Important Considerations in Defining a Phased Implementation Approach

Posted on: September 22, 2018 | By: Tim Lovely | QAD Financials, QAD Manufacturing, QAD Business Process, QAD Distribution

Multi-site and/or Multi-business ERP rollouts require careful planning. Let’s discuss some key drivers and options for the sample business below:

  1. One large US Manufacturing facility, with shipments direct to customers and to international Distribution Centers

  2. One medium size European Distribution Center, which Purchases product from the US and ships within Europe

  3. One small APAC Distribution Center, which Purchases product from the US and ships within the APAC region.

  4. Multiple non-operational entities used for various purposes such as Sales Offices in foreign countries.

Generally, businesses do not have the resources to launch a company with the footprint above at one time, and are not willing to accept the added risk to the business of going live in one “Big Bang” approach. Additionally, the added effort of converting all static, master, and dynamic data for one single go-live event is usually not viable.

Although there are multiple variations, let’s compare implementing the major US operations first and non-operational Entities versus Implementing DC’s first and major US operations last

Potential Advantages of doing the US first:

  • The Project Team may be centralized in the US, making support easier for a US based rollout

  • Few language barriers associated with implementing in a foreign country

  • A majority of the consolidated worldwide business is on the new ERP faster, with the DC’s following soon behind

  • Country specific localizations can be deferred to a second phase

  • Often the larger business generates the majority of the IT support tickets. Moving this business to a new ERP first reduces the time this group will be supported on an older legacy system while supporting the DC’s on a new ERP

Potential Advantages of doing one or more DC 's first before the larger US operation:

  • Larger scope is larger risk. Potentially implementing a DC first allows the business to get comfortable with the Distribution related transactions, primarily Purchasing and Sales, while allowing the business to bite off Manufacturing later in a second phase or step.

  • Rolling out a smaller DC first means training fewer people and therefore more focus on the people doing the work.

Although each company is different, considerations relating to ongoing support, resources, end user training, budget, and risk are important to consider when defining a rollout approach.

About Logan Consulting

Logan Consulting is a leading consulting firm with strengths in strategy, project management, business process design, ERP and CRM implementation, recruitment and training.  Since 1992, our business process-based delivery techniques and tools have helped our clients build a solid business process and information technology foundation to support their business.  Our clients count on us for objective, unbiased analysis, recommendations and project work.  To learn more and hear what our customers are saying about us, please visit our website (www.logan-consulting.com).

Logan Consulting is headquartered in Chicago, IL with global services reach.



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