more proficient in their current roles. Also, there will be a need for introductory training for personnel who move into new roles and for new hires. Establishing an ongoing training schedule along with budgeted funding is critical for a business to gain the maximum benefit from an ERP system.

Regardless of the ERP system ultimately selected and implemented, businesses are encouraged to adopt continuous improvement principles when it comes to their ERP software systems to maximize the business value derived from these systems long after the initial production go-live.

Tags: ERP Systems, Training
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When is Your Small Business Ready for an ERP System?

June 12th, 2009 by admin

A common question small business owners ask themselves is when their business is ready to implement an ERP software application that will replace their existing small business software. Fortunately for the small business owner, there are a number of small business ERP software solutions on the market today that serve as a viable replacement for QuickBooks, Peachtree, and other small business accounting software packages. In my experience, there are three telling signs of when a small business is ready to migrate from its existing small business software to a more sophisticated ERP system. Read More…

First, the small business is operating in a multitude of software packages based on a given department within the organization. Accounting personnel make journal entries in QuickBooks; warehouse managers enter data into Excel; sales representatives use ACT, Goldmine, Salesforce.com, or some other customer relationship management software solution; and for production and scheduling, well, sometimes there are small businesses that abandon the concept of using software for production altogether and revert to more archaic methods – I recently visited a food processing company that had its production manager hand-write the week’s production schedule on a chalkboard! The problem with this lack of integration between software packages is that it leads to a lack of organizational and business process integration. Divisions and departments begin to operate independently of one another or develop into individual silos of activity and information. Access to information in a given department becomes highly dependent on the software package used to process transactions and the associated person entering the data. This level of independence between various departments poses a serious problem for the small business owner who needs to manage the overall success of all of his or her business’ operations and makes it substantially more difficult for the owner to identify what areas of his or her business need improvement.

A second sign that a small business is ready to move to an ERP system is that duplicate data entry and data processing has become a common practice within the organization. When operating a business in multiple software solutions, it is common to have employees enter the same data into two or more different software packages. This poses two problems to the business. First, duplicate data entry consumes workers’ time and leads to operational inefficiencies and added time costs to perform a given transaction. Secondly, duplicate data entry increases the chances of having data entered incorrectly or inaccurately, thus leading to more workers’ time spent trying to correct the problem and keep key business data up to date and accurate. A fully-integrated ERP software solution can help remedy these problems and provides immediate benefits to the organization. By having all employees enter data into a singular software package, there is no need to enter data more than once. This can reduce employee time spent on data entry and provide employees more time to perform their daily tasks, hopefully leading to an increase in worker productivity and overall business productivity and output. Small businesses can even see substantial reductions in time spent performing period and year-end processing with a fully-integrated software solution.

Lastly, one of the most common signs that a small business is ready to implement a sophisticated ERP system is that the business suffers from frequent inventory shortages for some items and dramatic inventory surpluses for other items. I frequently hear many small business owners offer the complaint that they are frequently out of stock on their most popular items. They even complain that they suffer from inventory shortages of the packing materials required for their most popular items. An ERP system with tight inventory control, a comprehensive warehouse management system, and sophisticated forecasting and planning capabilities can ensure that sufficient inventory of a given item is available to meet customer demand without excessive on-hand inventory levels; in fact, a true ERP software system can help the organization increase order fill rates and improve customer service while simultaneously reducing on-hand inventory levels. This leads to reduced inventory costs, improved customer service, and increased profitability, giving the small business a significant advantage over its competition.

Tags: ERP Systems, Small Business Software, Software Selection, Warehouse Management System
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Training Takes on Many Forms – Observations from the Recently Completed TGI Users’ Conference

June 9th, 2009 by admin

I have been sitting here smiling while thinking about the recently completed TGI Users’ Conference from early May 2009. I always enjoy these events. Read More…

As the sales leader here at TGI, one of the best things about what I do is that I get the opportunity to meet and establish relationships with a lot of great people throughout a lot of different businesses and industries. And, it’s great to see these people whom I’ve gotten to know also get the opportunity to meet and interact with each other. It is a lot of fun to introduce these individuals to each other and to observe the dynamics of various groups as they come together.

TGI users’ conferences are tremendous opportunities for customer personnel to learn in a number of different ways. Oh sure, there are presentations on the most current functionality TGI is delivering in the Enterprise 21 ERP system. These are always well received and customers get excited about upgrading their software installations and adopting the newest functionality.

In addition, this year’s conference was the first time TGI offered more in-depth, half-day elective training sessions. These sessions included events focused on such areas as accounting, ad-hoc and financial report writing, customer relationship management, manufacturing, warehouse management, and workbenches and dashboards. While the lecture portion of these events was well received, from my observation the hands-on portions of these events were of most value to the participants. Users were given the opportunity to dig into the software and ask one-on-one questions with the instructors about how they might best apply the various capabilities to their specific situations.

The last day of the event primarily focused on soliciting feedback from the participants as to what additional functionality they could use to derive additional business value. There were some great suggestions received directly from TGI customers in areas such as accounting, manufacturing, inventory management, purchasing, customer relationship management, and warehouse management. When one customer might raise an idea, others might nod their heads in agreement or say, “We could use that too.”

Finally, there were a series of less formal training opportunities – times when customer personnel could interact directly with each other during receptions and meals. These were opportunities for individuals to discuss topics directly related to their use of Enterprise 21 and in areas totally unrelated to software for further knowledge sharing.

In one case I observed participants from several companies exchanging ideas about their freight management practices. In another case, there were discussions about how various organizations were improving their respective operations from an Internet marketing perspective.

Overall, the event was informative and enjoyable. I look forward to the next opportunity to interact with our customers in such a setting, and I am excited to think about the fact that other new TGI customers whom I’ve not even met yet will be participating in next year’s TGI Users’ Conference.

Tags: ERP Systems, Training
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Establishing and Maintaining a Comprehensive Recall Management System

June 5th, 2009 by admin

What do pistachios, cough and cold medicine, cheese, dietary supplements, cookies, fruit and nut blend, and alfalfa sprouts all have in common? They all appeared on the US FDA’s recalls, market withdrawals, and safety alerts list during April 2009. Read More…

Many companies that believed they were immune to this process have recently had to initiate recalls. Some of these companies were so ill-prepared they had to close their doors due to poor preparation for such a possibility.

So, what do companies in life sciences and food and beverage industries need to do to make certain they are well prepared for a potential recall initiation? Companies need to have automated lot tracking software functionality and a comprehensive recall management system in place. At the core of a comprehensive recall management system are well-defined policies and procedures to be followed in the event of a recall.

The Ohio State University Extension published an excellent article on this subject titled, “What Can You Do to Be Ready for a Recall?” which overviews what companies can do to avoid the potential need for a recall and a high-level summary of the procedures that should be followed in the event that it becomes necessary to initiate a recall respectively.

Key points made about how to avoid a recall include having a Hazard Analysis and Critical Control Point (HACCP) plan in place, complying with the FDA’s current Good Manufacturing Practices (cGMP) regulations, developing and maintaining quality management systems, developing a food security and tampering prevention program consistent with the FDA’s Bioterrorism/Food Safety Security Act of 2003, and ensuring quality of raw materials by working with credible suppliers. When defining a recall plan, one must pay special attention to the key element of such a plan which is fact gathering about the defective product. This includes both internal and external discovery.

In TGI’s Enterprise 21 ERP system, service and support functionality can be used as a coordination point for external discovery. This includes logging of all support calls, routing to appropriate resources for investigation, and documenting and tracking the associated resolution. A recall coordinator would be alerted should the problem be determined to be of sufficient nature and require immediate action.

Enterprise 21 manages internal discovery by supporting complete chain of custody tracking through lot traceability of inbound ingredients, their consumption in manufacturing processes which can yield intermediates, and ultimately to finished goods which are shipped to customers. In addition, quality data is recorded for each lot during this process. Enterprise 21 supports both forward and backward lot traceability.

Through a combination of policies and procedures, along with strong system functionality for quality management and lot traceability, TGI customers leverage the Enterprise 21 ERP system as a key element of their comprehensive recall management systems.

Tags: Process Manufacturing Software, Quality Control, Recall Management, Regulatory Compliance
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Food Distribution Software – Good Systems Enable Your Food Retail Customers to “Have it Their Way”

June 2nd, 2009 by admin

One of the ways in which businesses can elect to compete is through a strategy of customer intimacy. In other words, enabling companies to make it so easy for their customers to transact business with them that they’d be fools to go anywhere else. So, let’s explore how a customer intimacy strategy applies to the food distribution industry and how a strong food distribution software solution can enable a business to achieve a sustained competitive advantage. Read More…

First, there are a multitude of methods by which orders can be placed in the food distribution industry. Of course, there are the traditional tried and true methods of phone and fax orders, where customer personnel speak with their vendor’s customer service or sales representatives or fax in their orders respectively. When phone orders are taken, good food distribution software solutions enable the customer service or sales representative to take the order in a rapid manner without slowing down the conversation with the customer. These systems can also present a series of other data including information about those products the customer orders most frequently and those products the customer has not ordered within their typical frequency. By doing so, there can be opportunities to upsell the customer or prompt the customer to remember to include additional SKU’s on the given order.

Additionally, there is an entire series of electronic means by which customer orders can be captured and entered into the supplying food distributor’s ERP system. These methods include traditional EDI processing, Web data entry via the supplier’s Web site, and several means by which handheld devices can be leveraged. Relative to handheld devices, if the vendor is performing direct-store delivery, the sales or delivery person can capture information about what products are needed in the next order directly in the customer’s store. Likewise, if vendor personnel are not directly in the customer’s stores on a day-to-day basis, the vendor can provide handheld devices to their key retail customers so customer personnel can enter orders directly into the handheld units as they walk the retail floor. These orders are transmitted directly into the food distributor’s inventory control system for replenishment.

Order acknowledgements and advance shipping notices (ASN’s) can be tailored on a customer-by-customer basis as well. Order acknowledgements can be delivered to food retailers via email, fax, or EDI. ASN’s can be sent by food distributors to their retail customers alerting them as to what products are being delivered associated with a given shipment.

Food retailers can have their vendors perform additional value-added services on their behalf to reduce requirements for internal operations at the retailers and speed product to the shelves. Unique product labeling and retail price marking are two relevant examples of value-added services food distributors can perform on behalf of their retail customers via good food distribution systems.

When the given distributor performs direct-store delivery, the electronic notification of the product delivered can be provided and an electronic proof-of-delivery can be captured which can be provided to the retailer. When shipping is done via common carrier, retailers may elect to have their distributors mark the product for store-level delivery though the actual physical delivery may occur via a retailer’s distribution center. This, too, will help to speed product to the shelves for consumers.

Finally, after the transaction is completed, delivering clean invoices is another element of delighting the customer. Whether these invoices are printed and delivered at the store via a mobile printer, delivered electronically at the point of delivery via DEX processing, printed and sent from the food distributor’s back office operations, or delivered out of the food distribution system via EDI processing, customer transaction processing can be tailored easily to customer preferences (or demands).

Food distributors can become invaluable partners to their retail customers through a combination of strong processes, systems, and technology. TGI’s Enterprise 21 ERP, which can be leveraged with Versatile Systems’ Mobiquity Route™ for direct-store delivery and route accounting, provides food distributors with the opportunity to establish and maintain a competitive advantage in their respective marketplaces.

Tags: ERP Systems, Food and Beverage, Wholesale Distribution Software
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Despite a Troubled Economy, the 2009 International Dairy-Deli-Bake Show Should be a Fruitful Event for Exhibitors and Attendees

May 29th, 2009 by admin

For the past several years, TGI has been a consistent exhibitor at the International Dairy-Deli-Bake (IDDBA) show. This year will be no different, as we will be exhibiting at the 2009 IDDBA show held in Atlanta, Georgia June 7-9. Surprisingly, it looks as though we will be one of the only, if not the only, food processing software suppliers exhibiting at this year’s show. Read More…

Given the current state of the economy, it is certainly common for companies to scale down their normal trade show calendar. It is also highly likely that in addition to fewer exhibitors, overall attendance at trade shows across the country will be lower in 2009 compared to prior years. Trade shows require a significant investment in employees’ time and company money for both exhibitors and attendees; however, unlike many industries, the food and beverage industry has been largely unaffected by the downturn in the economy in 2008 and 2009. If you think about it, food is one of life’s absolute necessities – people are always gonna have to eat! Unlike new cars, flat screen TV’s, and other “luxury” items (like my girlfriend’s weekly, and unnecessary, manicure and pedicure), food is a must no matter what the state of the economy may be. In fact, numerous studies have shown that in times of economic downturn, people actually eat more! I recently read an article in the May 2009 issue of Food Processing magazine that stated that despite the economy, food processors are increasing their overall dedication to new product development compared to prior years, a clear sign that food companies are making strategic moves to differentiate themselves from the competition.

As I result, I anticipate attendance at this year’s IDDBA show to be relatively strong despite the existing economic climate. The IDDBA show provides an ideal avenue for cheese, dairy, deli, and bakery companies to showcase their new products to thousands of attendees at a time when food consumption and new product development is on the rise.

For more information on the 2009 IDDBA show, please visit www.iddba.org. If you are attending the IDDBA show, please feel free to stop by and visit us at booth 4070.

Tags: Food and Beverage, Process Manufacturing Software
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Find a Proven ERP Software Selection Process and Execute It

May 26th, 2009 by admin

One of the keys to proper ERP selection is finding a proven ERP software selection process and then executing that process. Many times, manufacturing and distribution organizations start their search for a new ERP system with little understanding of what selection process elements will provide them with the best software solution for their respective businesses. Furthermore, even if the organization has committed to a specific selection process or methodology at the initiation of the selection project, the software selection process is frequently executed incorrectly as the organization gets further along in the project. Fortunately, TGI provides free software selection tools to aid manufacturers and distributors in selecting the best software for their individual business operations. TGI’s proven software selection process can be easily followed, and, more importantly, executed in a timely, efficient manner. TGI’s ERP software selection process consists of five key phases: (1) Project Preparation and Planning; (2) RFI and Introductory Demonstrations; (3) Requirements and Request for Proposal; (4) Scripted Software Demonstrations; and (5) Reference Calls, Site Visit, and Supplier Selection. Read More…

While I will not expand on these steps in detail, it is imperative that the organization searching for new ERP software adheres to these five phases and does not initiate the next phase of a selection process without first completing all activities of the prior phase. For example, an organization should not move into the RFP phase of the selection process without first completing the RFI and Introductory Demonstrations phase for all potential ERP software vendors. It is astonishing the number of times we see prospects send Request for Information (RFI) documents and conduct initial remote software demonstrations and move into the RFP phase only to have another software vendor enter the mix of potential software suppliers without conducting the same detailed software analysis for the new software supplier as it did for all other software suppliers in consideration. To provide the most comprehensive, quantitative analysis of each ERP software vendor and solution, the same standards and requirements must be applied to each software vendor at each phase of the selection process. This strategy will give the organization the best apples-to-apples comparison of each software vendor and will ultimately lead the organization to make the best software selection decision.

Again, find a proven software selection process, follow the process, and execute it in full at each step along the way. For more information on TGI’s proven software selection process, click here. You can also request TGI’s free software selection tool kit CD by visiting our online request form.

Tags: ERP Software, Software Selection
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Training Before and After Go-Live – Critical Success Factors to Gaining Desired Benefits from Enterprise Software Systems

May 22nd, 2009 by admin

Training is an integral part of every business software implementation. End users must be trained in the software application’s processing of all transactions and functions they perform on a routine basis. Customer service and order management personnel need to learn a new process for not only entering but tracking both existing and past customer orders; warehouse managers and operators must learn what could be a completely new warehouse process focused on improved warehouse productivity and inventory accuracy while reducing inventory levels; and business executives will learn to use new business intelligence tools for improved visibility and analysis of key business performance metrics such as days supply on hand for a given product, gross sales on a product-by-product basis, and sales margin on a product-by-product basis. Read More…

The overriding principle is that training is an important part of the implementation process regardless of a given software user’s role or organizational level. Without training in the business’s newly selected manufacturing software or distribution software package, the capabilities such software provides cannot be utilized to their fullest potential.

During the Enterprise 21 implementation process, training can be conducted in one of two ways. First, training can be delivered to all software users in a given functional area simultaneously. For example, business executives and accounting personnel will be trained in the software’s financial management tools; warehouse workers will be trained to receive and putaway materials and pick, pack, and ship products to customers using Enterprise 21’s fully-integrated warehouse management system; customer service and order management representatives will be trained to utilize Enterprise 21’s order management and CRM ERP software functionality; etc.

A second form of Enterprise 21 training that can be employed during software implementation is a train-the-trainer approach. Using this approach, TGI personnel would train each business department’s functional leader or super user, and those functional leaders would in turn train other software users in their given functional areas. No matter which training methodology is employed, adequate end-user training in the new business software package is essential for a successful go-live experience.

Following go-live, management and software users must remember that the training process is not over. Training should be an on-going effort. TGI offers integrated training tools that include multimedia-enabled presentations, how-to help, screen help, and field help. These tools can be updated and altered to meet each organization’s specific requirements. Furthermore, TGI’s integrated training services enable existing users to refresh the knowledge they learned during implementation and new employees to receive a level of training consistent with all other employees in the organization. This approach to training enables organizations to maintain consistent system and process knowledge across all of the organization’s departments and functional areas.

Both during and after implementation go-live, adequate training in an enterprise software solution is essential to increased productivity and on-going business process improvements.

Tags: ERP Software, Training
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Process Manufacturing Made “Simple” with Formula Management and Scalable Batches

May 19th, 2009 by admin

Process manufacturing is frequently referred to as “simple” by those in the discrete manufacturing camp, yet if you ask any food, chemical, or pharmaceutical manufacturer if process manufacturing is truly simple, the manufacturer will quickly provide many examples of the growing list of challenges faced on a day-to-day basis. Read More…

For process manufacturers, two of the most common challenges are formula and recipe management and scalable batches. Experienced processors recognize that regardless of the product produced, one size does not fit all. A can of soup, a box of detergent, and a bottle of cough syrup are all packaged and sold in multiple types of shapes and sizes. The need for flexible units of measure, formulas, and batch sizes have united food, chemical, and pharmaceutical companies into a process community focused on improving the capabilities and processing options at all steps of the production process. This unification has taken the historically discrete-focused ERP software industry and brought about a number of strong process-based ERP software packages.

A key differentiator for process manufacturing software is the ability to take a standard bill of materials and craft it into a sophisticated and scalable formula that is comprised of a variety of ingredients, units of measure, yields, and by-products or co-products. This formula or recipe can be dynamically scaled to match the ideal batch size, thus meeting current demand levels, optimizing vat and ingredient usage, tracking all ingredient costs, and blending in the appropriate manner to facilitate a finished good that is within specification and acceptable for final sale.

While the idea of a scalable batch may appear rudimentary for ERP software packages, it is not functionally feasible in the original, discrete manufacturing ERP software solutions. In fact, it is not even feasible in all of the ERP software solutions that are marketed to process manufacturers. A recipe with ingredients, yields, and instructions is not the same as a discrete bill of materials. The recipe needs to accommodate ingredient-based instructions and be able to scale up or down based on a given demand level. The recipe or formula needs to be able to manage intermediates, ingredient level yields, and support private label requirements if necessary. The software needs to provide operational control while allowing for a high level of flexibility and scalability.

How does a process manufacturer select the right process manufacturing software solution? The most reliable means of doing so would be a thorough evaluation of potential software packages demonstrated with real data via an onsite scripted demonstration. Even with the advancements in process manufacturing ERP software, not all software packages can perform at the same level. The best technique for separating and comparing one package from another is through reviewing the definition and processing of a sample formula that is scaled for a specific batch or production run. If the ERP vendor cannot demonstrate the software’s ability to manage this process, the software will struggle in a real production environment.

TGI offers free software selection tools and resources for both process and discrete manufacturers. Please visit TGI’s available online resources or TGI’s online request form to order the free Software Selection Tool Kit.

Tags: By-Products, Co-Products, Discrete Manufacturing Software, Formulas, Process Manufacturing Software, Recipes, Scalable Batches
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Gaining Visibility to Key Performance Metrics in the Distribution Industry

May 15th, 2009 by admin

In a recent survey research paper titled, “Technology in Distribution: Trends and Future Challenges,” Adam J. Fein, Ph.D., founder and president of Pembroke Consulting, Inc., discusses, among other things, how many distributors across various industries lack the ability to track key performance metrics. The specific key performance metrics evaluated in Dr. Fein’s research include gross profit by customer, average order size by customer, operating profit by customer, delivery performance by customer, and profitability of fee-based services. Read More…

While executives from various distribution industries report mixed and, in some cases, disappointing results in their abilities to access such information, distributors using TGI’s Enterprise 21 wholesale distribution software can readily gain access to these and other key performance metrics. While Dr. Fein’s research paper focuses on the distribution industry, manufacturers who run the Enterprise 21 system can also leverage its business intelligence software capabilities to gain a competitive advantage.

By leveraging Enterprise 21’s business intelligence functionality, executives and all system users can have their own personalized dashboards consisting of the information that is most important to their day-to-day operations. Each individual’s dashboard in Enterprise 21 can consist of an infinite number of tabs with up to four information panes per tab. The information panes can include data displayed in graphical and tabular formats. Some of the graphical views available include pie charts, bar charts, area charts, and gas gauges, which allow executives and other system users to enjoy rapid access to key performance metrics.

Furthermore, while individuals can view summarized data in their dashboards, Enterprise 21’s business intelligence capabilities enable individual dashboard panes to be opened in full analytical drill-down mode, so users can slice-and-dice the information for further analysis purposes. This slice-and-dice capability enables executives to start with a broad brush view of their operations while being able to drill down in detail to pinpoint opportunities for continuous improvement within their organizations. In addition to being able to review and analyze operational data within Enterprise 21, executives can also have financial reports delivered to their dashboards, providing them with a consolidated electronic management book with easy access.

Through the use of Enterprise 21’s business intelligence functionality, executives can efficiently manage their organizations by gaining immediate, consolidated visibility to key performance metrics through individualized dashboards. By leveraging Enterprise 21’s analytical slice-and-dice capabilities, executives can readily identify opportunities for improvement which can lead to increased bottom-line results.

For additional information about Enterprise 21’s business intelligence capabilities and to further review how distribution and manufacturing executives can gain improved visibility to their organizations’ key performance metrics, please view an overview demonstration of Enterprise 21’s business intelligence functionality by clicking here.

Tags: Business Intelligence, Wholesale Distribution Software
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