ERP Implementation
SITUATION
Multi-national firm with three distinct businesses required implementation assistance for worldwide ERP Implementation.
DRIVER GOAL
- Implement one worldwide system to enable common processes across global footprint and increase operating margin.
RESULT
- Achieved go-live on schedule and under budget.
- Tracked business case of $30m per year.
Case Study
Implement Global ERP System
Issue
A multi-national firm with three distinct types of businesses embarked on a global ERP implementation to enable cost reduction, consolidation of management views, and overall process effectiveness. The Highland Group was asked to assist with the execution of this single-platform system across different countries and different business models in an 18-month timeframe.
Highland Approach
The Highland Group’s professional team began with an analysis of the global operation to determine opportunities to leverage the ERP system and to create and formalize efficient processes that support the system and allow for growth.
Actions Taken
ORDER TO CASH (Order Management, Receivables, Billing)
- Streamlined the order-to-dock process, moving from 9 touches to 1 in some cases.
- Implemented new organization and control over products and pricing to improve margins.
- Integrated with the CPM system to reduce rework.
- Implemented consistent policies and procedures worldwide.
PROCURE TO PAY (Procurement, E-Procurement, Shipping & Receiving, Inventory, A/P)
- Created a new purchasing organization with less clerical work, able to focus on strategic cost-saving initiatives.
- Reduced the 13-part numbering schemes and eliminated duplicate parts and obsolete vendors.
- Improved information to leverage material purchasing with an annual benefit of $7 million.
- Redesigned the layout and management of the warehouses/inventory programs.
PLAN TO PRODUCE (Bills and Routings, Cost Management, Production Planning, Production Mgmt)
- Identified and removed thousands of obsolete parts.
- Installed new controls to ensure full information on new parts to allow for effective purchasing and production.
- Developed a single master scheduling process worldwide.
- Ensured the proper use of philosophies to manage production and inventories to allow for growth.
- Implemented tight database controls to ensure system integrity.
- Incorporated standard product configurations to eliminate custom product, streamlining order entry and manufacturing.
FINANCIALS (General Ledger, Time & Labor, Projects, Expenses)
- Implemented worldwide policies for time recording, payment and expense reimbursement.
- Eliminated security gaps in legacy systems.
- Reduced period end closing time, in some cases from 5 days to 2.
- Instituted worldwide project management disciplines.
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