The 7 Most Demanding Functions of an ERP System

Are you an in-line manager trying to convince your executive management to implement the ERP? Well, it is a hectic task and might also require a lot of research and effort to help your senior management understand the need for enterprise resource planning ERP solutions for the company.

To help you with it, we will talk about the top 7 ERP solutions in the market. Each of them possesses the best management, planning, and financial features. Let’s learn more about it.

Why do you need ERP?

ERP’s modular nature, which allows it to adapt to changing company needs, is one of the primary reasons for its high prevalence. Only courses relevant to a firm’s activities, business strategy, and major challenges are available for purchase and the sales team. As the company grows, it can add ERP modules to suit new demands or issues.

erp-implementation

The Top Seven ERP solutions on the market are:

The benefit of ERP software is that it allows for adding new features while maintaining the present framework. When requirements change, the firm does not need to build a new ERP system, which is time-consuming if it picks an experienced ERP supplier with a wide choice of modules.

However, before picking up custom modules and functions, let’s talk about the top 7 ERP software available in the market.

7 Core functions of an ERP Systems

ERP offers various modules. However, the most common and in-demand modules are as follows.

The procurement module, also referred to as the purchasing module, helps a business buy the resources or materials needed to produce or sell goods. By maintaining a list of authorized vendors and connecting those vendors to specific items, this module enables organizations to manage their supplier relationships.

Businesses may better manage their product development and production thanks to manufacturing. Users are equipped to manage resources, finances, and the shop floor thanks to these ERP capabilities.

Planning and scheduling, budgeting, forecasting, procurement, and materials management should all be supported by your manufacturing system.

Another form of back-office software that contemporary ERPs provide is human resources. All HR processes that an employee goes through while working for your firm are covered by ERP software.

One of the numerous features of ERP is applicant monitoring, which enables users to monitor potential employees as they apply for positions. It enables your HR team to look for the best applicants based on the standards your team establishes.

The ERP’s finance management module is crucial for organizations because it gives them insight into their current financial position and future prospects.

This module includes crucial functions, including general ledger management and accounts payable and receivable tracking.

Users of ERP software are typically provided with reporting capabilities, so they may explain data analysis to end users. This enables users to exhibit data using visuals such as bar graphs, Gantt charts, and pie charts. They can also limit access to the data based on the user’s credentials.

The majority of manufacturing sectors struggle to control their inventory and supply networks. They could not receive real-time stock updates and had to accept the loss due to not refilling promptly.

Real-time data sharing technology features modern ERP systems, allowing companies to obtain stock status information rapidly. As a result, the process of receiving and distributing orders to the appropriate vendor is streamlined and effective.

All client and prospect data is kept in the customer relationship management (CRM) module. There are different types of CRM, CRM tools and CRM platforms.

However, most of them include the person’s purchase history as well as the company’s history of communications with them (such as the time and date of calls and emails). Because staff members can quickly access all the data they want while dealing with a customer, a CRM enhances customer service.

How to choose the right ERP that fits my business requirements?

DFMS SERVICESUtilizing the flexibility provided by the cloud, ERP systems have transitioned from a single-software strategy to a platform model with core functionality connecting to numerous, smaller, more agile apps.

Since they are deployed and managed remotely, the organization is not burdened with the costs associated with purchasing, maintaining, and updating hardware, infrastructure, and resources. Automatic software upgrades come at regular, predictable intervals.

As a result, consider your business needs, expenses, and installation procedure while selecting the ERP system.

Bottom Line 

dfsm teamERP systems also use the cloud to handle data more rapidly, reliably, and securely. Data can be utilized for a variety of purposes, such as reporting, artificial intelligence, and extremely effective predictive analytics.

According to market trends, Dynamics 365 Business Central from Microsoft is the most popular solution for small businesses/SMBs. Business Central allows organizations to manage every aspect of their operations using data-driven insights. Businesses can examine the data and use it to help them make lucrative decisions.

So, if you’re uncertain about the best cloud-based ERP solution or CRM Software, DFSM specialists can provide you with practical guidance for your firm.

Why You Need ERP and a Digital Supply Chain in 2022

Companies were forced to shift gears due to the global epidemic quickly. From adopting work-from-home policies to handling demand fluctuations and unanticipated supply chains, work dynamics are completely different now.

Many organizations responded that they would look into efforts to meet current demands and speed digital transformation in this situation. The goal is not just to restore operations to pre-pandemic levels but also to create firms that are more resilient than before.

Modern ERP, with data insights, intelligent automation, and an engaging user experience, enables corporate strategies to be constantly innovated. Whatever industry you are in, there is ERP software that you can customize for your business operations.

Modern ERP software will surely give you the upper hand in the following year.

So, what is happening?

Supply Chain management

A Brief Summary of What’s changing

From a chip shortage influencing the construction of new cars to hyperbolic warnings of bare shelves in supermarkets around Christmas, the year 2021 brought a whole new parade of supply chain disruption challenges.

Companies stood idly by as their goods lingered on container ships trapped in the Suez Canal or at the ports of Los Angeles and Long Beach, California.

Covid-19 has an impact on all enterprises, regardless of industry, all across the world. Covid enslaved baristas, teachers, physicians, waitresses, and child care providers alike. Supply chain difficulties may have harmed manufacturing the most. Covid-19 nearly brought Chinese production to a halt.

Upstream suppliers were unable to obtain raw materials in a timely manner, resulting in a series of delays. When China reopened, Europe and the United States were closed, so we were once again out of sync.

According to most industry analysts, many of the difficulties causing supply chain disruption are unlikely to go anywhere, anytime soon, but we can solve certain short-term challenges by 2022.

They also argue that the issues present an opportunity for firms to clean up their supply chains by using modern digital technologies and analytics to address long-standing flaws.

How to Survive This Supply Chain Disruption

Let’s talk about 2022. Staying connected electronically allows professionals to work and plan resources even amid a crisis, making it the new normal. Many integration issues can have a simple solution with ERP, and your business can be effortlessly connected.

Do you see why a digital supply chain is important?

Economic volatility and varied customer preferences create several layers of complications for organizations in a fluctuating yet evolving business climate. This has significant ramifications for stock procurement, as overstocking might result in greater costs or increased wastage.

An ERP with built-in BI functionality can better predict demand based on historical data. This adds structure to an otherwise chaotic function and provides local firms with a high level of flexibility and precision.

Thanks to ERP systems that support a digital supply chain network that gives a single version of the truth. Businesses can obtain the materials they need to not just stay afloat, but to stay ahead.

Companies can locate the supplies they need to not just stay afloat but to stay ahead when artificial intelligence is used to enable predictive and prescriptive analytics. And when you use advanced, dynamic technology, you can plan ahead and execute properly.

Supply Chain

Dynamics 365 Supply Chain Management

So, if you want to solve your supply chain issues, you have a perfect ERP to implement within your organization. Yes, we are talking about Microsoft Dynamics 365 Supply Chain Management.

Get your hands on the Dynamics 365 supply chain management modules, and you will observe the issues resolve themselves.

Now, if you are still wondering what is supply chain management in dynamics 365 or what digital supply chain transformation is? Let the DFSM professionals help you with their experience and guidance on it.

WHY DFSM

Why is the implementation of fake cloud ERP solutions dangerous for companies?

With the word fake in mind, disappointment, disruption and failure automatically come to mind, and it is quite obvious. Similarly, it happens with the fake cloud ERP when you implement it for your manufacturing business

Sales, order management, inventory, purchasing, production, and services—as well as accounting information—all, require real-time visibility. People looking for innovation, business speed, and visibility are inclined towards the use of cloud ERP for their own good. It is due to the benefit such as accessibility, automation, and reasonable prices. 

However, the quick adoption of cloud computing caught many traditional Enterprise Resource Planning – ERP providers off guard, forcing them to scramble to develop a “cloud” application to stay current. Unfortunately, these fake cloud apps don’t provide the benefit that actual cloud ERP does; therefore, it’s critical to know the difference.

Following are a few points to keep in mind while choosing cloud-based manufacturing software.

benefits_of_erp

Is ALL “cloud solutions” are equal?

No, many traditional vendors didn’t perceive the cloud as advantageous to organizations while knowing how beneficial it is. A decade ago, the “cloud” was thought to be a transitory trend, with traditional ERP companies mainly ignoring it. After a few years, the cloud was no longer just a method of delivering software; it had become the method of delivering software. Many of the ‘old guard’ merchants missed out on this chance, and by the mid-2010s, they had fallen behind.

In their eagerness to catch up, most traditional ERP providers did not modify their systems to be true cloud solutions. They relocated legacy software to a server in some cases, where it is “hosted” and accessed via the internet using adapter software. This is fake, not genuine cloud software.

These fake cloud-based manufacturing ERP software were marketed as the cloud. But, they required special software to use, did not allow for key personalization. Besides, it had limited integration possibilities. Unfortunately, some businesses fell for it. 

To avoid felling for it, understand what cloud manufacturing software is?

What is Cloud Manufacturing Software?

It’s critical to grasp what we’re talking about when we say “cloud.” A cloud is essentially an internet-based network that allows users to manage and store data. Manufacturers will save time and resources as a result of this if they choose the whole package with Microsoft dynamics for manufacturing. It’s also noted for being extremely durable and practical.

Cloud manufacturing (CMfg), on the other hand, is a new manufacturing style that combines traditional manufacturing methods with enterprise information technology such as cloud computing and other computer technologies to create a new manufacturing style.

Cloud manufacturing allows companies to unplug and achieve new heights faster than ever before. Some manufacturers are concerned about “unplugging” because if everyone in the firm can access data from anywhere, unauthorized eyes could be peering into important information. While this is a legitimate issue, cloud specialists believe the cloud is just as secure as an on-premises program. Administrators still have complete control over who can see what in the cloud, so anyone with authorization can see anything.

So, which solution is best? If you consider innovation and consistent updates, dynamics 365 supply chain management and manufacturing fill the criteria in the best way. 

How does Microsoft Dynamics 365 Solution fit in the Manufacturing industry?

Manufacturing is a process-intensive sector in general, but to compete, manufacturers must work harder than ever to improve their consumers’ experiences.

By striving to break down the typical silos seen incorporate software, Dynamics 365 is a comprehensive, cloud-based collection of apps that supports manufacturers. It helps in unifying their operations, obtaining better visibility of their processes, and communicating with their customers.

Dynamics 365 for Manufacturing Industry

Final Words

Cloud solutions like Dynamics 365 warehouse management or manufacturing can be beneficial, but only if they are designed properly. Take the time to learn what makes a legitimate cloud solution. And how it differs from the many fraudulent cloud options on the market before considering deploying a cloud manufacturing ERP system. If you have concerns, we at DFSM can help in choosing the true cloud ERP system and enterprise resource planning software anytime along with the custom solution!

Get in touch

Shopify and ERP – Real-time Dynamics 365 Integration Solution

Not only does the Shopify Connector for Microsoft Dynamics 365 Sales and Business Central save you money, but it also saves you time. Stop wasting time on redundant double data entry and take advantage of the ability of the best ERP for Shopify to manage all of your data in one handy area at lightning speed!

Shopify And ERP

Key Features of our Dynamics Shopify Connector

Real-Time Synchronization Of Orders, Customers & Billing Data

With our Shopify ERP integration solutions, you can automatically export and synchronise sales order and customer data from your web store to Dynamics 365, AX, and Business Central Shopify in real-time. Our Shopify Dynamics Connector lets you maintain data consistency between your front and back offices.

Automated Inventory Management

Product data and pricing may be exported in real-time from Microsoft Dynamics AX, Dynamics 365, Dynamics NAV, and Dynamics Business Central to Shopify Plus, with support for different pricing tiers and currencies. With each transaction, automatically update inventory levels between your NAV, AX, and D365 back-office and Shopify Plus.

Sync Order Fulfillments In Real-Time

With the AX and Shopify and ERP integration, you can export fulfilled sales order statuses and shipment details in real-time. Partial fulfillment of sales orders is also supported. Order cancellation, recurring orders, chargebacks, and refunds are also supported by Shopify Dynamics 365, NAV, and AX Connector.

Automated Inventory
Contact DFSM

Get in Touch:

DFSM is a Microsoft Dynamics partner who can help you handle all of your business activities efficiently. Microsoft Dynamics has teamed with DFSM to provide you with connectors for your Shopify store. You can control and automate your business processes using these simple connectors.

From a single platform, you can manage your sales orders, shipping details, inventory, items, billing details, and customers. Get in touch and let’s discuss Shopify integration with dynamics 365 business central today!

 

11 ways to monitor your ROI in ERP

When planning an ERP project, one of the first tasks is to measure the return on investment (ROI)( check our Free ROi calculator) that new technologies and efficient processes can bring to your organization to make it more productive.

At the most basic level, more productive outputs will result in reductions in operating, inventory, and labour costs thus providing the most direct return on investment. However, there are also advantages that are indirect.

You can streamline your ordering process, eliminate physical inventory, improve production quality, and make scheduling more efficient. Improving operational data access allows for more precise material preparation, manageable reporting, new dashboards, and better, data-driven decisions. It will also increase customer loyalty, improve supply chain coordination, enhance delivery efficiency, and other factors that can all contribute to ROI.

Dynamics365 ROI

UNDERSTANDING THE VALUE OF ERP ROI

Dynamics-365 erp

If you are wondering what’s the ROI for Microsoft Dynamics 365, let us help you. The ROI will serve as the basis for the rationale of your project. It will assist in the availability of apps and will have areas of focus and assessment, helping you to determine the progress of your transition.

FORECAST THE COSTS OF YOUR ERP:

The quest for possible ROI begins with these 11 key process areas when your company sets out to make the business case for a better or entirely new ERP solution:

Financial Management

 

Management and the entire company benefit greatly from greater trust in financial statements and analysis, faster information access, quicker closing and period-end operations, and efficiencies generated by the reduction (or elimination) of outside-the-system spreadsheets.

Forecasting

 

Comprehensive Sales & Operations Planning (S&OP) skills include greater knowledge and analysis. It is possible to more accurately predict demand, make more informed decisions, rely on trends, and, most importantly, manage sales demand more quickly, precisely, and proactively. Besides, it is easy to navigate market transitions, volatility, and economic shifts.

Inventory Management

 

Efficient forecasting and better visibility into sales demand allow more effective inventory management, lower carrying costs, and better visibility into slow-moving and dead inventory. 

Pricing and Margin Management

 

Efficient pricing tools boost margin/profit analysis, allowing for better strategic positioning and, when combined with Product Lifecycle Management (PLM) analysis, providing information that can be used to manage product portfolios better and drive higher profitability.

Product Development

 

PLM enables successful management of product lineup and mix, as well as R&D expenditures, and the identification of products that no longer fulfil the company’s strategic objectives.

Production Management

 

Better capacity planning is made possible by enhanced production management capabilities and the ability to perform a thorough analysis of production bottlenecks, routing times and material movement, staff utilization, plant and equipment utilization changes, maintenance schedules, and system uptime.

Quality Management

 

QM tools enhanced product output visibility, RMA root cause analysis, visibility into rework operations, and better information on raw material quality supplied component goods and third-party services.

Sales Management

 

Customer Relationship Management (CRM) capabilities allow detailed sales performance analysis and provide valuable insight into customer purchasing trends, customer demographic data, sales activities, and sales performance.

Supply Chain Management

 

Improved inventory management allows for improved management of the entire supply chain, resulting in lower logistics costs, more efficient supplier/vendor management (and higher performance), shorter lead times, and data that can be used to help strategic procurement and vendor negotiations.

Warehouse Management

 

WMS technologies increase speed and accuracy by using high-efficiency and control pick-up/put-away, barcoding, and routing.

E-Commerce

 

Enabling direct-sales platforms and enhancing current e-commerce performance and customer experience provides a major competitive advantage and costs savings. A strong e-commerce capability leads to increased customer loyalty, repeat purchases, improved forecasts, and higher margins. Besides, re-organizing warehouse operations to support efficient pick-pack-ship will result in better efficiency, especially in a less-than-case-order setting.

The next step is to measure the return in these – and other fields, which is a major challenge. An outside ERP advisor like DFSM can assist with market benchmarks by implementing Dynamics 365 marketing ROI.

system desgin d365

Lessons Learned from National Grid ERP Failure

Previously we discussed various ERP implementation failures like Revlon ERP failure and Hershey ERP failure case study that included brands like Haribo. Now, we will discuss more brands like National Grid, Vodafone ERP failure, and Nike ERP failure. These case studies are designed to help you understand the possible reasons for ERP implementation failure as much as you can by learning from others’ mistakes rather than just implementing them on your own.

Who is the National Grid?

 

National Grid USA knows the value of timely delivery as one of the world’s largest investor-owned power distribution firms. After three years of growth, team leaders decided to complete the most awaited SAP ERP Project on the schedule.

The outcome? A disastrous domino effect that has affected almost all sector facets, from financial statements to wages.

The facts behind this failure and others like Gartner ERP implementation failure will warn organizations who are ready for their implementation of ERPs.

Lessons Learned:

Revlon’s SAP failure

In 2009, NGUSA (included in United Kingdom National Grid Ltd.) embarked on an SAP ERP project to boost its internal operations and customer services.

On 5 November 2012, the new system will go live. However, it was obvious, as that date approached, that the company was not ready to launch the program. Failure to meet the crucial deadline would have been time and money-intensive. It would shift production back five additional months and cost an additional expenditure of up to $50 million.

For these reasons, NGUSA was convinced to try to keep the original date. Hurricane Sandy, which hit customers on the East Coast in October 2012, was another reason why they chose to stick to the original date that ended with major power loss and damage.

So, what are the ERP implementation lessons learned?

·     Project managers are must

 

Deloitte signed fin 2009 and became the system integrator for the NGUSA project.

However, in 2010, the status shifted to Wipro.

Following the fiasco, NGUSA sued Wipro for 140 million dollars and finally paid 75 million dollars. Among other concerns, they argued that Wipro pressured them to sign agreements and distorted SAP software functionality.

Here comes the role of a project manager. A project manager should review and approve everything before any plans or tactics go live. The same applies to the outcomes of the tests. Experts, in-house staff should be on-hand to define the right specifications to ensure that the report contains them.

·     ERP testing should be in the detail

 

The New York Public Service Commission sponsored the NGUSA deficiency audit in 2014. The results of this audit showed many weaknesses, including that the emphasis of system testing is on refining active parts of the system. Although experiments were carried out at every point, areas in which the system did not function were not accurately identified.

Errors were noted and noted before the final studies. While remedies are in place, the time for testing and validation was not sufficient. With this in mind, we advise creating a variety of scenarios and ensuring data availability at each point.

·     Complex designs take time & require money

 

There were over 635 RICEFWs in the NGUSA project. For a service firm of their size, this was a huge undertaking. This degree of complexity can make any move challenging and time-consuming, from testing to ERP data migration. Such a project necessitates a significant amount of ERP internal capital as well as dedicated attention, which NGUSA did not provide.

This problem got worse because most internal employees were busy dealing with Hurricane Sandy recovery efforts. It was unwise to hurry such a large business investment with such a tight schedule.

·     You cannot overlook training

 

Furthermore, during the NGUSA implementation, there was a lack of dedicated training, especially on how to query data. There was also a lack of understanding about using the data to generate customized reports for upper management.

End-user training will ensure that all staff understood how to use the new program to its full potential.

DFSM Rescue plan

 

From ERP implementation to go-live and beyond, our ERP consultants will assist you with any aspect of your implementation. All the information and consultancy services can stop you from becoming part of increasing the ERP failure rate. If you don’t want to be a part of the list of ERP implementation failure companies, contact DFSM now for comprehensive support, guidance and implementation.

Microsoft Dynamics 365 Experts

How to Select your next tier 1 ERP System?

The Two-tier ERP is a software technique embraced by multinational corporations that use Tier 1 ERPs to cater to unique needs for corporate finance and other key common processes and Tier 2 ERPs to cater to branches, subsidiaries, and smaller locations.

Tier 1 ERP systems are systems designed with subsidiaries or local offices for major global organizations — primarily Fortune 1000 companies. Tier 1 ERP is created to manage these firms’ complex systems that allow staff to simultaneously perform the same tasks. These systems are very complex to build, take a long time to implement, and have an initial high cost and a high overall ownership cost (TCO). According to Clash’s 2017 Titans report; Tier 1 ERP comprises : SAP, Oracle, Microsoft Dynamics, and Infor.

Why is Selecting An ERP Crucial?

 

If you are looking to select a Tier 1 ERP system, you need to plan for it properly. Although various criteria exist to help you pick the right software, every small business owner primarily needs to know if the program does what they need. They also need to assess if it is affordable and easy to implement without too much time, money and effort. The owner should also be conscious that optimizing the supply chain is typically a big part of ERP implementation. Thanks to its simplicity and scalability, Cloud ERP is available on a subscription basis and is the perfect choice for small business owners. Also, no additional IT infrastructure investments are needed.

two-tier-erp

Factors to Consider When Choosing an ERP System

1. ERP implementation partner selection criteria:

 

Your implementation partner will also be your ERP consultant. The ERP supplier will help you strategize, introduce, handle the transition, and maintain the system over its lifetime. Vision, commitment, and experience are several key requirements to be sought by an implementation partner.

·     What are Your Implementation Partner’s Vision and strategy?

 

A supplier who is solely looking to win the bid may tell you their software can meet these needs. Still, a visionary supplier will ask you the relevant questions such as: Have you considered integrating your ERP system with carrier services directly? Do you use dock management to prepare your logistics partners best for receiving and dropping times?

Subsequent questions such as these can give the ERP vendor a picture of what your ERP program can achieve.

·     How Trustworthy is Your Implementation Partner?

 

Confidence and communication are the foundation for all  partnerships, so it is necessary to communicate your RFP process with each seller. Are the rates transparent? Have they been communicated and followed up promptly? Imagine the challenges you will face after paying the bill if you have problems with confidence and communication.

·     Consider Case Studies and References

 

When collaborating with an ERP provider, experience is the biggest factor. Although Tier 1 ERP providers have a wide range of capabilities that are most likely standardized across industries, it is worth asking if they have certain expertise or show you some of their cases relevant to your business.

2. Evaluate the Vendor’s Implementation Approach and Post Go-live Support

 

Another significant factor is post-go-live support. Before choosing an ERP scheme, it’s best to be able to choose the correct ERP selection checklist earlier rather than later.

An ERP supplier can provide several support options.. With Tier 1 ERP suppliers, software licenses are virtually always supported in the first stage. Therefore, the first level of payment assistance is easier to compare. 

3. Focus on Your Business Needs

 

Every business is unique. Therefore, to avoid problems with the Dynamics 365 implementation process’s compatibility, we advise each vendor to ask what its customization and integration policies are and what they mean when upgrades are due.

4. Key criteria for ERP software

 

·     Purpose

Not every company can use ERP tools. So, find out whether your company really needs an ERP.

  •     Evaluation of the existing system

Take time to evaluate the various processes within the ERP framework. Review the present situation, make an ERP evaluation checklist, and expect possible improvements.

·     Implementation plan

Plan training courses for various employee groups. Both buyers and sellers are affected by ERP. Before implementation, consider the views of your main customers and suppliers for the ERP selection process.

·     Module selection

Users will distribute the modules and automate various processes gradually. But don’t forget the central objective of the ERP implementation during module selection.

·     Company size

Your company size matters the most as you start to implement the ERP. So, ask your vendor what the most suitable option for you will be.

Bottom line

 

Select an ERP solution only after extensive and careful planning. We at DFSM offer free ERP  consultation services to ensure you get the best solution for ERP and solutions for dynamics 365 ERP implementation.

ERP selection

Lessons learned from the Haribo SAP ERP Failure

Previously, we discussed the Hershey ERP failure case study, the Revlon SAP failure and Lidl failure amongst others… The articles were meant to help you determine your ERP implementation journey carefully through learning from the aforementioned failures. If you want a smooth and successful implementation of the ERP system, you need professionals to help you. The companies who had to face failure did so because of a few mistakes they could have avoided altogether if they had chosen to work with experts.

Revlon’s SAP failure

Haribo SAP Failure 

 

Haribo is a German candy company that produces gummy bears and other candies. In late 2018, they decided to go live with SAP. Soon after they began experiencing supply chain system failures. This eventually influenced profits, leading to a decline in revenues afterlife.

In some respects, the problem Haribo faced was slightly more subtle and far more likely to occur than some of the other more dramatic case studies. Here are some of the common lessons learned from Haribo about lowering the ERP failure rate.

Lessons Learned:

·    Operational disruption is the #1 hidden cost and risk of a poor ERP implementation 

 

Hundreds of millions of dollars have been spent in previous cases, adding to the overall cost of the serious losses. However, this can be avoided as the transition challenges for the average organization are usually subtler when done correctly.

Haribo may not have spent a huge amount of money implementing the SAP or take legal actions against the scheme. However, these failures of the supply chain and profit losses can be of great benefit to many enterprises. Our team’s research over the years has shown that approximately half of businesses experience material damage during digital transformations. This is because the cost and danger are not planned by or mitigated sufficiently by most organizations.

·    Business Process Reengineering is Critical

 

The fact that business processes have been damaged after the go-live suggests that Haribo did not spend sufficient time and effort on their operations management. They did not know what they need to do during their digital transformation in the sense of business process management. For failure to effectively overcome challenges, entities must plan their State businesses’ future processes to align themselves with their overall organizational model.

·    Align Your ERP System with Your Organizational Goals

 

Haribo wanted its international production footprint to increase and its supply chain business to improve. Therefore, they decided to implement SAP. Unfortunately, the features incorporated in the S/4HANA platform may not have completely supported this view.

We suggest identifying your organizational priorities first during the ERP selection process. Which steps will help you get into your brand, and what do you want? You can only understand with such answers which features a new platform should be a priority.

·    Never Skip Testing!

 

It is hard to understand how Haribo went live with the program without testing the supply chain in advance. Effective device testing and the meeting room operators should unveil possible big interruptions like this long before their livelihood. If not, then your research technique is incorrect. Before your digital transformation, make sure you understand the significance of ERP systems testing.(What is ERP testing)

Why does an ERP implementation fail?

 

Before pulling the plug on their SAP transformation, Lidl spent hundreds of millions of dollars. To ensure that your project does not escalate out of control or harm your activities, Haribo and others need good leadership, dedication, and project governance. Lack of all these qualities is the only reason why these implementations fail badly.

two-tier-erp

DFSM Rescue Plan

 

If you are unsure about your ERP implementation or plan or need to know if the system is failing, let us help you with it. Knowing what the problems in implementing ERP systems are can be a huge help. At DFSM we have the rescue plan for you through assessment, consultation, and testing. If you want an instant response, you can check out our form, answer the questions, and see if you are failing and need help. DFSM is always there for you.

4 Lessons from Revlon’s SAP Implementation Disaster

We recently had a brief discussion about the SAP failures. Every case, including Hershey ERP failure and Lidl ERP failure, had its points to learn lessons and ensure that your company is not about to make the same mistake. Today, we will talk about Revlon, so you can see if you are also preparing to join the same path or not. You can check out the SAP failure rate as many companies fail to learn from previous failures.

Revlon revealed a couple of weeks ago that it was terrible to enforce its SAP. It was due to the inability to enforce the SAP that delayed financial reporting.

Within 24 hours of publishing the story, its stock decreased 6.9%, triggering an investor’s lawsuit. Not good for a well-established consumer product business, especially for publicly traded companies.

Revlon’s SAP failure

What have we learned from Revlon’s SAP failure?

  • Design and Controls are the keys to success 

 

Revlon reported a lack of design as one of the problems behind the failure of ERP. As a result of its internal controls, the company suffered “material weaknesses.”

It is important to look closely at the business processes to minimize the risk of material operational disruption.

You should ensure that the development team knows this when determining your future state and training your staff to configure and evaluate the program correctly.

system desgin d365
  • Negative ROI is a big red flag

 

Revlon also announced that: In addition to a breakdown in its North Carolina Plant’s operational controls and production problems:  

  • Sales lost by SAP failure could not be recovered.
  • Disruption in customer service.
  • The demands for their management and employees were growing, with an emphasis on other business goals cannibalized.
  • It produced substantial capital and operating costs.
  • The handling of sellers’ payments was challenging.
  • It couldn’t meet the timely or reliable federal, state, and local reporting and filing standards.
  • It had higher shipping costs than anticipated – due to the SAP failure of the customer burning.
  • It was ‘incapable of correctly or promptly filling customer orders, or at all’ (emphasis added).

We are sure that this wasn’t the expectation of Revlon.

  • Implementation risks should be well understood

 

Revlon did not seem to recognize the risks associated with its ERP implementation, as were many organizations adopting SAP S/4HANA and other ERP solutions. Worse still, efficient methods for reducing such risks should not be quantified or enforced.

Revlon endured delays in shipment and missed sales in North Carolina due to the production interruptions – the site of the first phase of its SAP live service.

If Revlon had known, quantified, and mitigated the risks associated with ERP introduction, steps would have been taken to ensure that its go-live did not significantly impact its operations.

project management implementation process
  • Risk Identification must be calculated  

 

In Revlon’s case, problems became apparent right after the device was implemented in Oxford, NC. The roll-out created service level disturbances that affected production and shipping capabilities directly.

Revlon clarified that they could impact their competitive position if such disruptions continue. Their client relationships, prospects, financial conditions, and cash flow may also influence them.

The company should have prepared for these setbacks with a comprehensive risk evaluation. The risks to implementing an ERP are inherent, and it is not reasonable to expect to go live without problems.

Payroll Processing and Calculations

DFSM ERP Failure Rescue Service

 

If you can find out the ERP implementation failure statistics increasing (from Gartner), you must not take a chance and hire professionals for consultation.

We support some big companies on their ERP implementation rescue plan to be glad to exchange notes and share some lessons from failures to successful projects.

Contact us to discuss any time – we’re pleased to be your digital transformation partner.

Which Dynamics 365 ERP to choose? BC or D365 FO

Unfortunately, this question has no straightforward answer.

Businesses deciding on which Microsoft dynamics 365 ERP to select different points of decisions, and the first one is cost. We can see that Dynamics 365 Business Central can be less than half the price of D365 for FO, which comprises on 20-user minimum. Back in the day, Microsoft used to direct the number of users to guide businesses to the “Enterprise” version, but today it is not that easy.

The business process and its complexity play a more vital role in choosing the edition of the software. If you have a fixed budget and a limited number of users, the better option is to see if Business Central is supportive of your business operations or not. With large complexes in the businesses, the smart choice is to look at Dynamics 365 for Finance and Operations. Microsoft Dynamics 365 Customer Engagement has the full functionality of the CRM. Well, you can still find some of the CRM features in Business Central.

 

For meeting the complex needs of the business needs, Microsoft Dynamics 365 offers modular configuration, especially for the functions like retail or field service. Microsoft is offering full strength in connections to productivity tools for business intelligence and mobile capabilities.

erp-implementation

Basic Difference amid Microsoft Dynamics 365 Business Central & Finance + Operations

 

The only way to find out the difference between the Microsoft Dynamics 365 Business Central and Finance & Operations is to compare their features. In the end, it is about the complexity of the business operations and which one is capable of fulfilling it.

 

Business Central Main Features 

 

Business central is known to be a revamp of Nav. It includes all the Nav’s functionalities, but users now get the options to choose if they want their ERP on the premises or host it on the cloud. It enables intelligent predictability, provides easy financial management, and one can always prioritize the sales considering the factors like revenue. Some of the highlights of the features of Business Central Australia are:

  • Basic General Ledger
  • Budgets
  • Deferrals
  • Basic Fixed assets
  • Bank Account management
  • Audit Trails
  • Currencies
  • Full CRM Functionality
  • Supply Chain Management
  • Human Resources Management
  • Project Management
  • Instant reporting
  • Outlook integration Reason Codes
  • Service order management
  • Manufacturing
  • Power BI, PowerApps, and flow

All of these features are representing the quality functions to manage the business operations in an organized manner.

business central wave 2
dynamics finance operation 2020

Dynamics Finance & Operations main features 

 

As we all know that Dynamics Finance & operations are the revamp of the AX. It also can host on both premises and cloud. With it, you can use PowerApps, get access to real-time information, a dashboard, and adaptability or the changes. The features you might be familiar with or looking for in your business solutions are:

Some of the common benefits of dynamics 365 finance and operations:

Features & functions For Finance:

  • Accounts payable
  • Accounts receivable
  • Budgeting
  • General ledger and financial reporting
  • Project management and accounting
  • Public sector
  • Cash and bank management
  • Cost accounting
  • Expense management
  • Financial reporting
  • Fixed assets

 

Features of Dynamics 365 for Supply Chain management:

 

  • Asset management
  • Production control
  • Sales and marketing
  • Service management
  • Transportation management
  • Warehouse management
  • Cost accounting
  • Cost management
  • Inventory management
  • Master planning
  • Procurement and sourcing
  • Product information management

These are the simple functions and well-known Dynamics 365 finance and operations features. However, you may still find yourself questioning a few things, so let us help you with it.

 

Let us decide for you!

 

Ultimately, you will look into the expert to help you determine the best that can save you both time and money. You can talk to the Microsoft certified partners as they have worked with Microsoft CRM and ERP systems and they have dealt with the evolution of Dynamics 365.

DFSM start by understanding your business requirements and then match the solution that best fits. We will help you understand the implications and limitations of licensing, which in themselves can be daunting. Most importantly, they can help you establish the right software and technology foundation to support your long-term business strategies.

Lidl SAP implementation failure (ERP Failure serie)

The companies acquire ERP systems helps them in managing work with a balanced flow and in a more organized way. They get to have easy access to the information, manage different departments from a single platform. Some companies wanted to streamline their business and started implemented ERP systems but had to meet the failure. 

In one of our previous blogs, we discussed one of the ERP failed projects/ERP failure example, i.e. Hershey ERP failure. Companies looking for failure lessons and failure factors of ERP implementation can have a lot to learn from it. There are many reasons for these failures. In this case study, we are going to talk about the Lidl SAP implementation failure. Let’s help you take a walk through their failures for your understanding.

 

benefits_of_erp

How it all started?

Lidl implemented SAP three years ago, considering their step towards a transformative journey. The goal was to meet the market ends for innovation and efficiency. Initially, they went live with the merchandise management at its Austrian stores in May 2015. The roll-out plan was to reach 10,000 stores and more than 140 logistics hubs. However, now the recent news states that Lidl is dropping the project worth €500m project.

 

Why did the project fail?

 

A recent survey study based on 113 individuals shows that across the SAP has failed to companies have failed in the SAP implementation. The reason is common, and that is SAP, not meeting the expectations of the company. The reason for the Lidl SAP implementation failure was:

  • It shows that customization is not one of the strengths of the SAP system. Projects are completed successfully with a specific model. Changes, however, demand more and fail SAP.
  • In the case of Lidl, it demanded a higher cost for consultation and implementation cost consider the adjustments.
  • The company also states that the problem has risen despite the technology solution.

A Lesson Learned

 

We all know that the system is supposed to ease up the process and help organizations in reaching a higher level of success. Now, most companies fail as they lack business engagement. So, with the failure of Lidl SAP, we have learned to:

 

·Open to Business Process Reengineering

 

A willingness to improve process engineering will help you define the helpful processes and separate the changes you need. You need to look closely at the requirement gaps and fix them.

 

·Follow the defined timelines

 

The Lidl project spanned around seven years. See, the problem lies in the timelines. You have to adhere to them. Competition doesn’t stop, and the market keeps moving on. So, avoiding intensive customizations will help companies in following deadlines or timelines in a better way.

 

·Ensure executive alignment

 

Since the team was in constant fluctuation, managing business alignment or buy-in became tougher. So, it is important to maintain the focus.

·Prioritize organizational change management

 

Prioritizing internal growth in the team is also important. It seems easy, but it is not. You have a focus on training during the project implementation and help the team understand the smart use of functions.

 

DFSM ERP Rescue failed project

 

DFSM can help you in saving your time and money. Talk to our consultants, and they can assess if the project is failing or not. So, they can offer immediate solutions along with the training to help the team learn better use of the ERP system.

Dynamics 365 Compared To Other ERP Solutions

If you are running a full-time company, you are probably looking for the finest solutions to automate the core operational process. The way to do this is to find the right and perfect fit solution according to your industry. You can look up some Enterprise Resource Planning (ERP) solutions or select Dynamics 365 by Microsoft.  

However, you might be thinking about the ways to identify the need for a solution as per your industry. To help you achieve this here is a comparison of the basic features of both basic ERP and Dynamics 365. By the end of the article, you’ll know what’s right for you.

erp-implementation

Features Capabilities:

So you can make the best decision for your organisation you will need to understand the basic difference between the ability of each. 

  1. Implementation and Integration

The implementation of the Dynamics can be challenging at times; Microsoft Dynamics is a powerful yet complex system. If you fail in implementation, you might pay for it in the long run. However, Dynamics is easy to integrate with other Microsoft products which means employees can access Microsoft products without going outside of ERP.

The other ERP systems may be easy to implement, but they are difficult for accessing the other Microsoft products.

2. Financials

Dynamics 365 has the capability of managing 95% of financial functionalities. Other software is said to be capable of 90%. Well, it might be a small one, but still an impactful difference, especially for larger size organizations.

3. Human Resources

Human Resources is the most crucial department of any organization. Dynamics covers 88% of the functions required for HR as compared to other ERP as they cover 78% of functionalities. From here it is up to you as you have to see if it is suitable for your industry or not.

4. Manufacturing Management

You can manage 96% of manufacturing functionalities with Dynamics 365. Other ERP solutions only cover 88% of the functionalities. You can see a clear difference here.

5. Inventory Management

Dynamics will be offering you 96% of the modules of inventory. Other ERP solutions may support only 86% of functionalities. However, you may still need to look for the benefits in the long run, and you can find other independent software more convenient and helpful.

6. Purchasing Management

Dynamics 365 is supporting the Purchasing managing functions of up to 99%. Well, there is not much difference as other ERP software cover 91% of the functions and features of purchasing management. Also, Microsoft dynamics has many other benefits too.

7. Quality Management

In quality management functions, Dynamics can offer you the coverage of 99%. This gives a huge advantage to D365 as the other competitive software is only covering 82%.

8. Sales Management

For the sales management module, Dynamics 365 has the support of 96% of the functions. Meanwhile, other ERP solutions will only be supporting 90% of functions.  This is giving a noticeable difference between Dynamics and other ERP solutions.

9. Customer Support

Dynamics 365 covers many customer support modules, along with automated bots and solutions. However, it can complex for the employees, and they will need training programs. You can find many of them from Microsoft as they are online or consult your vendor for it. They can offer you a great package for training your employees.

Determine if Dynamics 365 fits your organization’s needs

 

Now choosing between the simple ERP solutions of taking up the challenging Dynamics 365 by Microsoft can be difficult. It is up to you, and you must figure it out considering the size of your business and other needs for ERP solutions. Suppose you are a larger company with various departments in it. This might mean you probably need a huge and accessible system for the whole organization.

So, do you think that Dynamics 365 is suitable for following and can cover these industries?

  • ERP solution for small business
  • ERP solution for schools
  • ERP solution for the manufacturing industry
  • ERP solution for educational institute
  • ERP solution for the construction industry
  • ERP solution for hospital management

Dynamics 365 is completely suitable because it is offering four main ERP solutions:

  • Dynamics AX
  • Dynamics NAV
  • Dynamics GP
  • SL plus CRM software (Microsoft Dynamics CRM) and Software for retail business.

Most of these solutions are perfectly fit for small to medium-sized businesses covering the HR and financial management departments smartly. However, AX may have more tendency for larger organizations operating in different countries.

Still, different solutions have different features, and they can offer perfect systems for all of the above mentioned ERP solutions. All of the given choices by Microsoft makes it easier for businesses to choose a selective ERP solution as per their business needs.

Final Thoughts

 

If you are still wondering, you can contact the DFSM consultants as they are experts and will be helpful to guide you. Further, you can easily choose the solution suitable for your organization. Talk to the experts for the implementation and integration of the solutions now!!

Talk with an Expert Today

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Talk with an Expert Today

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.

Download Template

You consent to the processing of your
personal data by clicking on the button.
Terms of use.