ERP implementations are expensive, complex, and time consuming – this means achieving the most ROI possible is essential. We’ve seen incredible ROI linking ERP implementations to supply chain optimization projects. It might seem counter-intuitive, but for companies new to ERP systems, if you want to get the most ROI out of these joint projects we recommend implementing them both at the same time.
Too often an organization implementing an ERP for the first time thinks about these two projects in phases. Organizations assume that Step 1 is to implement the ERP completely, a years-long process in many cases, and then move on to Step 2, eventually needing to apply supply chain optimization over the more rigid ERP data set.
Move away from a stepped strategy to a tandem ERP implementation strategy
This stepped strategy is tempting; having multiple critical IT projects running simultaneously can create challenges for IT departments. However, when Austin Data Labs begins working with a new customer who has already implemented an ERP, we frequently find that the way the ERP system has chosen to model the supply chain is not sufficient. The requirements for the ERP system were not built with an end-to-end supply chain optimization in mind. This means some of the models still reside in Excel and the data in the ERP system is either filled with errors or incomplete.
Working with Austin Data Labs creates a smoother supply chain optimization project
When Austin Data Labs helps shape the ERP implementation from day one our customers have seen great success. For example, one recent project was performed in conjunction with a D365 implementation. We were able to perform a tight integration between our product and D365, driving better decisions around how inventory should be configured. Our product also drove the overall data architecture discussion, including determining what product master style options should be selected.
In fact, with so many different ways the bill of materials could be managed, we were able to guide our customer to the method which would best support the modeling of the supply chain with the help of our software. By the time the ERP system was implemented we had their supply chain optimization product implemented in parallel. Our customer realized business benefits that more than paid for both the ERP implementation and the supply chain optimization project.
Your tandem ERP and data science implementation will help you future proof your business
When implementing an ERP system it is critical to future proof the design and build it with the planned future components in mind. While this sounds counter-intuitive to some, as evidenced by our customer successes, the speed to achieving business benefits and the reduction in re-work makes a simultaneous ERP and data science product implementation the right choice.
image: “Rowing” by cheetah100 is licensed under CC BY 2.0
