When deciding on a new ERP system choosing a Value-Added Reseller (VAR) as an installation partner is as important as selecting the software itself. In addition to installation services, VARs are industry specialists that often develop industry-specific programming and assist in adapting key functions of the ERP to your business. They also work with the software manufacturer to add functionality to future releases, eliminating the need for customizations.

Installing automation and conveyance systems in your fulfillment and distribution center is a major capital expense and long lead time. It requires considerable expertise, time to plan, and implement these systems properly.

If you’ve been around long enough, you recognize that there hasn’t been enough experienced management in retail, catalog and now e-commerce operations for decades. With the Internet growth over the last 15 years, management turnover and the lack of highly qualified managers is apparent and may be holding your company back.

International studies show that 50% of all major systems projects are not completed on time and within budget. Often once the projects are delivered they don’t meet the users’ expectations after spending considerable capital and extensive time. After Go Live the users of the new systems often spend six months or longer to absorb and understand how to do their jobs with the new system. Often this means that company productivity suffers.

In operating multiple DCs, one of the major on-going costs is the additional inventory at the SKU level that will be required. Many times, companies are surprised at the magnitude of the inventory increases. Our experience is that a second DC adds 30% more overall inventory in a company, then just having a single DC. A third center may add 50% more overall inventory, then a single DC. Obviously, the increase doesn’t automatically correlate to the company being able to achieve 30% and 50% higher sales without some major marketing and promotional changes.

As Amazon’s multi-DC strategy puts pressure on multichannel merchants, having an effective inventory strategy to maximize sales, profits and customer service becomes all that more crucial. Inventory is the largest balance sheet asset in most companies. Let me give you a few examples of how other companies are focusing on inventory in their businesses.

This title of this blog might sound naïve considering S&H’s high cost to direct-to-customer businesses and the time companies spend on discussing it. Let me give you two examples to show you maybe there is additional homework companies need to do before changing policies.

In the past four weeks, I have presented at three conferences: MCM’s Operations Summit, Lett Direct’s Symposium and the Ability Commerce Symposium. While they had widely differing agendas in operations and marketing and systems, the attendees had one common strategic concern: How do we compete with online marketplaces in terms of breadth and price, time-to-customer, and free shipping? 

At the heart of process improvement is benchmarking and Key Performance Indicators (KPIs).  Lord Kelvin, the British scientist said, “You can’t improve something you haven’t measured”.  Here are 5 things to consider in using benchmarking in your business to improve productivity, reduce cost and increase customer service.

Studies show that more than 50% of all ERP and OMS systems are not installed on time and within budget. A significant number of companies spend 8 to 12 months after go live adapting to the new system. What are some of the mistakes that lead to these outcomes? We all operate from our experiences. Many companies and key management have not selected an ERP or OMS before; or in a long time. Here are 9 mistakes to avoid to increase your chances of success.