Leveraging your Resources

Updated: Feb 4, 2019

Getting your Money’s Worth

Following up from last week’s post, it’s important to note that the challenges for organizations do not end by making the right decision on the purchase of an ERP System. Among the most attractive functionalities of ERP Systems is the use of Material Requirements Planning (MRP) and Master Production Schedule (MPS) modules.

However, surveys show that many companies that have purchased expensive ERP systems end up not using the MRP or MPS modules. Instead, they rely on Excel sheets and manual entries/calculations. This is happening across industries and is causing organizations to waste valuable time and resources. The reasons for the inability to utilize these two essential modules (MRP & MPS) are mostly centered around data inaccuracy or data pollution.

There are common factors that may cause data inaccuracy or data pollution in the ERP system:

  • Inaccurate inventory;

  • Inaccurate supplier data (e.g. avg. & max lead times);

  • Non-standardized item code conventions and item specs;

  • Undetermined order quantities;

  • Inaccurate material usage data;

  • Inaccurate data entry or lack of data entry;

However, all of these causes are removable upon careful planning and execution of an ERP Optimization Project, allowing companies to reap the fruits of their investments and leverage their resources to create competitive advantage.

Is your company struggling with some of these very same issues? Let Verbum Consulting help you “Do More with Less”.

Verbum Consulting, Leveraging your Resources