This article is going to try to sell you something and I do hope that if you are a small to mid-sized company you don’t let that turn you off and read the rest of this article. I have been selling business software to manufacturers and distributors for 20 years. If I am selling into the small to mid-sized companies, I often find that the reason they need new software is because they can’t function on their old legacy system. These systems can range from a custom database for operations, and QuickBooks for accounting, or software that even I have never heard of. The focus of the business has been developing a customer base and ensuring plant equipment and inventory as the top priority. They are talking to me because they are in pain due to the lack of the tools needed to do business in today’s world. Why not start with a decent software solution at the before your huge growth cycle? This really has not been possible until now with the cloud ERP solutions like Acumatica a FULL featured business software that can be used on ANY device. Please read on… Read more
As a company begins to grow from a small to mid-size enterprise, it becomes more and more complicated to keep up with the company’s success. With growing demands and an influx of new data to manage, it can be difficult to continue to function at optimal capacity.
Implementing a Enterprise Resource Planning (ERP) system is what many manufacturing companies turn to help manage the work load. The process may not be easy, but when considering the time and effort it takes to collect, interrupt and keep track of data on a spreadsheet (especially if you are a medium to large size enterprise) it is well worth the time and money.
Supply Chain Optimization for Leaders featuring the Benefits and Approach to Optimizing Supply Chain on Wed., September 16, 2015 11:30 AM – 1:30 pm.
The Supply Chain Optimization Initiative is based on establishing a comprehensive view of the Supply Chain and improving the visibility and responsiveness of all Tiers supporting the Supply Chain, whether it is supporting a small to mid-sized contract manufacturer or a large multi-national OEM … the concepts and tools are applicable. Register now!
Dynamics NAV does not come in a box with a bar code, so it’s difficult to get a true definitive price before an actual quote or implementation. Reason being, no two businesses are the same, the standard factors affecting ERP implementations are usually coupled with many different elements that drive different levels of customization and affect ERP implementation costs. However, there are several buying options that can help any CEO or CFO know NAV’s ballpark price before entering negotiations with any partner. Even though the research can seem daunting, 110,000 businesses have already implemented this powerful business software.
In the “What’s my price?” e-book, Microsoft presents the factors a business person should take into account to determine the total cost of implementing Dynamics NAV. Below find many of the factors that affect ERP implementation costs, including a few of those often overlooked: Read more
Manufacturing products without a factory would have seemed impossible a few years ago. However, the “impossible” is slowly taking shape thanks to additive manufacturing, also known as 3D printing. This relatively new technology is ready to deliver a small, “mobile” factory to every OEM, MRO, and repair shop. In fact, a number of businesses are embracing additive manufacturing as a temporary or permanent manufacturing solution, as you read these lines.
3D Printing: The Future Is Just Around the Corner
Although 3D printing technology can be used by anyone, from regular people to industry giants, sustainable growth is expected to come from industrial applications, especially in the OEM and MRO sectors. That’s simply because only a large company has the financial power to design, craft, and test multiple prototypes to finally develop a product that customers will want to buy. But this is only half of the OEM-MRO equation. The other half relates to the impact additive manufacturing will have on the MRO industry.
Additive manufacturing technologies deliver incredible flexibility. To begin with, a MRO company will be able to develop “instant” spare parts and complete maintenance and repair tasks within hours. Imagine an airline looking for a MRO able to repair an airplane that has broken down unexpectedly. Instead of waiting days or even weeks for parts to arrive, the MRO can manufacture the parts needed outright and fix the airplane within several hours.
Manufacturing parts for scheduled maintenance and repairs or, more importantly, for unplanned events, with virtually no wasted materials, will help MROs reduce downtime and operating costs. Another major motivator for additive manufacturing technology adoption is the ability to produce hard-to-find spare parts or components that aren’t manufactured anymore.
The International Space Station’s 3D Print project is one edifying example of spare parts production using additive manufacturing. The first 3D printer was launched to the space station in September 2014. On November 24, 2014, the first “space” object was successfully manufactured using 3D printing technology. According to NASA officials, additive manufacturing is useful especially when spare parts aren’t available or when inventory is extremely expensive to ship. This technology brings several performance and efficiency advantages, regardless of whether a maintenance company or department is located on Mars or on Earth.
Additive manufacturing may seem too futuristic to become standard. However, the acceptance of this technology as a source of spare parts will change the course of MRO history. A maintenance company will be able not only to manufacture simple or complex parts and difficult-to-achieve geometries, as required; it can also develop prototypes to modify equipment and achieve quicker repair times.
Undoubtedly, the ability to manufacture parts on demand will affect inventory and logistics. MROs will no longer have to order spare parts from manufacturers and keep dozens of “just-in-case” replacement components on hand until the right clients come along. Whenever they need a product, they can just make it. This will probably cause a collapse of the entire supply chain, making part suppliers and even manufacturers vulnerable to extinction.
By eliminating the need for high-volume production, 3D printing shows its worth in terms of reducing production costs. Additionally, it increases part availability at the point of use and decreases shipping-, inventory-, and labor-related expenses. Although this brings bad news for a number of businesses, additive manufacturing will add new efficiencies to the operations of MROs and their clients. In conclusion, what additive manufacturing does is to dissolve the global supply chain, which costs MROs billions of dollars every year, re-assembling it as a local system, at a much lower cost.
In the following years, additive manufacturing will radically change the OEM and MRO environment. Analysts predict that the additive manufacturing market will grow to $16 billion by 2018. More and more companies, especially MROs, are expected to invest in 3D printers to produce parts as needed. But to achieve the forecasted outcomes, digital design software must evolve and more advanced and affordable scanners must be developed. On the other side, manufacturers must find a way to protect themselves against the negative consequences of this technology. For sure, 3D printing will tip the scales in someone’s favor. Who will be the winner? Only time will tell.
Nowadays, a growing number of companies are facing the choice of whether to hire an ERP service provider or not. Some of them swing between ERP consultants and systems integrators, who could help them with the ERP implementation process. However, most business owners decide to launch an ERP initiative themselves, without considering the knowledge and skill set of a specialist.
What do you think? Do you really need a high-priced ERP consultant to help you plan a new ERP deployment or upgrade an existing solution? Probably, not. Then why should you hire him? Even more important, why should you choose an ERP consultant over a software integrator? Let’s take a quick look at some points you should consider.
- Knowledge and experience: The job of an ERP consultant revolves around implementing and customizing ERP solutions. Thus, he has greater expertise than a regular systems integrator or in-house IT personnel. Additionally, an experienced consultant has managed many ERP projects. As an expert on all the aspects of ERP project management, he will be able to guide you in the selection of the right software solution for your company along with the modules and features you need for industry-specific operations. Above all these, a good consultant can tailor any ERP environment according to your needs, without disrupting your business operations. In tune with both the ERP solution he provides and your organization’s needs, the consultant can also offer your employees the training they need to exploit the system beyond its apparent potential.
- Support: Frequently, ERP consultants develop proprietary code, hotfixes, work-arounds, and utilities that make ERP implementations go smoothly and quickly, while improving the entire IT infrastructure. Most of them also provide post-implementation support. Though you have to pay for support services, a reliable consultant will be there 24 hours a day, 7 days a week, ready to help you avoid, address, and solve a series of issues that can “derail” your company. Compared to what you stand to lose in case of prolonged downtime, it’s worth spending money on support.
- Biased decisions: Since most ERP consultants provide specific products and services, many of them will try to steer you into a specific product line. However, a true professional will analyze your business and tell you whether or not the ERP product he provides matches your needs. Some ERP consultants looking to build trust go even further. Putting customers’ interests above their own, they recommend the most appropriate ERP system for each company, even if this means sending customers to the competition.
Since we’re talking about trust, an honest ERP consultant will always explain the implications of a sizeable ERP initiative so that the business owner or the manager in charge of the project can allocate enough resources to ensure a successful system implementation. In addition, he will provide detailed information about the modules and features you can benefit from, indicating clearly what the system can and cannot do. He will also help project initiators decide what’s best for the company. In a nutshell, an honest consultant can help you get the right ERP system for your business instead of a “parasite” that will deplete your resources.
Most business owners and managers running day-to-day operations think they know their businesses. But what they don’t know is that choosing an ERP solution requires much more than understanding business processes. An ERP consultant, on the other hand, can accelerate the deployment process, minimize ERP risks, and offer a fresh vision that recognizes the complexity of process-oriented environments. All these points are extremely important for a company planning to adopt fully integrated business software and increase the value of its ERP undertaking. Though any ERP project requires a consultant’s input at some stage, careful research and consideration will help minimize your company’s exposure to potential drawbacks.
Given the above, it all boils down to one question: do you want a systems integrator who can help you implement a piece of software, or an ERP consultant who can turn a simple ERP implementation into an on-going success and positive revenue experience? The choice is yours, but don’t forget that choosing one over the other will make the difference between success and failure.
Organizations not keen on agile operations are usually resistant to upgrading ERP systems. Installing a new system brings about unprecedented changes, turmoil and complexity. However, every software has a lifespan and sooner or later, you will need to upgrade your ERP.
Over time, ERP systems lose their crispness and their capabilities start declining. Your competitors start getting a slight edge over your organization and if you don’t upgrade, output can significantly reduce due to inefficiencies.
You will realize there is a decline in your ERP performance when output and revenues reduce and errors are encountered frequently. Below are five warning signs that you should upgrade your ERP in 2015:
Your ERP Does Not Fit Your Business Processes
If employees are struggling to adapt your business processes to fit the ERP, then you need to upgrade. When the EPR was installed, it was meant to make business processes more efficient; not the other way round. However, over the years your business’ best practices may evolve rendering the ERP irrelevant for many processes.
When the ERP is not flexible to adapt to changing practices, employees will find a workaround. When some tasks are handled manually, efficiency reduces and data inconsistencies are likely to occur. In such a case, you should think of upgrading your solution to a modern one.
Your Business Costs Have Increased
As your business grows, some processes may become irrelevant. On the same note, new departments may be created and old ones pruned or merged with others. Such changes are expected in any dynamic business and may make the initial total cost of ownership of your existing ERP irrelevant. Upgrading your existing legacy solution may become necessary to address such changes.
Modern ERP licenses are highly competitive and flexible. For example, most new ERP solutions are based on cloud technology and served on a SaaS model. The SaaS model enables organizations to “pay-for-consumption” for the extent of services they need.
As you choose an ERP software, you should not only watch your initial installation and recurring charges, but also consider how the system will perform compared to your existing solution.
The ERP Does not Support Cloud Computing
Your organization may not have already moved to the cloud but it is only a matter of time before it does. When migrating to the cloud, ERP upgrading becomes essential. There are many advantages of cloud ERP. For example, cloud ERP eliminates much of the infrastructure maintenance, security issues and upgrades of the software from your organization. The vendor is responsible for handling the technical side of the infrastructure.
Cloud ERP solutions allow many concurrent users to access the system at one time and from anywhere they are connected to the Internet. This saves the organization from investing in additional hardware for more users like legacy solutions require.
Staffing and Vendor Reliance
When your current system was installed, it is likely that many IT staffers understood how to use it optimally for different processes in your organization. However, over the years, customization and IT staff turnover may have left you with only a few users that truly understand how to configure and use the system. What will happen if these staff were to be hired by your competition?
If your organization is at a point where only a handful or employees understand the ERP and are irreplaceable, it’s time for an upgrade.
People Start Working Outside the ERP System
When your business processes and activities change and the ERP can no longer support them, employees start creating their own ways of working. For example, consider a situation where your organization adds a product line or process that cannot be accommodated by the legacy solution.
Here, users will resort to using private databases or traditional spreadsheets. This creates a process management island inside your organization that is not supported by the ERP system.The result is having multiple silos of information that cannot be integrated into the system. Problems such as data inconsistencies are common with organizations that have multiple information silos.
If any of the above red flags are evident when you evaluate your current ERP system, it may be time for an upgrade.
Early inventory management systems were designed to provide basic stored item and storage location functionality. Today, modern warehouse management ERP systems can do much more, allowing companies to continuously improve their operational efficiency.
Some of the best solutions to manage warehouse operations are the warehouse management modules included in advanced ERP systems, such as Microsoft Dynamics AX. Unlike separate software applications, ERP systems employ innovative technologies that enable organizations to connect all sorts of areas to each other for better business management. Large organizations, in particular, could hardly function without this type of functionality.
Warehouse Management Goes Beyond Day-to-Day Warehouse Operations
With solutions like Dynamics AX, companies can easily centralize a series of tasks, such as tracking stock locations, checking inventory levels, and monitoring picking and packing activities. Here is what complex warehouse management modules, such as the one included in Dynamics AX, can do for your company:
- Efficient storage administration – New warehouse management functionality permits important indicators to be monitored within the ERP framework. As a result, complex warehouse operations can be easily managed and optimized. The latest modules include radio frequency technology, integrated shipping, work-in-progress tracking, batch and serial number management, returns management, and many other features, indicating a new standard for warehouse operational transparency and accuracy within a facility. Focusing on real-time stock control, special functionality has been added to allow manufacturers to identify exactly what is in a warehouse and balance the inventories of multiple storage facilities at any given time.
- Increased productivity – A complex warehouse management ERP system with advanced warehouse management functionality can help you get more out of your activities. Operatives will complete more tasks during the same time frame, which means better availability, quicker turnarounds, and higher return on investment.
- Lower costs – An ERP system not only simplifies warehouse operations (e.g. your workers will be able to verify inventory levels without doing any physical checks, managers can coordinate activities with just a few clicks, etc.); it also ensures greater accuracy. There is always a risk of data redundancy when multiple separate systems are used. This can lead to errors that will cost you money. With Dynamics AX, on the other side, information is updated in real time across the entire company, so there are no discrepancies that may cause errors. Eliminating errors and rework will lower your operational costs.
- Customization – Another important strong point of Dynamics AX is the possibility to choose modules and customize them to better fit your operations. For instance, you can choose to integrate the warehouse management module with the quality control module to prevent storing the items that have not passed the quality test in the warehouse. Specific features can be enabled to use cross-docking functionality, set up company policies for sales and transfer orders to and from warehouses, allocate batch/lot numbers for better warehouse management, etc. More modules and features can be added later on, as needed.
- Better customer service – Having a sophisticated warehouse management ERP solution in place can help ensure that you always have sufficient quantities of products in stock. As shown above, it can also help reduce redundancies, errors, and rework, which will result in better customer service.
One of the most important things for a manufacturer is customer satisfaction. One way to make your customers happy is to embark on process-improvement initiatives. In many cases, this means the implementation of a cutting-edge ERP solution that includes innovative technologies to help companies improve customer service without increasing operating costs.
Despite what many manufacturers think, using two or more systems cannot help a company streamline its processes and achieve better outcomes. Instead, a fully integrated, end-to-end ERP solution including warehouse management functionality can provide companies with tangible, repeatable results quickly, results that will translate into significant cost savings and more business over the long run.
Microsoft Dynamics AX, Dynamics SL, Dynamics GP and Dynamics NAV are leading enterprise solutions tailored for different industries. Many organizations depend on one or more of the four product lines in their daily operations.
When organizations need a new ERP system, the costs of installing or upgrading is something that must be carefully considered. However, did you know that if you already use one of the MS Dynamics products you qualify for full investment credit if you upgrade to a different Dynamics system? The credit is offered as part of Microsoft Dynamics enhancement plan and is referred to as the Product Line Transition.
Companies upgrading ERP from Dynamics SL or Dynamics GP to Dynamics AX or Dynamics NAV can taking advantage of this promotion from Microsoft and save on their new installations. The promotion applies for various transitions, including:
- Product Line Transition: Move from Dynamics SL or Dynamics GP to Dynamics NAV or Dynamics AX and get full investment credit for the cost of the original ERP purchase.
- Edition Transition: Changing your Dynamics AX (or other Dynamics ERP product) edition. For example, upgrading Dynamics AX R2 to Dynamics AX R3.
- License Model Transition: Changing from the Module Based Licensing model to the Business Ready Licensing model, within Dynamics AX (or other MS Dynamics ERP product).
There are a number of reasons why it may be necessary to transition to Dynamics NAV or Dynamics AX. One reason is functionality. While all Dynamics ERP products are solid financial systems, their capabilities are tailored for particular industries. For example, upgrades on Dynamics SL have in the recent years focused on project accounting features, which are best suited for companies in the service industry. If your core business is manufacturing or distribution, Dynamics AX will be a better system to use.
Dynamics AX may not only be a better fit for your organization in terms of functionality, but you can also save on cost by taking advantage of product transition credit. When you switch to Dynamics NAV or Dynamics AX from either Dynamics SL or Dynamics GP, you will receive a full investment credit for the value of your new system to use toward the license cost of the software you are transitioning from.
Benefits of Upgrading to Dynamics AX or Dynamics NAV
To ensure a successful transition, it’s important to worki with a Microsoft Certified partner that has experience with Dynamics AX or Dynamics NAV installation. The partner should also be able to help replace your CRM system to take advantage of Dynamics AX and NAV integration to Dynamics CRM.
Some benefits of upgrading to Dynamics AX include:
a) Increase growth without adding staff
Dynamics AX helps to improve efficiency and output in the organization without increasing costs. As a result, organizations can realize an increase in the volume of transactions and the bottom line.
b) More efficient processes
The order entry process in Dynamics AX is extremely efficient. You can document the time it takes to process orders and drill down on areas where wastage can be eliminated. By having accurate information, you can tell a customer exactly what’s available in store and when it can be shipped out.
c) Flexible for your organization
After Dynamics AX has been installed, you will not have to modify your workflow and procedures to fit the software. The software is made flexible to fit your organization’s present and changing needs. The ERP is also user friendly and does not have a steep learning curve.
d) Integration with Dynamics CRM
You can provide the sales team with the information they need by using Dynamics CRM integrated with Dynamics AX. For instance, the team can view customer information, including pricing directly in Dynamics AX.
e) Better reporting through Excel
Dynamics AX integrates with various Microsoft products, including Excel. The ERP implementation partner can configure AX to generate data directly into Excel in the format that the management wants. This will not only reduce time that employees would have spent on creating reports, but also save you money.
Working with a Microsoft Certified Partner when upgradig from Dynamics SL or GP to Dynamics AX or NAV is crucial to the long term success of your organization.