At a Glance
Selecting and implementing a new ERP system is one of the most resource-intensive decisions mid-market manufacturing or distribution companies face. Many firms gain value from teaming with independent experts for an effective approach to ERP selection, leveraging the time, talents and expertise to reduce effort, resources and yes, even the costs of ERP selection.
In this booklet, we note the typical decisions manufacturers and distributors face when beginning an ERP selection project. Also included? Five guidelines for choosing the right ERP consulting team to ensure an efficient and effective ERP project.
Why Use an ERP Consultant?
In today's competitive market, manufacturing and distribution organizations consider an ERP project as the foundation of an overarching digital strategy in order to best facilitate the improvement of processes and overall performance of the business.
But success can be elusive. Manufacturers and distributors feel pressured to balance ERP selection and business process improvement initiatives against challenging production schedules, customer demands and workloads. A company about to embark on an ERP journey has many choices. Management may elect to walk that ERP journey alone, or they may see the value of teaming with a "guide" for the journey.
What's inside.
ERP Selection Considerations
Concluding Thoughts
ERP Selection Considerations
Based on our experiences guiding hundreds of mid-market manufacturers and distributors through ERP selection and Business Process Improvement (BPI), we at Ultra Consultants typically find similar considerations most manufacturers and distributors face when deciding to either "go it alone" or team with a selection consultant. These considerations fall in the following four areas:
ERP Knowledge
Understandably, most companies do not have a working knowledge of today's modern ERP systems. Some team members might have gone through an ERP selection at one point in their careers, but they lack familiarity and knowledge of what is possible with today's ERPs. In these cases, an organization benefits from a consultant that offers recent ERP experience, preferably in the organization's specific distribution vertical or manufacturing sector (food/ beverage, automotive, process, etc.).
Impartial Advice
Many companies can't easily access insight from independent technology experts. Independent consultants understand a wide variety of software and technology options and receive no financial incentives to guide you in any particular direction. An outsider with no vested interest in the team's decisions can be a great aid to the team in their deliberations.
Knowledge of ERP Vendors
In an already crowded field, the number of vendors in the industry is growing and the solutions are becoming more complex every year. Any company will need to expend significant effort to identify and study the players to form a suitable plan. An ERP consultant can identify the vendors with specific solutions to meet a company's unique needs. This insight can be valuable in keeping the team on course, reducing risk and helping the team reach its goal in the shortest period of time.
Business Process Improvement
Many manufacturing organizations lack a full understanding of Business Process Improvement (BPI) initiatives and how BPI is a key component of ERP selection. ERP experts offer in-depth experience in this area, helping organizations identify gaps between the current state and desired future state of operations, along with finding the specific systems that help close those gaps.
Five Guidelines
Based on these considerations, and given that choosing and implementing a new ERP system is undoubtedly one of the biggest decisions a growing manufacturing or distribution company will ever make, taking the time to evaluate an ERP selection consultant is a critical task. After all, it makes business sense to shorten the selection process, improve the chance of finding a system that will be a good match for the company and instill confidence to achieve faster ROI.
The ERP selection consultant should save the manufacturer time and money and get the project off to a great start. It is in this spirit that we offer the following five guidelines for choosing the right ERP selection consultant:
Assess internal resources.
A mid-sized organization's IT department may have limited experience managing selection and implementation projects. Moreover, the department may not have the time and/or the sophisticated project management skills required for an ERP project. Most companies choose their selection staff based on who is available. However, availability is not a skill set or expertise. Ask:
- Does anyone within the organization offer
extensive knowledge and understanding of the ERP vendor community? It's important that the ERP project team members have knowledge of multiple vendors, their products and their sales and support organizations.
- Is there anyone within the organization that
has experience in contract negotiations? Even if the manufacturer has a dedicated procurement team, it takes specialized skills and knowledge when it comes to ERP vendor selection and contract negotiation.
Make sure the ERP selection consultant truly knows the specific style and type of manufacturing industry.
Focus on consultant firms with decades of experience in ERP and business best practices within your company's specific industry, size of business and type of manufacturing processes or distribution model. Ask to speak with past clients of similar organizations that have engaged with the ERP selection consultancy for independent references. Be sure they demonstrate the results they were able to achieve from the ERP implementation. Ask if the ERP selection consultant understands issues specific to the industry, including any compliance considerations, quality mandates, customer requirements and other considerations. Great consultants are able to easily handle unique requirements specific to both your organization and your industry.
Confirm that the ERP consultant knows what is possible with today's modern ERP systems.
Manufacturers should be on the look-out for indepth ERP insight that is "vendor neutral" for the best outcome. Many consultants might position themselves as independent, so take the time to confirm these claims. Modern ERP systems offer sophisticated configuration tools, robust reporting and business intelligence, workflow engines and other advanced features—some designed for specific industries. Confirm that these capabilities are fully understood in order to obtain system knowledge and ERP system education. Reference calls or on-site visits with current or recent customers will give a clearer picture of the value the consultant can provide.
Verify that the ERP selection methodology puts the focus on Business Performance Improvement.
Look for an ERP selection consultant company that makes it their business to drive results. The consultant should see an ERP project as a platform for continuous improvement, helping achieve key business outcomes such as improved customer service, reduced lead time, improved quality, reduced asset turns, higher productivity and improved, more timely decisionmaking. High achieving manufacturers have found that a "business process" evaluation methodology is critical and most effective when evaluating ERP vendors. Ultra advises companies that a business process definition (both current state and future state) should drive evaluation projects. It's only after looking closely at the business processes that the team then identify the vendors that best meet the company's requirements.
Consider the ERP consultant's fit with the company.
This focuses on the "art" versus the "science" of choosing an ERP selection consultant. Ask:
- Do the project team and other members of the
organization have a good connection with the selection consulting team?
- Does the ERP selection consultant see an ERP
project as an opportunity to implement Business Process Improvements rather than just an exercise in technology implementation?
To answer these important questions, spend as much time as possible with the potential ERP selection consultants and have them interact with the company's team and leadership.
Concluding Thoughts
Manufacturing and distribution organizations are challenged to reduce the effort, resources and cost of ERP selection. An ERP selection consultant, when chosen carefully, can help select the right technology for business process improvements, drive savings and guide companies to a faster ROI.
The guidelines noted above provide a framework for an efficient and effective ERP project with the right expertise on your side. A careful ERP selection process builds a foundation of information, education and documentation that will increase your company's project success.
Why Choose Ultra?
When you decide it would be best to have expert guidance through your ERP selection and implementation journey, you'll want to choose an ERP consulting partner with the following qualifications:
Years of experience in your industry: Choose a team with people who have worked in businesses like yours, from the shop floor to the executive suite, people who understand the unique challenges you face.
✓ Ultra Consultants have an average of 20+ years in manufacturing and distribution. Our services are built for your industry. We understand your processes and requirements.
Expertise in industry- and vertical-specific ERP solutions: Choose a team with people who have researched, worked with, and implemented the exact technology you'll be considering.
✓ Ultra employs four full-time researchers whose only job is to explore every valid ERP technology solution available for manufacturers and distributors and analyze the efficacy of those solutions.
Independent Opinion: Choose a team that thinks for itself and has no allegiance to, tie to, or compensation plan with any vendor or solution provider.
✓ Ultra is proud of our great vendor relationships, but we are fiercely protective of our independence, never participating with any vendor partnerships or kickbacks.
Proven Methodology: Choose a team that is flexible and able to build a solution to meet your organization's unique needs.
✓ For more than 27 years, Ultra Consultants has utilized our deep ERP knowledge and BPI-centric methodology to deliver measurable business improvements to manufacturers and distributors in nearly every vertical.
At Ultra Consultants we've helped hundreds of manufacturing and distribution companies like yours discover the best possible ERP software solutions—and we stick around to ensure that your expected gains in profitability are realized, too. With Ultra on your side, you're empowered to gain the tools you need to drive efficiencies that increase your bottom line.
For more information and additional resources on how to bring our expertise right to your doorstep, visit us at ultraconsultants.com.