27 December 2011

Enterprise Resource Planning: 5 Reasons You Can’t Trust Your Inventory


As a manufacturer, you rely on your Enterprise Resource Planning system to help create and maintain efficiency throughout your operation. What if this system became unreliable? What areas would this impact?

One area it would impact is your trust in your inventory  – the materials you need to fulfill customer needs. How does this happen? To find out, let’s consider the following 5 reasons your inventory isn’t as trustworthy as you think:

Enterprise Resource Planning: Why You Can’t Trust Your Inventory

#1. No Integration – Technology doesn’t live in a silo and neither should your manufacturing systems. Does your Enterprise Resource planning system and Product Lifecycle Management (PLM) talk the same language? Do they even say anything at all? If not, it’s a good bet your other systems feel left out of place too. Integrating all of your systems ensures your inventory runs effectively and lets you know when a change is in order.

#2. Legacy System – What would happen if you upgraded your ERP system? How about an integration of other types of systems? Would it stay operational or bring down your entire manufacturing operation? If you run with a legacy system with limited capacity, do something about it and don’t chance what’s in your inventory.

#3. No Upgrade Path – When it’s time to evolve your Enterprise Resource Planning system, do you have the ability to do so? Does your current system rely on a shrinking pool of independent technologists and not a focus on growing the system? If you have no upgrade in your existing system, the reliability of your inventory is greatly reduced.

#4. Lack of Visibility – In the changing landscape, your inventory needs can change at a moment’s notice. This requires an Enterprise Resource Planning system that leverages real-time visibility. Along with notification management and other real-time alerts, your inventory will falter without the view to change and adapt to the needs of your customers.

#5. Increased Cost – The risk of costly mistakes is the fifth top reason you shouldn’t trust your ERP inventory. As a manufacturer, you try to find ways to cut costs and run your business efficiently – for some, this means off-shore solutions and less spend on “non-critical” IT functions. Although they seem to save the company now, these types of actions will only increase costs in the future.

Your Enterprise Resource Planning system is key to knowing what’s going on with your inventory and other manufacturing operations. If you have any doubts about your system, you’re going to have a harder time trusting your manufacturing inventory. If this is the case, it’s time to redirect your focus on evolving your ERP solution before it decides to start making it’s own rules – without you.

To learn more about Enterprise Resource Planning, get in touch with me.


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Luciano Cunha
Luciano Cunha,
Luciano Cunha,
Chief Executive Officer (CEO)

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