There are many considerations for manufacturers to take into account when picking an ERP solution that will fit its business needs. According to a Manufacturing Business Technology article, the complexity of a manufacturer's operations and the staff available to manage an ERP system will play possibly the most significant role.
Companies should also question how well a current ERP solution is supporting critical business systems, and how a new ERP solution will integrate with other systems, the article stated. Total cost of ownership must also be taken into consideration, which includes not only the cost to implement the system - hardware, software, training - but also the cost of keeping it up and running.
Manufacturers want an easy to use ERP system that can create quick and easy access to data and metrics, and leads to business insight that can drive growth, so determining what system will meet these needs and be a good fit for the business will be key, Manufacturing Business Technology stated. Simplicity and effectiveness are musts. According to an IDC survey conducted earlier this year of more than 350 global manufacturers, 60 percent said their business is being hampered by inadequate IT systems, Invention Machine reported. While these systems to manage operations may be in place, they fail to deliver valuable insights to the company.
The survey also identified speed as a crucial component for the growth of a manufacturing company - something that can be achieved with the right ERP system in place. Seventy-eight percent of manufacturers in the high-tech electronics industry said being able to react faster to business demands was important, and 71 percent in the aerospace industry said so. Streamlining processes to achieve operational excellence was identified as a crucial component by 72 percent of manufacturers, being able to gain more detailed insight was cited by 58 percent of respondents and improved collaboration by 42 percent.
There are three types of ERP solutions available - on-premise, cloud and hybrid, the Manufacturing Business Technology article stated. Each deployment option could be adopted by companies for different reasons. For example, a company that is not concerned with a potential higher cost of ownership but wants to ensure its data is secure may opt for an on-premise solution instead of one in the cloud. Manufacturers and other enterprises that opt for popular and robust ERP systems such as Deltek Costpoint and JD Edwards can create even more valuable business intelligence and streamline operations by integrating the ERP with RFgen wireless data collection technology.