I recently had this discussion with John Matera, Director of Marketing with RedTail Solutions. We talked about how most mid-sized businesses are accustomed to outsourcing in areas such as legal services, transportation, and building maintenance: areas that have traditionally been consumed as services. Is anything that touches ERP suitable for offloading as a service? Consider the reasons any business function may be a candidate for outsourcing:
- Special capabilities are required that your company does not possess.
- Capacity in person-time or processing cycles is lacking internally.
- Amount of work is too small or too large to handle effectively.
- Availability is critical and internal resources lack redundancy.
- Frequent changes make timely performance difficult to sustain.
- Not a core competency that makes your company more competitive.
- Internal start-up costs are high and external suppliers are already available.
- Time-to-solution is critical.
- Opportunity cost is high and other priorities have better return on investment.
Today, the maturation of providers and delivery methods has indeed enabled outsourcing of functions that have customarily been done in-house by necessity rather than choice. “Managed Services” is the term most often used to describe particular blends of technology and people skills that are now offered as outsourced services.
Supply chain Electronic Data Interchange (EDI) is a perfect example of an important business process that is increasingly delivered by managed services. EDI is one of those thankless duties that is best done by experts and that meets the nine criteria above for a majority of suppliers. Integration with ERP is essential to the improved trade compliance that makes EDI viable as a managed service. Delivery in the cloud is a contemporary innovation that has also made its economics compelling, with low-cost implementation and pay-per-use frugality.
Here is an example of a mid-sized company that has been using a managed EDI service for over five years with increasing commitment to the superiority of outsourcing for their needs. Outsourcing may not be appropriate for everyone or every ERP-related process, but this short video illustrates that when it is right it is reallyright. See if RedTail Solutions with Schylling’s reasons resonate for you:
With the fiscal year coming to a close, and you begin looking for innovative and great solutions for your business needs, please contact The TM Group,
Submitted by: Jennifer Swiderski - Marketing Manager, The TM Group