When you layer good technology over bad business processes, you’ll always end up with a bigger mess on your hands. Even the most innovative technology won’t smooth over underlying process issues. Prior to partnering with us, this client learned that lesson the hard way. This Florida-based construction company tried to implement an Enterprise Resource Planning (ERP) system to modernize their operations. But when the implementation floundered, they abandoned the plan and returned to doing all inventory control with pencil and paper. After we outlined their processes and rolled out the ERP, we unlocked new levels of efficiency that impacted everything from inventory visibility to sales.
A commercial construction company wanted our help to roll out an ERP solution. After a failed implementation attempt, the organization went back to manual inventory control, and the ERP sat on a shelf for 6 months. When we arrived, we realized they didn’t just have a technology need – they had a process problem.
There was no delineation of processes. As a result, there were bottlenecks in every function of the business, from vendor management to receiving cash on invoices. Additionally, roles were not clearly defined, so staff did not have a sense of their responsibilities. Finally, because they lacked a central information database, the inventory was mired with inefficiencies, and the owner did not have the ability to forecast revenue and work.
Our action plan consisted of three main pillars. First, delineate and document all processes before layering in any technology. Second, define responsibilities for everyone in the business. Third, integrate and roll out the ERP solution.
- Drafted visual depictions of every process in the business using swim lane diagrams.
- Created an entire library of Standard Operating Procedures (SOPs) to support all processes.
- Clearly identified all staff roles and outlined responsibilities.
- Collaborated with software provider to fully implement and integrate the ERP solution.
- Worked with all departments in the business to ensure ERP solution maximized efficiency across all business functions.
- 25% increase in operating efficiency
- 15% increase in sales
- 60% increase in inventory management capabilities
- Replaced paper-based inventory system with modern ERP solution
- Increased inventory visibility
- Client able to forecast all jobs and revenue in the pipeline