Logistics management has promoted ERP Change December 3, 2004, when the government went to the government to enter the enterprise, the ERP was god, and when the report of ERP was flooded, the question of ERP was constantly sounding ...
Traditional ERP, dilemma
One of the facts that major ERP vendors and companies have to face is: "In 20 years, China has invested 8 billion yuan in the application of MRP-II / ERP system, but the success rate is less than 10%, and it is even more embarrassing. Nothing. "Not only the implementation of the implementation of ERP in our country, even in the United States in the United States, it is not as fresh as the company that implements ERP, and the most famous example is: First, the famous example DELL, after the investment of more than 200 million US dollars, I have to declare the cancellation of the ERP system; another more terrible example is a US drug sales leader in an annual income of more than $ 5 billion - ---- Fox Meiya Company, starting to implement the ERP system since 1994, not only did not end in two and a half, but the order processing capacity fell to 2.4%, eventually only 80 million US dollars were acquired. In addition, statistical data shows that more than 70% ERP did not reach a predetermined goal, and the actual application cost of the ERP system exceeded the expected cost of 178%, and the installation time exceeded 230% of the expected time.
ERP originated from the manufacturing industry, which runs through various management links concerning manufacturing companies such as product design, manufacturing process, production plan, production operations and control and financial costs, is a different functions and schedules of different links to enterprises. Key data and communication information such as arrangement, procurement, production, financing and other integration. But in fact, many companies don't realize that blind believes and uses an ERP system with great risk, resulting in a loss.
Business process restructuring is a term that is often mentioned in ERP implementation. Some companies have enhanced management due to business process restructuring, and most of the business process reorganization ended in failure. Business process recombination has a traditional Chinese medicine prescription, is a balanced enterprise to manage yin and yang strengthening enterprises. Different companies should dialectically apply different components, and the business process reorganized enterprise management model should also vary. Since the business management model supported by ERP has relatively fixed, many companies are reorganized to perform business processes in a way that they have performed, to implement the ERP system, and the results can be known. Business process recombination is blocked and failed, often causing ERP implementation that cannot be carried out.
The implementation of ERP is a process of software system, implementing service, and enterprise's own interaction, and any side of the mistake in this process may cause the ERP system to fail. The implementation of the ERP system cannot be successfully carried out, even after the ERP system is running, the following questions will not be avoided.
First, many companies do not support the use of ERP systems, large and complex ERP systems do not only improve the management efficiency of these companies, but also increased huge operating costs for these companies. What should be seen is that any enterprises in reality cannot meet the ideal states required by the ERP system, and almost all ERP systems have designed a lot of prayed functions based on ideal enterprise management status in order to meet the needs of most corporate needs. Set up orchestration processes support applications. Some examples are sufficient to agree that the ERP is large, these cases have often happened in the United States in business management, and after enterprises have implemented a set of ERP systems, they don't need such complex cumbersome work procedures and Unnecessary precise extensions during the information processing, the ERP system is therefore a display.
Second, companies are facing a rapidly changing competitive environment, in order to apply this environment to win in competition, all companies may face organizational structural adjustments, business continued optimization and even management changes. Jack Verge, who is known as the management of Wizards. Welch has been discussed: the management change has caused opportunities to bring opportunities instead of crisis. In traditional management mode, companies can take asymptotic ways. After implementing the ERP system, each management requires the ERP system to support the corresponding support, which is obvious to the management difficulties. With the changes in external environments, companies not only require corresponding adjustments and changes to existing management, sometimes increase new management functions, but the functional expansion of ERP is often the important factor in restricting the management of enterprises. Again, the applicability of ERP is limited. Although we have no shortage of industry outside the manufacturing industry, such as financial industry, communications, retail industry, etc., but these companies have implemented ERP systems from manufacturing management ideas to abundance. Enterprises, especially the diversity and complexity of group-based enterprise management, causing ERPs that are increasingly unable to adapt to the management requirements of the enterprise.
The period experienced by ERP has been passionate from being saved from being saved from being saved. Now ERP has faced a period of reform. Overview of the change of corporate information technology, it can be seen from the many theories thrown after ERP, and the transformation of traditional ERP has become an inevitable trend. In these theories, the most worthy of concern is not CRM nor ERPII, but Logistics Management (LM) and Supply Chain Management (SCM). There are more and more tendency to show that logistics and supply chain management will lead this ERP change trend.
Logistics management, Fangxing
The new management software vendor in Texas, USA, announced that it was a total of $ 50 billion in 2005. What strength makes this company so bold forecast? It is this company in the field of logistics management, so that this company is strongly competitive under SAP, Oracle and other old card management software vendors, and the performance will rise year by year.
The definition of logistics management (Logistics Management) is from logistics management during World War II. After the end of World War II, the connotation and extension of logistics management have gradually developed and gradually become an independent discipline. The definition of the US Logistics Association (CLM) for Logistics is: "For the purpose of the requirements for customers, the raw materials, the information related to the products, the products, from the industrial location to the consumption location With the storage, plan, execute, and control for the relative effect of efficiency and maximum. It can be seen from this point that the meaning of logistics has been expanded to the field of manufacturing. Logistics has not only started from the factory, but includes the entire physical circulation process of raw material procurement, processing to product sales, after-sales service.
Supply Chain Management, which is often mentioned with logistics management, is an important part of logistics management. If the supply chain management is guided by the market and customer needs, the core enterprises are faucet, to improve competitiveness, market share, customer satisfaction, and acquisition of the maximum profit, such as modern logistics management ideas. More concerned about the capacity of items in the entire industrial chain, this ability is reflected in the main links such as procurement, sales, inventory, production. Future business and companies competition is the competition of industrial chain and industrial chain. The logistics ability of enterprises is a strategic ability to determine the survival and development of the company.
In my country, the market prospects of logistics management software is still broad. There are already 80% of companies to prepare for their logistics management software, and 62% of companies are ready to re-select logistics management software. The broad logistics management software market prospect is derived from the unique national conditions of our country. The logistics department of most logistics enterprises and enterprises in our country is developing on the basis of the material circulation department under the traditional system. Most of its work is still staying in the import and deployment, warehousing, transportation or handling, very few business logistics It can provide comprehensive logistics management, and the function of modern logistics has not yet got well. Most logistics companies and corporate logistics departments in my country, whether logistics management hardware or software, and high-efficiency low-cost modern logistics provided by the information age requirement, information collection, processing, processing, and use capacity Dedicular knowledge, logistics coordinating planning and refining organization and management capabilities are significantly insufficient. CCW Research in the "Computer World" assigned the data of China's logistics and procurement Federation in the logistics software evaluation report. ". The logistics cost of the manufacturing industry is also much higher. According to the statistics of logistics costs, the ratio of manufacturing costs reaches 30%, and this ratio can be controlled by effective management at 17% or less. Compared with ERP, the implementation of the logistics management system has the following advantages:
Compare item ERP logistics
Low return on investment
Implementation cycle length
Overall cost is low
Implement risk
Applicable industries are manufactured as main manufacturing, circulation, service industry
At present, the logistics software market is still in the pregnancy period, and the CCW Research pointed out in the report: Most of the enterprise using logistics software "is only a small part of the entire logistics link, such as procurement management software, inventory management software, ticket management software, etc. Few enterprises have implemented information management of the entire logistics process. " The report also shows that "only 14.3% of users have planned their own information construction."
my country's research and development of logistics management ideas is late, but many domestic manufacturers have realized the market prospects of logistics software, launched a group of advanced practical logistics management software, currently my country's domestic market logistics software According to the ranking of market share, mainly: Brocade, UF, Kingdee, Golden Cabbage, Merchants Di Chen, Yi Kang, Yuanwang.
It should be specifically pointed out that logistics management has prompted ERP change, and does not indicate that the function of the original ERP covered has no effect. Enterprises' procurement, inventory, sales, production, finance and so on is still an important part of the enterprise information system. Just these features will be re-integrated with logistics management as guiding ideas. The new type of information system complies with modern enterprise management requirements, whether it is called ERP or crown, will abandon the idea of the original ERP focused on enterprise resource plan management, and turn to the enterprise's external environment, The resources of the industrial chain are effectively managed and utilized.