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Business pain points for ERP implementers

2025-02-24 Update From: SLTechnology News&Howtos shulou NAV: SLTechnology News&Howtos > Internet Technology >

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Today, I would like to share a case, which is a case involved in pre-sale. Although it has not been solved, the analysis behind it can be used for reference.

Business status

A fast-consumer food enterprise, when dealing with customer orders, there are a large number of order adjustments, some times the adjustment is particularly large, with an overall adjustment of 10%. Other relevant business information: the ERP system does not lock the inventory when processing the order. Part of the daily plan is arranged according to orders, logistics has not yet adopted a third-party logistics company, by the logistics department to find trucks or carpooling. The overall logistics cost of the company is low, but the delivery time of orders to customers is longer, with an average of 8 days. Since its establishment, the enterprise has been adopting this mode of operation. Customer shipments during the month are very uneven, accounting for about 60% of shipments in the last week. The level of enterprise management is obviously not high, but this is the current situation of the enterprise.

Analysis: is there anything wrong with the customer business? It can be said that there is no problem, or that there is a problem.

From the perspective of ERP implementation

You don't have to think about solving business problems, and the system supports business. However, the problem is that these services are non-standard business, the system needs a lot of development, the later report is also troublesome, a lot of data can no longer directly reflect the nature of the business.

From the perspective of business consultant

There is a big problem with this business. From the business consultant's point of view of ERP implementation, non-standard business leads to complex implementation, and may solidify the wrong business in the system, so it is necessary to optimize the business.

Why is such a business formed? Find the reason behind the business before you can optimize the business. After analysis, the reasons are as follows:

1. There is a big problem with the customer order processing process: the customer order is carpooled and shipped through the logistics department, and the arrival time of the logistics vehicle is uncertain, which usually takes 2-3 days, or maybe 4 days, so the order can not lock the inventory in advance, only when the car arrives. Just pick goods from the warehouse. But when the car comes, the goods may not be enough, because there are many orders being shipped, maybe this order has enough stock today, and when the car comes tomorrow, the goods will be gone. What shall I do? You can't let the car go for nothing, you have to adjust the order. In this process, the goods are ready and the vehicle is in place with great uncertainty, and it is very difficult to meet the two conditions at the same time, so it is inevitable to adjust the order. If the order cannot be adjusted, the business basically cannot be carried out.

two。 Why the customer's daily plan should be processed with the order: FMCG is generally produced according to inventory, and this one is no exception. But in daily planning, their daily planning process is: order + inventory replenishment-"daily planning -" production-"logistics picking -" shipment. A little out of tune, originally sang the planned song, the end became the key of the order. Why is that? Because the production cycle of their finished products is very short, the production lead time of the finished products is 1-2 days. But their order will not be shipped until the 3rd and 4th day, and it is produced according to order in order to control inventory. This seems to be very advanced, the actual customer order delivery period of 7-8 days, but also often out of stock to adjust the variety, this kind of business is only superficially advanced and actually very inefficient. From the customer's point of view, the customer originally ordered a plate of shredded potatoes, but as a result, he sent a plate of scrambled tomatoes and eggs, and it took eight days to deliver it. The customer felt very bad and the business had to be changed.

The reason has been analyzed clearly, how to optimize it? In fact, the ERP business modified to a standard is the best.

1. First of all, customers are advised to use standard third-party logistics. Although logistics costs may increase by 10-20%, order delivery and out-of-stock will be obviously controlled. The delivery time can be controlled to 2 days, and the national average should be controlled to 4 days.

two。 The order is delivered directly from the inventory: that is, the order is processed according to the inventory, the inventory is locked, the goods are picked up immediately after processing, and placed in the waiting area, and the third party logistics takes the goods to be sent at the agreed time. Insufficient inventory, analyze shortage, no longer adjust orders.

3. Daily planning and order processing are separated: the previous order processing process can basically be completed in half a day or one day, order processing does not have to consider daily planning.

4. Enterprises to strengthen the management of out-of-stock rate: mainly is the rationality of planning, which is another topic, but there is a way to crack.

This customer's problem, somewhat similar to the murder caused by a steamed bread, is the feeling that the whole business is messed up in order to save logistics costs. This case once again illustrates the point that supply chain management uses visible costs to reduce invisible losses. What are the optimization benefits of this enterprise if it returns to the standard business: a high level of customer service and a short order time (equivalent to reducing the dealer's overall inventory of about 10 million). The level of logistics in the enterprise will also be greatly improved (not explained here), and the management of order shortage will help to optimize the internal operation.

Summary

ERP standard business is the best business, if the customer's business is not ERP standard business, it is best to trace back to the source, find the essence, and return to the standard business. Returning to standard business from abnormal business is not only smooth and easy to implement ERP, but also must have huge business optimization benefits. ERP implementation consultants need to believe this.

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