Failed ERP implementations are a major headache for many Vietnamese companies, especially manufacturing businesses such as wood, furniture, packaging, textiles, seafood processing, and mechanical engineering. Many manufacturing companies have failed not just once, but two or three times in their ERP implementations. The losses are so significant that they no longer dare to consider investing in ERP systems, losing faith in digital transformation and missing out on opportunities for growth in this era of rapid technological advancement!
So how do you choose the right consulting and implementation unit ( ERP for manufacturing management; ERP for packaging; ERP for plastic packaging; ERP for paper packaging; ERP for cardboard packaging; ERP for wood and furniture; ERP for textiles; ERP for mechanical engineering; ERP for processing, ...) that has the capacity, experience, and software suitable for the current situation, needs, and management desires of your business?
Having a large budget and the money to buy a world-renowned ERP system doesn't guarantee successful implementation.
If we choose an ERP implementation provider that meets our requirements and offers the lowest price through a competitive bidding and quotation process, does that guarantee successful implementation?
With years of experience advising on enterprise management solutions and software for numerous large Vietnamese and FDI companies, we would like to share with businesses in need of Enterprise Resource Planning (ERP) solutions the " SECRET" to choosing a reputable ERP consulting and implementation partner, ensuring a high probability of project success.
Through years of consulting and implementing ERP systems for domestic and international businesses operating in Vietnam, we have observed that the success rate of ERP implementations in Vietnam is not high, especially for manufacturing companies such as ERP for production management; ERP for packaging; ERP for plastic packaging; ERP for paper packaging; ERP for cardboard packaging; ERP for wood and furniture; ERP for textiles; ERP for mechanical engineering; ERP for processing … with a failure rate of up to 70% - 80%. In this article, we define the concept of a successful ERP system implementation according to the following three factors:
First: Implementation must proceed according to the schedule as committed by both parties.
Secondly: The implementation should be of high quality in terms of solutions, processes, data, software, reports, etc., and the system should meet the management requirements of the enterprise, delivering real value and satisfying customers (business owners and employees who are software users).
Thirdly: Implementation costs must not exceed the approved budget.
For Vietnamese businesses, investing a significant amount of money (from tens to hundreds, or even millions of USD) in an ERP project carries many aspirations. If the project fails, it will not only result in lost money, time, and effort, but also lost opportunities and a loss of faith in the application of advanced technology, which can help the company enhance its competitive advantage, improve its management, and grow stronger in the future.
Around 2005-2006, we participated in an ERP consulting project for a well-known, top-tier company in the flexible plastic packaging industry. Their clients included large corporations such as Unilever, Coca-Cola, and Vinamilk. After about a year of working with ERP vendors, the company decided to contract with a major Vietnamese IT company that also provided consulting and implementation services for Oracle software. The company's chairman and CEO decided to sign with this company because the entire Board of Directors was invited to visit a packaging factory in Singapore that had successfully implemented Oracle. However, after nearly two years of implementation, that ERP project completely failed, and after that, no department in the company dared to propose investing in ERP again. By 2015, the company had sold everything to a South Korean conglomerate!
So, what are the secrets to helping businesses choose the right supplier and ensure successful ERP system implementation? Based on over 20 years of experience, we propose the following steps for selecting an ERP consulting and implementation firm:
Step 1 : Establish an ERP Project Management Team responsible for developing the company's IT status profile and management requirements, and agreeing on criteria for selecting and evaluating vendors. Two key criteria are particularly important:
- The ERP provider has successfully implemented at least one similar-sized client in the same industry in Vietnam.
- The company was invited by the supplier to visit a case study.
Step 2 : Invite 3 companies to present and demo their ERP software using data similar to the company's actual data (a sample dataset can be provided according to confidentiality procedures). The vendor will survey the current situation and management needs of the Board of Directors and departments, then calculate and send the ERP project cost estimate.
Step 3 : Visit a company in the same industry that is implementing the vendor's ERP system.
Step 4 : If the Board of Directors and Project Management Team are still unsure about which option to choose, they can request the ERP vendor to conduct a trial ERP implementation for the Core Team according to the requirements, criteria, and plan agreed upon by both parties.
We believe that if businesses choose an ERP vendor following the 4-step process outlined above, coupled with the determination of the Management Board, close cooperation from the Core Team, and the agreement and support of End Users, the success rate of ERP project implementation is very high, and the likelihood of project failure is very low.
If your company is looking for a reputable ERP consulting and implementation partner for manufacturing, packaging, plastic packaging, paper packaging, cardboard packaging, wood and furniture, textiles, machinery, or processing industries, with a team of experienced experts who have successfully implemented ERP solutions for numerous manufacturing companies such as Unilever, PTSC M&C, StarPrint, S&K, MM, UniLab, Glopaco, Aplas, Dai Thanh Furniture, Le Tran Furniture, TKMB Group, Khang Viet & Dy Khang, Wilmar CLV, Steel Builder, etc., please do not hesitate to contact us using the information below:
GMC Software Solutions JSC
Address: No. 23 - C2 Street, Tay Thanh Ward , Ho Chi Minh City
Tel : 028 6660 3006
Mobile : 0918 050 964
Email : nghia.tran@experterp.vn
Website: https://experterp.vn & https://gmc.solutions
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