Finding The Right ERP Software for SMMs

SMMs is stand for Small and Midsize manufacturers. You will find lots of ERP software from which to choose in the market today, therefore SMMs absolutely have to evaluate their options very carefully. The most important thing for small and midsize organizations is to stay away from an isolated mindset, and instead consider it as a packaged software solution that can deliver breadth and depth in a couple of modules. This modular format enables companies to match and mix modules to fulfill particular requirements, and then scale for growth as required. An ERP software also needs to take the variety of information pockets in the company together in a centralized repository or database that provides a consistent, “single version of truth”, and also facilitates the company to perform in a more responsive, predictive manner, as well as to establish collaborative relationships all together its supply chain.

Moreover, SMMs ought to consider ERP software that give a predictably low TCO (total cost of ownership), has capability to automate activities of non-value added, and provide long-term technology systems that will not be obsolete for years to come.

Even though a lot of ERP software deliver on these kinds of criteria, some will be better suited for the varied and unique needs of manufacturer’s industry specification. According to Aberdeen, manufacture industries require specific features that usually will extend functionality of core ERP in order to meet industry standards as well as requirements of rigorous compliance.

ERP software industry specific

It’s usually mandatory to firm control over the process of manufacturing for any manufacturer attempting to run lean, minimize cost and become more quick to respond to demands of customers, hence SMMs require an ERP software with a real-time operations grasp like a direct shop floor to ERP design. SMMs will get benefits from system links real-time information to each the supply chain aspect, from the first quotation until the last payment, also across multiple currencies, languages and sites. The configurable dashboard that push real time information to end users offer even better visibility within a manufacturing circumstances where errors on shop floors will prove costly.

The Plastic Components, Inc. (PCI), a manufacturer in Wisconsin and won an award of the “Processor of the Year” in 2009, understands directly how industry-specific ERP can reinforce lean operations. Having 42 dedicated manufacturing cells, which include robots, presses, automated material handling systems and parts conveyors, working on a completely automated basis, five days a week and 24 hours a day, PCI needed an ERP system designed and managed to address their industry complexities. The key success For PCI was acquiring a system designed particularly for their environment, yet had increased possibility to cross into some other feasible manufacturing processes.

Tom Duffey, PCI president and owner said, “We made the commitment early on to invest only in an ERP software that was built for manufacturers. Unique features such as functionality to manage different cavitation within molds told us that the solution we chose has a higher level of competence in providing the best ERP system for our type of business.”

This industry specific solution, kind of modular meets the concept of what SMMs ought to look for in an ERP software. That system mixes real time manufacturing, supply chain management and accounting into single database to make processes more efficient. Having such system, PCI possesses all the management software for business and plant that needs to run more profitably as well as more effectively – they have established return on investment (ROI) to confirm it.

As outlined by Duffey, one more important thing of their ERP factor is real-time integration to shop floor device. This kind of ERP integration enables to discover troubles before they turn into costly problems. This makes their company has capability to manage more than 50,000 transactions each year by using only two workers. Plant scheduling for 125 various materials and 650 active part numbers is handled by only one employee.

At the end of year, inventory is accomplished with less than a $40 difference on raw material inventory and finished goods valued at $500,000. Moreover, the rate of company’s on-time delivery is almost 100 percent – all by using an ERP software that has given ROI many times over.

Which vendors you should take into consideration is selecting ERP software

If you look at the ERP market share report 2011 you will find  two vendors that their sales in manufacturing and distribution segment gets the biggest share of total sales. Yes, they are SAP and Microsoft Dynamic. I can say that the data indicates that ERP software of those vendors has excellent features in both manufacturing and distribution module though I don’t know what kind of manufacturing industry (discrete or process manufacturing) that purchased the software. So, these vendors should be in your list in selecting ERP software. How about Oracle? This ERP behemoth is one of vendors you should take into your consideration though Manufacturing and Distribution segment is not the biggest share of their sales. Their biggest share is in Transportation, Communication, Electric, Gas and Sanitary Service. However, if you are interested to know the comparison of SAP and Oracle based of the ERP software functionality they offer, you can see the report here : Oracle vs. SAP

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More references of ERP software for SMMs :

resource : www.iqms.com
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choosing the best ERP
Top ERP Vendors
Important factors in selecting proper ERP vendors
Lean manufacturing
Lean Production
Six sigma methodologies
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