Under ERP optimization, we systematically define an ERP optimization plan and choose a clearly marked roadmap to deliver defined and measurable business outcomes. We will get you to the desired state of ERP-enabled business transformation.
ERP optimization involves tuning your ERP system for optimum performance. An ERP system that is not fully optimized presents several risks, including lost productivity and negative returns. Other potential consequences of a poorly-tuned ERP system include resource wastage, damage to your brand, a decreased competitive advantage, and reduced customer satisfaction.
The need for ERP optimization arises due to poor system implementation, loss of functionality due to inadequate knowledge and lack of understanding of configuration possibilities on the part of the ERP partner. In order to fix a poorly performing ERP system, Hashtag conducts in-depth interviews with all key users, reviews all business processes, prepares detailed value maps of all key business processes and conducts fresh trainings.
If you have implemented an ERP and you are not realizing the return that you anticipated, you should consider optimizing your ERP system. When optimizing your ERP system, the focus must be aligning the application with your business processes and business rules to accomplish globally accepted best practices applicable to your industry. The ERP engine needs to support a lean approach in terms of organizational resources and efforts to achieve a Lean Supply Chain. To add more clarity, for those who are unfamiliar, the Lean concept is the fundamental rethinking and radical re-design of businesses and processes to achieve dramatic improvements in the critical performance measures of speed, cost, quality, and service.
During the ERP optimization process, try and provide answers to the following:
- Is ERP helping you to improve customer satisfaction?
- Is ERP contributing to increased market share?
- Did ERP help decrease your operational expenses?
- Is ERP managing and reducing/optimizing your inventory?
- Has ERP shortened your order-to-delivery cycle time?
- Has ERP shortened your time-to-market?
- Has ERP helped you achieve a competitive advantage?
- Is ERP giving you the information and metrics you need?
- Is ERP delivering all the information in a format that allows all departments to operate in a Lean environment?
If your answer to any of these questions is “No”, then ERP Optimization should be on your critical path. The development of an optimization plan is required. This plan, however, is not a complete re-implementation of your ERP system. It is a comprehensive review and detailed study of all the features, functions and the alignment of your business systems to your current and future business processes.
A typical ERP optimization plan has the following elements:
- Conduct in-depth interviews with all key users
- Review all business processes from “order-to-cash”
- Review business processes in relationship to software and best business practices
- Review level of basic ERP knowledge in all key areas
- Conduct a detailed review of all systems parameters/order modifiers
- Prepare detailed value maps of all key business processes
- Prepare a departmental review of systems functionality
- Assess systems parameters and their ability to meet business and departmental goals
- Brainstorm policies, procedures, and business rules to support “today’s” business needs, as well as tomorrow’s vision
- Conduct new education and training
- Populate ERP parameters and order modifiers in alignment with your business rules, lean thinking, and processes.
When was the last time you even thought of optimizing your ERP solution? Get in touch with us to know how you can optimize your ERP solution that can drive your organizational efficiency to a whole new level.