Supply Chain Technology: Mistakes

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Session 5

Supply Chain Technology


________
Mistakes
Takeaways
Mistakes in Supply Chain Technology

Technology can’t solve all your Supply chain Problems. Ensure your
Supply chain readiness before technology implementation
Employees have a love for Legacy Systems: Employee buy-in is
essential for any change.
I have heard this many times from my clients:
“ Before this technology implementation, we only had a few problems.
Now, we have Many”
Never split the project responsibility to multiple stakeholders within the
organization. Project gets pulled in different directions leading to delay and
even failure. Have a Single Point Of Contact. (SPOC)
Appoint a Full Time Techno Functional Consultant and give him/her
sufficient time to understand your systems and processes before you call
your Software vendor. This also helps in developing a concrete plan.
Implementation Mistakes

• Technology Aversion: Some companies assume that their


processes are unique and hence off-the-shelf technologies
wont work for them. They end up with inefficient
homegrown technologies.
• Delays: We wanted to upgrade to the latest software. But
before we could go-live, the next version of that software
was released.
• Lack of Clarity. We need to first find: “What problems
are we trying to solve with this Technology?”
• Lack of Long term Vision. When we started the project,
we had a purpose, but half way through the project we
had to change our business strategy; making that purpose
irrelevant and we got stuck in the middle.
Mistakes in Technology Usage

• Ignoring Upcoming trends could make you fall behind your


competitors.
• Multiple IT vendors for different business processes leads to Chaos.
Set the communication channels right for coherence.
• If ending up with a bad technology is a mistake, living with it just
because you have invested in it makes it a terrible mistake.
• Multiple facilities in multiple platforms: Due to Mergers and
Acquisitions, we have seen multiple facilities operating in different
platforms. This leads to problems like: Same vendor supplying the
same product to the same customer at two different prices for two
different customer sites.
• Lack of Inventory Visibility leads to duplication. Intra company
stock transfers should be made easy.
Cost of Technology
• Fixed fee model requires one time investments. But, post
implementation support is a recurring expense and if you are unable
to spend it, the technology wont live up to its expectations.
• Choose between Transaction based fee model Vs Fixed Fee model
based on your business requirements.
• Technology upkeep cost is unavoidable even during low sales
periods. Staff Training, Support & Debugging are lifelong activities.
Don’t let your software become a white elephant in a rapidly
changing technological world.
• Agile Based “Time and Money” contracts are more suitable for
slowdowns.
• Underutilization of Software and Data licenses due to over
purchase or early migration to Cloud or other platforms adds to your
indirect cost.
Additional suggestions

• Interface between different legacy systems doesn’t always work.


• Digital or Cloud Migration: Buy minimal Viable Products on a
incremental basis, with continuous feedbacks, thereby gaining flexibility.
One step at a Time.
• Lock-in period for maintenance ensures that post implementation
teething problems are addressed. Otherwise vendors might disappear
before the product gets streamlined.
• Remember these three Vs’ while technology selection - Velocity –
Visibility – Viability
• Too many cooks spoil the broth. This applies to Data capture from
multiple sources. Data cleansing has to be done before we could use
them.

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