Visual South Insights

You need a plan that outlines how to choose an ERP vendor and system

It may seem relatively easy to choose an ERP vendor—just pick the one that offers the best technology and customer support, right? But it’s often not that straightforward because many companies do not have a plan when evaluating vendors. I’ve been involved in enterprise application sales for over 25 years and there is little consistency on how organizations evaluate vendors like Visual South. What I can tell you is that organizations are happiest with their choice of ERP vendor when the evaluation team has a logical process in place to assess the ERP system’s functionality and the vendor’s services.

What is a data migration and why is it important?

ERP data migration is a big step in the implementation process that is critical to get right. The ERP system will not function at optimal levels otherwise. Smaller start-up companies typically have less data to convert than larger businesses that have been around for decades, but data migration takes place in all implementations. So, what is it? In simple terms, it is getting the information out of the old system and putting it in the new system.

API defined

One of the most common questions we hear during implementations lead by Visual South is, “Can we connect our current solution to your ERP system?”  The answer is YES.  The Infor API (Application Programming Interface) Toolkit  was built with the different manufacturing verticals in mind to manage all connected applications. In other words, it connects different applications across internal platforms or third-party platforms to share information.

Infor vs. SAP

SAP is arguably the most recognized name in Enterprise Resource Planning (ERP) software, and it is ranked number one in ERP revenue. Its ERP product is designed to serve the Tier 1 market. The best way to define the Tier 1 market is to think in terms of a Fortune 1000 company. The revenue of a company that makes this list is defined in billions, not millions. In 2020, the company that ranked last on the list was Liberty Oilfield Services, with revenue of $1.99 billion.

Infor is arguably the least recognized name in ERP software. At one point its marketing campaign used the tagline, “The largest ERP company you never heard of.” Large it is—its annual revenue is $3 billion making it the third largest ERP company in the world. It serves customers in the Tier 1, 2, and 3 markets.

CMMC compliance for DoD manufacturers

The Cybersecurity Maturity Model Certification (CMMC) is a Department of Defense (DoD) program that outlines the cybersecurity standards and best practices required for government contractors. CMMC compliance for manufacturers in the DoD supply chain involves meeting specific cybersecurity standards and best practices

There is a process

Implementations are not something a business does all the time, so most tend to look for a consulting group like Visual South to guide them. We have been implementing companies across the country since the early 90s to help them address multiple business needs. Over the decades, we have developed an implementation process that is methodical, thorough, and has consistently proven to be successful. Here are some of the ERP implementation services we offer and why we think they play a big role in the overarching plan.

Measure what you want to improve

There are many opinions as to what key performance indicators (KPIs) should be monitored at a small to medium-sized manufacturing company, but the on-time delivery (OTD) KPI is on everyone’s list. It doesn’t matter if the company is build-to-stock, a job shop, or something in-between; there are many steps in coordinating the production of a product and OTD is a nice summation of manufacturing performance.

Setting a baseline for ERP Security

The term ERP security generally refers to two different things. The first is the security at the ERP user level inside the system itself. The second is the security of the ERP data as it relates to external threats (i.e., hackers) that want to access the system. I am going to focus on the second item in this blog.

The good, the bad

I’ve been involved with manufacturing and ERP for over 30 years. During that time, I’ve learned a lot about the interaction between a manufacturing organization, their goals, and their ERP (or lack thereof). I’ve seen companies who have a good plan for choosing ERP; I’ve seen companies that don’t. I’ve seen companies that use ERP well; I’ve seen companies that don’t. I’ve seen companies admit they weren’t using ERP well and then work towards fixing that problem. I’ve seen companies admit they weren’t using ERP well and then lose interest in using it better. I’ve also seen a common thread between the companies who excel in selecting/using ERP, and those that don’t. The ones who excel have the expertise to develop a good strategy and execute it, or they admit they don’t have the expertise and they get help. They view the cost of getting help as an investment that has a payback. The ones who don’t excel aren’t aware they don’t have the expertise, so they never get the help they need. They view the cost of getting help as an expense.

Overview

Formal research indicates that companies with a strategic plan perform better and generate better results than those who do not. Per the ASPA (American Society for Public Administration), “There is a direct and positive relationship between strategic planning and performance… It is concluded that strategic planning is a beneficial activity for all firms.” But you need not look to research studies to come to that conclusion. Companies like Dell, Southwest Airlines, IKEA, Cisco, Starbucks, and Proctor & Gamble have all excelled in the marketplace, and returned better than average profits as a result of their robust strategic planning programs.