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ERP Logistics

VIEWS: 9 PAGES: 39

									Overheard in a computer shop:
Customer: "I'd like a mouse
mat, please."
Salesperson: "Certainly sir,
we've got a large variety."
Customer: "But will they be
compatible with my
computer?"
Data Processing & Decision Network
presents:

Enterprise Resource Planning
· Davidson, Paul, · Paterson, Jennifer
· Dyrud, Brian, · Neal, Lindsay
The ERP acronym is erroneous; resource
and planning are not involved in ERP.



Enterprise is the true ambition of ERP.
How can ERP increase business
performance?

  Improve the order fulfillment process
  Cross link business departments
Why ERP?
 Companies can compete at the same
 level
 Increases customer and B2B
 relationship
Benefits of ERP Systems

  Offers a single depot of
  information

  Real time Management capabilities
So what can ERP do?

  Automate tasks
  Standardize company information
ERP Solutions
(a few front runners in the industry)
Software provider for service
industries

Lawson and integration
Manages critical information in the
most cost effective way

The vision of Oracle…
Real Time Enterprise uses no
intermediaries

People Soft has implemented Pure
Internet Architecture
Helps businesses of all sizes

SAP’s Business One Software uses
current IT programs
ERP Logistics
  ERP efforts usually run between one
  and three years.

  To do ERP right, the ways you do
  business will need to change and the
  ways people do their jobs will need to
  change too. This takes time and money.
Five major reasons for ERP.
  Integrate financial information
  Integrate customer order information
  Standardize and speed up
  manufacturing processes
  Reduce inventory
  Standardize HR information
Will ERP fit the way We do
Business?

  The most common reason companies
  walk away from ERP projects is that
  they discover the software does not
  support one of their important business
  processes.
     change the business process to
      accommodate the software
     modify the software to fit the process
What does ERP really cost?
  Meta Group recently did a study looking at the total
  cost of ownership (TCO) of ERP, including hardware,
  software, professional services and internal staff
  costs.
  The TCO numbers include getting the software
  installed and the two years afterward.
  Among the 63 companies surveyed—including small,
  medium and large companies in a range of
  industries—the average TCO was $15 million (the
  highest was $300 million and lowest was $400,000).
When will I get payback from ERP
—and how much will it be?

   A Meta Group study of 63 companies
   found that it took eight months after the
   new system was in (31 months total) to
   see any benefits.
   Median annual savings from the new
   ERP system were $1.6 million.
What are the hidden costs of ERP?

  Training
  Integration and testing
  Customization
  Data conversion
  Data analysis
What are the hidden costs of ERP?
(Cont.)


    Consultants and infinitum
    Replacing your best and brightest
    Implementation teams can never stop
    Waiting for ROI
    Post-ERP depression
Why do ERP projects fail so often?

  Disagreement among departments
  Resistance to change
  Inability to see the big picture

  This is where ERP projects break down
How do companies organize their
ERP projects?

  The Big Bang
  Franchising strategy
  Slam dunk
How does ERP fit with e-commerce?

  E-commerce means IT departments
  need to build two new channels of
  access in to ERP systems.
     B2C
     B2B
ERP success stories
  EarthGrains
  Indian Motorcycle Company
  A&P
  Office Depot
EarthGrains (The Problem)
  $1.9 billion bakery products company.
  The division had no integration:
     order-to-cash
     picking
     delivery
     accounts receivable
  Management lacked detailed
  understanding of business operations
EarthGrains (The Solution)
  Implemented SAP's R/3 in 1999
  They were able to analyze customer
  profitability
  180 low-margin retailers were unwilling to
  change their purchasing patterns, therefore,
  they were no longer serviced
  Eliminated the 20 percent of the product line,
  that was unprofitable
  In the first year, the division's earnings
  jumped by more than 70 percent
Tips for Implementing ERP
  Define what it is you expect from ERP
  Assess risk
  Maintain control and outsource when
  possible
  Monitor outsourcer performance
  Make changes early concerning the
  control structure
Tips for Implementing ERP, cont.

  Designate a manager
  Break it up
  Plan and implement quickly
  Ensure appropriate resources
  Install only what you need
  Monitor all systems
Outsourcing
  Why should you outsource?
     Concentrate more on core competencies
     Increase in number and capabilities of
      external suppliers
     Keep up with the latest technology
     Money saving
Avoiding Problems
  Install the right thing
  Take one step at a time
  Prioritize
  Test for problems before installation
1st Time Success
  ERP is not magic; it takes careful
  planning
  Technology can’t fix a flawed business
  strategy
  Define your business strategy
  Be flexible
  Designate a capable leader
Challenges and Hard Lessons Learned

  Some companies have spent fortunes on
  an ERP software and implementation
  only to find that their business
  performance has not improved at all.

      Nestle
      Hershey
Why do ERP projects fail so
often?


  It’s the process!!
Demo of Live ERP System
  Lawson Software
  MD Anderson Cancer Center
     Procurement
     Accounts Payable
     Inventory Control
     Asset Management
ERP for Everyone

  ERP to the Rescue
  Your ERP Package Guide
  The Showstoppers
  Before you Buy
“Gib’s law:


“Computers are unreliable, but
 humans are even more
 unreliable”
Any Questions?

								
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