This client, located in the Northeast, has about 220 employees; about half work in the warehouse, and the other half are in office positions like sales, customer service, or IT. The company distributes consumer goods. They have two warehouses within close proximity to each other, which facilitate the 10,000 SKUs, 60% of which that are sold via the website through B2B relationships. The company earned approximately $100 million in revenue in 2015.
Ultra’s Team Structure for the ERP Selection Improvement Process
Our team of five is a bit larger than typical engagements, but was necessary for this ERP selection improvement process due to a heightened range of tasks. Each member is responsible for one of the following areas:
- Five Year Plan
- Supply Chain Future State
- Accounting & Warehouse Current and Future States
- Supply Chain Current State
- Change Management
Opportunities in the ERP Selection Improvement Process
Currently, there are several items in the ERP selection improvement process and therefore many areas where value can be added to the company. First of these items, is the fact that both in the warehouse and in the office, there is an excessive use of paper processing and Excel documents. The second major inhibitor in the company’s business processes is an extreme amount of money spent on IT and software costs. The future state, as determined by our team, is set to address both of these issues.
Some other areas of opportunity for a return on investment (ROI) include:
- Catalog Process: The company distributes a product catalog that costs $1 per unit. In our continued work, we will evaluate if it is possible for the chosen ERP system to work directly with InDesign, the software necessary to design the catalog.
- Purchasing: The team will need to develop the KPIs desired by the ERP vendor and figure out how to meet these growth plans without adding more staff
The first stage of the project, the Business Process Improvement phase, was completed then it was onto the ERP Selection process. After the Selection project, we are set to move the company over to Microsoft 365, create new forecasting and PO recommendations, a completed ERP implementation, an update to their E-Commerce platform, Advanced Reporting features, and a new CRM solution.
To learn more about maximizing ROI in your ERP selection improvement process, refer to our whitepaper here.