Preparing for ERP with Best Practices

November 7, 2008 from IndustryWeek – The article is for manufacturers but also applies to other industries - “Manufacturers can prepare for ERP adoption by benchmarking the organization against peers and then removing all non-value-adding activities from the supply chain.

Enterprise resource planning (ERP) is not a magic bullet. ERP systems have become more affordable, effective and -- to a significant degree -- essential, but manufacturers need to pause before joining the headlong rush toward implementation. Companies that do not ready themselves before implementing ERP find it nearly impossible to fully utilize their new systems, and risk upsetting their organizational culture with chaotic implementation phases. However, manufacturers can prepare for ERP adoption with straightforward activities that do not require outside consultation, require no investment other than time and can typically be achieved within three months...”

“Additionally, we will see how manufacturers, regardless of their specialty, can prepare for ERP adoption by benchmarking the organization against peers and then removing all non-value-adding activities from the supply chain…”

180 View – The author makes good points about ERP not being a magic bullet and the usefulness of benchmarking. However, we don’t agree that an organization can remove all non-value added activities in advance of the implementation and without the help of consultants. First many of the non value added activities can’t be removed because of limitations in the existing system. Second, why not take advantage of the vendor’s experience and avoid re-inventing the wheel.