Why Business process improvement (BPI) is it Important?

What is BPI?

Business process improvement (BPI) is an method used to establish inefficiencies, and analyze, redesign and improve present enterprise processes to optimize performance, improve workflows, conform to best practices and enhance the user experience.

Why is BPI important to ERP success?

Forward-looking manufacturers and distributors perceive that to comprehend the total value of their ERP investment, they should analyze and optimize their core enterprise processes after which choose and implement a solution to automate and speed up these processes. And they consider, appropriately, that it makes no sense to throw money, people, time and technology at incorrect, bad or broken processes.

Plain and simple, these smart organizations know that evaluating and enhancing your enterprise processes is important to ERP successful implementation.

At Apagen, our experience Odoo ERP Consultant — more than 50 projects — also shows that successful ERP projects start with BPI.

At the most fundamental stage, the first function of an ERP solution is to help your organization efficiently and successfully execute core enterprise processes. And whenever you consider streamlining and integrating your processes, you virtually ensure that you’ll realize improved productivity, accelerated workflows and lower operational costs — benefits that drive higher enterprise performance.

Why start with Business process improvement(BPI)?

Business process improvement is the critical first step on your enterprise transformation journey. An in depth analysis of your enterprise processes, practices and technical environment pinpoints areas for enchancment, accelerates time-to-benefit, and informs the software selection process.

Or, as our skilled Odoo consultants say, you can’t know where you’re going should you don’t know where you’re.

It’s essential to begin your Odoo ERP project with BPI because you should determine how your enterprise operates today so you can then define how you want it to operate tomorrow. When you’ve that information, you’ll be able to decide which new processes, practices and tools are required to make more efficient and optimized processes possible.

What is the BPI process?

At Apagen, we believe that to really change how your enterprise works, your organization must answer these three questions:

Where are we now?

The effectivity of most enterprise processes declines over time until a conscious and continuous effort is made to reexamine, re-imagine, re-engineer and enhance them. An ERP implementation is the perfect opportunity to take a close look at how your group currently performs its strategic processes, to document the present state, to find out the opportunities to apply best practices, and to streamline and improve these processes.

Your current state reveals any problems you may have. While many executives are aware of inefficiencies of their enterprise, they’re typically surprised by the extent of those inefficiencies, waste or problems in core processes.

What is possible?

Once the current state is reviewed (and inefficiencies revealed), your enterprise process owners most likely have to be shown what could be changed, enabled and accelerated using at present’s technologies.

As you’d count on, most managers and customers should not updated on the capabilities of contemporary ERP options and present finest practices for core processes. They know your system, and so they might have some perception from a previous place and solution, but that is not the in-depth data required.

Through a shared understanding of the possibilities and problem areas, your total organization can develop an appreciation of potential process improvements and opportunities for new efficiencies.

Where do we need to be?

With the present state decided and documented, and with possibilities and best practices known, a vision for improved processes and workflows — the future state — could be developed.

This effort starts with a evaluate of your current processes and their inefficiencies, applicable best practices, future requirements and technological capabilities — and ends together with your desired improvements and plans for future processes.

What is the ROI on BPI?

Faster, higher processes — wherever they’re in your group — can ship important new efficiencies.

Most of the return on BPI — and a new ERP solution — comes from more efficient manufacturing and the resulting reductions in working, inventory and labor costs. And optimized processes streamline ordering, eradicate physical inventory, enhance manufacturing quality and enable more efficient scheduling, among other things.

There are also different important efficiencies which are the result of improved access to operational knowledge, including more accurate materials planning, streamlined reporting, new dashboards and better, data-supported selections. And there might be ROI achieved from elevated customer satisfaction, enhanced supply chain communication and delivery performance

Where will BPI have the most impact?

Here are 11 enterprise functions that, when optimized, are ripe for ROI realization:

1. E-commerce
2. Financial Management
3. Forecasting
4. Inventory Management
5. Pricing and Margin Management
6. Product Management
7. Production Management
8. Quality Management
9. Sales Management
10. Supply Chain Management
11. Warehouse Management