Technology @ a Crossroads? Motherships and etc.

Back in July, we seemed to have hit a nerve with some distributors and manufacturers about some former Mothership ERP's that are now drifting out of orbit.

As we read emails and listened to phone calls, it became apparent that some distributors had followed a similar path when purchasing their latest ERP system.

• They did a quick survey to make sure they covered their Cardex system functions.
• They talked to their industry buddies to make sure the new system would work (if it is good enough for them it is good enough for us review process!)
• Some listened to tales of poor or waning support; Many did not pay attention.
• Site visits became the norm and many realized that they would never achieve the level efficiency of what they saw. But they wanted it.
• Not happy with their current system's support, many jumped to a system that everyone told them worked. But soon discovered that the support was as bad or worse than what they had left behind in their old system.
• The installation of new systems disrupted their business to the point that they cut short training and data conversion.
• Very few looked at ERP systems that ran on open databases, that would carry them into new technologies. To think that through was beyond their immediate goals. They just wanted a system that ran, regardless that it was 25+ year old technology and not very pretty on the screen.

"ERP systems that worked" But does it later on?

In the rush to install the "new" ERP system most overlooked two crucial items:

1. Complete training and turning on the complete system (like wireless warehouse/bar coding and EDI) These are not all the systems that didn't get turned on.
2. Correcting and cleaning their product data (this is like putting sugar, sand and sawdust into your car's gas tank.) Many just moved the dirty data forward and hoped for the best.

As time went, by distributors began to see the need to control variable costs and they looked at a number of other add-on modules. Many looked at various wireless warehouse solutions, only to find that their product data was so poor that they couldn't implement the process. The extent of the problem is best described in a recent article " Data Drives the Wireless Warehouse" by Beth Badrakan. If you wanted to bar code your data you had to meet certain standards. Many retreated from the project because of cost.

A side note about the data issue and closed ERP systems is that generally it forces you to go back to the original ERP provider, that now may be drifting off into space and no longer the Mothership that everyone thought it was. Even then, some were not successful because of the cost to add-on wireless warehouse.

So some distributors turned their attention to managing margin and cleaning up their data as it was updated by using epaCube. This let the distributor work at their own pace as data flowed in. The payback was over a longer period of time. Still others looked at ways to get at product usage data reports, which many assumed came with the ERP system. Not many mastered the use of the report writer and none had access to the source code. The key to getting access to the data lay in being able to convert the database files using a product like Kore Technologies offers. This allows the distributor to convert files to software products that they most are familiar with.

Game Changer Technology

Just around the corner is technology that will allow "Tablet computers" that are not Apple ,to deliver HD functionality and connectivity using free WiFi or a data plan:

• Log on to a distributor's site or system/send a RFQ or order
• Click on a distributor/manufacturer catalog (PDF), populate an order and send it you the distributor.
• Receive delivery notices
• See signature capture.
• See training videos in HD....etc
• All of this could be done with a distributor's salesperson being in attendance.

Manufacturers, ERP providers and distributors will probably want tablet delivery systems. Distributors for quote/order capability. ERP's will be forced to offer connectivity. Manufacturers will want to deliver training and product videos in the field.

What's a distributor to do with their partially functioning ERP system as they look out across their competitive landscape with changing technology that becomes a game changer?

• How do you hook up to tablet-like technology? Good data is required (and it is a separate discussion of how a distributor can get there ... what is the definition of "good" and who has the scale to deliver it?) What Mothership ERP package will offer that connectivity and open the way for future productivity?
• Is it time to get serious about driving variable cost out of your business? That means letting computers do the work....good data drives three way matching, collecting SPA Rebates, bar coding, accurate price matrix etc
• Good data, along with an accurate pricing matrix, can drive more profit to the bottom line.
• Or, do you start seeking a buyer for your business?
• Or do you seek to open up your ERP system's data in preparation to starting a new ERP search?

What do you think? Share your thoughts with us.