Most legacy transition attempts fail because businesses make the mistake of trying to modernise their operations by treating it like just another software update. In reality, it requires significant operational redesigns with the intent of creating a unified connected ecosystem where data can flow freely amongst all areas of the company, such as procurement, logistics, inventory, finance, and operations.
Vendors will often jump into this transition process without first clearly mapping out what their processes are. This will ultimately lead to the creation of multiple disconnected ERPs, several parallel spreadsheets, and reporting mechanisms that don’t agree on what is or isn’t correct.
The best way for companies to overcome poor performance related to progressive strategies such as automation, predictive analytics, or AI is to establish a unified data platform before initiating the transition process. First, perform a master data audit.
Second, establish a clear stock-keeping unit (SKU) hierarchy. Last, identify any gaps in all of your data. If the first three actions aren’t performed before creating confidence in your new system, people won’t trust that system and won’t trust the data contained within it either.
Incremental transitions will be successful. Technology can’t solve broken processes; it brings broken processes to light.
Arturo Torres Arpi Acero
Founder and CEO, Ventagium
About Arturo Torres Arpi Acero
Arturo Torres Arpi Acero is the Founder and CEO of Ventagium, a supply chain analytics consultancy trusted by US manufacturers, logistics providers, and consumer brands navigating disruption and operational complexity.
About Ventagium
Ventagium is a supply chain analytics consultancy trusted by US manufacturers, logistics providers, and consumer brands navigating disruption and operational complexity.
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