In past articles, Pallet Enterprise has reported on the benefits of adopting an ERP (Enterprise Resource Planning) system in your pallet business. This guide focuses on the next steps after purchase: best practices and tips for successful implementation, including advice from ERP providers and pallet companies that have successfully adopted and implemented ERP systems.
Remember that the implementation process is critical. The job is not over when you purchase the software. That’s just the beginning of the journey. Generally speaking, IT projects frequently fail if they are not given the support and resources needed to gain traction. And for ERP implementation, it is money well spent.
While the transition can seem challenging, adoptees report that the outcome is well worth the effort. One company ERP champion’s top advice after implementing her company’s system wasn’t about whether to phase it in bit by bit or to run parallel with the legacy paper-based system – nothing like that. Her tip was simply: don’t wait. Adopt an ERP as soon as possible.
Representatives or customers of ERP systems from The PalMate™ Group, Pallet-Track® (48forty Solutions), Pallet Connect and Pallet Insights by Helioz Technologies are represented in this article.
Who’s Steering the Bus?
As powerful as ERP software is, it can’t implement itself and needs management oversight. A champion with expertise, enthusiasm, empathy and superior communication skills can accelerate the journey.
“There are three must-have rules for implementing a new ERP System: COMMITMENT, COMMITMENT and COMMITMENT,” stressed Alan Miceli, director of automation systems for 48forty Solutions, LLC, and founder of the Pallet Track software. “Without a committed management team, you will fail.”
It is essential to have a project champion, according to Antonio Brkic, chief product officer at Helioz Technologies. “That person is responsible for identifying a project’s strategy, plan and goals. Because of that, chances are much bigger that everyone included in the project is on board and on track to complete the project successfully.”
In addition to leading vendors, we talked to several project champions for this article, including Katherine (Kat) Miranda and Yesenia Flores of Oxnard Pallet, Daniel Reardon Jr. of Reardon Pallet, and Stacie Bonness of Pinnacle Pallets. Having project leadership can make a huge difference.
For Oxnard Pallet, Flores was naturally curious about the opportunity and already had IT savvy. She was, according to Kat Miranda, the rockstar of the project. “You need that rockstar, that integrator to get people going. We got lucky because she could use it and show other people.”
Rethinking the Process
Transitioning to an EPR is not just an opportunity to digitize records. It creates the opportunity to revolutionize your process. Laura Pina, director of marketing & customer service for Pallet Connect, said, “The biggest mistake pallet companies make during the initial shift from traditional methods to an ERP solution is failing to establish a comprehensive change management strategy. This process is not merely about adopting new software; it’s a transformative step that redefines the company’s operational structure, internal communications and data management practices.”
Pina added, “We’ve also identified that companies often fall into the trap of directly translating their existing processes into the new system — a practice that diminishes the efficiency and innovation that an ERP solution can introduce. They should view the transition as an opportunity to re-engineer their business processes. This involves taking the time to analyze current procedures, identify bottlenecks and inefficiencies, and then leverage the ERP system’s capabilities to redesign these processes for enhanced productivity and insight.”
No Fear
One common thread among the implementation project champions was that they were not intimidated by technology. Embracing technology fosters confidence in others and reduces resistance to change, ensuring the likelihood that employees will fully utilize the system’s capabilities, maximizing the benefits of the ERP implementation.
“I had some background with technology, so I wasn’t afraid of it,” Daniel Reardon of Reardon Pallet said. “This was something that I felt was not going to be too daunting.” Likewise at Oxnard, Miranda was also familiar with technology. She previously worked in operations at a fashion company, where she regularly used an ERP system in her job.
The Whole Elephant or One Bite at a Time?
One essential implementation decision involves whether to gradually introduce or roll out ERP to various parts of the business or to do it all at once. For the most part, a gradual approach seems to be the preference.
“I think the best success with implementing an ERP system is to start at the edges and work in,” suggested Miceli. “Start with sales orders and receiving, then work on everything in between. ERP is all about inventory adjustments. There is no way you can flip a switch, and everything is correct.” He suggests running parallel with the old system until you are confident enough to rely totally on the new ERP. Once you have mastered the “ins” and “outs” you can move into areas such as saw lines. Inventory is moved from purchasing to WIP (Work in Progress) or component inventory for pallet building. From there, continue the rollout to include pallet building.
Oxnard Pallets took a phased approach to its implementation of the Pallet Connect ERP system, reported Miranda, chief innovation officer at Oxnard. She led the implementation as a project visionary along with co-worker Flores, the project integrator (aka the rockstar). They started with sales, customer service and invoicing.
“I would recommend implementation in phases, starting with the most critical features needed for business activities,” offered Brkic of Helioz. “Based on our experience, most of the pallet companies decide to go with this approach for multiple reasons.
“One is the ‘fear of the unknown’ with a new system,” he observed. “In every organization, not just pallet companies, it is normal that a new change for the business will require time to adopt and utilize in daily activities. Because of that, most companies choose a phase-by-phase approach so that the users can become more at ease with the system, user experience, and related features.”
Not every implementation follows the same path, however. Reardon Pallet decided to implement order processing, production and delivery all at the same time, although it hasn’t yet implemented several costing and inventory features. Reardon Pallet ran PalMate parallel to its old system without going live for about a month until it became confident it could flip the switch and go live with PalMate.
“Similar to eating an elephant,” Miceli of IDS summarized. “Take one bite at a time, commit to the project, don’t turn back and always move forward.”
Data Integration
Data integration was invariably a top-of-mind topic when talking to pallet companies about ERP. Some companies relied on manual input, while others imported existing data. ERP providers offer integrations to facilitate automated data import, whether from a very structured format such as MySQL, or other formats such as Excel spreadsheets. One thing Brkic of Helioz looks to understand is whether the communication will be one-way or two-way between systems. Based on that information, his company will build the appropriate system architecture.
“I wanted a good, clean database to start with,” Reardon recalled. “I didn’t want to go back and say, ‘Gosh, I wish I had done this differently.’” With that in mind, he emphasized at each meeting the importance of getting things right the first time in the database so it would not need to be redone.
At Oxnard, Miranda is relatively new to the industry, and when she began integrating data, she wasn’t aware of issues such as duplicate entries for products and companies. The company had a massive amount of QuickBooks data points to import. For her, the mantras of “good data in, good data out” and “bad data in, bad data out” were particularly relevant. Although the project was ultimately successful, extra focus on accurate and pertinent data going into the program would have eliminated the need to perform cleanup later.
Stacie Bonness, who headed up the PalMate project for Pinnacle Pallets, described their data integration process as relatively easy. A lot of their data entry was done manually.
Getting Rid of the Paper
Transitioning from paper-based processes to digital systems can pose challenges for employees accustomed to traditional methods. Resistance to change, fear of technology and a learning curve are common obstacles that must be overcome. It’s hard to let go of the paper when employees and trading partners have relied on it for years or decades. Insiders generally agree it is helpful to maintain a paper trail until staff get up to speed and then gradually phase it out as confidence in the system grows.
“Because of the legacy and how the processes are done in the pallet companies, I would suggest a parallel approach,” offered Brkic of Helioz. “Using the ERP system, there is no need for paper anymore as all documents can be retrieved and generated from the system. But, until the users are familiar with the ERP system and get used to its features and capabilities, I would suggest using both the legacy approach and the modern, digitized approach with the ERP.
It may not be possible to make a clean break, at least in the immediate future. Pinnacle Pallets ran parallel, and for some processes, it still uses a paper backup. According to Oxnard Pallet, some of its customers still require paperwork.
The Importance of Training
Employee training is crucial for the successful implementation of an ERP system. Proper training ensures that employees can navigate the system, perform tasks efficiently, and adapt to new workflows. Training ultimately allows them to maximize the benefits of the ERP system while minimizing errors and resistance to change.
“One of the biggest mistakes companies could make is not to invest in the employees’ training and education about the system,” Brkic observed. “The end-users of the ERP system are mainly the employees. If the employees are not well-educated or trained about the system, they may not be able to fully utilize the system’s capabilities to improve efficiency. That is why we ensure that our customers get the best possible training to use the tool by providing detailed documentation, videos, and workshops.” All of the project leaders we interviewed stressed the importance of timely support from their vendors.
Motivation was another important aspect of the training process. “The most important part for us was getting everybody to buy in,” Reardon reflected. He made it clear that the ERP was central to the company’s future and required everyone’s commitment. Reardon took the extra step of talking to people individually, explaining how the ERP would benefit them in their particular jobs. “Once we had that buy-in, everything fell into place,” he said.
When asked about her top “aha moment” from her company’s ERP implementation, Stacie Bonness of Pinnacle Pallets reflected, “I would have started using it sooner.”. It is a fantastic program. It really is. It takes so much of the work away from having to do it manually.”
Featured ERP Providers
The PalMate™ Group
System Type: Server/Network-based, Cloud-based Reports using Power BI
E-mail: solutions@PalMateerp.com
Phone: (866) 468-6382
Software Description: For more than 15 years, the PalMate Group has been an industry leader and trusted partner around the globe helping companies revolutionize their businesses by streamlining communications, perfecting processes, and radically improving efficiencies throughout their enterprises. Through constant development and enhancement of our entire software suite, we offer what many industry leaders call the most feature rich ERP system on the market developed specifically for Wooden Pallet and Lumber Companies. With a fanatical focus on our proven process of Collaborative Discovery, Solution Development, Tailored Onboarding, and Cultivated Success, the PalMate Group delivers solutions that enable Wooden Pallet and Lumber Companies to operate with clarity through efficient data collection, organization, and reporting. Furthermore, the PalMate Group has the industry experience and software expertise required to assist our clients with effective implementation along with the horsepower to support their usage of PalMate ERP and its related products for the long haul.
Helioz Technologies/Pallet Insights
System Type: Cloud-based
E-mail: info@pallet-insights.com
Phone: (513) 998-1482
Software Description: Pallet Insights is a cloud-based ERP solution tailored to meet the unique needs of businesses in the pallet industry. This specialized software streamlines and optimizes the entire spectrum of operations within this sector. Key features such as order management, inventory tracking, supplier management, and financial management are all integrated into a common user-friendly interface. This results in increased operational efficiency, reduced costs, and improved customer satisfaction. Pallet Insights’ scalability ensures it can grow with a business, making it an indispensable tool for any company in the pallet industry seeking to stay competitive and thrive in a dynamic market. Real-time tracking and reporting capabilities enhance decision-making and optimize resource allocation, resulting in increased business productivity and profitability. Pallet Insights integrates accounting, ERP, payroll, and CRM systems – including QuickBooks®, Microsoft® Dynamics NAV, Sage®, Paycom®, e4score™ EZTrack®, and any others with an available API.
Pallet-Track® Mill Manager ERP / a division of 48forty Solutions, LLC.
System Type: Server/Network-based
E-mail: amiceli@pallettrack.com
Phone: (631) 244-0069
Software Description: Pallet-Track® Mill Manager barcode-based tracking systems designed for the pallet and lumber industries. Track standing timber to sawdust and everything in between. Tracks receiving, production, yield, shipping, inventory and more. Pallet drawing systems. Hand scan punch clocks. Mill Manager System is a simple, intuitive ERP system designed for Sawmills and Pallet Manufacturers. Online ordering. Paperless shippers.
Pallet Connect
System Type: Web-based
E-mail: info@PalletConnect.com
Phone: (844) 220-1110
Software Description: Pallet Connect is a pioneering cloud-based ERP system tailored for pallet companies, presenting a contemporary solution to operational management. Beyond its software capabilities, it acts as a unified hub, deftly merging different facets of pallet businesses, from inventory oversight to fostering client relationships. Through its role-centered permissions and customized system access, Pallet Connect enhances management techniques, bringing crucial data together on a single platform. This unified approach promotes efficient operations and reduces errors. With Pallet Connect, real-time data is at your fingertips, enabling decision-makers to act swiftly and optimize processes. Specialized portals for customers, vendors, and suppliers not only streamline communication but also boost task management and introduce self-service features. Augmented by tools like email tracking, a comprehensive time clock system, and refined third-party collaborations, Pallet Connect ensures comprehensive oversight. For pallet companies with a vision to upgrade their operations, Pallet Connect stands out as a game-changing partner. Dive into improved efficiency, responsive customer service, and a pathway to sustained growth.
