by: Rebecca Kempenich

 Implementation is the Key to a Successful ERP

A successful Enterprise Resource Planning (ERP) solution can grow your business’ bottom line by increasing your company’s revenues and improving your company’s efficiencies. However, one of the most significant factors contributing to its success is the experience and support the vendor provides through its staff and implementation process. Because an ERP model is designed to integrate major business functions into one complete system, the transition can be complex. It is important to have a well laid-out and proven plan to guide you through the implementation process. Read more about the impact the implementation process and team can have on the success of your ERP system. Download TIP white paper.

  by: Gus Towers, Regional Sales Manager, NE

  Are you the #1 priority to your ERP vendor?

Focus (or directed attention as it is defined by Webster’s Dictionary) gets people far in life and is behind some of the most successful people in history.  Focus led Albert Einstein to the development of his special theory of relativity for which he earned the 1921 Nobel Prize in Physics.  It directed Wayne Gretzky to four Stanley Cup Championships and the label of “the Great One” as the greatest hockey player ever. Focus also led Sir Isaac Newton to develop his theorem of universal gravitation and the three laws of motion.  While we at ProcessPro are not claiming to be half as smart as Einstein or Newton, or possess a slap shot like Gretzky, we do place our primary focus on our customers:  batch process manufacturers. 

How do you know if the ERP software company you are looking to invest in and form a long term partnership with has directed attention on your business?  Simple. Ask them one question:  how many customers of yours are process manufacturing companies?  If the answer is “not all of them,” they are not focused on your business.  When you do reference checks, ask their customers if they share time at the user conference with customers from other verticals or if they have to sit through questions centered on auto parts, lumber, or machining.  Are there parts of the software that don’t pertain to the batch process environment?

Some ERP companies started with retail companies and then got into the process manufacturing world; others dealt with discrete manufacturing clients and saw money in the more regulated batch manufacturing vertical.  The problem is that these ERP vendors now have to allocate resources across all the different, sometimes unrelated industries, they service.  Development time, implementation, and support resources are spread across multiple verticals and the end result is a vendor that is a jack-of-all trades and a master of none.  Are they really focused on the needs of the process industry or are they bridging the gap until the auto industry comes back or the housing market rebounds?

What is the benefit of a vendor that is 100% focused on batch process manufacturing?  At ProcessPro, you get full time industry experts across the entire company, from sales and support to implementation and development.  You get a company that is focused not just on today’s regulatory requirements, but also preparing for the ones in the future.  You get a proactive company that is ahead of the curve by being tied in with the FDA and has completed FDA validation at several locations.  Most importantly, you get a company that is with you for the long haul, a company that is dedicated to you and your business all of the time, not just when the other verticals are seeing a downturn.

Batch process manufacturing is all we do, all day, every day, 100% of the time!

by Dave Gerhardson, CSCP

Minimize the impact of a software implementation on daily operations

Implementation is a very rewarding and more often a very challenging task.  There are multiple obstacles that you must overcome to be the transition as seamless as possible.  One of the most common roadblocks is getting people to accept the change to their daily workplace life.  Even though employees realize that the software is going to drastically improve their life that does not change the fact that in the short term they will have to manage both their old way of doing things while trying to learn a new system.  Being aware of the competing demands and doing everything possible to limit the impact of the implementation is one of the best ways to get buy in from existing staff.  Implementation challenges are many, but at the end of a successful implementation it is very rewarding to see the software in use and the users seeing the benefit.

For additional reading on how to minimize the impact of a software implementation on daily operations, I recommend you read the White Paper:  Implementation is the Key to a Successful ERP. In addition, to the following helpful resources:

1.       http://www.netsuite.com/portal/resource/articles/erp/erp-implementation.shtml

2.       http://whatiserp.net/erp-implementation/erp-system-implementation

3.       http://www.erpinsights.com/best-practices.htm

  by Mat Jahnke, Business Development

  Industry Tradeshows

As I prepare to head off to the Natural Products Expo West (NPEW) in Anaheim, CA this weekend, I think about the benefits of attending shows like this. You might think that the best part is getting to travel to locations such as Las Vegas, San Francisco, Anaheim, and other exciting cities. It is great to be able to travel to those places, especially when you live in Minnesota, but there are many great things to see and learn while attending an industry trade show that are even greater than traveling to the city that hosts the show.

I believe the biggest benefit of attending a tradeshow like NPEW is getting the opportunity to network with companies in the process manufacturing industry. Shows like NPEW attract process manufacturers (food, beverage, pharma, nutra, etc.) from all over the world. Manufacturers and suppliers attend shows to make new contacts, expose their products to the marketplace, find new ideas and ingredients to grow their business, and more – and we go to be a part of that.  We provide business development insight, connect manufacturers with similar companies, and talk about how to take advantage of new technology to help grow their business. We are able to provide information so when companies are ready for an ERP system, they have an idea about what is available in the marketplace for things like formulations/recipe management, lot tracking, quality control, and financials.

Other benefits of attending industry tradeshows include industry seminars and workshops. Many of the manufacturers that attend these shows have regulations they have to adhere to like FDA, SQF, and BRC. Many of these seminars focus on new regulations related to process manufacturing. If a company has to adhere to these regulations or would like to get certified in one of these areas, we provide information on how an ERP software system like ProcessPro® Premier can help.

One thing I can’t forget to mention is the opportunity to learn about new companies and products coming to the marketplace. At many of these shows, we are able to sample many different types of food, beverages, and more. I have yet to return home from a tradeshow without a bag of goodies to share with others in the office.

We hope to see you at one of the many shows we attend ever year including:  Natural Products Expo West (and East), Private Label Manufacturers Association (PLMA), International Dairy-Deli-Bakery Association (IDDBA), Summer Fancy Food Show (and Winter), Institute of Food Technologists (IFT), Supply Side West (and East), National Restaurant Association, and Natural Products Association Marketplace.

   by Jake Halverson, Business Development

   Costly Mistake - Be careful when choosing an ERP software!

You get what you pay for. Though it applies to many things, ERP software is a big investment and something that many manufacturers will be married to for years to come. I see time and again the problems that various manufacturers face while putting together an inexpensive, makeshift system. More often than not, smaller companies start with an inexpensive accounting application because it works for their company size, functionality, and budget.

Another component of an inexpensive management system includes manual spreadsheets, which are used in warehouses for tracking orders.  Problems arise as they are sometimes lost or duplicated, which can significantly affect inventory costs. They may make two of one particular product, or half of another, or none of something else, but nobody knows that until the order is ready to ship. The warehouse is unorganized and accurate inventory counts are next to impossible to accomplish.

Choosing new ERP software requires time, a solid committee, quality due diligence, and a variety of software vendors to choose from to ensure that a proper fit will be selected. Cost is always a concern, but cutting corners up front on a cheaper system often times leads to replacing the cheap solution later on. Usually it’s sooner rather than later, and a lot more expensive when companies don’t get a good fit the first time. Working in business development, I speak with people on a daily basis who are looking for “something better.” Choosing the wrong system because of price point or up-front cost can definitely lead to headaches for years to come.

Another very common mistake is rushing a decision or having an unrealistic timeline for selecting a new ERP. The world of ERP is complex, and every manufacturer does things similarly but in their own way. When a potential ERP vendor takes the time to get to know you and your business practices, they should be able to show you how your pains can be addressed in their system – and not just tell you how those problems will be magically solved if you select their software package.

One of the most important criteria when searching for a new ERP solution is investigating how many times the software vendors they are considering implementing have worked with companies that have gone live and are successfully running that software in their specific industry. Selling to any and every market vertical is one thing; following through time and again on successful implementations in similar environments is another.

The phrase ‘talk is cheap’ comes to mind. Although inexpensive, stop-gap or ‘band-aid’ solutions tend to cost companies more money in the long run than what they saved by selecting a less expensive solution that wasn’t catered to their companies needs. A standalone accounting package or basic lot tracking tool is fine for awhile, but there always seems to be that breaking point where cutting corners just isn’t worth it anymore. I would recommend that anyone who is in the beginning stages of looking at ERP software to go to www.top10erp.org to be sure that they are spending time speaking to vendors who can truly provide the best value and return on investment based on their industrial experience.

by Tim Sands

ERP and “Coming of Age”

Where are you in the evolution of your company?

In my day to day work of Business Development I wade through multitudes of “suspects” on my way to finding and identifying prospects we can help.  One thing I find as I have discussions with prospects and research their situation is how software selection must have evolved over the years, how they arrived at their initial selection and what is happening now.

The start up.  More times than not, we discuss that at the time, in the beginning their company needed not much more than an accounting system and something to manage formulas, quality control, inventory would suffice and many times that ends up being excel spreadsheets.  They would plod along manually and things would go ok.

The small company. Years later due to increased volume, new regulations and enhanced risk they embarked on a software selection.  At this point often then they may get advice from outside consultants (many from the accounting world) or perhaps someone in financials in their own company – so the selection was driven from the financial side still and perhaps not manufacturing or if it was driven somewhat by manufacturing, they would search out a familiar name ERP (Enterprise Resource Planning).

The midsize. Present day they find themselves seeing their competitors catching or passing them by, often they are looking for an edge to help them improve production and manufacturing, get clearer reporting and the right system to bring them to all the next level.

The industry vertical.  At this point the customer does research and often finds that there are ERP solutions that “specialize” in one industry or another.  What does that mean?  Often, it will mean that an ERP vendor has experience and “reference able” companies in the same vertical.  The ERP vendor will also have Implementation Specialists who have experience in that vertical.  Finally the ERP vendor has proven the ability to meet the regulation requirements of that vertical, and has active user groups in that vertical.

The future.  As you go through your day to day work and are looking for an ERP partner, my advice would be to find out where you are in the evolution of your company and are you ready to choose the right ERP system for you?  If you are ready, choose an ERP solution that is in your vertical.  Check for things like: Does the ERP vendor specialize in my industry?  Has the ERP vendor proven they can meet my regulations? Can they provide me with documentation of that?  Do their implementation specialists have experience in my industry?  Can they guide me through this process?  Having awareness of all of these things should hopefully help you as you select your new ERP partner.

Resources: How to Choose an ERP for Process Manufacturers - White Paper Library

By Tim Sands

“Matchmaker, matchmaker, make me a match; find me a find, catch me a catch.”  Ok.  Maybe not everyone knows all the songs to Fiddler on the Roof like I do, but you get the gist.   Today’s topic: dating.  Not really dating in the traditional sense of the word, but dating like matching the best ERP system for your business.  In ERP selection, like in life, the cheapest date isn’t necessarily the one you want to marry.  Time to do some due diligence.  There are many types of ERP systems out there in all different sizes, shapes, colors, and styles.  Since the goal of your company is to partner with someone who fits your business  for the long haul, it’s prudent to do the homework, the vetting, if you will.  It’s better to do it right than having to repeat the whole process again in a year or two.

In my profession, I run across prospects that are looking at several different ERP solutions - as they should.  Sometimes they include systems in their search that are focused on discrete manufacturing.  Discrete, roughly defined, means things are being measured in “eaches” like nuts and bolts, shelf brackets, or roof trusses.  Systems that are designed for those types of manufacturers are much different than that of ERP systems made for process manufacturers. Discrete systems manage a simpler process and consequently are much cheaper.  Sure, discrete systems might handle the basics of standard based manufacturing, but they can’t really do what a process manufacturer needs nor solve the problems they are looking to solve.

That’s when it is important to step back and look at the real business issues and outcomes a company is looking for.  The advice I give my prospects when they are starting a project is to do their homework.  I tell them, “Whatever you do is ok with me. All I know is you will want a system intended for your industry and a solid vision that gives them a clear upgrade path, that will cause less headaches, and result in less money you’ll need to  put out on your end later.”  Isn’t that true?

That said, start with answering the basic question: What do we make?  What type of “stuff” do you make?  For example, in the inventory or manufacturing process, is there a need to convert various units of measure?  Perhaps it’s a good idea to see that the software contains tools for specific gravity conversions.  Next, there might be a need for automatic unit of measure conversion.  An ingredient may be measured in grams when making a small batch, but measured in kilos when making a large batch as an example.  The list goes on.  There are many other components to this decision and I have provided two different white papers on this topic:  Process vs. Discrete ERP software – What is the Difference?,  and Process vs. Discrete ERP software – The bottom Line.

When making a big investment like an ERP purchase, it’s imperative that you do all you can to do it right the first time.  Invest sufficient time and effort into the decision making process – including things like weeding out the cheapest date.  When you are in process manufacturing, make sure to look under the hood, shop around, get references, and find out what you are getting yourself into. Selecting a new ERP solution will likely be the largest IT decision your company will ever make as it will become the information backbone of your company. The right system will provide you and your managers with critical information about how to better manage your business and drive more dollars to your bottom line for years to come.

Attend the January Webinar: Not all Manufacturing ERPs are alike – 8 Questions to ask when searching for an ERP.

Jan 18th @ 2:00 pm CST & Jan19th @10:00 am CST  Register online.

By: Shanon Odegaard

When implementing ERP software, many companies we work with succeed but some ultimately fail.  Naturally, the question that arises is, “Why do some companies fail to implement ERP software successfully?”  Over the years, I’ve seen repeated success in companies that assign someone as an internal project manager for the implementation project.  Implementing ERP software is not as simple as sliding in a CD and loading up some software in hopes that it will be ready to use by the end of the day.  Implementing ERP software requires review of the existing systems and procedures, even if those systems are manual.  Data has to be scrubbed and converted or keyed into the new ERP software.  These are just a few of the tasks required when implementing ERP software.  Therefore, it’s very important to have a project manager that is responsible for overseeing all of the tasks and managing the internal timeline which is required when implementing ERP software.

The “chosen one” has to have the authority to make change and have the support of upper management to get the project done; both are critical components to being able to successfully drive the implementation of any ERP software.  Without the authority or support of upper management, the project manager cannot effectively implement change or even persuade people to complete their assigned tasks.  A project manager should be able to dedicate at least 50% of his/her time to the implementation of the ERP software to complete the project in a timely manner.  Without being able to dedicate an appropriate amount of time, the project can drag on for many months or even years.  Read more about ProcessPro's appraoch to sucessful implementing an ERP, download this white paper.

by: Rebecca Kempenich 

Are you interested in improving operational efficiencies while reducing cost and increasing customer satisfaction? We are and we are talking about it. Welcome to the ProcessPro Software Blog. We launched this blog to provide the process manufacturing community a resource to turn to find industry-related information, especially in the following areas: 

• Industry Best Practices in:
  ·     inventory management
  ·     customer fulfillment
  ·     distribution
  ·     materials management
  ·     transportation
  ·     warehousing
  ·     supply chain management
  ·     purchasing
  ·     planning & scheduling

• ERP Software Selection
• Software Technology & Architecture
• Implementing ERP
• FDA Compliance
• ProcessPro ERP Software FAQ

Weekly postings from our blog authors and industry experts will provide many ideas, opinions and discussion on how to improve your manufacturing business across the entire enterprise. Join the discussion. Tell us about the topics you are interested in. Post a comment below.

by: Rebecca Kempenich

Pressure is growing for manufacturers to squeeze out greater efficiencies while reducing operating costs. 2011 will be no different.

Your competitors are finding ways to: