ERP Set-Up Can Be Challenging

Setting up an ERP system can be a daunting task. We asked Debbie Pack, General Manager for Pacific Truck Colors, how they made their implementation successful and what advice they have for others. She has been involved in five implementations and says that the latest one was the smoothest.

Debbie states that good communication and a clear understanding between the provider and the purchaser as to their roles and responsibilities is a must.  Clear objectives and goals are needed.  Both parties must commit to this.

With all parties on board, an implementation can typically be accomplished in three to six months.  The vendor's implementation team should first spend some time understanding the business model of the customer.  This is a critical step in identifying the problem areas and ensuring that the transition will be a smooth one.  Every business has something that doesn't mesh perfectly with their choice in ERP systems and a work around will be required.   

GL, Customer and Vendor information needs to be entered 90 days prior to the expected go live date.  The part schema and other naming conventions should also be worked out at this stage of the implementation.  The framework should be agreed upon prior to data entry.  Inventory and WIP structure would be set up 6o days prior to going live.

At 30 days prior, test the system to see if it performs as expected.  This gives you time to work out the quirks in the system.  You should work on the applications and perform tests throughout the month.  You don't have to run both systems concurrently, but you do need to take certain tasks from start to finish in the new system to compare the results to those in the old system.

After the initial overview, training should be done in step with putting the information in the system.  Financial and contact management training in the 90-day period, production and inventory at the 60-day period, and other training as required.  Final import and data entry would be done at a pre determined cut off date where the transition was made to the new system.

All companies will face many challenges when implementing a new system.  Debbie states that staffing problems are an issue for many companies.  "You've got to dedicate the time to do it.  Most businesses right now are running short handed."  Resistance to change by some staff members also presents a challenge.  It is difficult for some to give up control in some areas.

File conversions also present challenges for some implementations.  Most implementations involve moving at least some of the data.  Getting the data in the right format to move to the new system often requires help.  In the case of this implementation, she was able to employ a third party to handle this.  Companies who are starting from scratch usually aren't fully aware of what the hurdles will be and face different challenges.  It is often difficult to transition without having the assistance of an accountant versed in this type of system.

Companies switching from an antiquated system with obsolete data to a new ERP system have particular challenges.  The newer systems allow more flexibility in terms of IDs, and part schema may need to be reworked.  This is a good opportunity to restructure GL.  Companies need to make the decision on whether or not to go alpha-numeric for some items.  They may also need to "clean up the garbage."  

For implementations from the ground up, Debbie says, "The biggest challenge is to get the structure right, because, if you screw it up, you are no better off than before."  With an implementation from the ground up, more time is needed to establish the structure before moving forward.

When asked how the latest implementation went for her, Debbie says, "Better than expected."  There were some issues with understanding the way this particular software functioned in terms of constraints for dates and periods, but once they got past that, it was all very smooth.  She has been through four other conversions and said this was "by far the easiest."

She says that ECi M1 has the most complete package for her needs, and the price is competitive. They also have a good reputation with their existing users in regards to after-sale service.  Debbie was given access to the user board and called several people who posted there.  All the feedback from these users was good. 

Debbie is very happy with the new ECi M1 system and the smooth transition. She sums it up with "I don't think there's a lot we would have done differently."

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