Latest / Speaking of Supply Chain / Management Mastery: ERP’s Role in Supply Chain
Transcript
- 0:06Speaker 1: You're listening to Speaking of Supply Chain, a Meeboch podcast.
- 0:10Speaker 1: This is a show for logistics professionals looking to learn
- 0:13Speaker 1: more about the latest innovations in supply chain. Each episode
- 0:16Speaker 1: will feature a conversation on topics such as mitigating supply
- 0:19Speaker 1: chain disruption and reducing risk, current automation trends, sustainability initiatives,
- 0:25Speaker 1: and more. Let's dive right in.
- 0:31Speaker 2: Hello, and welcome to Speaking of Supply Chain, where we
- 0:33Speaker 2: explore trends, current events, and innovations impacting the logistics and
- 0:37Speaker 2: supply chain industries. I'm your host, Ellen Wood. Sustainability is
- 0:41Speaker 2: no longer just a buzzword, it's a business imperative. In
- 0:44Speaker 2: today's episode, we're going to be exploring how ERP systems
- 0:47Speaker 2: are becoming the cornerstone of environmentally responsible operations. My guest
- 0:52Speaker 2: today is Pritiksha Argowall, and we're going to be discussing
- 0:56Speaker 2: everything from data driven decision making to supply chain transparency
- 1:00Speaker 2: and the circular economy. Welcome to Speaking of Supply Chain.
- 1:04Speaker 3: Thank you Allen, thanks for having me.
- 1:06Speaker 2: It's lovely to have you here. So let's get to
- 1:09Speaker 2: our topic today, which is ERP systems and what they're
- 1:12Speaker 2: able to do for supply chains and in a number
- 1:17Speaker 2: of different areas from sustainability to transparency of where product
- 1:22Speaker 2: is and even in the circular economy when it comes
- 1:26Speaker 2: to returns or recyclables and any of those topics. So
- 1:32Speaker 2: you are an expert in ERP implementation, what is the
- 1:37Speaker 2: first thing that our listeners need to know if they
- 1:40Speaker 2: have not experienced an ERP system, if they're not one
- 1:43Speaker 2: of these enterprise level clients, what's the first thing they
- 1:47Speaker 2: need to know about an ERP system that is going
- 1:50Speaker 2: to make the difference for their supply chain.
- 1:52Speaker 3: Yeah. So, one of the things about ERB, in a
- 1:55Speaker 3: very layman terms, is like ERB is a software which
- 1:59Speaker 3: basically has all your different modules or line of businesses
- 2:04Speaker 3: working together. So it will have your uder management, your
- 2:08Speaker 3: supply chain management processes, it will have inventory management, procurement, accounting, finance,
- 2:15Speaker 3: everything running in one system. And the best part about
- 2:19Speaker 3: it is that all the information is centralized, standardized and
- 2:24Speaker 3: flows very seamlessly. So talking in the aspect of sustainability,
- 2:29Speaker 3: it gives our stakeholders a clear picture or a centralized
- 2:34Speaker 3: picture of what is coming in, how is it going,
- 2:37Speaker 3: what are the different processes and steps and then they
- 2:39Speaker 3: can review all this data, inventory returns, processes and figure
- 2:45Speaker 3: out the loopholes where they can improve sustainability or they
- 2:51Speaker 3: can take the corrective measures to make it more efficient
- 2:54Speaker 3: and to make it more nature friendly, environment friendly. So
- 2:58Speaker 3: that's the best part about it, getting in holistic view
- 3:02Speaker 3: running everything together exactly.
- 3:04Speaker 2: So when you have all the data, all of the
- 3:06Speaker 2: data for running the organization in one place, you're able
- 3:10Speaker 2: to look at it through that holistic lens, see how
- 3:13Speaker 2: it relates to other data within the system, to other
- 3:17Speaker 2: business units, and really have a much more I've already
- 3:22Speaker 2: used the word holistic, but just a much broader view
- 3:26Speaker 2: of what's going on in the business.
- 3:28Speaker 3: Birds I like to call it the birds I view.
- 3:31Speaker 2: The bird's eye view. Okay, I like that. So looking
- 3:34Speaker 2: at the whole thing, but then getting into some of
- 3:39Speaker 2: those areas, correct what areas have or tend to have
- 3:44Speaker 2: the highest potential for those sustainability improvements. Is it in operations?
- 3:49Speaker 2: I assume maybe some of it's in procurement, But where
- 3:52Speaker 2: are those sustainability quick wins?
- 3:55Speaker 3: I think every area has potential areas to figure out sustainability,
- 4:00Speaker 3: like especially like starting from order management, right, we had
- 4:03Speaker 3: one of our customers, and it was a big customer.
- 4:06Speaker 3: I can't name them, but they had orders coming in
- 4:09Speaker 3: from different sources and through papers, emails, through you know faxes,
- 4:15Speaker 3: so that involved a lot of carbon footprint, and they
- 4:18Speaker 3: automated their entire process of taking orders. So they created
- 4:22Speaker 3: an application automated the entire process of taking orders even
- 4:26Speaker 3: through phone orders. They automated it using copilots like certain
- 4:30Speaker 3: AI copilots, chatbots and all and made an easy way
- 4:34Speaker 3: of automating all the orders and creating those orders in
- 4:38Speaker 3: their ERP systems. So that reduced so many steps of
- 4:42Speaker 3: you know, manual paperwork, manual entry. That really helped helped
- 4:47Speaker 3: in reducing their carbon footprint as well as freeing up
- 4:49Speaker 3: their resources from manually entering the orders into the system.
- 4:54Speaker 3: So every single line of business, whether it is auto management,
- 4:57Speaker 3: whether it is procurement. I'll give you on a example
- 5:00Speaker 3: of one of my other customers. They created an application
- 5:04Speaker 3: in the ERP system to check their suppliers against all
- 5:09Speaker 3: these different sustainability regulations and they were scoring their suppliers
- 5:14Speaker 3: and then they used to pick the supplier which has
- 5:16Speaker 3: the least sustainability scored cost and they used to late
- 5:20Speaker 3: it and pick this. So there are different ways you
- 5:22Speaker 3: can optimize it. You can optimize the route that your
- 5:26Speaker 3: transports are taking to deliver the product through ERP and
- 5:29Speaker 3: figure out a much better route that will also save time,
- 5:33Speaker 3: it will save fuel, it will save the cost. So
- 5:37Speaker 3: every single line of business or every single area and
- 5:40Speaker 3: ARP can be looked into do our small bit.
- 5:45Speaker 2: So what are some of the challenges in collecting and
- 5:49Speaker 2: managing all that data when it comes to an AIRP system.
- 5:53Speaker 2: I mean, you were talking about building a form or
- 5:55Speaker 2: you know, an online order process. So yes, now the
- 5:58Speaker 2: data is coming directly into the system in that's so
- 6:01Speaker 2: much easier. But does that require a different program you
- 6:05Speaker 2: were talking about transportation management? Does a TMS have to
- 6:08Speaker 2: be a separate add on sidecar piece of this or
- 6:12Speaker 2: is all of that inherently capable within the ERP systems
- 6:16Speaker 2: that we have available today. I mean, we can talk
- 6:20Speaker 2: about what they used to be able to do, and
- 6:22Speaker 2: that's lovely, but it doesn't matter. Yes, what are they
- 6:25Speaker 2: able to do today?
- 6:27Speaker 3: So that's a very important question. Like, supply chain is
- 6:30Speaker 3: very complex, and the complexity makes it very difficult, you know,
- 6:34Speaker 3: to get the visibility and control over different aspects of
- 6:39Speaker 3: supply tin and data availability and accuracy is like at
- 6:42Speaker 3: the top of it. So many companies struggle with having
- 6:46Speaker 3: that visibility into their extended supply gin, particularly beyond their
- 6:50Speaker 3: first tier of suppliers. So with multiple tiers of suppliers,
- 6:54Speaker 3: tracing the sustainability data back to the original source becomes
- 6:58Speaker 3: really complex. So each adds another layer of difficulties. So
- 7:03Speaker 3: collecting data verification process, gaining insight into the next level
- 7:07Speaker 3: suppliers makes it very difficult and which is not very
- 7:11Speaker 3: readily available. Some of the steps that suppliers or ERP
- 7:16Speaker 3: implementers should take place is make sure that the data
- 7:19Speaker 3: is available, collected, it's accurate. Like you know, you can
- 7:23Speaker 3: have different automations like I said to clean the data
- 7:26Speaker 3: and make sure because it goes hand in hand, your
- 7:29Speaker 3: data availability and data accuracy needs to be on point
- 7:31Speaker 3: in your ERP system. The second I would say is
- 7:35Speaker 3: regulation and compliance is another challenge right with an increasing
- 7:38Speaker 3: number of regulations and standards, sustainability can be really overwhelming
- 7:43Speaker 3: for companies to take, keep track of or comply with it.
- 7:47Speaker 3: So different regions can have different regulations, different standards. Some
- 7:50Speaker 3: suppliers might be reluctant to share the data due to
- 7:53Speaker 3: you know, concerns about confidentiality, competitive advantage, or it could
- 7:59Speaker 3: require it could also require a lot of effort in
- 8:01Speaker 3: collecting and reporting the data, right, so that is another challenge.
- 8:05Speaker 3: Then one of the most common things which I have
- 8:08Speaker 3: come across in different customers is fragmented information across you know,
- 8:13Speaker 3: different regions or different systems. That further complicates collecting and
- 8:18Speaker 3: integrating the data. Like there is consistent sustainability reporting standards
- 8:25Speaker 3: and data quality issues such as incomplete or outdated information
- 8:29Speaker 3: that can again lead to you know, inaccurate or inconsistent data.
- 8:34Speaker 3: These suppliers can vary in size, well, they can be
- 8:37Speaker 3: in different locations, they can have different technology capabilities, which
- 8:40Speaker 3: can lead to standardizing the data collected from these different areas,
- 8:45Speaker 3: and then you know, collecting it and making sure that
- 8:48Speaker 3: the entire data is standardized and obviously there is technology constraint.
- 8:53Speaker 3: That is another challenge, right Not everyone would have tools
- 8:56Speaker 3: or platforms to easily collect those datas or integrate those
- 8:59Speaker 3: data us into their existing cell system so that they
- 9:02Speaker 3: can then evaluate the data and cost. We can't leave
- 9:06Speaker 3: cost dot of that. That is like the biggest challenge
- 9:09Speaker 3: companies have, Like you know, they might not have the goal,
- 9:13Speaker 3: finance or the sources to invest in these stepe of
- 9:16Speaker 3: technologies or even resources. You need to train your resources
- 9:20Speaker 3: to know how to collect the data, verify it in
- 9:23Speaker 3: a consumer reform. So on a high level, these are
- 9:27Speaker 3: the basic set of challenges which I generally encountered in
- 9:30Speaker 3: most of my customers or clients.
- 9:32Speaker 2: So what are some data accuracy or completeness issues that
- 9:37Speaker 2: you've seen? I mean, we're talking about mountains of data
- 9:42Speaker 2: that could potentially be input into this master system to
- 9:47Speaker 2: be able to orchestrate whatever is needed within the company.
- 9:51Speaker 2: That's significant. There have to be some very strict and
- 9:55Speaker 2: stringent guidelines for what this data is and isn't and
- 9:59Speaker 2: making sure or that that accuracy is in place, not
- 10:03Speaker 2: only accuracy, but completeness, that you have every single piece
- 10:07Speaker 2: of data, because as soon as you're missing a piece
- 10:09Speaker 2: of data, than that entire data line is irrelevant. It
- 10:14Speaker 2: can't be counted correct. So what are some I mean
- 10:18Speaker 2: other than you just mentioned the financial challenge of having
- 10:20Speaker 2: the resources available to compile and clean the data, what
- 10:26Speaker 2: else makes it so difficult to implement an ERP system?
- 10:31Speaker 3: While first of all. What makes it difficult to implement
- 10:35Speaker 3: an ERP system is the fear of unknown right. A
- 10:38Speaker 3: lot of customers or clients don't know they have to
- 10:41Speaker 3: learn a new technology right, and they also have to
- 10:44Speaker 3: learn how to give the requirements. The first hurdle blog
- 10:47Speaker 3: that I have mostly faced during my customers is they
- 10:51Speaker 3: don't know how to give the requirements. So as consultants,
- 10:54Speaker 3: it is from us to get the requirements from them.
- 10:57Speaker 3: And also training right. Change management is another important aspect
- 11:02Speaker 3: that goes hand in hand. They fear that these new
- 11:05Speaker 3: tools or technologies might take their jobs or roles away
- 11:08Speaker 3: from them. You have to be empathetic with it. You
- 11:11Speaker 3: have to ease them that this will not take job
- 11:14Speaker 3: roles away. In fact, this will help you to do
- 11:16Speaker 3: your job much more effectively. Train them how to use
- 11:19Speaker 3: the systems right. So there it needs to be a
- 11:21Speaker 3: change management in place to help them ease how to
- 11:26Speaker 3: use the system. So those are like some of the
- 11:28Speaker 3: common things which I've encountered, you know, change management, learning
- 11:32Speaker 3: how to use the system. And also ERP can be
- 11:36Speaker 3: a very good too. Like you said, right, data, how
- 11:39Speaker 3: can we standardize the data? Like in ERP you can
- 11:42Speaker 3: collect the customer or supplier information and you can make
- 11:44Speaker 3: sure that those So these are certain important fields that
- 11:47Speaker 3: has to be put in a recorder or a supplier
- 11:49Speaker 3: cannot be saved without entering these exact information or these
- 11:53Speaker 3: important fields. So that way you can make sure that
- 11:56Speaker 3: there is the important information is there in the system.
- 11:59Speaker 3: Or you can put certain checks automatic to check whether
- 12:02Speaker 3: no one can enter a random postal code. The postal
- 12:05Speaker 3: codes should be within this list of course. So those
- 12:07Speaker 3: are certain things that you can handle on data verification
- 12:10Speaker 3: or data entry where automatically, why you're creating the data,
- 12:14Speaker 3: you can make sure certain checks are in Please.
- 12:16Speaker 2: Okay, So what I'm hearing is that once you've implemented
- 12:21Speaker 2: the ERP system and you have all of these things
- 12:23Speaker 2: in place, these these forms, these collection points in order
- 12:27Speaker 2: to standardize the data, that's one thing. But when you're
- 12:31Speaker 2: looking to implement a new ERP system, as a lot
- 12:34Speaker 2: of clients are these days, to try and get this
- 12:38Speaker 2: bird's eye view of their organization, they have to go
- 12:41Speaker 2: back to old data and they have to clean it,
- 12:45Speaker 2: they have to scrub it, they have to append it,
- 12:48Speaker 2: they have to make sure it's all in the same format. Yeah,
- 12:51Speaker 2: what are we talking about in terms of number one,
- 12:54Speaker 2: resources and time. I don't even know if you can
- 12:57Speaker 2: give me a standard answer to this, because it's going
- 13:00Speaker 2: to be different for every organization. They're going to have
- 13:02Speaker 2: different holes, they're going to be different sizes. But I mean,
- 13:06Speaker 2: what is a typical expectation of how much lift are
- 13:09Speaker 2: we going to have to get our old data up
- 13:11Speaker 2: to speed in order to work?
- 13:13Speaker 3: So, yeah, that's a very good question, I mean, and yes,
- 13:16Speaker 3: I actually don't have an accurate answer because timelines differ
- 13:19Speaker 3: from customers to customers and also how messed up their
- 13:22Speaker 3: previous legacy system works, to be honest, so a lot
- 13:27Speaker 3: of customers do have all these basic information already available
- 13:31Speaker 3: in their old legacy system, whether they are using it
- 13:34Speaker 3: in a different format. And generally there are these different
- 13:37Speaker 3: tools that help to migrate the data from the previous
- 13:41Speaker 3: tool to the other tool. Obviously, we need some resource
- 13:44Speaker 3: from the customer side who knows the system for example,
- 13:48Speaker 3: or order management or customer management team on the customer
- 13:51Speaker 3: side needs to work with the customer migration manager on
- 13:55Speaker 3: the new ARP system. Right, So those two technical people
- 13:59Speaker 3: work together, they collect the data, they make sure that
- 14:01Speaker 3: the data is in one format and then they can
- 14:03Speaker 3: migrate it to the other. And these are all these systems,
- 14:07Speaker 3: so if the data is in place, migration becomes easier.
- 14:10Speaker 3: So yes, cleaning the data definitely takes time. And like
- 14:13Speaker 3: I said, it goes back to my previous point, how
- 14:16Speaker 3: much time or resources the organization is ready to spend.
- 14:19Speaker 3: I have seen organizations who are very good at it,
- 14:22Speaker 3: who already have their act together. They have cleaned the
- 14:25Speaker 3: data or started working on cleaning the data. They not
- 14:27Speaker 3: tell which point of historic data they want to load
- 14:30Speaker 3: in the new Airby system and the remaining historic data
- 14:33Speaker 3: they will archive, so that really helps with their game.
- 14:36Speaker 3: And yes, it can take I would say a few months.
- 14:39Speaker 3: I would say generally, I've seen like one or two
- 14:41Speaker 3: months on if you're working dedicatedly on this project, two
- 14:45Speaker 3: three months to easily transport, clean the data and move
- 14:48Speaker 3: it from one system to the other.
- 14:50Speaker 2: Okay, well, I know a lot of supply chains out
- 14:53Speaker 2: there are still to this day, and it makes me
- 14:56Speaker 2: cringe a little bit. They're still running all of their
- 14:58Speaker 2: operations using Excel. Excel is a wonderful tool, but it
- 15:02Speaker 2: is not an ERP system, and so I guess that
- 15:08Speaker 2: gives our listeners who are considering an ERP system a
- 15:12Speaker 2: little bit of a benchmark to say, look, if I'm
- 15:15Speaker 2: not sure that my data is ready to go, that's
- 15:18Speaker 2: something I can be doing, even as I'm exploring the possibilities,
- 15:22Speaker 2: looking at different vendors trying to decide which particular software
- 15:26Speaker 2: is the best fit for our organization, is to start
- 15:29Speaker 2: cleaning the data. Whatever the data is, start cleaning it,
- 15:33Speaker 2: make sure it's consistent, make sure that it is complete,
- 15:37Speaker 2: and then you'll have a better time with that customer
- 15:41Speaker 2: implementation team that's going to be requiring that data, of course,
- 15:47Speaker 2: and possibly eliminating some potential delays, because I know that
- 15:52Speaker 2: that is typically something that we see in projects where
- 15:56Speaker 2: we have to collect data from the client is they
- 15:59Speaker 2: were just completely and wholly unprepared for what it is
- 16:03Speaker 2: that would be needed when they came to us and said,
- 16:05Speaker 2: you know, we have this project we want to do,
- 16:08Speaker 2: and we say, okay, first you're going to need you
- 16:10Speaker 2: know the data about this, and whether it's their their
- 16:14Speaker 2: order data or their their transportation data, whatever it is,
- 16:18Speaker 2: going back and making sure that everything is clean is
- 16:22Speaker 2: one of the most time consuming steps in most projects.
- 16:26Speaker 3: Yeah, I would say, and this is also a step
- 16:29Speaker 3: that can bring down the entire ARP implementation. Yes, that
- 16:34Speaker 3: is very true. I do remember walking into clients where
- 16:38Speaker 3: we had gathered all the requirements, automated all their processes,
- 16:42Speaker 3: but just because they were not ready to clean their data,
- 16:44Speaker 3: we had to call off the project, take a step back,
- 16:47Speaker 3: give them time to you know, clean up the data,
- 16:49Speaker 3: and then go back in again. So I have seen
- 16:51Speaker 3: that could be a major And on a second note, also,
- 16:55Speaker 3: I remember like, if your data is not clean, no
- 16:57Speaker 3: matter how good the processes are going to be in
- 17:00Speaker 3: the new ARP system, you will not be able to
- 17:02Speaker 3: benefit out of it because everything is driven from the data.
- 17:06Speaker 3: All the analysis that you would be doing, all the
- 17:08Speaker 3: decisions that you would be taking, will be from the
- 17:11Speaker 3: automation that is running on that data. So if that
- 17:15Speaker 3: data is not clean, no matter how good of a
- 17:18Speaker 3: job you've done in automating the processes or digitizing your
- 17:22Speaker 3: ERP systems, it's not going to work efficiently.
- 17:26Speaker 2: Absolutely, let's do that louder for the people in the back.
- 17:29Speaker 2: If your data is not clean, you can't automate processes
- 17:32Speaker 2: with it. Because I think that's one of the things
- 17:37Speaker 2: that really catches organizations by surprise is they want these
- 17:42Speaker 2: they want these automated processes. They want to simplify the
- 17:46Speaker 2: work that they're doing. They want to simplify it so
- 17:49Speaker 2: that they can have a better time with labor. There's
- 17:52Speaker 2: labor constraints right now, there's a talent shortage. They want
- 17:55Speaker 2: to achieve some of these sustainability goals with not having
- 17:58Speaker 2: paper and faxes and things. There are so many things
- 18:01Speaker 2: that organizations are trying to do within that automation of
- 18:06Speaker 2: different processes, and they don't realize that you can't automate
- 18:09Speaker 2: a process that has bad data. It won't work because
- 18:13Speaker 2: you're just going to get the wrong results.
- 18:15Speaker 3: Yeah, you're going to get the wrong results, and then
- 18:16Speaker 3: you have to redo the entire thing manually yourself, and.
- 18:20Speaker 2: You've probably made some bad decisions along the way based
- 18:22Speaker 2: on those bad data and bad results. So it's really
- 18:28Speaker 2: a cautionary tale and super important to understand the absolute
- 18:33Speaker 2: importance of clean and accurate data before moving into any automation,
- 18:39Speaker 2: whether it's an ERP or any other system that we're
- 18:44Speaker 2: looking at. So one thing that I did want to ask,
- 18:47Speaker 2: because we've talked a little bit about sustainability and using
- 18:51Speaker 2: that system in order to create some of those processes
- 18:54Speaker 2: that allow them to increase their sustainability adherence, whether it's
- 19:00Speaker 2: an external regulation. There's a lot of legislature that's taking
- 19:04Speaker 2: place across the world right now trying to improve sustainability
- 19:08Speaker 2: and improve our carbon footprints. So what are some examples
- 19:14Speaker 2: of how they've used an ERP system in order to
- 19:18Speaker 2: create that sustainability to a degree that it makes that
- 19:22Speaker 2: a differentiator for their business.
- 19:24Speaker 3: So for example, companies like I would say Johnson and
- 19:29Speaker 3: Johnson are Unilever, they have actually used ERP systems to
- 19:33Speaker 3: streamline their supply chain. They are monitoring different environmental impacts.
- 19:39Speaker 3: They have certain checkpoints, certain key metrics that they track
- 19:42Speaker 3: themselves against. They are also monitoring how these how their
- 19:47Speaker 3: suppliers are impacting the environmental they're kind of rating their
- 19:51Speaker 3: suppliers to make sure and these companies are focusing on
- 19:56Speaker 3: using ERP to improve their sustainability practices and has their
- 20:00Speaker 3: reputation be considered as one of the you know, responsible
- 20:04Speaker 3: corporate companies I would say not employees. Yeah, that can
- 20:09Speaker 3: be appealing to both their customers and investors who prioritize
- 20:12Speaker 3: sustainability over environment and they are doing by you know,
- 20:16Speaker 3: like I said earlier, they're looking into different areas of
- 20:19Speaker 3: their business processes, whether it is optimizing the inventory or
- 20:24Speaker 3: you know, optimizing the return management process or figuring out
- 20:29Speaker 3: better transportation routes to deliver the products, or automating order
- 20:34Speaker 3: management processes. There are different areas that they look into
- 20:37Speaker 3: to optimize their small bits of business processes which eventually
- 20:40Speaker 3: make a huge impact.
- 20:41Speaker 2: It's so interesting to me to learn how much of
- 20:45Speaker 2: supply chain actually impacts other areas of the business and
- 20:49Speaker 2: in ways that maybe seem logical or second nature. But
- 20:54Speaker 2: when we're talking about some of these sustainability goals, well,
- 20:57Speaker 2: like these these large enterprise organizations like you mentioned, they
- 21:01Speaker 2: have someone, they have a sustainability officer, a chief sustainability officer,
- 21:05Speaker 2: whose sole position is there to make sure that they're
- 21:09Speaker 2: making improvements in these areas. But then to go back
- 21:13Speaker 2: and see how much of that can be driven and
- 21:15Speaker 2: affected by things like you know, which supplier are we
- 21:19Speaker 2: using to order you know this this component or this packaging,
- 21:23Speaker 2: or how are we sending out or how are we
- 21:26Speaker 2: receiving these these orders. It's it's going to make a
- 21:30Speaker 2: huge difference. And I love that the ERP solution is
- 21:38Speaker 2: able to pull all of that into the one area,
- 21:41Speaker 2: into the one database that's going to help all of
- 21:45Speaker 2: those decision makers across that organization, across that c suite
- 21:49Speaker 2: able to see the same things and talk about these
- 21:52Speaker 2: things using the same language. So they're they're looking at
- 21:55Speaker 2: the same data, they're finding the same things, but from
- 21:58Speaker 2: their own perspective.
- 22:00Speaker 3: Yeah, they're optimizing all these processes based on their company's requirements.
- 22:06Speaker 2: And one other thing I wanted to ask, because you
- 22:08Speaker 2: were you mentioned a couple companies that I'm sure all
- 22:12Speaker 2: of our listeners have heard of, and these are major
- 22:15Speaker 2: global conglomerates. Of course they use an ERP system, of
- 22:19Speaker 2: course they do. But is there is there a basement
- 22:23Speaker 2: to that? Is there a minimum requirement in terms of size,
- 22:28Speaker 2: to where an ERP is just not going to be
- 22:32Speaker 2: the best solution that something smaller is obviously going to
- 22:36Speaker 2: be less expensive. I mean, we can, we can use
- 22:39Speaker 2: cost as the determining factor, but at what point is
- 22:43Speaker 2: there just not enough data input for an ERP system
- 22:47Speaker 2: to make sense?
- 22:47Speaker 3: So I think it is. It is dependent on certain
- 22:51Speaker 3: important factors, and there are reasons why companies don't pol
- 22:55Speaker 3: implementing ARB. First, is it is high initiative costs. Implementing
- 23:00Speaker 3: an ARP system can be expensive. It will involve like
- 23:05Speaker 3: significant upfront costs, whether it is software, licensing, hardware customizations.
- 23:10Speaker 3: So small businesses or startups which will have limited barget
- 23:14Speaker 3: and financially it might not be the right choice for
- 23:17Speaker 3: them to you know, go ahead and implement a big
- 23:19Speaker 3: ERP system. That would be one reason. The second thing,
- 23:25Speaker 3: like I said, it's the complexity and the time consuming implementation.
- 23:28Speaker 3: Right if companies are not looking to if their businesses
- 23:33Speaker 3: are straightforward and you know, they don't really need so
- 23:37Speaker 3: they don't have such complicated supply chain management processes or
- 23:42Speaker 3: order management processes, then you know implementing an ERP would
- 23:47Speaker 3: again be very time consuming and which they can easily
- 23:51Speaker 3: still get their works work done by using you know,
- 23:54Speaker 3: simple Excel files or those. So I think that is
- 23:57Speaker 3: another concern that could be another reason why small companies
- 24:01Speaker 3: should not would not go for it. Inetdiquate ID resources
- 24:06Speaker 3: like ERP requires ongoing maintenance, It requires updates, it requires support,
- 24:12Speaker 3: It requires resources you know to be working on the
- 24:15Speaker 3: ERP system to help you with it. So if you
- 24:18Speaker 3: don't have the enough resources or you don't have the
- 24:23Speaker 3: right amount of resources or the budget to you know,
- 24:26Speaker 3: scale your teams then ERP. Obviously, that was the other
- 24:30Speaker 3: reason I have seen generally in my experience why companies
- 24:33Speaker 3: choose not to go for ARP ERP systems. Generally, small
- 24:38Speaker 3: size companies or startups would not implement ARP until they
- 24:42Speaker 3: have reached, you know, like to omit size company, or
- 24:46Speaker 3: the business process has become so complicated that they can
- 24:49Speaker 3: implement an ARP and then it really makes sense for them.
- 24:52Speaker 2: Okay, well, no, that's that's good for our listeners to
- 24:56Speaker 2: understand that it's not a one size fits all solution.
- 24:59Speaker 2: This is this is a big solution, and it is robust,
- 25:02Speaker 2: and it is capable of a lot of things, but
- 25:05Speaker 2: it is not the perfect solution to every organization's supply
- 25:09Speaker 2: chain and management woes. And then I guess my last
- 25:14Speaker 2: question would be, you know, you've implemented a number of
- 25:18Speaker 2: ERP systems for customers all over the world. M Yeah, Okay,
- 25:24Speaker 2: what is your most interesting implementation story? Doesn't have to
- 25:30Speaker 2: be the whole story, but what is one of the
- 25:34Speaker 2: favorite things that happened during an implementation that you will
- 25:37Speaker 2: never forget.
- 25:38Speaker 3: I was working for this company, which is a pretty
- 25:40Speaker 3: big company for us. It's in life science life science,
- 25:45Speaker 3: and they used to produce all these materials for different hospitals.
- 25:51Speaker 3: They had sales rips that used to deliver these products
- 25:54Speaker 3: to a hospital and it included everything like you know,
- 25:57Speaker 3: small bones to skulls, to tea to everything. So I
- 26:01Speaker 3: think what made me interesting is like, you never really
- 26:04Speaker 3: get into a place where you can see all these
- 26:06Speaker 3: getting manufactured apart from the MRP implementation, So that was
- 26:10Speaker 3: definitely very exciting to me to see how the entire
- 26:15Speaker 3: life cycle management process works. And trust me, it's so
- 26:18Speaker 3: complicated making sure small details are taken care of because
- 26:24Speaker 3: all of these things that they were manufacturing in their
- 26:28Speaker 3: organization was impacting hospital, so you can't make errors there.
- 26:33Speaker 3: They cannot be defects in their products or their supply chain.
- 26:37Speaker 3: So I think from the ARP implementation, for us being consultants,
- 26:42Speaker 3: one implementation could be the other from the business process,
- 26:46Speaker 3: but knowing what difference they are making to the world
- 26:49Speaker 3: made it very fascinating for me. Learning their entire business
- 26:54Speaker 3: became actually a learning experience for me as well. And
- 26:58Speaker 3: in this whole I also learned. I think particularly what
- 27:02Speaker 3: was very interesting for me is how they wanted to
- 27:05Speaker 3: optimize their especially their what you call inventory management and
- 27:10Speaker 3: return management processes, especially to cater to make their business
- 27:14Speaker 3: processes much more efficient, to make sure that all these
- 27:19Speaker 3: products are easily reaching the hospitals, the doctors, the patients
- 27:23Speaker 3: as and when they require it. So I think that
- 27:26Speaker 3: became very interesting to me and also a learning experience
- 27:31Speaker 3: on how they wanted to, you know, make this change
- 27:34Speaker 3: to track their inventory levels, make sure their product they
- 27:38Speaker 3: can view of their product movements in real time so
- 27:41Speaker 3: that they can stay on top of their products getting
- 27:45Speaker 3: delivered to hospitals, to patients, to doctors because they were
- 27:48Speaker 3: in such a demanding industry, and also making sure when
- 27:53Speaker 3: they were getting these return management returns back from their
- 27:57Speaker 3: customers or from their vendors, and if they were an issue,
- 28:01Speaker 3: how can they make sure to quality check on these
- 28:04Speaker 3: returns like they had to quality check whether the return
- 28:07Speaker 3: material was written just because it was not being used
- 28:10Speaker 3: by the hospital anymore or they didn't require it because
- 28:13Speaker 3: of the oversupply, or was it getting returned due to
- 28:16Speaker 3: a defect manufacturing, And in case there was it was
- 28:19Speaker 3: return due to a defect manufacturing, how can they correct
- 28:22Speaker 3: the difficult and reuse the product and if they cannot
- 28:24Speaker 3: be reused, how could this crap of this product making
- 28:29Speaker 3: ensure that they are not creating environmental hazards. So I
- 28:34Speaker 3: think that project for me all in all, was a
- 28:38Speaker 3: big learning experience, especially from being a consultant that we
- 28:41Speaker 3: were not just implementing the ERB to do inventory control,
- 28:44Speaker 3: return management or customer supplier integration, but it was really
- 28:49Speaker 3: good to see how as a company they were trying
- 28:52Speaker 3: to make sure that they apart from you know, serving hospitals,
- 28:56Speaker 3: doctors and patients, they were also keeping an eye to
- 29:00Speaker 3: make sure that they are being a good corporate company
- 29:04Speaker 3: to make sure environment does not impacted, common footprint is
- 29:08Speaker 3: reduced and sustainability can be achieved as much as possible.
- 29:12Speaker 2: I agree, it's so interesting to go into some of
- 29:15Speaker 2: these organizations that brands that we're all familiar with and
- 29:19Speaker 2: seeing how they do what they do, how they deliver
- 29:22Speaker 2: the product that we are used to seeing in an
- 29:25Speaker 2: end result, or maybe we're not even used to seeing them.
- 29:28Speaker 2: When it comes to something like medical devices, that's not
- 29:31Speaker 2: something I'm going to go into the store and pick
- 29:33Speaker 2: up off the shelf, but when I need it, when
- 29:35Speaker 2: my doctor needs that, then I need it and it's
- 29:39Speaker 2: so interesting to see the way the supply chain impacts
- 29:43Speaker 2: all of our lives. But I agree it is especially
- 29:47Speaker 2: gratifying to be a part of that improvement, a part
- 29:51Speaker 2: of that change for that organization, to help them do
- 29:55Speaker 2: what they're doing and try to achieve their mission in
- 29:58Speaker 2: a faster, more efficient way.
- 30:00Speaker 3: Yeah, I agree, that was definitely a gratifying experience for me. Well.
- 30:06Speaker 2: That brings us to the end of this episode. Pratisha,
- 30:09Speaker 2: thank you very much for joining us today and all
- 30:13Speaker 2: of your insight into the implementation of ERP systems. And
- 30:18Speaker 2: I will have your LinkedIn in our description for the podcast,
- 30:23Speaker 2: so if anyone wants to get in touch with you
- 30:25Speaker 2: and ask you more questions about this, they know where
- 30:28Speaker 2: to reach you. If our listeners out there have a
- 30:31Speaker 2: suggestion for a topic or would like to be a
- 30:33Speaker 2: guest on the show, we'd love to hear from you.
- 30:35Speaker 2: You can contact me at podcast at mebok dot com
- 30:38Speaker 2: at any time. As always, thanks for listening to Speaking
- 30:41Speaker 2: of Supply Chain. If you enjoyed our show, please rate
- 30:43Speaker 2: and review us on whatever podcast platform you prefer and
- 30:46Speaker 2: be sure to tune in next time.
- 30:48Speaker 3: Thank you so much for having.
- 30:49Speaker 1: Me Meeboch Consulting is one of the largest and most
- 30:57Speaker 1: globally recognized supply chain consulting, engineering, and advisory firms. For
- 31:02Speaker 1: nearly fifty years, we've helped clients achieve supply chain excellence
- 31:06Speaker 1: and sustainable competitive advantage across the entire spectrum of the
- 31:09Speaker 1: supply chain by delivering improvements and innovation strategically, tactically, and digitally.
- 31:16Speaker 1: To learn more, visit meeboch dot com. You've been listening
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