THE ROAD TO FULL
ERP OPTIMIZATION
ADVANCING THE PROCESS, COMMON
MISTAKES TO AVOID, AND ACHIEVING
LONG-TERM SUCCESS THROUGH FULL
ERP OPTIMIZATION.
BROUGHT
TO YOU BY:
2 | THE ROAD TO FULL ERP OPTIMIZATION
The numerous benefits of implementing
an Enterprise Resource Planning (ERP)
system are well known in today’s highly
competitive manufacturing environment,
where already thin profit margins are
being squeezed even further.
To stay ahead of the field, manufacturers
increasingly have been turning to ERP
software technology, a highly automated
system of integrated applications that
manage processes, oversee sales, monitor
distribution, and coordinate internal
company services within a single user-
friendly system accessible throughout
every department and all locations.
When implemented and used properly,
ERP delivers the potential for much
greater bottom-line results. When fully
optimized, it quickly becomes a highly
effective tool to improve planning
and scheduling, boost productivity,
reveal new growth opportunities,
and add to company profitability.
But, the key to finding such success
depends upon strong top-down leadership
committed to driving organization-wide buy-
in by every employee in every department
at every division of the company.
This iReport examines key issues that
can develop following ERP implementation,
common mistakes that should be
avoided along the way, suggested steps
to advance the process, and full ERP
optimization for long-term success.
— Long-time ComTec Solutions employee
on successful ERP optimization
Tell the system what you know,
tell the system when you know it,
don’t lie to the system
3 | THE ROAD TO FULL ERP OPTIMIZATION
WE’VE IMPLEMENTED ERP.
NOW WHAT?
The good news is that various software,
performance, and technical issues
sometimes encountered following ERP
implementations 5 or 10 years ago
are no longer a concern, according to
experts. A good part of that has to do
with the development and growing
acceptance of cloud technology.
But, once the implementation has
gone live, other significant issues can
surface today. For example, company
executives may consider the project
to be complete at implementation
and move on to other business.
Big mistake. Much of the real work
toward full ERP optimization actually
is just beginning at that stage.
“The (companies) that really understand
the process and understand what it’s going
to do for them in the future realize that
once they’re live they need to continually
make sure that they are improving their
systems,” according to Rob Moyer, president
of ComTec Solutions, Rochester, NY, a
company focused on a range of business
technology services, including ERP.
It’s critical to keep the original
implementation team together and to
maintain momentum going forward, he
said. They should immediately begin
considering which items that weren’t
included during the first phase of the
project should be moved into phase 2.
“Companies that are doing that are
the ones that really succeed, and we
see them grow and prosper using
their ERP system,” Moyer added.
A key part of the post-implementation
success also involves the establishment
of effective change management
and risk management strategies.
“Change management is huge with these
projects and most people don’t even have
an individual or a member of their (project
management office) that’s focused on it,”
Jeff Carr, founder, president, and CEO of
Chicago-based Ultra Consultants, said.
Such lack of management involvement
not only can create problems and
delays throughout the implementation
process, it also can cause the entire
project to go over budget.
“What you need to do is take inventory of
all of your people and categorize them,” Carr
said, referring to the internal champions, the
reluctant employees, and those who appear
interested, but in reality are nonplused.
“By focusing on those people, where they
lie, and what level of change is going to
happen in their area—is it significant or is it
light—you can identify the pockets that you
need to focus on to get better acceptance
and better use of the system so that they
can drive improvements in the business.”
Change management is huge with these
projects and most people don’t even have an individual
or a member of their (project management office)
that’s focused on it — Jeff Carr, Founder, President, & CEO
Ultra Consultants
4 | THE ROAD TO FULL ERP OPTIMIZATION
AVOIDING OTHER COMMON
MISTAKES
Other errors to avoid include failure to
enact upgrades when new technology
becomes available, expecting the system
to do something it is not designed to do,
allowing select departments—such as
sales and engineering—to ignore certain
features, and skipping ongoing training
programs for both new and current staff.
Generally speaking, companies have three
distinct options when planning and choosing
their preferred ERP technology: They can
purchase software and maintain it in-house
on premises; buy the software and have it
placed on a hosted server at a data center;
or purchase a cloud option, essentially a
subscription or rental-type arrangement.
All three options work very well and
selection ultimately depends upon customer
challenges, needs, and preferences.
But, it remains important to implement all
technological upgrades in an ongoing and
timely fashion. Companies, especially those
supporting their ERP technology in-house,
may be inclined to put off upgrades for a
year or two because of the commitment
necessary, but as more years go by, those
upgrades can become harder to implement.
“With the cloud today you don’t have to
worry about that,” Carr said. “The capability
is there. It’s up to you to decide whether
or not you want to use it. But the whole
problem tends to go away about not doing
upgrades because you’ve got the cloud and
you’re paying money for those upgrades.”
WALK DON’T RUN
The ERP experts recommend initially staying
focused on the main goal of replacing their
old technology, then embarking on a well-
thought-out plan to continue to improve
aspects of the system going forward.
Sometimes companies insist on a big-
bang approach, holding off going live until
every module has been implemented
and is running perfectly. “Those are the
implementations that can sometimes take
a couple of years because they don’t have
realistic expectations of their organization
and how much horsepower they have
to get it all done,” according to Moyer.
“If you break it down into pieces and
say, ‘In phase 1 we’re going to implement
these modules and then in phase 2 we’re
going to look at these modules,’ it’s a
more realistic approach and a lot of times
saves a lot of heartburn,” he added.
NAVIGATING TO FULL
OPTIMIZATION
As mentioned above, one critical roadblock
that often needs to be dealt with following
ERP implementation involves staff members
and departments who, despite best efforts,
remain set in their old ways. Engineering and
sales tend to be toward the top of that list.
“I think engineering is a huge area because
that’s not well penetrated with technology
today,” Carr says. “There’s a hodge-podge
of technology mostly designed around
Experts recommend initially staying focused on the main goal
of replacing their old technology, then embarking on a well-
thought-out plan to continue to improve aspects
of the system going forward.
5 | THE ROAD TO FULL ERP OPTIMIZATION
The information in this
iReport was researched and
produced by Manufacturing.
Net in conjunction with Epicor.
Statistical data was researched
and compiled by Advantage
Business Media in June 2017.
Epicor Software Corporation
(epicor.com) provides industry-
specific business software
designed around the needs of
manufacturing, distribution,
retail and services organizations.
Epicor’s more than 40 years of
experience with its customers’
unique business processes and
operational requirements is built
into every solution — in the
cloud, hosted or on premises.
ABOUT
THIS REPORT
ABOUT EPICOR
CAD, but very little around product lifecycle
management and very little about change
management in that particular area.
“And the whole area of reporting, whether
you’re in purchasing or in costing or in
inventory or customer service … the whole
reporting area is very difficult to get people
to change,” he added. “Time and time again
we see people implementing these systems,
then the staff goes back to using Excel.”
It often takes a formal training program
in order to bring them around to the
new ERP system, but companies may be
reluctant to implement such programs
for financial or other business reasons.
Labeling that “a common mistake,”
Moyer said ongoing formal training should
take place for current as well as new
employees, conducted by professionals
who know the software, focusing on
the latest additions, upgrades, and
changes implemented along the way.
Beyond specific personnel challenges,
one of the thorniest issues encountered
in the road to full optimization pertains to
scheduling, i.e., materials management,
resource management, etc.
“In at least 95 percent of the companies
that we go into on a new opportunity,
scheduling is a big concern,” Moyer says.
“We all have to do more with less, we all have
customers requiring everything yesterday,
demands are more difficult to meet, and so
scheduling is one of the largest needs. “It’s
also the most difficult modules to implement
just because of all the intricacies of it.”
It takes an ongoing commitment on the
part of the company to make sure that
data entered into the system is correct.
He pointed to a long-time employee
who some years back wrote the following
saying on the white board in the company
training room: “Tell the system what
you know, tell the system when you
know it, don’t lie to the system.”
“If you live by that motto you will
be able to successfully schedule and
use the ERP system,” Moyer said.
THE ROAD TO FULL ERP OPTIMIZATION
This iReport examines key issues that can develop following ERP implementation, common mistakes that should be avoided along the way, suggested steps to advance the process, and full ERP optimization for long-term success.