Are you getting all the value from your Oracle EBS investment?
Many companies are not getting the full value out of their investment because initial implementations often focus on replacing legacy systems or have cost and schedule pressures. This results in “re-platforming existing business processes, rather than enabling new business capabilities, leaving “money on the table.”
The business can’t see the opportunities and IT is just too busy supporting everyday business changes. The business will say they don’t know what they don’t know and IT doesn’t have the time or key resources to uncover the opportunities.
You can unlock the rich features of EBS, creating bottom line results by focusing on the people and process changes required in the business. Often the barrier holding the business back is having the right resources to work directly with the business, uncovering opportunities and driving the required people, process and technology changes.
Opportunities exist in almost every department
At the end of the day, bottom line results are created by increasing revenue and cutting costs or reducing the amount of working capital a business needs to run day-to-day operations. In most cases, technology is not the barrier to change. The hard part is making the people and process changes.
Here are three recent examples from our projects:
Warehouse and Shipping
Our client was not fully using the features of Oracle WMS. The project team worked directly with the business to show the key business leaders how Oracle WMS could improve their business. Together, AXIA and our client developed a plan that was right for the business. This plan included: new process design, converting required data, testing, training users and rolling out the changes in a logical fashion. After the first 3 month sprint, the company was able to:
- Increase shipping accuracy and improve perfect order rates
- Reduce labor hours in both the finished goods and raw material warehouse
- Increase inventory accuracy enabling better planning, lower safety stock levels and more effective just in time inventory programs
Planning and Purchasing
Often planning and purchasing do not work together as a well-oiled machine. Cross-functional process changes combined with training on how to properly use Oracle EBS and Advanced Supply Chain Planning can have immediate and positive results. For example, during a four month sprint AXIA worked with a manufacturing company to train planning and purchasing on how to use EBS & Advanced Supply Chain planning. Changes included:
- Leverage Oracle EBS automation of purchase orders
- Determine right re-supply trigger methods by item
- Create a plan for every part including lead times and safety stock levels
- Training on how to use Oracle for day to day tasks without dumping data to excel and using non-Oracle solutions
- How to properly use forecasting
The team re-designed the processes between planning and purchasing to create a more responsive supply chain planning function. At the end of the program the results included:
- Reduced measured stock outs
- Increased inventory turns (reduced inventory levels)
- More accurate sales order promise dates
- Increased job satisfaction in planning and purchasing
Finance & Accounting
This approach also applies to back-office functions. For example, AXIA worked with a finance and accounting department to leverage transaction automation and simple Oracle Cloud Applications to:
- Eliminate the need for manual reclassifications and journal entries
- Automate account reconciliation and close
- Enable flexible planning and budgeting
These are just a few of many examples, there are many opportunities across the business including in:
- Customer Service
- Procurement and Purchasing
- Warehouse and Logistics
- Finance and Accounting
- Business Intelligence
How To Get Bottom Line Results – Best Practices
Projects that unlock the capabilities of EBS are not typical IT software implementations. They are not large, multi-million dollar projects, instead they are smaller focused efforts with short 3 to 4 month sprints.
This approach lowers risk, enables value to be delivered every quarter and also makes it easier to keep the business focused. In addition it tackles the key challenges we face on these projects: Change Management, Training and Data.
A typical project has the following phases:
- Opportunity Analysis – Work directly with the business to understand the current business processes, pain points and how EBS is used today. It is also important to understand any current metrics and related compensation programs.
- Agree on The Problem – Review the current state and key pain points with the business. These meetings are not with Vice Presidents, but with the Directors and Managers who oversee day-to-day operations. Gaining a collective understanding of the problem is critical before developing a solution.
- Solution Design – With the business, review best practices and how other companies are solving similar problems. Best practices include Oracle and Non-Oracle changes. With the business, agree on changes, the order the changes should be implemented and the metrics used to measure success.
- Roadmap – Create a roadmap that starts with where the business is today and ends with what it would look like with that vision achieved. Break the roadmap into waves that accounts for the skills, capabilities and time available. Each wave needs a plan that includes:
- Process changes
- Data conversions
- Testing and rollout
- Execution – Each wave takes a hands-on approach and works directly with the business to implement the changes. IT supports the project, but the business must own it and be held accountable for the required changes. Often the problems encountered are not with Oracle, but with resistance to adopting the changes in the business.
- Measure Results – After the implementation, launch a process of measurement using the defined metrics to monitor improvements to start a journey of continuous process improvement.
Partner with Experience
At AXIA our consultants have an average of over 20 years of experience. We have created a proven methodology, tool kit and best practices for unlocking the value of EBS.
Call AXIA today, 877.292.5503 to learn more and explore how you can unlock the value of your EBS investment!