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SUPPLY CHAIN MANAGEMENT SOFTWARE EXECUTIVE GUIDE  


SCM Evolution
 

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AN EXECUTIVE'S GUIDE TO SUPPLY CHAIN MANAGEMENT SOFTWARE SYSTEMS

crmSCM SOFTWARE PITFALLS

The implementation of supply chain management software systems is a complicated endeavor with significant risk. Fortunately, many of the risks are well cited and if properly understood, can be mitigated with proactive planning and competent resourcing. Key SCM software implementation key risks are illustrated below.

Executive Support

Management support and visible participation from the executive suite is crucial, because of the organizational changes that will need to be made, the potential to impact to trading partners, and the commitment in cost and resources. Senior management need to be kept constantly updated with regular schedule status reports and informed on issues that impact project deliverables or issues that could affect the relationships with trading partners. The executive sponsors are ultimately responsible for the project outcome.

Defining Requirements

One of the more important steps in the acquisition of any enterprise software system is getting the requirements right. The wrong requirements or the improperly prioritized requirements will result in large wasted expense, project delays, implementation risk and the possibility of staff turnover. Two critical requirements areas are key stakeholders requirements and defining a SCM model that best supports the business strategy.

Implementing Systems

Critical to a successful supply chain software implementation is a strong Project Manager with experience in SCM, project management, team knowledge, commitment from the software vendors and the participation of key stakeholders.

The SCM information technology (IT) footprint impacts financial, accounting, ERP, CRM, data warehousing and business intelligence systems. Developing interfaces is complex and time consuming. IT should allocate an appropriate portion of their top IT talent to high risk tasks such as electronic data conversion, software integration, system interfaces and software customization.

One IT issue that can cause the flow of products to grind to a halt is the bad exchange of data between trading partners. Two critical areas are EDI data and auto-identification (barcodes and RFID). Before going live, robust end-to-end systems testing with partners should be conducted and fully verified. Once live, it will take a tremendous amount of man power to fix bad data or incomplete business process transaction routing. Not only are the operational systems compromised, but the corrupt data works its way through the system eventually affecting other systems and financial reports. With adequate testing, the bad exchange of data can be minimized.

Ongoing IT Issues

Because of multiple information systems, data redundancy is an issue. For example, inventory receipts will live in WMS, Inventory Management, Accounts Payable, analytical systems and planning systems. Further, each version of the receipts will have different characteristics and different retention periods. Without a clear set of policies and good data planning, there can be wasted management time and effort reconciling reports with different sources for the same information.

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SCM Software Risks

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Supply Chain Software Pitfalls
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Executive sponsorship

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Requirements definition
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Software implementation
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System integration
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Data conversion
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IT maintenance
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tags Tags:
erp definition
supply chain planning pitfalls, distribution application, scm application risks, distribution software pros, demand management, edi, oracle, on-demand, go-live risk

 

 

 

 

 

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