Tag Archives: TMS

Why you need an operational consultant when you implement a software solution?

Implementing a software solution (ERP, WMS, TMS etc) in a company is the best thing that you can decide at any time. This software solution can arrange, optimize your process and secure your business because it force the employee to do things in a certain way and follow a process that software solution implement it.
As I told you it is a good option to implement a software solution in your company. The wrong things which is associated with the software solution is the level of expectations, because this level of expectations is higher, in most of the case, that you can obtain in real life after you implement a software solution.
I saw in many cases, on the company lots of software solution which was implemented wrong. The software solution it is not bad or good, but the implementation can be bad or good and in case that the implementation is bad it will cost you a lot of money in the future. For example we made a consultancy project on a company who has the well known ERP solution in the world.
Before to implement the ERP solution, in the warehouse reception, when they receive a goods they made 2 operations: they made an internal paper witch prove that the insert the goods in the warehouse in proper condition and in proper quantity and after that, in the same day they complete an excel file to have a “database” and “traceability” (limited traceability that excel file permit) of the goods.
After they implement the ERP solution they made 3 operations in the reception of the warehouse when they receive the goods (it was very strange because the owner of the company think that they must make only one operation: register the goods in ERP systems). Why they doing 3 operations? Because they made the 2 operations that they made in the past and supplementary they register the goods in the ERP systems. Why is happens something like this? The reason is that the implementation of the ERP solution is not made in good way. The implementation was bad, because they follow a bad process.
When they receive the goods in the warehouse, they cannot register that goods in the ERP solution for 2 reason: 1. The software accept to insert the goods only by the invoice (in most of the case when the goods comes into the warehouse it comes with transport document and based on the transport document some time the invoice comes into the company, so in this case the reception of the goods in ERP system will be possible not on the reception on the goods and it is reception after few time when the invoice arrive); 2. The people from warehouse cannot have the permission to insert the invoice of the goods into the systems, only the accounting department has this permission which also delays the process.
In this case the people from warehouse it is forced to keep also the old registering methods of the goods because they must prove in any moment the traceability of the goods and how many products and in which quantity they have in the warehouse.
This kind of problems I found many times in the company and this kind of problems are happens because when they made the implementation of the software solution they treat this project like an IT project not like an operational project. Also they do not use a consultant which have a lot of operational experience and which know how to set-up the process and software to solve this kind of problems. Not all the time the software companies (which implement the software solution) have good business process consultants, and all the time they want to made personalization of the software solution because for all the personalization that you ask you will pay more money. On the other hand it is not recommended that you made a lot of personalization of the software solution because this will reduce the scalability of the solution and creates you problems in the future.
So, the best way is to optimize your business process (operational) and after hat to implement the software solution having all the time an operational business consultant on your side. The operational consultant will cost you money but the total cost of the implementation process it will be lower than if you do not have an operational business consultant in this process.
We can offer support in this way because our core business is to help companies to optimise their operational business process.

Software Implementation (WMS, TMS, Fleet Management)

First of all I want to clarifying the terms: WMS – means warehouse management system and it I a software solution which can help you to manage and optimize your warehouse; Fleet Management – it is a software solution which help you to manage the car fleet and also helps you to manage the cost which is associated with fleet (fuel, maintenance, documents etc) and TMS means transport management solution and it is a software solution which help you to manage your transportation.
Of course, more other solution exists in supply chain area (Yard Management, Labor Management etc) but this 3 solution is the most used.
In most of the case if you want one of these solutions you can buy from a different provider. In any case of software solution implementation, doesn’t mean what kind of solution it is: WMS. TMS, ERP etc,  you must take care of the contract and the condition of the contract. Most of these software solutions it is expensive and implement one of those are a strategic decision.
When you decide to buy a solution it is important that you realize that in a contract like this are always 3 parties involved: you, the company witch want to implement the solution as the client, the provider of the solution which is the supplier and the provider of the database which is the database provider. Most of the solution on the market is build use a third party database solution provider.  This database can be MSSql (Microsoft), Oracle, MySql (is part of Oracle now) etc. Some of the software solution provider develop their own database like SAP, but also work with others database (Oracle or Microsoft).
Why is important that aspect? Because most of the company, when decide to buy a software solution made a contract between 2 parties: company and the software solution provider. In most of the case in this contract I not clear specifying what’s happened when you have problem with the database. I saw many cases when it faces with problems after 2 years of software implementation and the company goes to the software provider and, the software provider, after few analyses, said: it is not my problem it is a database problem, you must solve the problem with database provider. When you go to database provider they will said that it is not their problem it is a software solution provider problems. This happens because the problem it is not o easy to solve and none of the company wants to work for free to solve the problem. In some cases they are not able to identify the problem so if they cannot identify the problem they are not able to solve it, so they want to pass the responsibility.
If you do not have a specific clause in the contract to avoid ping-pong between companies you will have this problem. In this case you do not loose only time you lose money because in most of the cases application is working hard and your operational flows are disturbed.
In most of the case the software provider recommend the database that you use with their applications, and they recommend this, in most of the case the database which provide them more profit and more margin.
To avoid this kind of problems I always recommend to my client to put in the contract a clause witch clear said that is any problem with the database the software provider solve this problem even if the database is not his solution and they buy the solution from other supplier. The software solution provider must to provide you an entire system which can work stable in your environmental conditions, not to provide you an interface which is connected to a database.
If you want to test a TMS solution please visit this page: http://logistic-specialist.com/tms/en .

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