ERP Optimization, Why Should Your Company Consider It?

ERP optimization refers to the process of fine-tuning and enhancing ERP systems to improve efficiency, reduce costs, and maximize performance. It involves the strategic utilization of the ERP system’s capabilities, customization, and continuous improvement efforts. The goal is to make the ERP system align more closely with a company’s unique processes and objectives.

The decision to use IT must answer 3 crucial questions before investing:

• Will the company increase its sales?
• Will the company reduce its inventory?
• Will the company reduce its expenses?

A non-optimized ERP system leads to inefficient processes, fragmented activities and obstacles to the integrated management of company operations.

Manufacturing and distribution companies face several significant challenges when it comes to managing ERP systems. These challenges can impede the effectiveness and efficiency of their operations.

1. Dependence on a single technical resource: IThe common practice to overcome the limits of customizability and adaptability of the existing ERP system is to rely on a single technical expert. Companies will tend to create this gap through simple parallel systems, often using Excel spreadsheets. However, the vulnerability arises from dependence on a single technical resource, leading to potential risks when an employee with essential knowledge leaves the company.

2. Lack of leadership in innovation education: Many companies feel that they lack the support necessary to innovate and enhance their ERP systems. ERP systems, over time, may become stagnant and no longer align with a company’s evolving needs and market dynamics.

3. Lack of leadership in innovation support: Companies often struggle to find a clear leader who can provide quality support for innovation. Openmind has positioned itself as a reliable leader in this field. We offer specialized support services with an agile, personalized approach. Our team work with existing IT infrastructure and ensures that ERP systems are optimized efficiently, enabling companies to concentrate on value-added activities and tasks.

4. Obsolescence of ERP systems: As time passes, ERP systems can become outdated and no longer meet a company’s evolving needs. Openmind addresses this challenge by offering ERP system modernization services. We assist companies in transitioning to modern ERP solutions that better align with their current requirements and future growth strategies.

5. Lack of intelligence behind ERP systems:

For an ERP system to be considered intelligent, it must be designed with the company’s specific business processes in mind. This differs from design based on visions “imposed” by so-called tablet software, thus emphasizing customization and precise alignment with the company’s internal needs and workflows.

In other words, it’s not your business processes that have to adapt to the software, but rather the opposite.

6. Overlaying information technology: In manufacturing companies, information technology often needs to be overlaid on top of existing business processes, which can lead to integration challenges.

ERP optimization enables you to centralize and manage all your company’s activities within an integrated system, promoting smooth, efficient operations.

• Maximum utilization of existing capacities: ERP optimization enables companies to make the most of their existing systems and modules, avoiding costly replacements.
• Continuous adaptation to specific needs: Rather than making radical changes, optimization suggests gradual adaptation, enabling companies to tailor modules to their specific needs.
• Avoidance of technical debt: the importance of avoiding the accumulation of technical debt by progressively optimizing each process, thus helping to maintain long-term technological stability.
• Innovation education approach: by focusing on innovation education & support, ERP optimization promotes a better understanding of technological tools, contributing to informed decisions and more effective use.
• Business process customization: ERP optimization encourages the customization of solutions according to each company’s specific business processes, improving the relevance and effectiveness of tools.
• Cost reduction: By avoiding major changes and maximizing the use of existing solutions, ERP optimization can potentially reduce the costs associated with implementing new technologies.

Openmind Technologies can innovatively address the challenges of ERP systems for manufacturing and distribution companies, offering tailor-made solutions for proactive innovation, effective support, streamlined IT integration and customized alignment with unique business processes.

Our approach can ensure that ERP systems evolve dynamically, enhancing operational efficiency and adaptability.