Never Trust an ERP or WMS Solution for Supply Chain Planning
If you think your company’s ERP or WMS solution can handle supply chain planning, you've got some big problems headed your way. This widespread problem was recently addressed in a great podcast with Supply Chain Now and Mike Mills, Blue Ridge Director of Business Consulting.
“Why would you want to move the wrong amount of inventory around more efficiently?” – Mike Mills, Blue Ridge Director of Business Consulting
Just Use What We Have; It Was Expensive
ERP systems and warehouse management systems (WMS) are commonly found in large-scale enterprises. Unfortunately, they are just as commonly expected to address challenges and solve problems for which they were not designed.
This leads to a serious misalignment between expectations and solutions, which costs enterprises millions of dollars in carrying costs and poor customer experiences.
ERP and WMS Are Not Silver Bullets
These enterprise systems are not silver bullets. Unfortunately there are many enterprises that can tell you, after learning an expensive lesson, it shows.
Eliminating the costly misalignment of inventory starts with using targeted technology that is specifically built to address the unique circumstances in play, in a given company or warehouse.
Customer Experience First
If the supply chain is to consistently support overarching business challenges, one of the primary factors to focus on is the customer experience.
Minimizing disruption for customers is often associated with a higher cost to do business. So companies have to carefully weigh the strengths and weaknesses of any approach they plan to take, optimizing for both cost and customer satisfaction.
What’s in Episode 302
In this interview, Mike discusses the following realities with Supply Chain Now Co-hosts Greg White and Scott Luton:
- The difference between functional supply chain planning and a profit-oriented approach that drives corporate objectives
- Fully understanding how min/max and safety stock factors affect inventory management, materials planning and overhead costs
- How (and why) to avoid the “over-simplification trap” when it comes to supply chain technology and processes