|
|
| www.1001TopWords.com |
|
|
The Top Six Reasons to Buy Rather Than Build an Inventory Management Solution
Is building your own inventory management solution really your best bet? The issues that companies face when they decide to build a solution in house are numerous: Scarce development resources, project cost overruns, delivery delays, unexpected technical issues, long-term maintenance issues. For these reasons, you should consider purchasing hosted, flexible, "out-of-the-box" vendor managed inventory (VMI) and web-based inventory solutions that can be running in a matter of days -- rather than months -- all at a fixed monthly price - with no delays, low risk and a lower total cost of ownership. At Invendia we've often seen companies struggle with the decision to buy a technology or to build that solution in-house. The decision criteria typically are:
So, what are the top six reasons to buy rather than build an inventory management solution? 6. Availability of qualified development resources. If you have available resources that are experienced in developing web-based, distributed solutions then you should consider building your own solution in house. In addition, your staff should ideally be knowledgeable about leveraging development standards such as J2EE or .NET. If not, you should source an off-the-shelf solution that can readily integrate with your existing applications. 5. Long term maintenance staffing. Once you have a solution, how are you going to keep it current, from both a technology and from a process point-of-view? For example, in the last few years RFID, collaboration, wireless and countless other developments have forced companies to update their processes. With ever increasing innovations, you need to ensure that you are staffed to manage not only the system upgrades but any errors that you may discover. If you either don't have the staffing for this or don't want the headache, then you should consider a "bought and maintained" solution. 4. Implementation time and cost. How quickly do you need a solution? If you have ample time to scope your project, build a project plan, free-up resources, develop and test the application, then you should consider building the solution. Furthermore, do you have the budget to pull off an in-house project? What are the opportunity costs? What is your company's track record of getting IT projects completed on-time and on-budget? 3. Project risk. One major reason that organizations build in-house is that they want to build expertise in an emerging technology. Does this meet your organization's business goals? What if you find that the learning curve is long and steeper than you anticipated? Are you willing to take that risk?When you are scoping your project, have you considered all of the issues? Are you willing to stick to your original scope when your users demand new features (scope creep)? If you cannot mitigate these issues, then you should strongly consider a fixed price, packaged solution. 2. Process understanding. Collaborative inventory management(VMI) processes are complex and varied as your trading partner needs. If you have many diverse trading partners (or may have in the future), building your own solution may not be a great idea (see "long term maintenance" above). Additionally, your trading partners may want to extend the use of the collaboration solution to their trading partners. Can they do this? Only if you are willing to get into the solution environment. This is especially important as your trading partners start to get more and more benefit from these solutions and may force you to switch to another solution. 1. Third-party objectivity. A critical concern for trading partners is that of data confidentiality and security. Most trading partners are leery of exchanging critical and confidential and feel more comfortable with a third party managing the data. Is this a critical issue for your organization? Summary In the nascent days of any technology, be it the car or software, many companies think that they can build the better mousetrap. However, as the technology evolves and becomes more complete, there are significant barriers to entry. As the collaborative inventory management field continues to evolve, there are enough reasons to give pause before deciding to build a solution in-house. Ken Town is VP Research and Technology at Invendia, a leading provider of Vendor Managed Inventory (VMI) and Web-based Inventory solutions.
|
|
|
|
RELATED ARTICLES
10 Ways New Managers Become Great Leaders "It is a terrible thing to look over your shoulder when you are trying to lead and find no one there." - Franklin D. Roosevelt Mantra for Managers What do organizations look for in a prospective employee with special reference to fresh MBA graduates? The two key assets that an organization looks for is the potential of the individual and ability to pursue his goals in all situations. Every organization expects its team of fresh recruitees to grow into top quality Managers and therefore it is very important to evaluate the potential of the fresh graduate. Communication, Feedback, and Participation: Three Easy Tidbits For Smarter Business On communication: One of the biggest strains on the communication process occurs when the sender or receiver is experiencing stress, anger, or frustration either at work or at home. When a situation is emotionally charged, it is difficult to express yourself clearly and maintain a positive communication relationship. How we communicate can be as important as what we say. Using "I" statements is the most effective technique to counterbalancing an emotional dialogue. "I" statements, help the receiver and the sender express their own feelings and represent their personal thoughts, rather than make an attempt to interpret for the other person such as "I feel that..." or "The way I see...". The Rise of Corporate Chair Massages Employers have rapidly begun to understand the importance of stress relief in the workplace. Stress free employees have a higher retention rate and higher rates of productivity. It is no wonder, given these facts, that many corporations have been encouraging chair massages in the workplace. Problem-Solving Success Tip: Measure Measure. Creativity and Innovation Management - Core Competencies and Competitive Advantage Following is a brief definition of core competencies and competitive advantage and their fit with creativity and innovation management. 25 Great Ways to Find the Right People and Not Break the Bank Are you trying to hire dozens of hourly workers or a senior executive? Where do you look and how do you get the word out? There are many ways to find the right people besides placing want ads. Drafting an Employee Manual Sample Outline One of the hardest things I had discovered running my company was drafting an Employee Manual. Also added to the stress was the fact that if you made a mistake someone could sue you and you might lose all your hard work and money that you had earned thru blood, sweat and tears as an entrepreneur. You will need an employee manual for your company to protect yourself; but where do you start? Quick Tips On Bringing Out The Best In People Want to bring out the best in people? Integrity... Should It Matter? In our fast paced work culture, manned by technology savvy generation in a globally competitive environment, quality and productivity became the battle cry of corporations to stay in business. Though this is not necessarily bad, an equally important ingredient to succeed is seemingly taking the back seat. Hiring and Retaining Good Employees Hiring good employees is not only important to business, it's essential. Employees are the heart and soul of a business; they are the mechanism that makes a business run; they are the breath of life that enables a business to be something more than an idea. A business cannot run unless someone (employees, in this case) is doing the work. Any intelligent business owner should want good employees. Cultural Differences: Making it Work Virtually Working virtually adds a whole new dimension to the phrase "cultural differences". It immediately becomes apparent how different people around the world work, live and network. How to Delegate Effectively ACCOUNTABILITY: Delegation is not complete unless subordinates are held accountable for their work. They should be accountable to only one person-usually their immediate manager-and must understand what criteria will be used in judging their performance. They must also understand that unless the job is done successfully, they will be replaced. Though ultimate accountability cannot be transferred and does rest with the manager, managers must be willing to support the actions and decisions of those in whom they have placed their trust. They must stand behind the results-whether good or bad. Is Your Company in Need of Family Therapy? How Companies Are Like Families Intercultural Management The role of a manager is evolving in response to the needs of companies operating on the international stage. The complexities of globalisation brought to the area of management are great and require the 21st century manager to adapt in order to offer modern solutions to modern problems. One area in particular of growing importance is intercultural management skills. Hold Your Applause! It's amazing what you can accomplish if you don't care who gets the credit. Harry S Truman Supplier Sees 53% Reduction in Out-of-Spec Orders Case Study The goal of perfection is a challenge. It is often viewed as an expensive process requiring large investments. Yet one company has realized a 53% reduction in orders that have to be set aside for additional Quality Control checks. How did they do it? They used communication techniques - not capital outlay! Small Business Checking Accounts ACCOUNTING AND BILLING To Outsource or Not to Outsource In these days of restricted head count and tight budgets, the question of whether to outsource or hire in-house staff is more critical than ever. The technical publications function, however vital, is undergoing more scrutiny and also facing greater challenges than ever before. Companies that already employ an in-house technical publications department are looking at doing more with fewer resources. Start-ups, with no internal technical publications staff, are struggling with how to develop technical documents in the most cost-effective way. Tales From the Corporate Frontlines: Managerial Influence This article relates to the Manager/Supervisor competency, commonly evaluated in employee satisfaction surveys. This competency evaluates an employee's feelings regarding their direct manager or supervisor. The manager/supervisor competency covers topics like clarity of goals, manager support, coaching and feedback, and regular reviews of performance. The old adage that "people leave their managers, not organizations" is often true. Of all the workplace stressors, a bad immediate manager is one of the worst and will directly impact the emotional health, productivity, and retention of an employee. This competency can be especially insightful if your organization is losing quality employees while your compensation and benefit packages are equivalent with industry standards.
|
| © Athifea Distribution LLC - 2013 |
