How to Determine ERP Functionality Needs

To compete in this environment, a 21st century Enterprise Resource Planning (ERP) solution is a necessity, especially for smaller and medium-sized businesses (SMBs). Today’s manufacturing-specific solutions structure and align your business processes for optimal efficiency and productivity. Choosing the right ERP for your operation will maximize business potential in every area from purchasing and sourcing to manufacturing and inventory processes, to sales, marketing, distribution, and customer relationship management.

In this report, we provide a guide for understanding your ERP functionality options and determining your business’ unique needs. In a crowded ERP solution marketplace cluttered with confusing advertising messages, it takes a methodical approach to match the right solution to your business. This involves clearly defining your purpose, assessing your business requirements, and having qualitative and quantitative objectives. It requires an understanding of the baseline technologies you will need to make your investment worthwhile, the common functional components every manufacturing ERP solution should include, and the specialty functions and software module integrations to consider.

To clear the deck of solutions that should not be considered, we begin with the functional requirements for every manufacturing and job shop SMB.

For manufacturing and job shop SMBs, there are several functionalities and features that are business imperatives, and will only increase in importance as technology advances and the economy fluctuates. We suggest eliminating any systems from contention that do not meet these functional requirements.

A 21st century technology platform
Unfortunately, the manufacturing industry is riddled with outdated, outmoded 20th century technology platforms that stifle the growth capabilities of businesses that invest in them. These systems use layers of cosmetic add-ons to appear up to date but if you investigate carefully, many lack end-to-end integration as well as much of the functionality described in this guide.

21st century systems are wholly integrated, seamless solutions that enable all functional areas of your business to work from the same continually updated data. Your ERP solution must do this in order to be a centralized business management platform. Your system must also be future-proof. Choose a system that will ensure long-term ROI from your investment, keep your business current and agile and costs down, improve efficiency, increase visibility, drive profitable growth, and incorporate new technologies as they become available.

Centralized and integrated modules
ERP isn’t simply a collection of software applications that have some integrated functionality. A best-of-breed manufacturing ERP solution offers a seamlessly integrated set of software modules that enable users to manage grouped tasks without switching applications or screens. Each module offers the ease-of-use of today’s best individual software components, providing all information needed for each operation in the same part of the system. At the same time, the integration of modules allows users to easily work between parts of the system without feeling like they are jumping from one software application to another.

From a user’s perspective, the overall system “feel” is that of one large application with many functional areas that freely share information in real-time. This complete integration eliminates the need for performing redundant tasks across business functions. Data entered in one function is immediately visible and accessible to others.

The benefits of centralized and integrated modules are as follows:

• Automates and streamlines processes
• Standardizes business operations
• Provides transparency and insights for informed decision-making
• Allows full, informed, and efficient production control
• Provides continually updated, real-time, accurate data
• Makes cost-efficient, just-in-time inventory possible
• Corrects production bottlenecks and business inefficiencies
• Enables the highest standards in quality control
• Improves on-time deliveries

ERP database
A central database is at the epicenter of the ERP infrastructure; it is the source from which all modules or applications retrieve information, and through which they all communicate. The central database ensures that all users within an organization are working with the same up-to-the-minute data. This eliminates the need for verification by phone or email between employees or employees and business partners or vendors. It puts an end to business inefficiency and disruption; the ERP itself is a constant conduit of reliable information.

Cloud-based architecture
Cloud-based ERP architecture provides several critical benefits for small and medium sized manufacturers and job shops:

• Economies of scale provide enterprise-grade compliance, security, back up, and support, scaled to the budgets of SMBs.
• The remote infrastructure, supported by the vendor’s IT staff, reduces IT costs and overall operational expenses for greater cash flow.
• Executives and key personnel have anytime, anywhere access to the system, and can work in the office, from home, or on the road.
• Decision-makers can track material, job status, and operator and machine availability from a laptop, tablet, or even a smartphone, without being tied to the office or shop floor.
• Employees have visibility into the jobs they’re working on, wherever they are working.
• Updates are communicated to all personnel, including machine downtime or work center changes.
• System and data is always up-to-the-minute, with an accurate reflection of your operations, financials, and inventory.
• Current data enables meaningful real-time reporting and dashboard monitoring of KPIs.

Ecosystem of value-add partnerships
Another reason for choosing a manufacturing-specific ERP solution is the many partnerships that longtime ERP providers have with myriad vendors in the industry, many of which can immediately add cost-efficiencies to your business. Talk with the providers in your consideration set about their ecosystem of partnerships.

Quality management solutions
This functionality in best-of-breed manufacturing specific ERP solutions enables you to automate and customize your requirements for inspection, analyze quality data and trends, and review improvements. You can also custom-configure these features for your quality compliance needs.

CRM
Customer relationship management empowers your sales and marketing teams to grow your business through understanding and using sales and marketing data. A CRM module provides immediate access to real-time data and tools to support more profitable marketing campaigns, as well as departmental integration, communication, and traceability. CRM tools lead to other improved customer metrics such as on-time deliveries and satisfaction with customer service.

Integrated product configurator
Today’s customers are more demanding than ever, and this functionality lets you configure products to their exact needs. You can design anything from a single-level bill of materials to complex multilevel products. You can also create and configure complex dimensional parts from quoting, order entry, job entry, and lead entry functions, if available.