supply chain systems iii: software selection & … faster • deploy new web ... form a project...

MIT Center for Transportation & Logistics ctl.mit.edu

SupplyChainSystemsIII:SoftwareSelection&Implementation

MIT Center for Transportation & Logistics

Agenda

§ SoftwareSelection§ SoftwareArchitecture§ SoftwareSources§ VendorSelection

§ SoftwareImplementation§ GeneralGuidelines§ CaseStudy:HersheyFoods

2


SoftwareSelection– Architecture

3


EvolutionofSoftwareArchitecture§ Mainframe(1970s)

§ Thinor“Dumb”terminalsconnectedtomainframecomputerusingtime-sharing.Customizedsoftwareruninbatches.

§ PersonalComputers(mid-1980s)§ IBMPCorcompatible.Sometimesconnectedtomainframecomputervia

expansioncardbutgenerallyisolated.§ Client-Server(late80stoearly90s)

§ IBMPC“clone”computers(thickor“smart”terminalsorclients)connectedbyanetworktoacentralserver.Allowedmultipleusersaccesstosamedata.

§ WideWebandWeb2.0(mid-90stopresent)§ IBMPC“clone”orlaptopconnectedtocompanyintranetorWi-Fi.

§ CloudorPost-PC(todayandbeyond)§ AnyInternetenableddevice(laptop,tablet,smartphone)connectedtoa

networkofremoteservershostedontheInternettostore,manage,andprocessdata,ratherthanalocalserverorapersonalcomputer.

4


CurrentOptions

§ OnLocationorOnPremise§ Firmhoststhesoftwareintheirownfacilities,ontheirownhardware,andwithintheirownfirewall.

§ CloudComputing§ DeploymentModels-

§ PublicCloud– hostedbythirdpartyatremotelocations§ PrivateCloud/On-Premise– hostedwithinfirm’sfacilities§ HybridCloud– mixofpublicandprivatehosting

§ ComputingModels– howmuchofthe“computerstack”isrunandmaintainedbyathird-party§ InfrastructureasaService(IaaS)§ PlatformasaService(PaaS)§ SoftwareasaService(SaaS)

5


CloudComputing

6


CloudComputingModels§ InfrastructureasaService(PaaS)

§ Thirdpartyprovidesfirmwiththecomputinginfrastructure,physicalorvirtualmachinesandotherresources.e.g.,AmazonS3,WindowsAzure,Rackspace,GoogleComputeEngine.Firmownsandmanagesthesoftwareapplication.

§ PlatformasaService(PaaS)§ Thirdpartyprovidesfirmcomputingplatformstoinclude

operatingsystem,database,webserveretc.e.g.,AWSElasticBeanstalk,Heroku,Force.com,GoogleAppEngine.Firmownsandmanagesthesoftwareapplication.

§ SoftwareasaService(SaaS)§ Thirdpartyprovidesfirmwithaccesstotheapplication

softwareandhandlesinstallation,setup,maintenance,andrunning.Firmischargedbyuse.e.g.,Salesforce,GoogleApps,Box,Dropbox,andedX.

7

ThirdPartyManagem

entIncreasesBu

y(OwnandMaintain)

Rent/Sub

scrib

e


CloudComputing– Whataretheadvantages?

8

SaaS

PaaS

IaaS

SoftwareasaService

• Youcansignupandrapidlystartusinginnovativebusinessapps

• Appsanddataareaccessiblefromanyconnectedcomputer

• Nodataislostifyourcomputerbreaks,asdataisinthecloud

• Theserviceisabletodynamicallyscaletousageneeds

adaptedfromOmarElwakil (2017)



9

SaaS

PaaS

IaaS

PlatformasaService

• Developapplicationsandgettomarketfaster

• Deploynewwebapplicationstothecloudinminutes

• Reducecomplexitywithmiddlewareasaservice




10

SaaS

PaaS

IaaS

InfrastructureasaService

• Noneedtoinvestinyourownhardware

• Infrastructurescalesondemandtosupportdynamicworkloads

• Flexible,innovativeservicesavailableondemand



CloudComputing– Whatarethedisadvantages?

11

CloudCons

AutomaticupdatesenforcechangeCost savings

diminish with growing demand

Keydataandprocessesrequirenetworkaccess

Unrestrictedgovt.accessVendoroutages

crippleoperations

Vendorsdetermineservice

levels

ReliantonVendorsforcriticalprocesses

Security&PrivacyRisks

SourceOmarElwakil (2017)


SoftwareSelection– Sources

12


SCMSoftwareSources

13

ERP

PLM

CRMSRM

WMS TMS

MESSCP

ERP

PLM

CRMSRM

WMS TMS

MESSCP

ERP

PLM

CRMSRM

WMS TMS

MESSCP

ERPExpansionAllSCMmodulesarefromthesameERPvendor

Custom(In-House)SCMmodulesare

developedin-housebyfirm

BestofBreedSCMmodulesaresourcedfromdifferentproviders

ERP

PLM

CRMSRM

WMS TMS

MESSCP


ProsandConsforSoftwareSourcesSource Advantages Disadvantages

CustomizedIn-HouseSystem

• Bestfitto thefirmanditsprocesses. • Exceptionallydifficultandtimeconsumingtodevelop

• Mostexpensivetotalcostofownership• Difficult tomaintain• Canresultin“inwardlooking”solution

ERPExpandedSystems

• Relativelyfastimplementation• Lessexpensivethanin-house

customization• EfficientfromITperspective• EasiertoupgradewithERP

enhancements

• Tendstobeinflexibleintermsofprocess

• Couldrequirechangein businessprocesses

• Notguaranteedtobebestsolutionapproach

BestofBreedSolutions

• Bestperformingmarketsolutionforeachfunction

• Difficult tointegratedifferentsystems• Canhaveslowperformance• Requirestheuseofmiddleware

betweentheapplications• Upgradingindividualcomponentscan

causerippleeffectproblems

Bestof BreedPlatforms

• Very good,ifnotbest,solutionforeachfunctionwitheasierintegrationbetweenindividualmodules

• Requirestheuseofmiddlewarebetweentheapplications

14


Outsourcing

15


OutsourcingOption§ ThirdPartyLogistics(3PL)Providers

§ Runthesoftwareandperformallbusinessprocesses§ Eliminatesneedforhardwareorsoftware§ Canreplacepersonnelwithinfirm(maybe...)§ Variousfeestructures(fixedplusvariable,timebased,costplus)§ Mostcommonwithsmallerfirms

16

ERP

PLM

CRMSRM

WMS TMS

MESSCP

• Mixofperiodicandeventbasedanalysis

• Outsourcedanalytics• Conductnetwork

design

• 3PLsrunfulfillmentcenter• OutsourcingofDCoperations

• 3PLsandfreightbrokers• Personnelcanbeco-locatedwithfirm• Procurementand/ordailyexecution


SupplyChainOutsourcing

§ Reducedcapitalexpendituresforsoftwareandhardware

§ Lowercostsviapartner’seconomiesofscale(efficiency)

§ MoreflexibleandagileITcapability§ Increasedandclearlydefinedservice

levelsatreasonablecosts§ Expertiseavailabilitythatisnot

affordablein-house§ Allowsfirmtofocusoncorebusiness§ Providescontinuousaccesstonew

technology§ ReducesriskofITfailure§ Allowsforeasyreplacementof

obsoletesystems

17

§ Securityandprivacyconcerns§ Concernaboutvendordependency

andlock-in§ Lossofin-houseexpertisetoacore

function§ Concernsoveravailability,

performance,andreliability§ Highdatamigrationcosts§ SystemstiedtightlytoITinfrastructure§ Somekeyapplicationsarein-house

andmissioncritical§ Currentin-houseoperationsareas

efficientasoutsourced§ Corporateculturedoesnotworkwell

withpartners

AdaptedfromOlson,D.L.,(2014) SupplyChainInformationTechnology,BusinessExpertPress.

ReasonstoOutsource: ReasonstoNOTOutsource:


SoftwareVendorSelection

18


GenericSoftwareVendorSelectionProcess1. FormaProjectTeam(Internaland/orExternal)&Objectives2. UnderstandtheBusinessandNeeds

§ ReviewCurrentBusinessProcesses§ PrioritizeNeeds/Functionality:MustHavev.ShouldHavev.NicetoHave§ CreateRequestforInformation(RFI)

3. CreateInitialShortListofPotentialSolutions&Vendors4. In-depthReviewofShortListedVendors

§ Havevendorsconductrealisticproductdemonstrations§ Collectreferencesfromcurrentusers(visitifpossible)

5. CreateandDistributefinalRequestforProposal(RFP)6. MaketheDecision

§ Negotiatecontract,priceandservicelevelagreements(SLAs)§ Establishanimplementationplan

19


VendorSelection– CriteriaOtherthanCost§ Functionality – doesthesystemfeaturesfitthefirm’sprocessesandneeds?§ EaseofUse– howfastistheinitiallearningcurveandon-goinguse?§ Performance – whataretheprocessingspeeds?§ Scalability – howwellcanthesystemexpandandgrowwiththefirm?§ Interoperability – howwelldoesthesystemintegratewithothersystems?§ Extendibility – howeasilycanthesystembeextendedorcustomized?§ Stability – howreliableisthesystemintermsofbugsandup-time?§ Security – howwelldoesthesystemrestrictaccess,controlconfidential

data,andpreventcyberhacking?§ Support – howisthequalityofthevendorintermsofimplementation,

support,training,thoughtleadershipetc.?§ Vendor Viability – howisthevendor’sfinancialstrengthandwillingnessto

supplyupdatesandenhancements?Willtheybeherein3years??

20adaptedfromChapman,D.(2007)E-BusinessandE-CommerceManagement.

Usingascorecardcanbeusefulincollectingandcomparingvendorsolutions.


SampleEvaluationScorecardOptions Initial

InvestmentNPV

(5years)Time-to-go-Live

Features Security Scalability

A(ERP+) $9M $1.2M 9mon B B+ A

B(BoB OP) $8M $0.9M 12mon A A- B-

C(BoB Cloud) $4M $1.1M 3mon A B+ A

D(in-House) $12M ($1.4M) 18mon B B C

E(Outsource) $2M $0.5M 3mon A- B B+

F(DoNothing) $0M $0M $0M D D D

21

§ ThingstoNote:§ Scorecardsshouldcapturefinancialandnon-financialattributes§ Non-financialcriteriacanbescoredasrank,ratings,grades,etc.Bewareofaveragingscores!§ Actualscorecardswillbemuchmoredetailed– couldhaveoneforspecificfeatures§ Selectioncanbemadebetweenvendorsorbetweenalternativehostingplatforms§ MultipleObjectiveAnalysiscanbeusedintheselectionprocess.


TotalCostofOwnership

22


TotalCostofOwnership

SoftwareLicenseDirectcostofthesoftwaresystemitself– assumingownership.Usuallypaidupfront.

MaintenanceOngoingannualcoststoguaranteeupgradesandbugfixes.

Platform/HardwareCostofneededhardwaretorunthenewsoftware.

TrainingCostoftraininginitialandongoingpersonnel

23

ImplementationCostofgettingthesystemtogolive!Thesevarywidelybetweensystemsandfirms.

CustomizationCostofmodifyingthesystemitselftofitthefirm’sprocesses.NothinginSCMisusedstraightoutofthebox(vanilla).

SystemIntegrationCostofinterfacingthissystemwithothermodulesandmodifyingexistingsystemstofit.


CostBenefitExample§ Youhavebeenassignedtoleadtheselectionandimplementationofanew

SCMPlanningSuite.OneoftheshortlistedvendorsisKEBAssociates,aleadingvendor.Toassistintheimplementation,youhaveselectedTriviature,awellknowSCMITconsultingfirm.

§ Thefollowingcosts(inthousandsofdollars)andgrowthrateshavebeenestimated:§ Internalteamcost(Y0) $1,000§ Growthrateteamcost 10%increaseeachyear§ Consultantscost(Y0) $400§ SoftwareLicense(Y0) $500§ Maintenance 20%oflicenseperyear§ Hardware $600§ AnnualBenefits(Y1) $2,000§ BenefitGrowth(afterY1) 30%§ DiscountRate 15%

§ WhatistheNPVandIRRforthissolutionundertheseassumptions?

24

• RecallthatforNPVexpensesinthefirstyear(year0)isnotdiscountedsinceitisnow!

• ForIRRyouincludethefirstyearcashflow.

TrainingCostsbyyearY0 $500Y1 $750Y2 $1,000Y3 $800Y4 $400


CostBenefitExample

§ ThingstoNote:§ Thesecalculationsarehighlydependentonassumptionsindiscountrate(NPV),

implementationandtrainingcosts,andvalueofbenefits.§ ThebenefitsassumptioninfluencesthedecisiontoinvestinSCMIT,butnotthespecificvendor

selectionsinceitis(usually)appliedtoalloptions.§ Theimportantthingistopickafigureofmeritandapplyituniformlyacrosstheoptions.§ TotalCostofOwnershipcapturesthoseon-goingcoststhatarefrequentlyforgotten.§ Sensitivityanalysisisamusttoseehowrobusttheinvestmentis.

25

YearInternalTeam Consultants

Software(Lic.&Maint) Hardware Training Benefits

AnnualCashFlow

CumulativeCashFlow

0 $1,000 $400 $500 $600 $500 $- $(3,000) $(3,000)1 $1,100 $100 $750 $2,250 $300 $(2,700)2 $1,210 $100 $1,000 $2,925 $615 $(2,085)3 $1,331 $100 $800 $3,803 $1,572 $(514)4 $1,464 $100 $400 $4,943 $2,979 $2,466Totals $6,105 $400 $900 $600 $3,450 $13,921

NetPresentValue=NPV(0.15,300,615,1572,2979)– 3000=462.5$kInternalRateofReturn=IRR(-3000,300,615,1572,2979)=20%Payback(undiscounted)after4years.


SoftwareImplementation

26

“Itusuallytakestwiceaslongwithtwicethenumberofresourcesasplannedtoachievehalfthepromisedbenefits”

ruleofthumbforimplementations


ImplementationApproaches

27

Movingfromanoldmulti-modulesystemtoanewmulti-modulesystem.

#ModulesConverted

#LocationsConverted

Comments

Director

BigBang

All All • Switch fromtheoldtonewsystemoccursononeday• Painofswitchconcentratedforentirefirm• Fastestimplementationtime,buthighestrisk• Post-implementationproductivitydrop• Highpotentialforsystemwidefailuresduetoinsufficienttesting/training

Parallel All/Some All/Some • Oldandnewsystemskept onfortestingperiod• Lowestriskoffailure,buthighestcostandlongestimplementationtime• Employeesdodoubleentrywork

Pilot All One • Fullimplementationofallmodulesatonelocation• Identifybugs orissuesthatarecorrectedpriortolargerrollout• Containsanypotentialfailurefrominfectingalllocations• Testsindividualmodulesandintegrationsimultaneously

Phasedor

Rolling

One All • Implementation ofonemoduleatatimeacrossthenetwork• Longerimplementationdurationthandirect,butwithlowerrisk• Usershavemoretime&learnastheygo- nodipinperformanceafter• Learnandfixasyougo– betterprocessforlaterimplementations• Lossofmanagerialfocusovertimeandacontinuousstateofchange• Potentialformissingdataduringtransitionalimplementationperiod• Mightrequiretemporarybridgesfromoldtonewsystemsduringtransition


Implementation– BestPracticesI§ Secureseniorexecutivecommitment

§ Secureabilitytogatheranduseresources§ Empowerteammanagerstomakedecisions

§ Forminterdisciplinaryteam(s)toincludestafffrom:§ Projectmanagement– keepprojectontrack§ Processownersandendusers– keeptherightfunctionalityandusability§ Informationtechnologyanddevelopment– ensuresintegrationandscalability§ Organizationalchangemanagement– ensuresthatthefirmwilladoptnew

system(s)§ Createaclearandspecificscopedocument

§ Selectappropriateimplementationapproach- setrealexpectations§ Specifythemodulestobeimplementedandhow- Avoidscopecreep(orgallop)§ Understandbusinessprocessandkeyrequirements§ Determinehowtomatchbusinessprocessestothesystems

capabilities/requirements– Everysoftwareimplementationprojectisunique!

28


Implementation- BestPracticesII§ Buildextensivetestingintotheprojectplan(youcan’tdotoomuch)

§ Functionaltesting– doesthesoftwaredowhatwethinkitshoulddo?§ Interface/Integrationtesting– doesthesoftwareinterfacewithothersystemsas

itwasdesignedto?§ Acceptancetesting– doesthesoftwareoperateinthemannerexpected?Are

thereanygaps?§ Regressiontesting– hasanythingchangedorbeenbrokenduetonewrelease?

§ Includeextensiveusertrainingintotheprojectplan§ Reduces“losstime”duringandafterimplementation§ Improvesandspeedsupsystembuy-in– noonelikesanewsystem!§ Ensurethatusersunderstandhowthenewsystemwillhelpthemintheirday-to-

dayjobsaswellassupportoverallbusinessobjectives§ Uselowrisksettingstomodelnewprocesses(conferenceroompilots)§ Trytosimplifywheneverpossible§ Useradoptionwillmakeorbreakanimplementation!

29


ImplementationResults

TechnologyProvider 49% 14%

Third-Party 22% 40%

In-House 17% 33%

30

BestofBreed

ERPExtension

Wholedtheimplementation?

≤12months 71% 37%

>12months 23% 59%Whatwastimetoimplement?

Early/OnTime 56% 37%

Late 36% 56%Wasimplementationfinishedontime?

Under/OnBudget 59% 40%

OverBudget 32% 49%

Wasimplementationfinishedonbudget?

≤9months 34% 11%

>9months 36% 48%

Notthereyet! 12% 19%

WhatwasthetimetoROI?

adaptedfromSupplyChainInsightsLLCPlanningSoftwareStudy(Feb-Oct2014)


Case:HersheyFoodCompanyI

31


HersheyFoods– Background§ Backgroundasof1997:

§ Foundedin1894,HersheyFoodsCorporationisaUSbasedmanufacturerofchocolatesandothercandyproducts.Their1997annualrevenueexceeded$4.3billionwithanetprofitofalmost$340million.

§ Keyproductsinclude:HersheyKisses,Mounds,Reese’sPeanutbutterCups,MilkDuds,Reese’sPieces,JollyRanchers,Twizzlers,andYorkPeppermintPatties.

§ Hersheysoldthroughavarietyoflargeandsmallretailersusingaveryefficientlogisticssupplychaindesignedforhigh-volume,low-costdistribution.

§ Atthistime,thecompanywasusingamixofdifferentlegacysystemstoincludehome-growntoolsandmainframeapplications(e.g.,Manugistics,HR,etc.)

§ SalesforHershey’sproductstendedtopeakinthefallwith40%ofallsalesoccurringbetweenHalloweenandChristmaswithslowestsalesinlateSpring.

§ InformationTechnologywasnotseenasacriticalfunctionatHersheyatthistime.TherewasnoCTOandtheheadofITwasonlyavide-president.

§ Seniormanagementhadconcernsabouttheircurrentlegacysystems:§ NotY2Kcompliant– meaningthatthesystemsmightnotworkon1January2000duetodates

beingstoredastworatherthanfourdigitsinoldersystems.

§ NotabletoscalelimitingtheabilityofHersheytogrowthebusiness

32


HersheyFoods– Decision§ Decision:

§ Inlate1996,seniormanagementapprovedprojectEnterprise21withthefollowingobjectives:§ BecomeY2Kcompliant,§ Modernizehardwareandsoftwaretoenablegrowth(upgradeandstandardizethe

hardware,shifttoaclient/serverarchitecture,movetoTCP/IPprotocols,etc.),§ Bettercoordinateandcommunicatedataanddeliveriestoretailcustomerstoreduce

theirown(andtheretailer’s)inventoryandimprovethelevelofservice,§ Enablecustomerservicerepstoconfirmdeliverydatesdirectlywithcustomersandif

neededbeabletopromisefutureavailability(ATP),§ Installbarcodingacrossallplantsandproductsinordertoreduceproductioncosts,

trackmaterials,andimproveoveralllogisticsmanagement,and§ HelpHersheyre-organizeitbusinessprocessestoimproveserviceandenhance

competitiveness.§ Theprojectwoulddeliverasingleintegratedplatformreadyforswitchoverin

April1999withanexpectedcostof$110million.

33


HersheyFoods– Enterprise21

§ Enterprise21consistedofthefollowingcomponents:§ SAPAG’sR/3EnterpriseResourcePlanning(ERP)suitetoincludemodulesfor

finance,purchasing,materialsmanagement,warehousing,orderprocessing,andbilling.

§ SiebelSystemsCustomerRelationshipManagement(CRM)standalonesoftwaretosupportmanagementofcustomerrelationsandtrackingeffectivenessofpromotionsandpricechanges.

§ Manugistics SupplyChainsoftwaretomanagethetransportation,production,forecasting,andscheduling.

§ IBMGlobalServiceswasselectedtointegratethesoftwareprovidedbythethreevendors.

§ HersheyinitiallyoptedforaphasedimplementationapproachrollingoutthedifferentERPmodulesindividuallytoallowfortesting.

34


HersheyFoods– January1997

§ StatusasofJanuary1999§ Enterprise21hadmovedalongfairlywellwithsomeexceptions.§ ThefollowingSAPmoduleswereimplementedandrunning:finance,

materialsmanagement,andpurchasing.§ Othermoduleswerebehindschedule:

§ SAPcriticalorderprocessingandbilling§ Siebel’spricingandpromotionstrackingpackage§ Manugistics planningandschedulingapplications

§ Decision:§ Converttoabig-bangimplementationapproachinordertoensurethat

allmoduleswereinstalledbytheFallof1999.§ Newcut-overdatescheduledforJuly1999.

35


Case:HersheyFoodCompanyII

36


HersheyFoods– July-Sept.1999§ StatusasofJuly1999

§ Hersheywasrunningwith~8daysofsupply– higherthannormalinordertocoveranyissuesfromimplementation.

§ Deliverytodistributorsstartedfailing.Cycletimeextendedfromthenormal5daysto12to15days.Manyweresimplynotbeingfilled.

§ RetailersstartedreplacingHersheyproductontheirshelveswithcompetingproductsfromNestleandMars.

§ Shockingly,whileorderswerenotbeingfilled,theinventoryonhandstartedincreasing!§ StatusasofSeptember1999

§ Hersheyannouncedthatemployeeswere“havingproblemsenteringordersintothenewsystemsandthenewsystemswerenottransmittingorderstowarehouses”.Didnotassignblametoeithersoftwareorimplementation.

§ Hershey’sstockpricedropped8%inasingleday

§ ImmediateResults:§ Hersheylost$150millioninsalesduetotheERPimplementationfailure!§ Stockpricedropped35%bytheendofOctober.§ ProfitsinQ3droppedby19%andsalesdroppedby12%.

37


HersheyFoods– WhatHappened?§ PartialRootCause:

§ SAPR/3requiredallinventorystockinglocationstobeintheMasterdata.§ However,duringpeaktimes,Hersheywoulduseanylocationpossibletoincludetemporary

facilities– whichwerenotcapturedintheSAPmasterdata.§ Gapwasduetolackofcoordinationbetweentechnicalimplementationteamand

operations.§ Post-mortem– destinedtofail!...inretrospect,ofcourse!

§ Allsoftwarecompaniessaiditwasnottheirfault– individualsystemsworked§ Projectmanagementendedupbeingtheconsensusscapegoat.§ Unrealisticimplementationdeadlineswithinsufficienttimebufferforadequatetesting

(recommended3-6weekspermodule)§ Importantmodulesliketransportationandwarehousinggotpushedto3rd quarter.§ UsingaBigBangapproachforimplementing3softwaresystemsatoncewaswrong

approach(threecooksinthekitchen)§ ConsultingteamdidnotactuallyhavepastSAP-Manugistics integrationexperience.§ Therewasinsufficientemphasisontraining- employeeshadtolearn3newsystemsatonce

duringpeakseason§ SeniormanagementdidnothavelargeITexperienceandwerenotkeptuptodateonthe

ongoingimplementation

38


HersheyFoods– WhatNext?§ Hersheyrecoveredrelativelyquickly

§ AppointednewCIO,GeorgeDavis,fromComputerSciencesCorporation.§ Implementedarigoroussoftwaretestingregimen.§ Increasedtrainingforusers.

§ InJuly2001HersheyimplementedSAPR/34.6§ Requiredchangingbusinessprocesses– morestreamlined§ Installedin11months– aheadofschedule§ Deliveredat20%belowbudget§ Includedpilotingof“dryruns”fornewimplementations,e.g.,processingempty

palletswithbarcodestoidentifyanyissuespriortogeneralrollout.§ Builtanew1.2MillionsquarefootDC– reducedordercycletimebyhalf

§ Currentstockpriceis5xitslowpointinJanuary2000!

39


KeyPoints

40


SoftwareVendorSelection§ IntertwineddecisionArchitectureandSource

§ OnPremisesversusCloud§ In-Housevs.BestofBreedvs.ERPExtensionsvs.Outsourced

§ Selectionprocess§ Multipleattributes– scorecardapproach§ Totalcostofownerhsip

41

ERP

PLM

CRMSRM

WMS TMS

MESSCPERP

PLM

CRMSRM

WMS TMS

MESSCP


Implementation

§ Approaches§ BigBangvs.Parallelvs.Pilotvs.Phased

§ BestPractices–§ Secureseniorexecutivecommitment§ Forminterdisciplinaryteam(s)§ Createaclearandspecificscopedocument§ Buildextensivetestingintotheprojectplan(youcan’tdotoomuch)§ Includeextensiveusertrainingintotheprojectplan§ Trytosimplifywheneverpossible

42


ctl.mit.eduMIT Center for Transportation & Logistics

Questions,Comments,Suggestions?UsetheDiscussionForum!

[email protected]

“Athena– relaxingonthesofa”courtesyLanaScott

supply chain systems iii: software selection & … faster • deploy new web ... form a project...

Documents