Six Key Considerations for Manufacturers and Distributors Embarking on Business System Modernisation
In the realm of industrial manufacturing and distribution, the need for streamlined business systems is more critical than ever. With separate solutions for accounting, sales, and inventory management, businesses often find themselves tangled in a web of disparate data. As operational complexities grow, supply chains become more intricate, and customers become more discerning, the call for integrated business systems becomes undeniable for manufacturers and distributors.
As the industrial landscape evolves, more companies are turning to technology to navigate the changes efficiently. A common initiative involves selecting a new ERP system, a decision that should not be taken lightly or rushed into. To assist industrial companies in transforming their business systems, here are six essential dos and don'ts to keep in mind.
These considerations will help businesses make informed decisions and pave the way for a successful modernisation journey.
Modernising business systems is an ongoing journey of enhancement, not merely a one-time occurrence.
- Be sure to clearly understand the top two or three driving forces behind initiating this endeavor. Different solutions offer varying levels of value, but it ultimately boils down to a couple of key factors that will justify the technology investment. Popular drivers in the industrial sector include optimising the supply chain, reducing inventory carrying costs, increasing fulfillment rates, enhancing operational efficiency, and elevating customer service levels.
- Avoid setting rigid start and end dates. Take, for instance, at Project Salsa, we adopt a flexible approach ranging from a straightforward "activation model" to highly complex systems integrations.
- Don't rely on a single solution to solve all your company's challenges. Start with a minimum viable configuration when implementing a new solution. For instance, a manufacturer focusing on financial control can begin with the NetSuite ERP module dedicated to finances and gradually expand. Similarly, a fastener distributor with supply chain issues can prioritise addressing this aspect before activating additional functionalities.
- Assemble a leadership team representing various operational areas to ensure that technology decisions positively impact multiple departments. The supply chain division of a manufacturing firm, for example, may raise operational issues unknown to the C-suite.
- Avoid making decisions solely based on consensus. Gather input from different departments to make informed decisions, but do not expect unanimous agreement from a large team.
- Stay receptive to new process flows, particularly during legacy software conversions. Success lies in adapting effectively to the new software rather than trying to fit everything into familiar frameworks. NetSuite's best practices, endorsed by over 19,000 customers, have withstood the test of time and are designed to facilitate successful modernisation efforts in the industrial manufacturing and distribution sector.
The journey towards modernising business systems for manufacturers and distributors is a strategic endeavour that requires careful consideration and planning. By understanding the key drivers behind the initiative, avoiding rigid timelines, starting with a minimum viable configuration, involving a diverse leadership team, and remaining open to new process flows, companies can set themselves up for success in the evolving industrial landscape.
As technology continues to shape the future of the industry, embracing innovative solutions and trustworthy practices will be crucial for staying ahead of the curve. Remember, modernisation is not a one-time event but an ongoing process of enhancement. With the right approach and mindset, businesses can navigate the complexities of modernisation with confidence and optimism. For more insights and guidance on transforming your business systems, reach out to our team today.
