Implementing an ERP system — which involves planning, configuring, customizing, and deploying a new solution — impacts every aspect of the business, including finance, HR, sales, and manufacturing. To ensure that implementation goes well, key stakeholders need to be consulted before and during the implementation, so the entire business is ready for the change. While there is no single method to identify the right implementation strategy for any organization or enterprise, there are several factors that affect the strategy and timeline for an ERP implementation. They include:

• Company size
• Number of locations
• Business process complexities
• Number of integrations with third-party applications
• Employee headcount
• Type of industry and operation structure
• Nature of customizations
• Migration of master data and transactional data
• Change management

Depending on the selected implementation approach and the complexity of business processes, ERP implementations can take anywhere from four months to two years or more. Regardless of the timeline, choosing the right ERP partners, establishing a well-documented project plan, and properly allocating resources will determine how effective the ERP implementation is.

There are three important pillars in every ERP implementation: people, process, and technology. Most ERP implementation failures result from inadequate planning and resource management, coupled with a lack of awareness regarding risks. This failure can happen at multiple levels, affecting critical business processes that can overwhelm a technical team’s ability to manage risks and change effectively. Understanding the relationships between the people, processes, and technology involved will help determine which type of ERP implementation strategy is best suited for each project or company.

Implementation Strategies – Key to successful ERP implementations

While there are a few proven strategies for transitioning to new ERP systems, each with advantages and disadvantages, successful implementations always depend on the stakeholders working together with a shared goal and vision of business success.

These are the four most common Implementation strategies:

Big Bang approach:

The term “big-bang ERP implementation” describes a go-live scenario where a business switches from its existing legacy system to a new solution at a single point in time. The big bang approach has the potential to reduce the integration cost. In this approach, everything moves to a new system at the same time. All integration work — including any related to data management, training, and establishing processes and configurations — should be completed by the go-live date. Businesses in some industries may be reluctant to use the big bang approach because it requires too many resources to support the go-live.

Pros and cons of the big bang approach

Phased roll-out approach:

In a phased roll-out, the modules of the ERP system are introduced in a planned sequence, replacing the old system gradually. For example, a company operating in different geographic locations might roll out of the new ERP solution one location at a time. This approach has a minimal impact on the overall organization or enterprise, and one of the greatest benefits of a phased rollout is that it gives users more time to learn and adapt to the new system. In this way, older systems can be replaced gradually rather than all at once. Milestones can be set for each phased rollout based on factors such as:

• Modules and complexities
• Business units
• Geographic locations

Pros and cons of a phased roll-out approach:

Parallel adoption approach:

The parallel approach to an ERP implementation is to keep the legacy system and the new system running concurrently for a while. The amount of time for which both the systems are in operation could range from one day to several months. One advantage of parallel adoption is that it provides a safety net in case something goes wrong. The enterprise business process will not be disrupted if the new ERP system breaks down. This approach also provides number-to-number comparisons to confirm that the new ERP system is performing the necessary business process flows. This strategy is best suited for mission-critical situations that cannot survive a major breakdown of an ERP system.

Pros and cons of the parallel roll-out approach:

Hybrid Adoption Approach:

The hybrid implementation strategy incorporates elements of the parallel, big bang, and phased approaches. Hybrid strategies vary depending on the nature and size of the enterprise. Small to medium-sized organizations with very few sites tend to have simple hybrid strategies whereas large conglomerates may require more complex hybrid implementation strategies for a successful ERP implementation.

Pros & Cons of Hybrid Roll-out approach:

Inspirage can help

An ERP implementation can be a long journey, so selecting the right strategy is crucial. Once all business processes are aligned, the dramatic positive impact on ROI (return on investment) will be obvious to everyone. Working with a partner to establish industry best practices during the process creates a more seamless and speedier experience. Inspirage can guide your journey down the right path and reduce implementation costs by delivering a well-defined ERP implementation strategy and communication process.

As the Integrated Supply Chain Specialists, with recognition from Gartner, IDC, and winners of Oracle’s 2021 Game Changer Award for SCM Service Delivery Partner of the Year, Inspirage is uniquely qualified to be your success partner. Whether you are upgrading your on-prem system or have decided to move to the cloud where continuous improvement is built-in, our team is prepared to guide you on your transformational journey.

We are very excited to announce the launch of a unique Inspirage initiative coming up this Summer and Fall: The Supply Chain Transformation European Tour 2022.

This is a series of exclusive networking events hosted by Inspirage and Oracle in seven countries across Europe targeting Business, Finance, and IT Leaders involved in Digital Transformation programs. During the events, we will share ways you can bring visibility and predictability into your supply chain and flawlessly execute and deliver business value with Oracle Cloud applications and Inspirage Control Tower solutions. You will hear customer testimonials from clients who have already transformed their operations and increased customer satisfaction by deploying these solutions.

Currently, all industrial sectors face disruptions and lack the stability needed to control their supply chains. At the same time, there is a high demand for their products. Backlogs are constantly growing as suppliers are unable to deliver materials on time, and the impact on customers is huge. These companies require urgent solutions that will provide better visibility into their suppliers and their supply chains. They need the ability to react quickly to supply chain issues and predict their outcomes.

Inspirage and Oracle are pioneers in developing and implementing integrated supply chain solutions to support complex businesses where extended supply chain management and control are critical for success. Inspirage’s innovative, cross-domain Enterprise Control Tower solution is designed to provide integrated, single-source-of-truth supply chain visibility and an execution platform that complements the Oracle ERP/SCM Cloud application suite. It allows the users to remove siloed views and effectively manage risks and disruptions, predict outcomes, and control their carbon footprint.
 

 
We will kick off our tour with our first event in Frankfurt, Germany, on 6 July 2022. Other countries will follow, including Sweden (6th September), Finland (8th September), Switzerland (27th September), France (29th September), Netherlands (4th October), and the UK (6th October).

Registration is already open for the German event  — click here to register. We suggest you sign up sooner rather than later as we have a limited number of spaces available. All the presentations will be delivered in German, with the exception of the Demo session. For the additional countries following Frankfurt, please register your interest by sending an email to inspirage.events@inspirage.com.

We hope to see you at our events!

Record-high oil and gas prices have been making headlines across the world in 2022, inspiring closer scrutiny of the challenges and opportunities the oil and gas industry is facing as it races to adapt to an uncertain future. To help you view these important trends from a well-informed perspective, Inspirage recently launched its new “Unscripted” series of video interviews. In these two sessions, Oracle executives explain recent developments surrounding oil and gas and how they may influence transformative strategies employed by companies in the industry. 

Lights, camera, insights! 

Hosted by Derron Mirtsching, Solution Director for Business Development and Supply Chain Management at Inspirage, “Oil & Gas Unscripted, Part 1,” features Jon Krome, Executive Director of Oil and Gas Transformation and Strategy at Oracle. “Oil & Gas Unscripted, Part 2” points the camera at Mitch Raley, Director of Business Value Services at Oracle. (Each video is only 15 minutes long, so they’re easy to watch in their entirety whenever you get a chance.) 

As Krome noted, last year’s United Nations Climate Change Conference, commonly referred to as “COP26,” helped reinforce public perceptions of the connections between climate change and the oil and gas industry. That, in turn, is forcing a reconsideration of how the demand for more climate-conscious energy resources might influence emerging strategies. 

“There’s going to be a drive to electrify,” he said. “Carbon production will become a new measure of interest, much like oil and gas production or water production. But electrification needs to be done wisely because electrification that isn’t powered by a renewable or lower-carbon energy source is really nothing more than carbon shifting. You’re shifting the carbon output from the piece of machinery itself to the electricity provider. As hydrocarbon demand eventually starts to fall, either because of regulation or new technology, oil and gas producers will feel new pressures.” 

One trend… multiple outcomes? 

Krome also notes that today’s higher prices for oil and gas present seemingly contradictory implications for future investment in the industry. “Higher prices are an incentive for oil companies to keep doing what they’re doing,” he said. “Higher oil prices make more difficult projects much more appealing for them and, at least in the short term, siphon off investments in other businesses. At the same time, however, higher prices are an incentive for alternative fuel sources. Can you imagine if oil went to $200 a barrel? All of a sudden, a lot of renewable projects would start to look very good.” 

When you add other considerations to the mix, he said, such as ESG (environmental, social, and corporate governance) priorities, the importance of effective data management increases. So, too, does the need to harness IoT or the internet of things. “In its most general form, IoT has come to mean using the industrial internet to collect, manage, and analyze information,” Krome said. “That’s how we’re going to gather a lot of the data that we’ll need.” To hear more of his thoughts on that subject — and about the future role of machine learning and artificial intelligence in the industry — watch “Oil & Gas Unscripted, Part 1.” 

Delving into digital transformation 

On a related note, Raley believes digital transformation will be essential to oil companies’ ability to get quicker results and subsequently build on them. “The oil and gas companies that have predominantly lived in a world of monolithic architectures and built a lot of different systems are now realizing they have a lot of technology debt that’s preventing them from innovating and moving forward,” he said. 

“For them, digital transformation means they not only have to transform their systems but also change their thinking. And they need to transform their processes,” Raley added. “A lot of their processes are not nimble enough to carry them forward. Part of that digital transformation involves adopting newer and emerging technologies like the cloud. In addition, the IoT, machine learning, and artificial intelligence will help automate more of their mundane processes. So, we’re not just talking about technology, but also about the people and the processes involved.”  

His insights aren’t lost on those in the oil and gas industry who are searching for efficient ways of enhancing their operations and success. “I recently spoke with a customer who said that it takes up to 12 days — 12 days! — just to gather all the information they need from their disparate ERP (Enterprise Resource Planning) systems. We’re now talking to them about digital transformation and what that means.” To hear what he tells customers in that situation, and to learn more about how he believes they should address their technology debt, tune into “Oil & Gas Unscripted, Part 2.” 

Coming soon

There are more Unscripted sessions in the pipeline, too. Stay tuned for upcoming episodes focusing on the Inspirage PLM (Product Lifecycle Management) team’s Recipe Management and Supplier Portal solutions. 

It is not an exaggeration to say that the entire fate of a business hinges on the quality of its enterprise resource planning (ERP) implementation. An ERP system not only represents a major financial investment for companies, but it also touches every essential aspect of their operations from accounting to supply chain management.

Accordingly, the costs of not properly implementing an ERP solution are substantial, with some of the most notable failures bearing multimillion-dollar price tags, as chronicled by ERP News. Recent trends in ERP development — most notably, the move to cloud ERP and the integration of relatively new technologies such as artificial intelligence (AI) — have been driven by organizations looking to ensure that their ERP solutions are less risk-prone. In other words, they’re looking for ERPs that are more cost-effective, better capable of supporting informed decision-making, and easily scalable as company operations grow.

With those considerations in mind, let’s look at some of the top trends in ERP in 2021 and beyond.

1. The ongoing rise of cloud ERP

Cloud ERP has gained significant momentum in recent years for several reasons:

• Latest and greatest functionality: Modern cloud-based ERPs always deliver the most recent features from their respective vendors, with updates arriving frequently (e.g., on a quarterly basis).
• Manageable costs: With cloud ERP, companies can move from capital expenditures to operating expenditures. This shift provides more budgetary flexibility and lets them pay for what they actually use.
• Straightforward access: As more employees go remote, cloud ERP provides the flexible access that they need. Workers don’t need to be within the four walls of the organization and can instead access applications over the internet.
• Scalability: By hosting EPR in the cloud, companies can eliminate the burden of managing and upgrading hardware and software on-premises. This newfound simplicity supports more scalable operations.

According to MarketsandMarkets, the global cloud ERP market will more than double in size between 2020 and 2025, reaching $101.1 billion in value.
 

 

2. AI comes to ERP

Artificial intelligence (AI) is changing how organizations collect, analyze, and apply their business data, so it’s not surprising that it has found a comfortable place within ERP solutions. Major use cases for AI in ERP include:

• Deeper data insights: As the amount of unstructured data that organizations generate continues to increase, AI provides a way to systematically identify patterns and surface actionable insights.
• Process automation: AI can automate a lot of otherwise tedious and time consuming tasks, such as categorizing financial information from invoices and verifying reports. This frees up time for human teams to focus on other priorities.
• Optimized scheduling: In logistics and planning, AI can play a pivotal role in determining the optimal delivery and labor schedules. A 2019 IPFS survey of 600 executives found that 40% of them intended to use AI for inventory planning.

ERP vendors are also increasingly building such capabilities directly into their solutions, saving customers the trouble of having to implement AI modules on their own.

3. Multi-tier ERP

“One ERP to rule them all” has been the traditional approach to ERP deployments, as organizations have looked to use a single ERP to serve all of their locations. However, this hasn’t always worked out well, since the specialized requirements of different business units often exceed the capabilities of a one-size-fits-all ERP solution. Moreover, the costs of continually retrofitting a single ERP for the entire business can be substantial.

An alternative approach that has become more popular over time is the multi-tier or two-tier ERP. Under this setup, an organization uses one core ERP at the corporate level and another for its various divisions and subsidiaries. This approach may involve a combination of on-premises and cloud-based ERP solutions. Gartner has highlighted the benefits of multi-tier ERP, calling it a path toward easier modernization of small and fast-growing business units.

Making the multi-tier ERP work requires tight integrations between multiple systems. As an experienced Oracle partner, Inspirage has integrated ERP, supply chain and other solutions for organizations of all kinds. Connect with our expert team to learn more about how we can guide your next project.

Hint: The Data Model Holds All of the Secrets

With so many options to choose from, selecting Enterprise software can be a challenging task. Even after an exhaustive search, sometimes the selection process does not lead to the desired outcome for your business long term. Let’s look at how best to approach software selection to ensure that you choose a solution that will best support your business needs.

Selecting Software for Long-Term Viability

As you have most likely experienced, going through the process of finding a new software solution can involve taking part in endless demonstrations. These can often leave you more confused than when you started. While demonstrations and reference checks are an essential part of the process, other considerations should not be overlooked. In addition to demonstrations, reference checks, gap analysis, and the other common techniques, mapping the ERP data model to your business is an essential part of determining if your new solution’s long-term viability.
 

 

Mapping the ERP Data Model to Your Business

For example, if you are a project manufacturing company, then it is safe to say that you understand the importance of having your ERP system’s database stripe all transaction data by project number. Our services were called on after a project manufacturing company narrowed its ERP selection to two vendors and chose the user interface with the best look and feel. Unfortunately, this vendor did not stripe the transaction data by project number, and the company faced ten years of workarounds following the implementation of that software. Inspirage was able to get this company on the road to efficiency and visibility with a solution that resolved its years of ongoing issues.

At your company, do you have alternative ways of making the same product? If so, then software that supports this scenario and accounts for different resources will be an essential feature. Simply supporting alternate resources is not enough. Software that drills down and allows the user to identify whether the alternate resource definition is global, at the work center level, or the routing level is vital to an efficient process. Having the ability to check the database design of the ERP you are considering allows you to figure out the level of granularity present in the data model.

Does your company have more than one manufacturing location? If so, you will need multi-site Material Requirement Planning (MRP). Make sure to check the data model to see if the manufacturing site stripes all the MRP-related data. If you are a process manufacturing company, it is important that you have available a dual unit of measure feature. Check the data model to see if it is present.

Finally, ask yourself what fulfillment models do you use (or want to use)? If you can gain a competitive advantage by using advanced fulfillment techniques like Back-to-Back, Drop-Ship, and Contract Manufacturing, then ensure that the ERP system you are considering supports these fulfillment techniques at the database level.
 

 

Putting It All Together

Unless you have recently implemented an enterprise system, the ERP system you are using today is probably not the same one you will be using ten years from now. Take time to understand your business needs so that the selection of and investment in your next ERP system does not cause more problems than it solves.

As a recognized Oracle partner, Inspirage’s team of experts can help you select and implement an ERP system that solves your business challenges. In addition to our Oracle Application expertise, we have created a library of innovative PaaS solutions to supercharge you Oracle Applications so they best fit your needs. Please visit the Oracle Cloud Marketplace to see a complete listing of Inspirage Solutions and contact us with any questions or to schedule a demo.

2020 created unprecedented challenges for nearly everyone, including finance teams that had to, for the first time, perform much of their work remotely. Moreover, this major on-the-fly adjustment to telecommuting compounded longstanding difficulties in managing financial processes, which remained a headache for many organizations throughout 2020.

The Biggest Problems with Financial Processes in 2020

According to a 2020 Forrester Consulting survey of 336 IT and finance executives around the world, 90% of respondents reported problems with their close process, with the most common stumbling blocks including:

• Error-prone manual processes: Flagged by 44% of survey takers, these types of activities, often revolving around spreadsheets and complex patchworks of other software, slow down financial operations and often require rework, anyway.
• Overly complex ERP systems: ERPs that feature lots of disparate vendors and technology stacks can easily lead to confusion, siloed processes and difficulties collaborating across teams.
• Not enough bandwidth for strategic projects: Many CFOs spend more time tracking down financial information across complicated ERP environments (17% of their work weeks, per the Forrester survey) than they do on business strategy (only 12%).

These challenges are not limited to financial consolidation and close processes. For many companies, financial processes are not yet automated or standardized, leading to time-consuming data entry (and re-entry) for reconciliations, reclassifications and adjustments.

Dealing with corrupted and/or outdated data is another hurdle, since the various systems involved may not be updated in real-time. Finance teams might not know what is being spent until they’re reviewing documents during the close itself, at which point they might still be waiting on assets from other departments and needing to re-check them for accuracy.

As teams look ahead to 2021 and beyond, a better approach is needed. Finance departments must contend not only with the above deep-seated issues but also with extended work-from-home as well as lingering uncertainty about how long it will take before their organizations recover from the turmoil caused by the coronavirus pandemic. Fortunately, there are reliable tools for doing so.

Building Better Financial Processes for the 2020s

Improving financial processes requires automation and adding advanced capabilities to an existing ERP can be transformative. Automate and modernize business processes across the board without introducing new complexity or higher costs by leveraging these key solution features:

A complete solution from the start

Ramping up with an Oracle Cloud solution is more straightforward than with more complex multi-vendor setups, which usually require extensive consulting before end-users can do anything beyond using a starter kit or template. Having a comprehensive platform from the get-go gives users power and also saves money.

Intelligent automation

The automation capabilities within Oracle applications allows for streamlined processes with broad support across both cloud and on-premise ERP solutions. Configurable rules and automatically applied accounting logic reduce the risk of human error while speeding up the day-to-day work of finance teams.

Flexibility to accommodate change

Financial processes are always evolving in response to changes in the business environment. Events like the COVID-19 pandemic underscore the importance of having an agile finance solution that can implement new models as necessary.

Overall, Oracle solutions enable improved reporting and analysis, through harmonization of key functionality in a consistent manner along with deeper process automation. This works in tandem with ERP solutions to refine and scale accounting activities, providing a crucial upgrade as teams become more remote and need standardized processes.

 
As an experienced and recognized Oracle partner, Inspirage has the expertise to guide your extension of your ERP system. Contact our team to learn more about how to get started on the path to superior financial process improvements.

Having an agile and flexible transportation management system (TMS) that can adapt to business changes and disruptions is crucial in achieving and maintaining a successful supply chain. In this webinar, learn how Mondelēz, a leading multinational food and beverage company, is using a cloud-based TMS to improve strategic decisions, reduce costs, and increase efficiencies. Mondelēz increased its operational agility and improved business outcomes by moving to cloud, enabling numerous benefits such as:

• Gaining real-time visibility across shipment status to optimize carrier-based decisions
• Responding dynamically to changing route conditions
• Standardizing logistics processes across the company globally, resulting in lower overhead costs

Join Inspirage to hear how Oracle Transportation Management Cloud is being successfully leveraged in conjunction with the company’s SAP ERP to improve business outcomes, and how Mondelēz simplified and streamlined its processes and ERP integration.
 

Meet the Speakers

Rob Owen, North America Lead Transportation Network Optimization, Mondelēz International

Rob Owen is a Transportation and Supply Chain process and systems expert with over 25 years of global experience. Rob is currently NA Transportation Optimization Lead for Mondelēz International. He currently oversees the company’s OTM platform and peripheral solutions across a complex array of plants, external manufacturers, buffers, DCs, branches, cross-docks and cross-border operations. Rob recently led the corporation’s re-implementation of on-premise OTM to SaaS.

Derron Mirtsching, Strategic Account Director, Inspirage

With more than 20 years of Supply Chain operations, sales, solution development, value identification and implementation experience across multiple verticals and industries, Derron has worked with clients to design and deliver high value solutions and strategy around the world. Throughout his career, Derron has been known as a top performing supply chain solution architect and business development resource with proven success with positions in companies like Cargill, Manugistics, Koch Industries, IBM, Oracle and SAP.

Derek Gittoes, Vice President, Supply Chain Management Product Strategy, Oracle

Derek Gittoes is vice president for supply chain management product strategy and leads the team responsible for Oracle’s portfolio of cloud products for logistics and order management. He is responsible for defining the go-to-market strategy and product road map for Oracle’s solutions in transportation management, inventory management, warehouse management, global trade management, and order management.

As a result of ever-changing IT innovations, your company, like many, is most likely fraught with a fragmented landscape made up of loosely integrated layers from different systems. You are primarily operating out of highly customized on-premise solutions which are costly and slow to upgrade. Your level of customer-satisfaction is not to your standard and you lack the level of granularity in your visibility for many critical processes. You are struggling with your competitors because you don’t have the advanced capabilities or insight to adjust gears quickly. You understand that with your current systems, any new acquisition, innovation, or supply chain initiative takes considerable time to be integrated enterprise-wide, resulting in lost synergy and return on investment.

If you are nodding your head in agreement with any of these points, then this webinar is for you. We will show how Inspirage utilizes Oracle ERP Cloud solutions to ensure your company’s ERP transformation will not only be affordable, timely, and completed with minimal risk, but also the game changer you need to align with your business goals. In addition, our team will share real life examples from our customers, Cohu and Mecalac. Hear the reasons why they decided on an ERP transformations as the strategic initiative needed to increase their operational efficiency and put their organizations on the much-needed path to growth.

If your company’s ERP systems aren’t aligning with your business goals, this webinar will show you how you can:

• Enhance your operational efficiency and support your organization’s plan for growth
• Use real customer experiences to benchmark your own business circumstances
• Gain predictive control and visibility over your enterprise
• Plan and prioritise your own ERP transformation
 

Meet the Speakers:

Denis Senpere, Vice President, Inspirage Europe

Denis joined Inspirage in 2016 to lead the European development of the company. He has more than 20 years of experience in SCM applied to discrete manufacturing, life sciences and consumer goods industries. As such he is often engaged as executive sponsor for Inspirage industrial projects. Denis also serves as a board member to several European technology companies.

Thomas Elwers, Practice Director, Inspirage Europe

Since 2015, Thomas has brought his 20+ years of experience in Supply Chain projects across manufacturing and process industries. Based in Hamburg, Thomas currently leads several consulting and implementation ERP/SCM projects in Germany and Western Europe.

Lionel Albert, Senior Director Manufacturing and Supply Chain Solutions, Oracle EMEA

Based in Paris, Lionel carries 25+ years of experience in Supply Chain and Manufacturing and often participates in panels of international experts. At Oracle, he drives SCM strategic requirements for the European markets and works closely with Oracle product development. Additionally, he regularly engages in Supply Chain transformation projects as part of customer steering committees.

In today’s rapidly changing business environment, companies must move faster in everything they do. Enabling a lean enterprise can help companies to be more competitive and could be the difference between success and failure.

This webcast is organized in collaboration between Mecalac, Inspirage and Oracle.

Mecalac is a global manufacturer using lean principles to build compact class construction equipment. Attend this webcast to hear how they are using their Oracle Cloud applications globally to:

• Increase productivity
• Execute optimally
• Collaborate across their supply chain to get better results

More specifically, you will hear how Mecalac and Inspirage partnership has led to the deployment of a full ERP/SCM solution in the Oracle Cloud where the support of Mecalac Manufacturing processes has been both enhanced and simplified through additional Cloud applications developed using PaaS technology for their Assembly Line Operations (Flow Manufacturing).

The presentation will also cover how Mecalac is managing their complex product configurations to feed properly their assembly lines.

In a natural disaster such as a major hurricane, tsunami, or earthquake, people even far away from the incident might feel its effects due to the breakdown of supply chains running through that area. Disruptions to the networks that distribute and deliver critical goods could cause many items that had previously been taken for granted to become scarce.

It doesn’t even take a high-profile natural disaster for such delays to become noticeable. For example, in 2004, an unexpected blockage in the Suez Canal delayed many holiday shipments of the Sony PlayStation 2 video game console to Europe.

Most supply chain disruptions aren’t that dramatic or connected to high-profile consumer products. Still, they make themselves felt in the form of higher prices and sudden shortages for consumers and steep financial losses for organizations.

If you run a supply chain-oriented organization, avoiding and mitigating disruptions is a priority. A lot can go wrong, but fortunately there are numerous technologies and practices that can lessen overall risk and avoid negative ramifications for the bottom line.

A look at some of the biggest supply chain risks and how they lead to disruption

We’ve already highlighted a few of the common culprits of supply chain disruption — natural disasters and transportation failures. These causes and a few others merit deeper attention to understand how they can be effectively mitigated.

Natural disasters

Storms, earthquakes, fires and more are all prominent external risks to supply chain management that can slow down or compromise shipments altogether. The extent of the damage they do often depends on how geographically diverse and redundant a supply chain is. Planning ahead with dispersed facilities and transportation networks that also run through lower-risk locales (e.g., maintaining a backup data center in a part of California that’s not near a fault line) can help head off some of the more than $200 billion in annual economic losses attributable to natural disasters.

Transportation issues

Safe, timely and cost-effective delivery is integral to an efficient supply chain. Many complications can arise en route to streamlined logistics, though. In addition to congested or closed-off transit routes, there’s the possibility of theft and fluctuating fuel costs that can put pressure on margins. For example, rising diesel costs in the late 2010s have made truck transportation more expensive. Contingency planning and route optimization are necessary for minimizing the impact of these problems.

Planning and forecasting

To some extent, supply chain damages from natural disasters and transportation issues are unavoidable, since the events are mostly exogenous. This isn’t the case with planning and forecasting failures, however. Whether a supply chain organization can accurately predict demand and ensure that all the necessary infrastructure is in place to respond to any changes thereto will depend on how it has set up its supply chain technologies and processes. Adding cloud-based ERP and planning systems, integrating legacy IT systems with new ones and weaving in innovations such as blockchain, artificial intelligence and the Internet of Things (IoT) can all greatly improve the efficiency of a modern supply chain. That leads to fewer surprises on the demand side as well as more effective responses to adverse events.
Keeping pace with industry changes

Thanks to everything from evolving regulations to advances in specific technologies like ERP and IoT, supply chain companies can never stand still if they want to be able mitigate disruptions in their supply chain and maintain a competitive advantage. Staying up-to-date can be challenging, but doing so is much easier with the help of integrated supply chain experts who have a track record managing complex projects. Management consultants, project managers and other experienced personnel can review what’s already in place, suggest company-specific improvements and monitor ongoing progress, even after the go-live date. This level of support can be the difference between a supply chain that evolves to mitigate the wide variety of risks and one that leaves its organization flat-footed when disaster strikes.

How to ensure your supply chain is on the right track

Supply chains are ever-evolving constructions, requiring constant attention and optimization. Inspirage can help your organization stay ahead of the curve by sharing our expertise and guiding your project from start to finish. Learn more by visiting our resource center or contacting our team directly!

Depending on your experience and predisposition, someone uttering the letters E-R-P will either elicit only a mild reaction – since you’re so familiar with the concept of enterprise resource planning and rely on it everyday – or trigger some painful memories about a difficult implementation or upgrade. There’s no shortage of such ERP horror stories; we’ve compiled a few of them ourselves. Cost overruns, technical failures and missed timelines are part and parcel of so many ERP projects. But with the rise of digital ERP, is there finally hope for smoother ERP operations?

On paper, yes. Digital transformation and cloud ERP – what we mean when we refer to “digital ERP” – go hand in hand as promising ways for organizations to make their supply chains more agile, streamlined and cost-effective. They represent a clear break from the traditional approach of maintaining many legacy systems that are siloed from each other, costly to maintain and in need of constant manual input. At the same time, there are still challenges in capitalizing on the potential of digital ERP. A 2016 survey, “The Current and Future State of Digital Supply Chain Transformation,” found that although 70 percent of respondents reported having started on digital transformation, more than 30 percent felt dissatisfied with their progress to date. The results of our own study from 2017 echo these numbers.

With that gap in mind, let’s talk about some lesser known facts about digital ERP. Understanding the power and possible complications of digital ERP is important in ensuring that your projects stay on track and deliver memorable and positive results.

Fact #1: Digital ERP can be just as secure as traditional ERP, and likely more so

Upgrading to a solution such as the Oracle ERP Cloud might have you initially worried about security. Indeed, concerns about the safety of cloud computing in general have made plenty of IT decision-makers second-guess their much-needed migrations. While some of these worries are justified, it’s important to step back and consider the advantages of cloud for security, including:

• Professional management: Cloud service providers and managed security service providers both bring dedicated, experienced staff to the table; in contrast, many organizations lack full-time security professionals.
• Up-to-date infrastructure: With cloud at the heart of your digital ERP efforts, you ensure that you have access to the latest software, which is regularly patched against vulnerabilities as well as enhanced with new functionality.
• Flexibility: A key advantage of many cloud services is that you don’t have to go all-in – you can pair them with existing infrastructure as a part of hybrid deployment that gives you the best of both worlds, namely the control of local IT and the scalability and agility of cloud.

Digital ERP is also less exposed to many of the common threats facing on-prem systems, such as someone stealing a password, connecting an untrusted device to the network or messing up a key configuration. When you pursue digital transformation and implement a modern ERP, you offload much of the most onerous work associated with managing an ERP to professionals who can monitor critical systems around the clock.

Fact #2: Digital ERP is highly affordable, especially considering its financial benefits

Along with security issues, concerns about costs are near the top of the list when it comes to reasons for postponing a transition to digital ERP. Decision-makers often balk at the expense associated with changing over so much infrastructure and with the radically different economics of cloud compared to on-premises IT. Instead of buying fixed assets as capital expenditures, ERP spend instead goes toward services that are billed as operating expenditures. This can lead to questions like “After [X] years, won’t I have bought the equivalent of a [key IT asset]?”

In truth, digital ERP is often much more affordable. Plus, it removes a central risk long associated with ERP, namely the steep upfront costs. By switching to a modern ERP, organizations also gain greater agility in responding to evolving business requirements, which leads to improved return on investment (ROI). An ERP case study by Nucleus Research found that cloud ERP applications delivered more than twice the ROI of on-prem equivalents. More specifically, they were less expensive to implement, cheaper to support and more sustainable over the long run.

Fact #3: Implementing an ERP system does not have to be a gamble

The many striking stories about ERP implementations gone wrong might lead to think that any ERP project is risky. Why roll the dice on a costly rip-and-replace or a months-long upgrade slog when your current system, faults and all, is still more or less working?

ERP projects often fail for preventable reasons, whether they entail incorrect software selections, technical misconfigurations or oversights when revamping key operations and workflows to match new technologies. More broadly, too many implementations are focused purely on technical aspects without enough attention paid to properly training team members and re-engineering business processes.

This is where an experienced consulting partner can make all the difference. Integrated supply chain experts like the Inspirage team can oversee a digital ERP initiative from start to finish, providing assistance with everything from initial planning and solution selection to ongoing technical support and training.

With digital ERP, there is always room for improvement as new services and technologies become available. It was only recently that the Internet of Things, blockchain, robotic process automation and several other innovations finally entered the mainstream and changed the possibilities of digital ERP.  Working with a proven Oracle partner will help you make the most of these breakthroughs and harness their power within your ERP system.

To learn more about how Inspirage can help you on your journey to digital ERP, visit our Resource Center. You can also contact our team directly for additional information on our integrated supply chain solutions and consulting services.

Selecting and building the right ERP system is the best way to future-proof your business. As new trends such as digital supply chains, the Internet of Things (IoT) and blockchain technology influence your planning and operations, your ERP should be the stable backbone of your organization, providing integrated and scalable management of key functions from finance, through project management, to end-to-end execution.

To reliably deliver such benefits, more companies are deploying their ERP solutions in the cloud. The 2018 Panorama Consulting ERP Survey found a dramatic increase in cloud-based ERPs between 2017 and 2018:

• In 2017, 67 percent of respondents reported that they relied upon on-premises ERP, compared with only 27 percent for SaaS.
• By 2018, 64 percent confirmed they had SaaS in place and just 15 percent said they were still maintaining on-prem ERP.

It’s a huge shift, and one that’s easily explained: A cloud ERP provides a superior on-ramp to the services necessary for transforming the supply chain, for enabling IoT and blockchain strategies and for improving relations with suppliers as well as customers. It replaces the cost and complexity of an in-house solution with the efficiency and simplicity of an expertly managed platform, one that covers all of your most important workflows.

That said, it’s sensible for would-be adopters of cloud ERP to be wary of the transition, due to the number of infamous stories about ERP deployments gone wrong. With those incidents in mind, let’s explore a few ways to make sure you get your new ERP off to the right start and see consistent results from it over the long term.

Draw up a plan for cloud migration and support it with the right tools, processes, and partners

ERPs are complex by nature – they’re hubs for your entire business, after all. The prospect of moving one into the cloud can easily seem overwhelming. The good news is that a successful transition is possible with the proper tools and planning. Make sure that you’re paying attention to critical workflows like data conversion and quality, that you’re addressing change management from the get-go and that you involve your suppliers and partners in testing. Consider working with an implementation expert like Inspirage and using tools from vendors such as Oracle to streamline your migration.

Invest in digital finance through cloud solutions

Transitioning to a digital finance function, as embodied in a modern cloud ERP like an Oracle-based solution, has a demonstrable effect on business success. A 2019 joint report from Oracle and the Association of International Certified Professional Accountants found that while less than a third of finance teams qualified as “Digital Leaders” on finance, those that did were the most likely to have experienced revenue growth. Almost half of Digital Leaders had seen growth in the past 12 months, compared to only 29 percent of non-leaders.

Use dedicated staff and be sure to institutionalize knowledge of the ERP itself

ERP success is as much about people as it is about technology. To ensure an ERP that effectively supports your organization, you should have dedicated staff working on the transition and the configuration of new solutions. The switchover is too important to be conducted with project managers and other employees who are all juggling multiple disparate responsibilities. It’s also crucial to maintain a high level of institutional knowledge of your ERP. If the people who worked on the implementation are no longer with the organization, consider holding training sessions to refresh everyone’s ERP knowledge.

Inspirage will help you plan and complete your ERP journey. As Oracle experts, we’ll guide you through digital and cloud transformations that deliver results for initiatives from the IoT to the supply chain. Learn more in our Resource Center or by contacting our team.