For an interesting read, check out:  http://brainstormtech.blogs.fortune.cnn.com/2009/10/23/big-software-has-duped-us-for-decades-part-i/

I have the privilege of speaking with multiple companies every day….and they are all struggling, particularly with their supply chain.  They aren’t meeting their delivery commitments, their inventory is too high or they just don’t have enough visibility in their supply chain. There is an expectation out there that ERP systems will do everything for everyone in an organization and it is just not true.  Yes, it is certainly a good financial transaction tool and some companies find their ERP systems to be very successful. However you then find out that they have spent millions of dollars to make that happen.

I understand why a CIO of a company would want to have all of their business solutions on one ERP platform, but at what cost and compromise?

What do the users need in their day to day operations? They need better tools designed for users and not transactions. Organizations are continually being challenged to do more with less. The common theme in the business is being overworked, constant stress, change and disruption.

People in Demand Management, Sales and Operations Planning, Customer Fulfillment, and Planning and Scheduling have a right to be heard. They don’t have the time to source out better solutions that will improve their efficiencies and performance. Do they know that there are solutions that can vertically integrate their supply chain, providing them visibility to other aspects of their operation in other parts of the world or with their partners? Do they know that they can test changing a demand that will instantly regenerate MRP and tell them where their gating material and capacity constraints are? Do they know that they can create their own reports rather than relying on a queue with the IT department?

It is up to the management of an organization to ensure that people are properly empowered to do their jobs in the most efficient manner possible. There are ways to solve these problems.   Don’t wait until it is too late to address these issues. Look for disruptive SaaS technology…to augment your ERP….without getting ‘duped’ as Roger Burkhardt, the author of the article so eloquently puts it.

What is your experience?

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Tags: Advanced planning & scheduling (APS), Collaboration, Demand management, Enterprise resource planning (ERP), Sales & operations planning (S&OP), Supply chain management, Supply chain visibility
Posted in Supply chain management
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