If you were sitting in front of an investor or customer, and they asked you a simple question like: ‘How quickly can you make 10,000 widgets’ – how long would it take you to answer them?
Are you able to see your current production demand, customer expected ship dates, material lead times and workforce manning to come up with an accurate answer? Would you just be guessing?
Many companies (especially sales people) either guess, or tell the customer/investor what they think they want to hear. Short lead times and low prices. How much trouble is your company going to be in when product is delivered 4 weeks late at 20% higher price? Worse yet, the customer cancels the order, or you have to eat the additional 20% because you didn’t allot for employee overtime or expediting materials?
These issues are generally easily handled with a well designed, well implemented ERP System.
Track material lead times, production times, load level your production floor, accurately track employee time per job and track actual production costs.
The next time you are asked how long it will take, pull out your phone and pull up your ERP system — have an accurate answer in 30 seconds.
Are your employees overwhelmed, confused, annoyed and aggravated when someone asks them a seemingly simple question?
- What is the Available to Promise Date for these items if I order them today?
- Can you get me the balance sheet this afternoon (even though today is the first of the month)?
- How many orders have we had for this product in the past 3 years?
- Do you have shipment tracking information for something that shipped out 6 weeks ago?
We don’t have a line in the sand that dictates whether or not you need an ERP solution at your manufacturing/distribution facility. These are just some indicators that will help you identify whether you may need ERP.