ERP Brilliant Basics – Part 1: Introduction
Have you ever wondered why some manufacturing organizations are able to thrive in their ERP system, while others struggle severely? It’s not because thriving organizations have smarter, or harder working employees than struggling organizations. It’s not because thriving organizations have a better business model than struggling organizations. It’s not even because thriving organizations run superior software than struggling organizations. No. When it comes to ERP success, what really separates thriving organizations from struggling organizations is that thriving organizations have figured out how to adapt to the ERP philosophy, while struggling organizations have not.
So, just what is “the ERP philosophy”? Although there are many facets to this question, in my experience, it ultimately boils down to one fundamental principle: Keep the system and physical worlds aligned. If the system is an accurate depiction of the physical reality, you can take advantage of the powerful innate capabilities of your ERP system, and life is good. If not, you will be constantly questioning and fighting the system, and life then becomes very difficult. Conceptually, it really is that simple.
But just because this principle is conceptually easy to understand, that does not mean it is physically easy to achieve. It takes discipline, hard work, and persistence. For many organizations, it requires a fundamental shift in culture and, as we all know, cultural shift does not come easily, nor quickly. It requires leadership, vision, and a roadmap for success.
With that background in mind, over the next several weeks, I will be publishing a series of articles exploring how this one principle can be applied, in tangible and practical ways, to help you get the most out of your ERP system. The current line-up of planned topics is as follows:
· Master Data Management
· Inventory Management
· Order Management
· Material Movements
I hope you will find these articles to be helpful and thought provoking. If you have any other suggested topics, please let me know. Thanks.