Lisa Anderson was quoted in a SelectHub article when she warned that, in the area of attracting and retaining workforce talent, competitors will always try to steal your best employees.

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Manufacturing Trends 2024: Maintaining A Competitive Edge

What are the most essential manufacturing trends of 2024? I hate to burst your bubble, but this industry doesn’t just focus on AI, IoT, data mining or advanced manufacturing software.

We’re talking about the big-picture patterns that are shaping the future of manufacturing as we speak. This guide will tell you how to retain labor, keep a carbon-neutral work environment, maintain a positive reputation and more.

Key Takeaways

• Some ideal technologies for manufacturing include IoT, IIoT, AI and data mining.
• When adopting smart factories, there should be a harmonious balance between machines and humans.
• Top manufacturing process types include repetitive, discrete, process, continuous, job shop, 3D printing and more.
• Ideal ways to attract and retain manufacturing employees are giving them satisfactory work environments, liveable pay and benefits, training opportunities. and more.
• Because of the digital twin market’s resourcefulness across the manufacturing and PLM sectors, this market could hit $155.84 billion in value by 2030.

Top Trends for 2024

1. Attracting and Retaining Workforce Talent

Lisa Anderson, founder and president of LMA Consulting Group Inc., warned that competitors always try to steal the best employees.

Pay alone will not suffice. In our experience, the most important priority to retaining top talent is company culture and leadership. People do not follow companies. They follow leaders. Clients with leaders who appreciate talent, offer training and advancement opportunities, and are willing to address poor performers and tough topics are respected and successful. On the other hand, clients with volatile leaders are losing talent at a quick pace.”

To read the full article, click here.

The post Manufacturing Trends: Maintaining A Competitive Edge – SelectHub appeared first on LMA-Consulting Group, a supply chain consulting firm.

In working across company sizes, industries, and geographies, in almost 20 years of business consulting, every single client without exception needed to better utilize data to improve customer service and bottom line results. Smart clients are turning data into insights so that they can pinpoint where to focus quickly.

Data Analysis vs Predictive Analytics

There is a lot of conversations about data analysis and predictive analytics. What is the difference? Data analysis is using data (from your ERP system, related technologies such as CRM (customer relationship management) and MES (manufacturing execution system) along with manual inputs and spreadsheets to analyze data to understand past performance, see future requirements, and make decisions. Predictive analytics takes it a step further and uses data to predict future outcomes. Both are essential for survival, let alone for growth and success.

Data Analysis

If your business is growing and profitable, you are performing data analysis. Resources are limited, high-skilled talent is scarce. For that reason alone, smart executives are using data to make decisions. No one can afford to fumble their way through daily execution and expect to have happy customers. On the other hand, very few clients have this down to an art. Unfortunately, data integrity issues abound, data sources do not align (misleading teams of people to focus on incorrect priorities), and executives can focus on the wrong information and reports (therefore wasting precious resources and time).

Client Example Using Data Analysis

Before you can leap to predictive analytics, you have to ensure your data is directionally correct and would lead you to reasonable decisions. Take an 80/20 approach in reviewing, updating, and analyzing data. For example, we are working with an industrial manufacturer on a supply chain consulting project to develop a production schedule, evaluate capacity constraints and rapidly provide realistic projected ship dates to customers and resurrect service levels, and data was at its cornerstone. The client went live on a new ERP system a month before we started working with them and were struggling to sift through the data to provide answers on customer orders. Although they had several high-skilled resources working 24/7 to figure it out and determine order status and availability, they were drowning in data with no way out. They couldn’t work through the data integrity issues and lack of viable information to make sense of sales orders in order to schedule work orders, review capacity, and ship orders.

Thus, we had to jump into the abyss of data, determine which fields were directionally correct, which fields to prioritize, who owned which fields, and who knew how to address which issues. Also, we had to determine which sales orders reconciled to the ones on the schedule, in the production area, on the heijunka board, and which had materials available, which had shipped, and which orders had data issues and were stuck in the system so that we could determine where to start. If we had waited for each of these data integrity issues to be resolved, our customers would have left. Instead, we prioritized, made assumptions to refine the data, reconciled critical data, and addressed the largest issues quickly. Although it took longer than expected, we took a six month task, and completed it within a few weeks with this approach. Data analysis was paramount to getting to the point where we could communicate dates. Refer to our article, “Cleansing, Connecting & Consolidating Data to Support SIOP/ S&OP and a Superior Customer Experience” for additional examples and solutions.

Predictive Analytics

As your data starts to provide directionally correct information for decision-making, smart clients are moving towards predictive analytics. It makes sense to look forward instead of backwards when making decisions. In essence, transitioning from reactive to proactive from a data standpoint can provide valuable visibility for making strategic decisions for demand and supply. Data is often integral to the SIOP (Sales Inventory Operations Planning) processes as you forecast future customer needs, evaluate capacity and production sourcing options, and assess logistics capabilities to serve customers.

At its core, demand planning / sales forecasting uses predictive analytics. Depending on your process and technologies utilized, you can be performing simple forecasting or using advanced predictive analytics. The outcome is to forecast what your customers will need in the future. Listen to our podcast interview with WBS for more insights on this topic. From a capacity planning viewpoint, it makes the most sense to look forward and project capacity using predictive analytics. For example, if you can use recent performance of an item or work center to predict run rates and downtime, it will yield a far better result than referring to a standard set the year before. Depending on the sequence of items and the machine performance, the output can vary widely. This is especially relevant in engineer-to-order businesses as similar combinations and/or setups are difficult for a person to remember. Taking it a step further, as production starts running, it is better to look forward and predict machine breakdowns, thereby resolving those issues before they occur than incurring downtime with preventative maintenance.

Predictive analytics is gaining momentum in business circles as executives prefer to look forward instead of to the past. Thus, according to Statista, the predictive analytics market revenue worldwide will grow from $5.29 Billion in 2020 to $41.5 Billion in 2028.

The Bottom Line

Data can make or break your business. Clients that utilize data for strategic insights and to proactively manage the business achieve far higher customer performance with higher profitability. On the other hand, those clients that get caught up in their shorts can let data negatively impact the customer and bottom line. Which approach will you use?

Continue reading on this topic:
Achieving Customer Growth by Turning Data into Insights

The post Business Value of Data Analysis & Predictive Analytics appeared first on LMA-Consulting Group, a supply chain consulting firm.

Lisa Anderson was quoted in SelectHub on what will be important in ERP circles in the year ahead. Read about the importance of business intelligence and ERP. “Clients have realized they need to be able to slice and dice data to quickly assess changing conditions, make directionally correct decisions rapidly to keep demand and supply aligned and get a quick handle on what’s coming so that they can be ahead of the competition and prepared for whatever is ahead. Combining BI with advanced CRM, forecasting and B2B/B2C software functionality are essential to successfully managing demand. BI with IoT, MES, WMS, TMS “and advanced planning systems are [the] cornerstone to successfully managing supply.”

“An ERP software system is often one of the most significant investments a company will make. This solution is a major financial and practical decision that can impact all parts of your business, like human resources, accounting, manufacturing, marketing and more. Before selecting a new system, buyers should research current solutions and ERP trends coming down the pipeline. … We spoke with several leaders about the upcoming ERP trends we can expect to see. Between a movement to the cloud, the internet of things (IoT), industry-specific ERP solutions and artificial intelligence (AI), the future of ERP looks brighter than ever.”

To read the full article, click here.

The post SelectHub: ERP Trends: Future of Enterprise Resource Planning appeared first on LMA-Consulting Group, a supply chain consulting firm.

If there is one thing in common with every client (big or small) in the current business environment which is characterized by significant volatility and uncertainty, it is the increased level of complexity of supply chains. As the old saying goes, you are only as strong as your weakest link in your supply chain! That has proven true and has led to unfettered complications in successfully navigating the current supply chain environment. In fact, it is why we are have been focused on helping clients become “the strongest link in your supply chain”.

Customers do not care about the complexities of our supply chains. They want the “right” products delivered at the “right” place at the “right” time at the “right” price. In fact, during this volatile post/emerging from pandemic timeframe, customers are laser focused on which suppliers can provide solid delivery performance as measured by high levels of OTIF (on-time-in-full) and a superior customer experience. They will give volume to customers that can deliver!

On the other hand, companies are laser focused on increasing operational efficiencies so that they can deliver to customer expectations while meeting profit objectives. Because of the significant level of supply chain disruptions and increased money supply, costs are escalating. Companies want to limit the price increases they have to pass on to customers as they will lose the business if substantially more expensive than competitors without a commensurate increase in product quality or service. Thus, there is an increased interest in increasing efficiencies, automation, and “doing more with less”.

Utilizing ERP to Improve Service & Decrease Costs

Almost every client has an ERP system; however. ERP systems perform the transactions required to support taking orders, purchasing materials, planning production, picking and shipping product, handling returns, and invoicing customers. NOT every client has a modern ERP system. In today’s world of global, complex supply chains and increasing customer requirements, advanced functionality is needed to support customers without adding armies of people to support the processes. Additionally, modern ERP systems provide additional opportunities to automate, digitize, predict what needs focus (example: predictive maintenance vs. preventative maintenance), and they enable the collection, assimilation and analysis of data for decision-making.

Performing a quick assessment of your business needs as compared with your system functionality and capabilities is a great place to start. When evaluating whether an ERP upgrade is needed to support customer and profit objectives, we recommend starting with a comprehensive yet directionally correct assessment of business process requirements. For example, when working with a control panel manufacturer, we quickly determined that their current ERP system would not meet their growth plans. Not only were they struggling with multiple add-on software options that didn’t seamlessly connect, resulting in double keying and a hodgepodge of data, but they also needed advanced functionality with customer relationship management (CRM), configure-to-order (CTO) and engineer-to-order (ETO) and related customer interfaces, and advanced reporting and analytics. Thus, an upgrade was required.

Therefore, we started a deep dive of business requirements to select the appropriate software. We talked through and observed the business process requirements that would support sales and customer relationship management, engineering design, order entry, configure-to-order, production planning, purchasing, operations, shipping, invoicing, accounting, quality control, data management, and reporting/ data analysis. Based on that, we documented business requirements and, most importantly, identified the critical success factors that were unique to their industry, company, specialized process, and /or unique system requirement. Armed with this data, we were able to develop a request for proposal, demo ERP systems, compare pricing, and decide upon the best fit system to meet their objectives for the best return on investment.

Utilizing Other Technologies to Increase OTIF, Reduce Costs & Inventory

In addition to utilizing an ERP system, to meet the increasingly complex customer requirements without adding overhead, other technologies will add value. Similarly to evaluating business requirements for ERP systems, start by evaluating your needs to support customer and profitability objectives. Some of the technologies required to support success in the current volatile and uncertain business environment are as follows:

• CRM (customer relationship management) software to proactively manage customers and potential leads
• Forecasting software to forecast customer demand
• Advanced planning software to go beyond traditional MRP and simple planning systems to better navigate complex supply chains
• Warehouse management software (WMS) and warehouse execution system (WES) to increase warehouse efficiencies and achieve fulfillment objectives
• Transportation management software (TMS) to optimize transportation planning and freight costs, lead times and service objectives
• Predictive maintenance systems (using artificial intelligence and internet of things (IoT) to predict maintenance needs to target resources
• Manufacturing execution systems (MES) to monitor manufacturing performance and tied to machines with IoT
• E-commerce systems to support B2C and robust B2B effectiveness
• Business intelligence systems (BI) to analyze data and consider what if scenarios
• Predictive analytics to take BI and data to the next level
• Blockchain although this type of software remains in an R&D phase for the majority of businesses
• Additive manufacturing/ 3D printing to print products on the fly
• Digital twins, robots, drones, RFID, autonomous vehicles, virtual reality, and more

The key is not to get caught up in fads. Start with your business requirements and determine the “right” place to invest to support your business objectives where the efforts and investment will support critical customer requirements and/or provide a significant return on investment.

Turn Data into Insights

Data is especially essential to driving OTIF and efficiency improvements. Simply tracking information in your ERP system and related technologies is not enough. It is more important to use your data to evaluate progress towards objectives and make directionally correct decisions to move the business forward. The key is to turn data into insights.

When your data analysis is achieving directionally correct results, it will make sense to take it to the next level with dashboards and slicing and dicing ability with a business intelligence solution. Once you can slice and dice data and have a dashboard available with the push of a button, consider moving on to advanced data topics such as predictive analytics. Instead of solely using data for decision-making, you can take it to the next level and predict your future so you can get ahead of the competition.

The Bottom Line

To succeed in these volatile and uncertain times, there is no doubt you’ll need a modern ERP system and related technologies to automate, digitize, meet customer expectations, accomplish more with less, and make directionally correct decisions rapidly by turning data into insights. Don’t go overboard and do everything and accomplish nothing, but get started on your journey with an assessment of your needs immediately before your competition passes you by.

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Achieving Customer Growth by Turning Data into Insights

The post ERP & Related Technology to Manage High Complexity with High OTIF Levels appeared first on LMA-Consulting Group, a supply chain consulting firm.

One issue of significant importance during the current volatile times that was also key during previous periods (aggressive growth prior to the pandemic, the downturn of the Great Recession, etc.) is the critical importance of providing a superior customer experience. It is evergreen for companies that want to grow and succeed. This metric is measured in various ways including OTIF (on-time-in-full), OTD (on-time-delivery), lead times, perfect order (no errors/ quality issues from order to invoice), easy returns, and more.

During periods of volatility, customer service becomes more challenging because customer requirements constantly change and evolve, and supply can also change and evolve. Thus, a SIOP/ S&OP (Sales and Operations Planning) process becomes essential to keep up with these changes and proactively adjust sales forecasts, production strategies, supply plans, inventory strategies, etc. If SIOP/ S&OP were cookie cutter, every client would have it in place. Instead, it should be tailored to each company’s unique situation, objectives, people, processes, systems, and data.

Data is a particularly key element for SIOP/ S&OP because cleansing, connecting, consolidating, checking, and charting data is frequently not nearly as easy as it appears. If not done properly, you will make decisions based on incorrect data. Perfection isn’t required or even encouraged; however, directionally correct results are of paramount importance. For example, an industrial manufacturing client wanted to forecast long lead-time material purchases. Unfortunately, their sales quotes (forecasts) were in one system, and their sales orders, manufacturing, and engineering specs were in a different system. The two did not connect. Additionally, there were several data integrity issues and no field in common to connect the two systems. Yet, it was critical to look into the future to avoid critical supply disruptions. They quickly started down a path to get directionally correct data for analysis and decision-making.

Cleansing Data

Every client has an overload of data. The key is whether the data is directionally correct in supporting decision-making. One of the first steps is to cleanse the data. Every client believes their data is reasonably correct until the reports compiled show strange results. Unfortunately, the key is not to overreact and cleanse every piece of data 100% before proceeding as that will likely put you WAY behind your competition. Instead, use the pareto principle. Start with the data that is most meaningful to your decision. Work with broad groups of products and cleanse with directionally correct updates. This is where the saying “garbage in, garbage out” comes into play. If you don’t cleanse your data, all you will achieve is getting garbage quicker. For example, the industrial manufacturing client had to clean up their master records (starting by focusing on the 20% that drove 80% of the volume) to make sense of their data. It would have taken years to fully cleanse data, but it took weeks to start with a pilot set of items and cleanse critical fields.

Connecting & Consolidating Data

Once your data is cleansed, it is likely you’ll have to connect your data from multiple sources, tables, or databases. It is also far more complex than it appears. If you don’t join the data properly, it will appear correct but you’ll get inaccurate results. Bringing a data analyst or systems analyst into the mix to assist in connecting data properly will go a long way. This is often the single largest client issue. For example, the industrial manufacturer had to develop a link between the two data bases so that they could successfully connect the records.

Checking

Certainly, once you’ve consolidated data into one source or report, you would check and validate the accuracy. This is also an often overlooked yet critical step. Clients frequently spend days developing reports to get a result that doesn’t add up. Because they get so lost in the data and it took a long time to develop, they immediately share these incorrect results proudly. For example, the industrial manufacturing client spent many hours developing a purchase report. However, the results didn’t add up to a number that made sense. Upon further review, it turned out that one of the processes put into place to dig out the appropriate dollars didn’t add up in terms of the quantities. They changed the report design, and the results became directionally correct.

Charting

The final step is to turn an overload of data into an easy-to-understand chart that provides immediate insights. These charts are incorporated into a SIOP/ S&OP process to quickly assess the situation and trend, and the discussion will lead to the evaluation of options and decisions. For example, the industrial manufacturing client was able to make reasonable assumptions and purchase ahead for long lead-time materials months before getting the details squared away by seeing the percentages by material type in a pie chart, and then making educated assumptions when placing orders.

Turn Data Into Insights

By following the process of cleansing, connecting, consolidating, checking and charting data, the industrial manufacturing client was able to get ahead of its competition because it had materials available for production once the increased level of sales quotes were turned into sales orders and engineering specifications were completed. They were able to turn data into insights and achieve record sales during a time when companies struggled with supply chain disruptions because they placed orders for long lead-time materials proactively (in addition to other proactive steps).

When your data analysis is achieving directionally correct results, it will make sense to take it to the next level with dashboards and slicing and dicing ability with a business intelligence solution. Once you can slice and dice data and have a dashboard available with the push of a button, consider moving on to advanced data topics such as predictive analytics. Instead of solely using data for decision-making, you can take it to the next level and predict your future to get ahead of pack.

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Achieving Customer Growth by Turning Data into Insights

The post Cleansing, Connecting & Consolidating Data to Support SIOP / S&OP and a Superior Customer Experience appeared first on LMA-Consulting Group, a supply chain consulting firm.

Every successful client is experiencing rapid growth and changing customer requirements. To support this growth in a scalable, profitable manner, turning data into insights is of paramount importance.

Data Overload

Every client has an overload of data. Whether using a modern ERP system or struggling with a complex maze of manual spreadsheets, the one item in common is an abundance of data. We have worked with clients with archaic ERP systems, but so long as we can extract data, progress can be made. On the other hand, we have worked with clients with Tier 1 ERP systems such as SAP or Oracle, but if they cannot get data out of their systems, the client is in a worse situation than the one with an archaic ERP system. Every manufacturer has products, defines how to produce those products (whether captured in someone’s head, in spreadsheets, or via an ERP system), has customers, receives orders, purchases from suppliers and so on. Each of those transactions and associated data is stored somewhere.

Data and related transactions adds up quickly. If you think about your typical day, you receive an overload of data before you even arrive at work. Your phone gives you the latest news and alerts. The news provides additional insights into key events. You drive by billboards and listen to the radio or talk with people on your way to work. You receive automated reports in your inbox. You most likely receive thousands of inputs before even arriving at work. Its no wonder we are overloaded! Since the pandemic might have cut out your drive, you might have replaced it with a walk or workout although you are still receiving data via the radio, a podcast or on the phone. To make matters worse, we employ people to run reports and track metrics on spreadsheets. Every time corporate, a Board member or a customer asks a question, another metric is created. Soon, we employ loads of people to publish data that no one uses to make decisions. How do we throw a line to save ourselves from drowning in data?

Take Stock of Your Data

Collect your data. It is likely to be an eye opening exercise. Take stock of standard reports your ERP system provides. Find out which reports are run frequently, and ask those people what they do with the information. Find out if the reports have to be massaged or adjusted to provide useful information. What has to be changed and why? Take a survey of the metrics your organization is collecting, tracking, or publishing. Ask who is using the metrics and what decisions are made based on the information.

In addition to understanding the volume and use of data, check into your data accuracy. Can folks make directionally correct decisions with your data? Or are there several exceptions that have to be discussed before taking action? If someone not intimately familiar with the data evaluated the report or dashboard, could he/she make a decision?

Reduce the Number of Reports to the Meaningful

We have not yet met a client that wasn’t collecting too much data. It is easy to get too ambitious and lose track of what is meaningful. Ask who would notice if the reports weren’t completed for a week? Go talk to that person and find out why. If no one knows or has a compelling reason to review the report, turn it off or tell the person compiling the information to stop compiling it for the next week or month. See if anyone asks about it.

Attend the meetings where data is discussed. Are people arguing about data or having meaningful discussions about what to do based on the data? If they are debating the accuracy, get the group together to develop ONE report that everyone agrees upon to illustrate the data. Eliminate the rest. For example, a building products manufacturer had several nuances to how they calculated OTIF (on-time-in-full), and so the team would debate the way the data was captured at each meeting instead of acting upon the data. We took a step back and aligned on the meaning of fields, how the data was captured and used, and we consolidated several reports into one cross-functional process to collect and analyze a single source of data. Although it certainly wasn’t the only reason, having meaningful reporting supported key decisions and actions which led to an increase in OTIF by 30%.

Turn Data Into Insights

Simply reducing the number of reports isn’t enough. It is essential to make the information meaningful for decision-making. Understand your sources of data. Connect the data. Cleanse the data. And turn data into insights with dashboards, data models or simply by retrieving the appropriate data for decision-making. It sounds much easier to do than it is in reality. For example, an aerospace client captured open orders and shipment data. Because they selected the data by the order creation date instead of the shipped date, the reports didn’t contain the correct information and didn’t reconcile to the invoicing data. Additionally, because they didn’t have their customer segregated in a key field they used to pull the report, the records that were blank didn’t get captured. Both were easy fixes but poor decisions were being made until the data was reconciled and cleansed. On the other hand, once the data was directionally-correct, they used it to determine the machine capabilities, capacities and staffing required to support their growth plans so they could get in front of their demand.

In another client, they had a proactive executive team for a small, rapidly growing building products company. They tracked potential sales leads, probability of success, sales history by geography and much more in their CRM system. Thus, they knew they needed to focus efforts on a key product line in the northeast because sales were lower than expected. By having this key information at their fingertips, they could target their sales efforts on the customers, products, and locations that would make a meaningful difference to their growth plans. They were recognized as the fastest growing company for several years in a row due to the expert ability to turn data into insights and take appropriate action.

You can turn data into insights no matter what systems you have supporting your business. It is far more important to have the appropriate processes and to focus people’s attention on how to dig into data and use it to make meaningful decisions. With that said, if you can support your data efforts with a business intelligence solution, you will gain a leg up on the competition. The great news is that BI tools are scalable; start small and scale up with complexity as it makes sense to support your business. Once you can slice and dice data and have dashboard available with the push of a button, consider moving on to advanced data topics such as predictive analytics. Instead of solely using data for decision-making, you can take it to the next level and predict your future to get ahead of pack.

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Thriving Post-Pandemic: Turning Data into Insights

The post Achieving Customer Growth by Turning Data Into Insights appeared first on LMA-Consulting Group, a supply chain consulting firm.

In this episode of Since Sliced Bread, Lisa Anderson, president of LMA Consulting Group, explains where the supply chain stands now, how it got this way and what she sees successful companies doing to get through the crisis. In the second half, she discusses the use of data.

Companies get strategic to pull ahead of supply chain crunch

Despite the opportunities for growth wholesale bakers have had due to increased consumer demand, the coronavirus (COVID-19) pandemic exposed weaknesses in the supply chain that are hindering the industry to fully take advantage of those opportunities. Bakers and suppliers — both ingredients and equipment — are struggling to source raw materials and find reliable transportation necessary to meet customer orders. In this episode of Since Sliced Bread, Lisa Anderson, president of LMA Consulting Group, explains where the supply chain stands now, how it got this way and what she sees successful companies doing to get through the crisis.

“Right-sizing or realigning your supply chain, those companies that are doing that are taking additional volume that their competition cannot supply and pulling away in the positive direction,” she said. “The ones that are hoping and waiting for things to get better are pulling away in the negative because others are taking the volume.”

Ms. Anderson outlines how she believes this situation will reshape the supply chain for good and what will eventually pull the economy out of the crunch. Labor remains at the heart of the issue, slowing down transportation both at ports and in the trucking sector.

Ms. Anderson explains how shortening supply chains can provide relief and digital tools can help bakers become more strategic about their inventories. These strategies can help bakers move through the current supply chain crisis and adapt to the future. Listen to this episode to find out what she thinks it will take for all this to be over.

Originally published on Baking Business.

The post Baking Business: Companies Get Strategic to Pull Ahead of Supply Chain Crunch appeared first on LMA-Consulting Group, a supply chain consulting firm.

Every successful client is experiencing rapid growth and changing customer requirements. To support this growth in a scalable, profitable manner, a modern ERP system is not preferred; it is a base requirement.

Why Has Modern ERP Become Essential

Pre-COVID, although preferred, it was less essential in supporting significant improvement and enabling customer loyalty. It is always achievable to better utilize an ERP system (even in the worst of situations), and although this fact remains true, it is no longer providing a BIG enough step up and the flexible customization required to scale fast and efficiently enough to meet changing customer needs while maximizing EBITDA.

According to KPMG, for the majority of U.S. CEOs, the pandemic has meant an acceleration of digital transformation by months or even years. During an Inland Empire Economic Partnership Board meeting recently, it was announced that research shows that technology has accelerated by 7 years. Although there are several technologies considered a priority, modernizing and upgrading ERP is a cornerstone launchpad for growth. Clients and colleagues are seeing the critical importance of not only having a central database for performing business transactions but also one that enables a superior customer experience.

What a Modern ERP System Do For You

ERP systems provide a solid infrastructure which will support scalable, profitable growth. Taking orders, deciding what to purchase, planning what to produce, tracking operational progress, storing inventory, shipping orders, invoicing the customer and tracking costs should be commonplace in ERP. These systems should also allow for the automation and integration of business processes that support business growth and profitability. Modern ERP systems typically support the vast majority of business processes and allow for reporting and analysis of these business processes and transactions whereas legacy ERP frequently stop short at supporting the full needs of businesses in today’s business environment. Turning data into insights has also become critical.

Expanding Capabilities with Related Technologies

For example, a mid-market manufacturer had to upgrade because their system didn’t support credit cards or inter facility transfers. Although upgrading was a significant undertaking, they gained not only these foundational requirements, but they also were able to better track and manage inventory, understand costs and analyze margins after upgrading their ERP system. After ironing out go-live issues, they had an upgraded base and could expand with CRM (customer relationship management) capabilities as well as B2B/ B2C and e-commerce functionality so that they could grow the business successfully.

In another manufacturer, they had a highly customized ERP system that supported their current needs expertly; however, it didn’t support scalable growth. It was also highly dependent on programmers with specialized knowledge. This risk became evident when their top programmer tragically died in an accident. Although they were able to make it beyond that situation, they knew they had to upgrade their infrastructure to support their aggressive growth goals. Since the executives wanted to minimize risk, they started with accounting to strengthen their base, expanded with reporting/ business intelligence to gain insights for growing the business and then upgraded the base. By taking this approach, they also gained insights into data issues to address upfront to ensure success down-the-line. After upgrading to a modern ERP base, they planned to accelerate success by further automating operations to gain efficiencies and customer responsiveness.

Advantage Beyond a Solid Infrastructure

Modern ERP offers advantages beyond providing a solid infrastructure for growth. These types of systems have advanced reporting and dashboard capabilities (business intelligence) built into the system. Some offer an artificial intelligence component with predictive analytics as well; however, simply having the ability to slice and dice data to make decisions can support profitable growth. These systems also have extensions for IoT applications such as predictive maintenance, customer portals and e-commerce, and automation and robotics. There is significant investment into future technologies so that the software stays ahead of the changing needs of the business.

Although it might be tempting to jump to the latest exciting technology and skip the ERP upgrade, don’t be tempted by shiny objects. It is akin to focusing on window dressings when the walls are not yet in place. The most successful executives have a scalable infrastructure that supports the execution of their strategy. Start by making sure you have a modern ERP system that will support your business objectives. 

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Selecting and Implementing an ERP System

The post Achieving Customer Loyalty with Modern ERP & Related Technologies appeared first on LMA-Consulting Group, a supply chain consulting firm.

The pandemic has spurred on the need to work smarter, not harder. In our Brushware article, the Digital Transformation Fueled with Business Intelligence, we talk about the critical importance of making meaningful decisions with data. As discussed in the SIOP client success story, data was a key driver of SIOP results. The key was in understanding data, the sources of data, cleansing data, connecting data, utilizing data, predicting with data and more.

Since the pandemic (although largely pre-pandemic as well), EVERY single client’s situation and path forward had some relation to data and business intelligence. As discussed in a client panel at a global consulting conference, the use of data is strategic. The Global CIO of Abbott talked about turning data into insights. That is exactly what successful clients are doing! For example, another client took at look ahead to evaluate storage needs to get ahead of the supply chain surge and secure additional warehouse space while also reevaluating their sourcing data and deciding to reshore/ near-shore 70% of their production within the next year. Another client analyzed data and decided which items and/or customers to prioritize during the post-pandemic surge so that they maximize customer value and bottom line results.

From the technical side, we have been working with clients to create data models to support this type of analysis as well as evaluating and selecting business intelligence software as well as other data-rich software options (forecasting, SIOP, CRM, etc.). There is NO need to wait for technology solutions unless you’d like to be left in the dust. Start digging into your data and look for meaningful insights for decision-making and strategy setting.

As we are famous for saying to clients, don’t worry about perfection; directional analysis is the way to go. It is better to start moving in the right direction than to sit on the sidelines crunching data. After almost 17 years of consulting, it is absolutely clear that analysis paralysis can create confusion and leads to changes in leadership whereas the leader willing to absorb directional insights and make decisions thrives.

From a process side, there is no doubt about it that you should jump into data. There is more data available than at any time in history; in fact, there is too much data. Clients end up with information overload and do nothing. Stay calm. Think logically. Access whether your conclusions make sense, tweak as needed and move forward. If there is another thing all clients have in common it is that they get so buried in data that it can convey entirely incorrect conclusions and everyone misses it because they are so focused on data instead of common sense. Before publishing data insights, review from a common sense point-of-view. You’ll leapfrog the competition with a few powerful insights instead of a mountain of information that may or may not make sense.

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The Digital Transformation Fueled with Business Intelligence

The post Thriving Post-Pandemic: Turning Data Into Insights appeared first on LMA-Consulting Group, a supply chain consulting firm.

According to McKinsey surveys of global Supply Chain leaders (May 15-May 22, 2020, n=60), 85% struggled with insufficient digital technologies in the supply chain. One of the key digital technologies is business intelligence (BI) and analytics. According to Tableau, the projected return on investment of BI in a 3-year period is 127%. Clients and colleagues are seeing the importance of adopting BI and predictive analytics to proactively manage the company and make critical decisions. Are you on a roadmap to adopting BI?

A recent Google-commissioned study by IDG showed that the role of data analytics and intelligent solutions will be important to helping businesses separate from their competition. Insights from data will be crucial in carving out winners in the post pandemic era. BI was gaining in popularity prior to the pandemic, but it skyrocketed during COVID as companies realized they had to get insights to get ahead of the curve. For example, they needed to figure out the answers to questions such as how customers’ buying behaviors are changing and what types of new products and services will best serve their most profitable customers.  

For example, a client had unprecedented demand coming down the pike and wanted to better forecast sales so that they could prepare for the surge. The issue is that they had multiple systems and data sources that didn’t connect to one another. Sales used one source, and Operations used a different source. Although their business is custom and engineered-to-order, we found predictable patterns in their historical sales, and we discovered that their quotes could be data mined to capture key information that would be instrumental in preparing their operations and extended supply chain.

However, to extract the information and connect the data to be able to gain insights to make directionally correct decisions, a significant deep dive into data was required. The client worked for months to delve into business processes to understand how to cleanse the data, connect the data, fill in data gaps and create a repeatable and sustainable process to manage the data. Of course, although centered on data; the key to success was working with the people to understand what was relevant and how to account for key conditions and build them into the data model. Instead of waiting for perfection, the client started to utilize the directionally correct information to order long lead-time materials, to plan capacity and to evaluate offloading opportunities to get a jump on critical decisions.

In this situation, the client started with a simple BI solution as time was of the essence. They created dashboards and visualizations to better align Sales with Operations and demand with supply as part of their Sales, Inventory and Operations Planning (SIOP) process. While building the data model, the client started to document the data maps and data integrity process disciplines required to ensure sustainability. This resulted in a BI roadmap to create a business analytics and intelligence platform to grow sales and scale the business successfully.

BI was a priority prior to the pandemic; in the post-pandemic, it is has transitioned from a priority to critical and essential to survival. According to 451 Research, the ability of business leaders to quickly use data from operational applications to make strategic decisions and deliver on strategic outcomes will rapidly be seen not just as a potential competitive differentiator, but also as a fundamental requirement and strategic imperative. Yet BI alone isn’t enough. According to Gartner, 75% of enterprises will shift from piloting to operationalizing artificial intelligence (AI). Predictive analytics will become the norm. If you don’t yet have a roadmap, jump in the fast lane, and make sure you are in control of the car.

As originally published in Brushware Magazine on September-October 2021

The post The Digital Transformation Fueled with Business Intelligence appeared first on LMA-Consulting Group, a supply chain consulting firm.