10 SIGNS YOU NEED AN ERP SOLUTION FEBRUARY 25, Timothy Beranek Partner. BKD Technologies. Robert Kramer Managing Consultant
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1 10 SIGNS YOU NEED AN ERP SOLUTION FEBRUARY 25, 2014 Timothy Beranek Partner BKD Technologies Robert Kramer Managing Consultant BKD Technologies
2 10 SIGNS YOU NEED AN ERP SOLUTION BKD compiled top 10 key indicators you may need new ERP solution Enterprise Resource Planning (ERP) Order-to-cash Customer orders BOM, routings & work orders Production schedule, QC & costing Inventory management & shipping Billing & payments Procure-to-pay Requisitions & purchase orders Receiving & inventory management Supplier vouchers & payments Back office Payroll, fixed assets, AP, AR, GL Operational & financial reporting 2 // experience reach
3 1. NONINTEGRATED & DISPARATE SYSTEMS Are you spending time & money managing multiple databases? Do you have complex integrations instead of one complete system? Critical to have one single integrated solution One source of the truth Increase employee productivity Create consistent user experience Eliminate unnecessary tasks Excel is not an ERP system! 3 // experience reach
4 2. OUT-OF-CONTROL PRODUCT COSTING Do you know the actual costs to produce your products? Do you experience end of year cost adjustments? Do you have the ability to analyze variances from planned costs? Complete ERP solution will provide following controls: Actual or standard costing options Automated production capture MRP What to buy based on demand Inventory visibility Costs for purchases & produced products PRP What to make 4 // experience reach
5 3. MANUAL BUSINESS PROCESSES Are you working around limitations & deficiencies in your software? Does your software align with your business processes? ERP solutions can automate business processes As your business changes, your software should grow with your business Excel is not a system to run your business Electronic workflow with approvals Electronic document management with approvals Automated data capture Electronic orders, payments, etc. Electronic alerts 5 // experience reach
6 4. GROWING PAINS Are you looking to grow without adding new employees? ERP system should be scalable: Add system components/volume Accommodate international operation Add new companies/entities 6 // experience reach
7 5. INACCURATE QUANTITIES Are your inventory quantities accurate? Do you suffer from unexpected shortages in production & fulfillment cycles? Do you have customer satisfaction issues? ERP solutions should allow you to quote promise dates Allow you to meet or exceed on-time delivery standards Periodic cycle counts Lot tracking 7 // experience reach
8 6. DIFFICULTY EXTRACTING MEANINGFUL DATA Can management retrieve important information when & how they need it? KPIs (Key Performance Indicators) should be easily defined ERP solutions have business intelligence compatibility modules providing KPIs Customizable, web-based dashboards replace traditional management reports Critical information may be put in the hands of key decision makers on demand 8 // experience reach
9 7. POOR PERFORMANCE & LACK OF DATA INTEGRITY Do you suffer from poor productivity due to slow system performance? Are you constantly restoring files from backup or experiencing error messages? ERP solutions are critical to your success & should pass three basic tests Availability Reliability Performance Your solution should be Scalable & capable of being easily expanded or upgraded on demand Relational database structure with built-in protection against data integrity & performance issues 9 // experience reach
10 8. DECREASING TOP LINE REVENUES Do you understand your sales cycle? Are you effectively managing your sales force? The right CRM (Customer Relationship Management) solution is important CRM can assist your organization to gain competitive edge through better insight into sales, marketing & customer management processes CRM applications are integrated with ERP applications 10 // experience reach
11 9. HIGH INFRASTRUCTURE COSTS Are you searching for a better deployment option? Hosted software solution on a subscription basis Lower cost of ownership Less on-premise hardware Controlled maintenance costs 11 // experience reach
12 10. REGULATORY OR COMPLIANCE REPORTING Do you struggle to maintain & report proper data to regulatory agencies? Are you reporting manually outside of your current system? ERP solutions allow you to capture & report data required by regulatory agencies governing your industry 12 // experience reach
13 NEXT STEPS ERP solutions have positive impacts on your entire business If your organization experiences one or more of these 10 signs, you should consider an ERP solution BKD Technologies Software reseller of top ERP solutions 13 // experience reach
14 PROJECT OVERVIEW Enterprise Systems Requirements Review & Software Selection Methodology Phase I Phase II Phase III Phase IV NEEDS ANALYSIS/ REQUIREMENTS DEFINITION SOFTWARE EVALUATION SYSTEMS SELECTION SUPPLIER NEGOTIATIONS Total Scope (TBD) 14 // experience reach
15 PHASE I: TRADITIONAL PROJECT APPROACH Phase I NEEDS ANALYSIS/ REQUIREMENTS DEFINITION SOFTWARE EVALUATION SYSTEMS SELECTION SUPPLIER NEGOTIATIONS KEY USER INTERVIEWS SYSTEMS & PROCESS ANALYSIS NEEDS ASSESSMENT Deliverables: -Overall Architecture of Current Systems -Functional Requirements & Critical Success Factors -Proposed System Architecture SELECT DRIVERS 15 // experience reach
16 PHASE II: TRADITIONAL PROJECT APPROACH Phase II NEEDS ANALYSIS/ REQUIREMENTS DEFINITION SOFTWARE EVALUATION SYSTEMS SELECTION SUPPLIER NEGOTIATIONS PREPARE RFP IDENTIFY QUALIFIED SHIPPERS ANSWER SUPPLIER QUESTIONS PRELIMINARY EVALUATIONS Deliverables: -Request for Proposal (RFP) -Evaluation Criteria -List of Qualified Suppliers -Preliminary Evaluation Results -Short List of Suppliers (with Rationale) SELECT FINALISTS 16 // experience reach
17 PHASE III: TRADITIONAL PROJECT APPROACH Phase III NEEDS ANALYSIS/ REQUIREMENTS DEFINITION SOFTWARE EVALUATION SYSTEMS SELECTION SUPPLIER NEGOTIATIONS Deliverables: -Demo Scripts -Final Selection Criteria -Detailed Evaluation Results -Rough Estimates of Costs -Summary Rationale for Selected Supplier(s) -High-Level Implementation Approach SCHEDULE DEMOS PREPARE DEMO SCRIPT CONDUCT DEMOS REFERENCE / SITE VISITS DOCUMENT GUIDANCE RECOMMEND PACKAGE(S) 17 // experience reach
18 PHASE IV: TRADITIONAL PROJECT APPROACH Phase IV NEEDS ANALYSIS/ REQUIREMENTS DEFINITION SOFTWARE EVALUATION SYSTEMS SELECTION SUPPLIER NEGOTIATIONS Deliverables: -Final contract to you REVIEW SUPPLIER CONTRACTS & AGREEMENTS IDENTIFY AREAS FOR CONTRACT MODIFICATION NEGOTIATE PROGRESS PAYMENT SCHEDULE DEVELOP NEGOTIATION STRATEGY CONTRACT NEGOTIATION MTGS AS REQUESTED 18 // experience reach
19 ESTIMATED PROJECT TIMING Ten to twelve weeks to complete Phases I, II, III & IV Timetables are dependent upon scheduling interviews with client personnel & availability of vendors 19 // experience reach
20 QUESTIONS 20 // experience reach
21 WHERE TO DOWNLOAD SLIDES & WEBINAR ARCHIVE Today s presentation slides are available at bkd.com/10signs. A recorded copy of the webinar will be available on the website later this week We will be sending out a short survey following the webinar For your benefit, please take a few minutes to complete the survey so we may improve upon future webinars 21 // experience reach
22 BKD TECHNOLOGIES SUPPORT CENTER Sage Support Center Monday - Friday, 8 a.m. - 5 p.m. Central time Support Center toll-free number 22 // experience reach
23 FOR MORE INFORMATION Timothy Beranek Partner BKD Technologies Robert Kramer Managing Consultant BKD Technologies
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