Recently, we interviewed Frank Heenan, Group Vice President at Epicor. With over 25 years of experience in distribution and ERP, Frank has observed Epicor’s journey from its early stages to becoming a leader in enterprise resource planning and distribution software. During our discussion, Frank shared his insights into the evolution of ERP systems and their transformation within the distribution industry.
From System of Record to System of Action
Steve Murphy, CEO of Epicor, aptly described the evolution of ERP from a mere system of record to a system of action. This transition signifies a broader role for ERP systems, moving beyond just recording transactions to actively facilitating business processes. Frank explained that this sentiment, emphasizing that the early days of ERP, were more about maintaining records and less about integration and action.
The Early Days: A Partner, Not Just a Provider
Frank recounted how, even 25 years ago, companies like Epicor did not see themselves strictly as ERP providers. Instead, they viewed themselves as partners to their clients. This partnership approach was crucial, especially in a niche like distribution, where understanding the specific needs and workflows of the industry was vital.
History of ERP in Distribution
The origins of ERP systems in distribution trace back to the 1960s and 1970s when businesses first began adopting Material Requirements Planning (MRP) systems. These early systems focused on inventory control and production planning, laying the groundwork for more comprehensive ERP solutions.
As technology advanced through the 1980s and 1990s, ERP systems evolved to integrate various business processes across finance, sales, and supply chain management. This evolution was particularly transformative for distribution companies, which benefited from streamlined operations, improved inventory management, and enhanced customer service.
By the late 1990s and early 2000s, ERP systems had become essential tools for large distribution firms, providing a unified platform to manage complex and dynamic business environments.
The Importance of Simplicity and Usability
One of the key points Frank highlighted was the importance of simplicity and ease of use in ERP systems. Drawing an analogy with Apple products, he emphasized the goal of making ERP systems as intuitive and user-friendly as possible. He explained, “Take Apple as an example. Why does everybody love Apple? Because it’s easy. I can give an iPhone to my 90-year-old mother-in-law and she can use it right away. But if I gave her an ERP system, I can almost assure you she couldn’t use it. So, the goal is to make ERP systems as intuitive and user-friendly as possible.
Recommended read: 6 Key Problems in Distribution Today
ERP as an Enabler
The ultimate goal for Epicor, as Frank stated, “Our goal at Epicor for our clients are, just to give you the ability to perform your job. How do we solve it? That’s our problem. You benefit by us developing capability allows you to perform your job in a seamless fashion.” This means integrating systems in such a way that users interact with the ERP without even realizing it, thereby making their work more efficient and less stressful.
Why Some ERP Projects Fail
Frank also shed light on why some ERP projects fail. A common mistake is treating ERP projects as IT initiatives rather than business-driven projects. Successful ERP implementation requires clear communication about the purpose and benefits of the system to end users. Projects driven by business needs, with strong top-down commitment and involvement, are more likely to succeed.
The Critical Role of Partnerships
A recurring theme in our conversation was the importance of partnerships. Whether it’s the relationship between a business and its ERP provider or the collaboration with implementation partners, these partnerships are crucial for the success of ERP projects. As Frank pointed out, an ERP system is like the heart of a business, and ensuring its successful implementation requires experienced partners who have a proven track record.
The Future Of ERP In Distribution
ERP technology is undergoing a significant transformation, promising a dynamic future. The integration of machine learning (ML) and artificial intelligence (AI) is set to revolutionize ERP systems. These advanced technologies will enable ERP systems to analyze vast amounts of data, predict trends, and automate routine tasks with unprecedented efficiency. Intelligent ERP systems (iERP) will empower businesses to make swift, informed decisions, driving success and maintaining a competitive edge.
Technological advancements have consistently driven growth and innovation in ERP systems. Embracing new technologies is essential for businesses to stay competitive in an increasingly digital marketplace. As ERP systems continue to evolve, they will continue to enhance operational efficiency and provide the tools needed to adapt and thrive in a rapidly changing environment.
The adoption of cutting-edge technologies is revolutionizing distribution management. Companies that embrace these advancements are future-proofing their operations and gaining a competitive advantage. Recognizing the potential of Machine Learning (ML), Artificial Intelligence (AI), and the Internet of Things (IoT) within ERP systems allows organizations to streamline processes, enhance data accuracy, and improve performance. Predicting trends and automating tasks will free up resources, enabling businesses to focus on strategic initiatives and innovation. Stay tuned for more insights and expert discussions on the Driven by DCKAP podcast.
Watch the full conversation with Frank Heenan, Group Vice President at Epicor here:
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