Simple ERP Optimization Techniques

Most inventory “reduction projects” fail because they start in the wrong place. They start with: “Where do we have too much stock?” Start with: “Where is our cash stuck?” Here’s a simple, practical way to begin. *Step (1): Rank items by inventory value (Pareto) Export your inventory from the ERP. One Excel file is enough. Sort by inventory value by item. You’ll usually see this fast: ~20% of items = ~80% of the value. Don’t waste week 1 arguing about slow movers worth €200. Go where the € is. *Step (2): Add “Days on Hand” Value alone isn’t the full story. Calculate Days on Hand from real consumption: “How long will this stock last at today’s usage?” Now you can spot the real targets: High value + high Days on Hand = the pain zone. That’s where you get cash back fastest. *Step (3): Fix the real lever: frequency Here’s the rule most teams miss: Frequency drives inventory. How often you: -receive deliveries -run production batches Higher frequency → lower average stock. Lower frequency → bigger batches → higher stock. So you don’t “manage inventory.” You change the system that creates it. The simple path: Find the items that matter (Pareto by value) See true exposure (Days on Hand) Increase frequency where it counts One more thing: you don’t need fancy tools to start. Years ago, our client's team cut inventory by 65% (about €145M → €65M) and pushed turns above 30. No new ERP. No Kanban rollout. No AI. Just an ERP export + the right sorting in Excel. The person who drove it was the “underperformer” no one listened to. Question for you: If you could only change one lever this month: smaller batches or more frequent deliveries, which would you pick, and why? _________________________________________ If you like real stories from operations, supply chain, and industrials, not buzzwords, not AI fairy dust, follow me here and join my newsletter: https://lnkd.in/dMGaUj4p

We revived 3 failed ERP projects in 90 days. Here’s the playbook no one talks about. ERP failures aren’t always dramatic. Most die quietly. Buried under spreadsheets, frustrated users, and dashboards no one trusts. Here’s exactly how we turned things around in just 90 days: 1. 𝐓𝐫𝐞𝐚𝐭 𝐏𝐨𝐬𝐭-𝐆𝐨-𝐋𝐢𝐯𝐞 𝐋𝐢𝐤𝐞 𝐚 𝐍𝐞𝐰 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 (𝐚𝐧𝐝 𝐍𝐨𝐭 𝐚 𝐂𝐥𝐨𝐬𝐮𝐫𝐞). 90% of teams disband after Go-Live. Big mistake. We created a Post-Go-Live SWAT Team with a 3-month mission: → Identify critical business KPIs missed during rollout. → Assign clear owners for each KPI. → Review progress weekly, not quarterly. Result: Sales Order Cycle Time reduced by 28% within 60 days. 2. 𝐒𝐭𝐨𝐩 𝐅𝐨𝐫𝐜𝐢𝐧𝐠 𝐄𝐑𝐏 𝐭𝐨 𝐅𝐢𝐭 𝐁𝐫𝐨𝐤𝐞𝐧 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬 𝐏𝐫𝐨𝐜𝐞𝐬𝐬𝐞𝐬. In all 3 cases, we found the real problem wasn’t the ERP. It was outdated, inefficient business processes never questioned during implementation. Our approach: → Run Business Process Audits post-implementation. → Eliminate redundant approval layers. → Automate low-value tasks directly in the ERP. Result: Reduced manual interventions by 40%, saving 500+ man-hours per month. 3. 𝐀𝐝𝐨𝐩𝐭𝐢𝐨𝐧 𝐈𝐬𝐧’𝐭 𝐀𝐛𝐨𝐮𝐭 𝐓𝐫𝐚𝐢𝐧𝐢𝐧𝐠. 𝐈𝐭’𝐬 𝐀𝐛𝐨𝐮𝐭 𝐁𝐞𝐡𝐚𝐯𝐢𝐨𝐫𝐚𝐥 𝐂𝐡𝐚𝐧𝐠𝐞. The common lie: “We trained everyone.” Reality? People revert to old habits when new processes don’t solve their real pain points. Fix: → Conduct Role-Specific Workflow Clinics, sit with users and solve their daily challenges inside the ERP. → Replace generic dashboards with Outcome-Driven Reports tied to specific business decisions. Result: Adoption rate jumped from 43% to 92% in under 90 days. ERP success isn’t about technology. It’s about relentless focus on business outcomes after the software goes live. ♻️ 𝐑𝐄𝐏𝐎𝐒𝐓 𝐒𝐨 𝐎𝐭𝐡𝐞𝐫𝐬 𝐂𝐚𝐧 𝐋𝐞𝐚𝐫𝐧.

I was chatting with a customer recently about their quoting and order processing workflow. They were manually entering data across multiple systems - from spreadsheets to ERP to inventory management. This approach takes a lot of time and can lead to mistakes. Here's how I suggested they think about it: 1. Find key connection points: Look for ways to link systems, like quoting software with ERP. 2. Focus on high-volume tasks: Start by automating frequent jobs first, such as creating sales orders or importing BOMs. 3. Use APIs: Many modern systems have APIs that allow for smooth data transfer between platforms. 4. Think about all-in-one platforms: Check out solutions that combine multiple functions to cut down on separate systems. 5. Start small and build up: Begin with one or two connections and grow from there. By cutting down on manual data entry, companies can really boost their efficiency, accuracy, and ultimately, their profits. It's not just about saving time - it's about freeing up your team to focus on more important activities that push your business forward. What's been your experience with automating data flows between systems? I'd love to hear your thoughts!

If your goal is to create an ERP system that truly enhances your business, you need to stop over-customizing every feature. Here’s why less can be more with ERP customization: 1. Focus on Core Processes: Customizing only core processes ensures your system stays aligned with your business goals. 2. Avoid Future Headaches: Minimizing customizations reduces complications during updates and maintenance. 3. Leverage Standard Features: Relying on built-in tools can save time and prevent unnecessary complexity. 4. Maintain Flexibility: Keeping customizations minimal allows your ERP to adapt more easily to future changes. 5. Cost Efficiency: Fewer customizations lower both initial costs and long-term expenses. Customization should enhance, not complicate. Focus on what matters and let your ERP system work for you. Want to streamline your ERP customization strategy? Send me a message.