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Implementing ERP? Get the processes in order first!

Implementing an industry-specific custom solution involves changing the processes used up to that point (see my earlier blog 'Standard software? Does that exist?). There is no escaping this. And at the start of every implementation, everyone agrees on this! People want this change and express it. So that should be a breeze. But practice often shows otherwise.

Yet not so simple

Companies that make the switch to a new ERP package often work with an outdated package that does not actually function well. There are various reasons why the current software was chosen at the time anyway. It was probably the best choice at the time. Over the years people have learned to work with it and all imperfections have been solved through customization, adapting the processes, working via strange detours, Excel lists, et cetera.

When then, during interviews with core users, the various sub-processes are reviewed in detail, I am therefore amazed at the strange twists and inefficiencies in many of these sub-processes.

Unconscious

Over the years, with the software of the time, the company has adopted a way of working that may work, but is also extremely inefficient. And this way of working has over time become the way of working. People often don't even realize anymore that it is indeed inefficient and cumbersome. And that it was mainly created by the (im)possibilities of the old software. Adapt those processes, you might say!

However, it is not that simple. Because as soon as I describe from my experience what is a much more efficient way of working, resistance arises. "Because that's not how we work." Nor is it always easy for the core user to take a critical look at current processes and ways of working after all these years. And it is certainly not easy to then be able and willing to change them as well.

Processes in order

And yet you have to do it! Go back to the drawing board. After all, a new ERP package supports the different processes, provides more and better insight across these sub-processes and, because of its integral nature, more and better insight across these different processes. But for this to happen, the processes must first be in order.

ERP is just the tool that supports the processes. So before you automate, you have to have the process under control. Only then can you automate it properly.

Peter Gerhardt is Senior Lead Consultant Logistics at Dysel and helps customers achieve maximum results with its business software.