To execute your business, your company has set up an organizational structure, hired the right people (hopefully), delegated responsibility and incentivized desired behaviors. Operating within a defined structure helps your business avoids chaos, and keeps the right people working towards the right goals.
Consider this: up to 70% of companies’ total ERP costs relate to service and maintenance, yet most companies fail to see the value in these services. A recent Forrester Research survey of SAP users confirms this lack of perceived value. In that survey, 85% of respondents said that they barely use SAP’s Basic Support services.
Canadian manufacturers and distributors are increasingly turning to ERP to help them improve their fortunes, especially in the face of low-cost foreign competition and the high Canadian dollar. Many hope that ERP — or enterprise resource planning — software will help them become more efficient, productive and profitable. Unfortunately, too many companies learn that the path to ERP-driven value is more like a labyrinth with no exit than like a well-lit garden trail.
The client is a privately-held international manufacturer of polyethylene bags. It operates sales and manufacturing facilities in North America and Europe.
Post-ERP Implementation Troubles
The client underwent a problematic and costly Baan ERP implementation. Routine operations suffered in the months that followed. For example, ERP reports contained erroneous information, shop floor scheduling errors created unnecessary capacity and resource constraints, and there appeared to be an inefficient allocation of staffing resources.
After we implemented the ERP Action Plan, this aerospace manufacturer improved planning and shop scheduling accuracy by 20%. It cut budgeting and forecasting labour time by by 75%. Learn how we helped this manufacturer drive business benefits by optimizing its ERP system.
The Client is a fast-growing Canadian aerospace company that designs and manufactures components for commercial and military aircraft. In 2008, the Client achieved an impressive year-over-year revenue growth of 30%.
Imagine waking up one day to find out that your company's supply chain has ground to a halt, making it impossible to fulfill $100 million worth of orders. For Hershey's confectionary manufacturing and distribution operations, this nightmare came true in 1999.