ERP for smaller companies

[GByteKnight]

Does anyone have any experience with ERP implementation for small/medium businesses? This would be for a company that does services, customized manufacturing (i.e. lots of options for each unit) and CRM/Marketing. It also has the basic needs like HR, accounting and finance. It's in the <$50M revenue range and it's a private company with an owner who understands that if they choose to deploy ERP they are looking at a capital investment of between $500k and $3M to purchase and implement, in addition to considerable ongoing costs. The benefits would be better integration between the departments' systems, and easier scaling as the company grows.

So with that in mind, what systems should the company be thinking of? Has anyone been through an implementation who can point out things to watch out for, or make sure to do? Any success stories of before and after?

 

[Molokaimule]

It doesn't really matter what ERP system you end up with (16yrs of SAP for me) but key pitfall = master data.

Master data is arguably the most important thing to get right. right as in as perfect as can be. If your master data is not correct from the get-go you are in for a slow ride to hell. Every department (sales, purchasing, Manuf., accounting) is going to be tied to the master data. Key players must be onboard with making absolutly sure that the master data is as clean as can be.
Also recognize that while you can force and ERP around existing business practices, it is very important that the business be open to new ways that the ERP system may allow for doing business.
In a couple of different scenarios I have seen companies either try to bend an ERP to the existing "well, that is how we have always done it" to "well, now is a good chance to look at how our business works now and what a new system can let us improve" to "Meh, we can just do all our work in spreadsheets and enter it in the system later when we get around to it...hey who turned out the lights?"

ERPs can be a big scary process, but with the right mindset from management and all the key players, it can truly transform a business or it can go up in spectacular fashion.

*not responsible for typo's i just got back from vacation.*

 

[wallinbl]

I've done three ERP implementations over the course of time.

I implemented and used/customized Sage/Acuity at an eCommerce outfit. No manufacturing, but did custom integration of the eCommerce and completely rewrote pick/pack/ship (the built in pick/pack/ship was beyond terrible). I will never use this system again, nor will I recommend it. It did not give us any trouble, but the market for add-ons, consultants, etc was weak.

I implemented and used/customized Oracle Financials at a dot com era eCommerce company. That company bit off way more than it could chew thinking it was the next Amazon and needed to have what the CEO thought the big boys used. It required more IT support than the company really could handle giving it, and more things became about the system than about the company. Support and consultants were available but expensive, and third party space was also decent.

I implemented and used/customized Dynamics GP (Microsoft) at a company that's a conglomerate of manufacturing, healthcare provider, and various related businesses. Two different businesses used the manufacturing/bill of materials functions - one only made two products, the more complex of which only had about 120 parts, including intermediate outputs. The other is nearly all custom orders (custom fit prostheses). It was relatively easy to get both going, to customize, and to get consultants with decent knowledge. The third party space is also pretty good. The main downside: the database table names are numbers and the column names are hyper abbreviated - you can get around this by creating views for nearly the entire database, though.

 

[GByteKnight]

Thanks guys (for the posts and for the PM I received). This is definitely helpful. I know that data has to be a huge part of the conversation, whichever way this company goes.

Dynamics is definitely of interest here. I've had good experience with it on the back end doing BA work as well as on the front end as a financial analyst, but only with the finance and accounting modules.

 

[Cosby]

Don't even look at Infor SyteLine. Horrible buggy software that I hate dealing with

 

[Pontiphex]

Molokaimule[/url]":33waqtjr]Also recognize that while you can force and ERP around existing business practices, it is very important that the business be open to new ways that the ERP system may allow for doing business.

In a couple of different scenarios I have seen companies either try to bend an ERP to the existing "well, that is how we have always done it" to "well, now is a good chance to look at how our business works now and what a new system can let us improve" to "Meh, we can just do all our work in spreadsheets and enter it in the system later when we get around to it...hey who turned out the lights?" *

I'd say this is just as important as not having trash master data. You need to change your physical processes to match how the software was designed to work - end of story. Any other way is the path of pain and misery. Ideally your software vendor will have built the system to handle the most ideal (but generic) approach to any given process.

If the mismatch is too great - and you feel the changes to your processes are not workable - find a different vendor. Customization kills projects - what could be implemented in a month if you stay with off-the-shelf features can take months or a year if you need the vendor to make changes to the code - and your customizations have a higher chance of breaking in subsequent updates, because you are the special snowflake using a particular codepath, instead of following the path used by many customers.

Also, the more up front work you can do in making your RFP cover all your needs up front - the better. Don't pollute it with nonsensical bullshit fluff you found from some Enterprise Software RFP Template.

 

[sciencegeek]

Deltek

 

[yak8998]

I think you can make dynamics AX happen for that budget, depending on just how much customization you are looking at.

 

[M. Jones]

GByteKnight[/url]":dtrbeaek]It's in the <$50M revenue range and it's a private company with an owner who understands that if they choose to deploy ERP they are looking at a capital investment of between $500k and $3M to purchase and implement, in addition to considerable ongoing costs.

I would put tremendous effort into using one of the open-source ERP packages, either as end-user or consulting implementor, because the return on investment would almost certainly be large.

 

[LTParis]

SAP B1 or Dynamics. We are about to kick off a Infor TakeStock > SAP B1 effort. And with customizations and add-ons you should fall into the very low end of that budget.