In today's world organizations are on the way to adapt advance strategies to grow their business. One of which is Enterprise resource planning technology. Both large and small scale enterprises receive multiple benefits by using ERP software.
Best Practices of ERP for OEM/EMS
1.Understanding and Prioritising your key requirements -
Every EMS provider should have clear aim of what they want to achieve by implementing ERP system. As an EMS provider your aim can be managing the OEMs production, Inventory management, Logistic and Supply chain management, production scheduling etc.
2. Employee Training -
Training is one of the reason why ERP implementations fail in most organizations. To avoid this and ensure training is effective, you need to plan for training activities. ERP system demands appropriate training. Suppose you are providing training to purchase department then give the training in such a way that purchase department should able to handle all the activities inside purchase department. Apply training activities separately to each department so employees can better understand their work and become expert to handle the ERP system. Although each department is working separately, there should be co-ordination between each department because as a business process each department is dependant on another so keep these things in mind when you provide training.
3. Data Migration-
Any successful ERP implementation will require to transfer data from old system to new one. As an EMS provider if you have a large amount of old data which you want to transfer in your new ERP system you should check for few things-1) Is your new system flexible enough to allow old data? 2) Map the data correctly to an equivalent field to avoid data loss. 3) If you are small-scale organization and using API for data transfer, you can sort the data by creating algorithms which helps you to allow only needed data to transfer in your system.
4. Establishing a key performance Indicators -
By establishing key performance metrics (KPIs) , you can measure your ERP implementation is success or not. If you are EMS provider then you can measure your ERP success by applying few things like -1) Taking feedback from analyst, department head and managers etc. 2) Set the monthly or yearly target and measure expected output has achieved or not. 3) You can review department wise performance. 4) Take the feedback from your OEM customers about your service.
5. Keep Customers in mind all the time -
Companies need to check what is the need of Customer because it will help you to convert your ERP implementation into success. As an EMS provider, customers need can be design, assemble, produce, testing, return/repair service etc.
Challenges of ERP for OEM/EMS-
- Implementation cost -
The entire cost of an ERP implementation is much greater than initial cost. The total cost depends on customization cost. Greater the customization, higher will be the final implementation cost.
2. Implementation Time -
Many companies don’t realize the time consumption of an ERP implementation process because ERP system is implemented step by step and it is very standard. Most ERP vendors estimate six to nine months for a technical implementation. Their plans usually consist of : installation support, data migration, technical training and go-live support. A more realistic time frame for a successful ERP implementation is 12 to 18 months.
3. Data Handling -
If you are EMS provider, your ERP system have huge amount of data taking from quotes, production, inventory to logistics etc. Dealing with these data is the most critical part of any organization. To handle the data in correct way follow some rules-1)Classify the master data into broad categories so it will help in collection and arrangement of data in structured manner. 2) There are some broad categories under which you can classify the data like- product database, vendor database, sales and purchase database, inventory database etc. by doing this you can easily handle large amount of data.
4. Sufficient testing -
To check the performance of ERP system it is necessary to test the ERP system. Insufficient testing of the system will cause you the costly unplanned updating. You can test ERP by applying few rules, for example-1) check your system is giving the output as per your requirement or not. 2) check your system should able to update required data regularly. 3) All modules in ERP should work properly.