5 things to consider when selecting a Supply Chain software

5 things to consider when selecting a Supply Chain software

5 things to consider when selecting a Supply Chain software 1175 783 Conseil stratégique & opérationnel I approche end-to-end | digitalisation de l'entreprise

Our clients are well aware that improving productivity through the implementation of a new IT system can only be achieved if the most appropriate software has been selected in the first place. That is why they turn to us for advice on how to secure their selection process.

At Citwell, we believe that, to be “successful”, a project aiming at selecting a Supply Chain Management (SCM) software such as an APS or a WMS, has to include the following 5 principles:


Define your business requirements in detail

The first step of a selection process is to define your business requirements and write a Request For Proposal (RFP) describing your functional needs (amongst other things – see point 3).

The importance of this phase goes without saying (how could you make an appropriate choice, if you do not know what you need?), yet, we quite often meet RFPs presenting only the macro-processes of the company while it should list all the functional needs in detail.

Indeed, going into a deep analysis of your process will prevent you from leaving out key business needs, and improve your ability to accurately evaluate the functional coverage of each solution. Do not be afraid to include requirements you think obvious, you cannot presuppose the quality of the systems you are going to assess.

Beware however, the more detailed you are, the more difficult it will be to weigh your needs in order to point out critical ones.


You can’t only rely on the written response

Keep in mind that there is always room for interpretation in a RFP. Hence, you must challenge the vendor’s response by asking him to produce a prototype and to provide you a list of references that you can contact and/or visit.

A prototype is not a free-form presentation, you have to:

– Define a limited number of scenarios you want to see played (indeed, the prototype cannot cover the whole process). Be careful though, a common mistake here is to focus on specific issues, while your priority should be to test your regular flow.

– Provide a document describing each step of the scenarios for the vendors, the results expected and the data to use in each case. This will allow you to check the output of the prototype


Functional coverage is only one criterion

You select not only a product but also a partner. So, you cannot go for one solution without having a complete view of the vendor, its strategy, and its approach.

The approach does not always get the attention it deserves, and yet, you can have the best solution, even the cheaper one, if you do not implement it properly, your return on investment will not be as high as you expect. So, when you select a vendor, make sure that he is a real implementation partner assisting you throughout the project (i.e. not only the blueprint phase, but also during the user acceptance test, the training, and the go-live), for example by asking their consultants to run a workshop in order to appreciate their ability to manage the project.


Control the scope of the financial proposal

The financial proposal can hold unpleasant surprises, revealing themselves only when it is too late. The most common mistake is to think that the financial and the functional scope, in the vendor’s response, are the same, forgetting that he can cover all your requirements with several modules and/or specific developments.

To avoid such misunderstanding, you should define and join a template for the pricing response to the RFP. This template will allow you to identify the total cost of ownership of your software at a glance, i.e., the costs due to license fees for each module, implantation, specific developments, and maintenance, but also internal costs for the company


Consider a limited number of software companies

Remember, you will have to thoroughly analyze each response in order to assess and select the best one for you.

This proves to be very difficult to handle efficiently if too many companies are involved. That is why we usually start the selection process with 4 or 5 vendors, applying a funnel approach where a contender is eliminated at each step (e.g. five receive the RFP, three realize a prototype, and two negotiate with the buyer)

Cédric Roussel-Simonin
Manager Citwell

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