With over 20 years of experience in consulting on business management solutions and management software for many large Vietnamese and FDI companies, we would like to share with you, businesses that need to apply Enterprise Resource Planning (ERP) solutions, the secret to choosing a reputable ERP consulting and implementation unit, ensuring a high probability of success when implementing the project.
In the 60s, from the needs of manufacturing companies for Material Requirements Planning (MRP) , MRP software was born to ensure the optimization of inventory materials and supplies "no excess, no shortage" to provide timely supply for production, helping to optimize inventory costs, interest costs, production costs... By the 70s, MRP developed into MRP II with additional management needs for Production Planning. By the early 90s, MRP II had expanded to include other management modules for Sales - Purchase - Accounting... and the ERP concept was born from there.
In over 20 years of consulting and implementing ERP for domestic and foreign enterprises operating in Vietnam. We have found that the rate of successful ERP implementation for enterprises in Vietnam is not high, especially ERP implementation for manufacturing companies. We define the concept of successful ERP implementation according to the following 3 factors:
- First: Implement on schedule as committed by both parties.
- Second: Deployment of quality solutions, processes, data, software, reports... and systems that meet the management requirements of the business, bring real value, and satisfy customers (BOD; Department Head; End users...).
- Third: Implementation costs do not exceed the approved budget.
Of course, to successfully implement an ERP project, cooperation and contribution from both sides (ERP implementation unit & Customer) or 3 sides (including Solution Consulting Unit) are required. We will have 1 article on the necessary factors to ensure successful ERP project implementation in the next series of articles.
For Vietnamese enterprises, spending a large amount of money (even up to millions of USD if using foreign ERP, and domestic ERP is from 100k to several hundred thousand USD) to invest in an ERP project carries with it many aspirations of the enterprise. If the project fails, it will not only be a loss of money, time, and effort, but also a loss of confidence in the application of advanced technology, a loss of opportunities to help the company improve its competitive advantage and the opportunity to grow stronger!
Around 2005 - 2006, we participated in an ERP consulting project for a fairly large enterprise in the soft plastic packaging industry, supplying products to large domestic and foreign corporations. After about a year of working with ERP suppliers, this customer decided to sign an implementation contract with a large Vietnamese IT company and a consulting and implementation unit for Oracle software. The chairman and CEO of the packaging company decided to sign with this Unit because the entire BOD was invited to visit a packaging factory in Singapore that had successfully applied Oracle. However, after nearly 2 years of implementation, the ERP project was a complete failure and after that, no department in this company dared to propose ERP investment anymore. By 2015, this company sold the entire unit to a Korean Corporation!
So what is the secret that can help businesses choose the right Supplier, ensuring successful implementation of the ERP system? With over 20 years of experience in the profession, we suggest the following steps to choose an ERP consulting and implementation unit:
- Step 1 : Establish an ERP Project Management Board with the responsibility of building the IT Status Profile & Management Requirements of the company, unifying the criteria for selecting and evaluating Suppliers. In particular, there are 02 important criteria as follows:
- Step 2 : Invite 03 Units to present & demo ERP software with data similar to the company's reality (can provide sample data set of the company according to information security process). Supplier surveys the current status, management needs of BOD & Departments, then calculates and sends ERP project cost table.
- Step 3 : Visit a business in the same industry that is applying the Supplier's ERP.
- Step 4 : If the Board of Directors & Project Management Board are still undecided about which option to choose, they can request the ERP Supplier to test the ERP for the Core Team according to the Requirements; Criteria & Plan agreed upon by both parties.
We believe that if a business chooses an ERP Supplier according to the 4-Step process above, along with the determination of the Board of Directors, close cooperation of the Core Team, and support from End Users, the success rate of ERP project implementation is very high, and the possibility of project failure is very unlikely.
If your business wants us to provide more in-depth advice on choosing a reputable ERP solution and supplier, please contact:
GMC SOFTWARE SOLUTIONS JOINT STOCK COMPANY
Address: 4th Floor, Success Building, 21A Go Dau, Tan Quy Ward , Tan Phu District , HCMC
Tel : 028 6660 3006
Mobile : 0918 050 964
Email : nghia.tran@experterp.vn
Website: https://experterp.vn & https://gmc.solutions
INTRODUCTION GMC SOFTWARE SOLUTIONS JOINT STOCK COMPANY
SPECIALIZED MANAGEMENT SOFTWARE FOR MANUFACTURING ENTERPRISES EXPERT ERP
GMC Software Solutions Joint Stock Company was established in 2007, specializing in consulting & implementing Expert ERP Enterprise Resource Planning Solutions for manufacturing enterprises, focusing on the following industries: Packaging; Wood; Textile; Chemicals; Mechanical engineering; Food processing... Expert ERP software has been and is being deployed for many large companies in Vietnam & FDI.
ExpertERP production management software was researched and built by GMC Company more than 15 years ago, learning from the world's standard ERP platform but with flexibility and the ability to quickly adjust (customize), suitable for the specific production and business environment in Vietnam. In particular, we have successfully consulted and deployed ExpertERP production management software for manufacturing enterprises aiming at the "SMART FACTORY" model .
You can learn more about the projects that ExpertERP has consulted and implemented for typical manufacturing enterprises as follows :
EXPERT ERP PRODUCTION MANAGEMENT
PRODUCTION PLANNING
MATERIALS PLANNING
PURCHASE TRACKING & REPORTING
CONTROL OF PRODUCTION MATERIALS
QUALITY MANAGEMENT
PRODUCTION REPORTS
EXPERT ERP MOBILE APP SCREEN
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