Are You Operating by the Seat of Your Pants?
When you’re attempting to run lean, it’s easy to believe that simple systems are best. But if you are manually transferring information from one system to another or desperately trying to keep up with information captured in multiple systems, you could be losing money. You are almost certainly wasting important time. Are you one systems crash away from a major financial and reputational hit to your business bottom line? If you spend more time integrating your information than using it to improve efficiency and customer service, you’ve got a problem.
Cost of Operating by the Seat of Your Pants
One of the biggest risks in operating by the seat of your pants is in data loss, or the lack of data integrity. Keep in mind that data provides you real business information that delivers intelligence to your business teams. In real terms, lost data is lost revenue. Here’s why:
- You and your staff are wasting valuable time in an effort to find and/or recreate data from multiple, disconnected systems, and tracking materials throughout your supply chain.
- You have little insight into customer order fulfillment and business intelligence, which means you can’t spot seasonal trends or make inventory adjustments to meet them.
- Your accounting systems lack integrity, so you can’t trust the data on your reports. Accounting information that isn’t up-to-the-second isn’t worth much when you’re forecasting, negotiating with suppliers, or when you need the flexibility to make quick decisions.
Operating Proactively Leads to Spectacular Results When you make the shift from operating by the seat of your pants to proactively, improved efficiency means improvement in the bottom line as well. Orders can now be taken, shipped and electronically invoiced by one person, which means (in the case of one of our customers) over one hundred hours of labour was eliminate each week. Invoices are now completed even before the courier has picked up the order. Quotes are now more accurate, and inventory is updated daily. Inventory is now controlled and managed, enabling everyone to know exactly what’s in stock, what’s on order, and what’s at zero stock. Better inventory control allows for better forecasting. Simply put, ERP Systems enable effective business operations!
Where Are You Operating Now?
The first step toward proactive operations is to ask yourself some questions, and answer honestly. Do your systems get up to date information from each other? Do they provide intelligence when you need to respond to customer queries or give your sales team information that blows your competition out of the water? Do they track your inventory at all times, so you replenish it only when needed—not too early or not too late?
If any of your answers to those questions are no, then the next question is: Are you willing to adopt industry best practices and shift to a new way of doing business? If you could do it quickly—and flexibly—building it from your most critical business need to the added capabilities your business needs to build solid, proven maturity and predictably shift your business success into high speed, would you?
How Do You Get There?
If you’re ready to explore integrating your systems to shift to a proactive operations model, get in touch. We can connect for a no-pressure conversation about your business challenges, and the steps you can take to overcome them.
If you’re not sure you’re there yet, take our Capability Maturity Model Survey. It can provide more insight into where you’re operating now and where you could be in the not-too-distant future.