Selecting the right ERP software for manufacturers is critical
Choosing the right ERP software for manufacturers to meet specific requirements is no easy task. The options can be overwhelming and the decision is crucial, as an ERP system is the core of a manufacturer’s IT infrastructure. It is key to digital transformation and has a direct impact on the long-term success of the company.
Selecting the optimal ERP solution
Manufacturers will not reap benefits from a generic, one-size-fits-all ERP system. A solution which specializes in manufacturing and distribution is essential to managing data and gaining insights into the business as efficiently and effectively as possible. The following selection criteria help to identify and select the optimal ERP software for manufacturers.
Accurately maps processes
Manufacturers need special functions to accurately map processes in their ERP system according to the type of production they employ – whether it is discrete, series or custom manufacturing. Ideally, the solution should provide comprehensive features, such as an extended workbench, growing bills of materials and consignment stock, by default. The mapping of processes will simplify and shorten the implementation and save on customization.
Accommodates detailed and advanced planning
Increasingly complex order networks, rush orders and a growing number of variants require extremely efficient production control. In a dynamic manufacturing environment, an integrated Advanced Planning & Scheduling module is a pre-requisite to automatically adjust order sequences while considering real-time data from all departments.
Handles logistics requirements
Another important aspect of selecting ERP software for manufacturers is the ability to enable manufacturer-specific logistics processes. Demands such as uncompromising customer orientation, short lead times and on-time delivery can only be achieved by an ERP system that reflects just-in-time concepts and integrates the entire supply chain.
Manages the full product life cycle
ERP systems with integrated tools for Product Lifecycle Management stand out when it comes to choosing ERP software for manufacturers. The combination of CAD data with business processes helps manage the product data and increases transparency in all areas of the company. In this way, manufacturing costs can be reduced and the quality of service improved.
Transforms data into usable insights
Manufacturers, like other organizations, need to manage and exploit volumes of data which continue to grow exponentially. Using this data strategically for process optimization and corporate control is an essential competitive advantage for manufacturers. ERP software for manufacturers which incorporates professional BI tools is able to filter, evaluate and process collected data. In addition, state-of-the-art dashboards and custom reports provide key metrics and trends at the touch of a button.
Grows with the organization
When selecting ERP software, it’s important to make a future-oriented decision regardless of the growth outlook for the operation. The software must be easily scalable and able to adapt to the company’s expansion. Multi-site ERP systems speak different languages, calculate in different currencies and control consolidation for group accounting. Centrally managed information such as master data, inventory, orders and production schedules are available to all sites in real-time.
Offers an open architecture
Manufacturers rely on fast, easy data exchange with customers and suppliers, so open interfaces and stable connectors are a must on the ERP selection checklist. The ability to easily integrate external partners into the ERP system using tools such as vendor and customer portals helps to avoid complex, error-prone synchronizations.
Mobilizes production
Mobile apps embedded in ERP software enable manufacturers to control the ERP processes of almost all business units on the go. That doesn’t only apply to purchasing, sales and warehouse – adding production processes to the mix helps to enable a consistent mobile strategy. So, it’s important to select an ERP system that supports innovative shop floor applications and offers scanner solutions designed for industrial end devices.
Selecting a software provider for the long term
Functionality aside, the expertise, longevity and experience of the ERP software vendor is a make-or-break factor in selecting ERP software for manufacturers. A successful implementation requires an ERP vendor with an in-depth understanding of the business as well as the existing and future challenges of the manufacturing industry.
In conclusion, implementing an ERP system is time-consuming and probably one of the most important investments manufacturers can make. Thoroughly researching their chosen ERP software and vendor gives manufacturers the best chance of a successful implementation and achieving a healthy return on their investment.
