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Are ERP System Blockages Thwarting Your Progress?

Are ERP System Blockages Thwarting Your Progress?

After a week of blocking the Suez Canal, the now-famous cargo ship, Ever Given has been freed from the 27,000 cubic meters of sand and mud that were surrounding the ship. Supply chains are flowing again. I for one am very glad to hear that the ship has been freed since coffee, toilet paper and a whole host of other items were being held up! In all seriousness, it was and is a crisis that will have ripple effects on the global economy.

As I often do, I started to relate this crisis to the world of ERP that we live in. Although we are not responsible for dealing with a situation like what happened in the Suez Canal, we all deal with problems in our jobs every day. Some of these problems are small, and some are not so small. Some problems are caused by human error, some by prevailing winds that blow us in a particular direction, and some by circumstances out of our control. It is what we do about the problems we encounter that make all the difference. We could bury our heads and hope the problems somehow go away on their own, or we can take action and do something to bring about the change necessary to get past the blockage.

I see “blockages” every day in working with my customers. Sometimes it is a lack of understanding of best practices in a given department, or a reliance on tribal knowledge that determines how and why something is done in the system, or inefficient manual processes destroying a company’s efficiency, or hundreds (or thousands) of customizations standing in the way of an upgrade, or employees labeling an ERP system as “no longer a fit” when their company is only using 10% of the available functionality in the system.

So, maybe today we could focus on what it would take to remove the “blockage” that we have in our way. What benefits could we realize if we worked together to bring about incremental change? Could we actually get that upgrade done? Could we start operating based on industry-leading best practices? Could we increase our market share? Could we decrease our costs and boost our revenue? All of this is possible.

Contact me today so that we can begin to work together to solve the problems that stand in the way of your progress.

solutions@crossroadsrmc.com or 800.762.2077

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Kathy Barthelt

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Tips:  LX | BPCS | M3

I'm reposting this checklist for things to consider in order to finish out the current year, and plan for next year…

  • Are your accounting records up to date so you can make a projection of how the current year will turn out?
  • Are all account reconciliations up to date to facilitate the closing of the books after year end?
  • Are there accounts receivable that should be reserved for or written off prior to the end of the year?
  • If your business carries inventory, do you need to plan a physical count as of the end of the year?
  • Has depreciation on your fixed assets been recorded during the year? Have you considered depreciation on current year additions?
  • Have all new asset purchases and bank loans been recorded on your books?
  • Are there any liabilities, for example, pending legal actions or warranty issues, which will need to be recorded prior to year end? 
  • Do you have a plan in place to properly “cut-off” revenue at year-end to properly match revenue and expense?
  • Will there be bonuses, profit sharing contributions or discretionary retirement plan contributions paid prior to the end of the year? How will these payments affect cash flow?
  • Will you be in compliance with your bank covenants at year end?
  • Do you need to make arrangements to receive statements as of the end of the year for cash value of life insurance, loan balances, etc.?

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