ERP software implementation in an organization enhances the communication process and makes the right information available at the right time at the right place for effective decision-making. ERP is immensely useful in enhancing the information flow within an organization.

There is a downside, however. ERP software cannot address operational inefficiencies that arise due to policy flaws, nor can it identify such inefficiencies. This is as expected, since ERP is intended to make sure that the system works according to pre-defined policies. So, it can perform only as well as the policies themselves. For example, if the reorder quantity for a particular component is set to be 50 units, ERP software can make sure that the order is generated the moment the stock level reaches 50. But, how do we reach the decision that the reorder quantity should be 50 units, not 60, or 40?

Operational policies need to be questioned and optimized, ideally before going for an ERP implementation. This is the main reason why an ERP implementation project is typically preceded by a reengineering exercise. Streamlining and optimizing of policies and procedures is a critical first step in ERP implementation so that consequent errors can be avoided.

To arrive at an optimum policy, you need to analyze alternative operational scenarios. Using basic tools like spreadsheets for this purpose is not sufficient, since a spreadsheet cannot capture the complexity of real-life operations and might give only the best-case scenario. A foolproof way to analyze alternative scenarios is to try these scenarios on your real system. But, obviously, such experiments on your real system will take several months, if not years. Do you want to withstand such disruption to your system and do you have the luxury of time? What are the alternatives?

ProModel products provide you an ideal solution to this dilemma by giving you tools with which you can easily model and simulate your entire operations on a PC. You can then, with a few mouse clicks, know the effect of different operating policies on your critical performance parameters. You can identify inefficiencies, take corrective actions, and see the net effect of these actions, all on a computer. You can conduct as many "what-if" scenarios as necessary to ensure that the proposed new policies provide the best direction for your organization. Thus, while ERP software provides you a valuable tool for day-to-day management, ProModel products make you more confident in the validity of your decisions and significantly reduce the aspect of risk.

To learn more, use our product selection guide to identify the ProModel product specific to your industry. Find out how customers all over the world are using ProModel products to gain an advantage over their competitors.