When it comes
to working with ERP systems, our 14 years of experience with
small and mid-market manufacturers includes systems from many Tier
II and smaller ERP vendors, like Epicor, Infor, QAD, Microsoft,
Sage, Macola to name a few. Our focus is providing custom ERP
extensions to these systems to meet unique business needs.
Often times our custom solution, built on an enterprise technology
platform, makes the most economical sense for small and mid-market
manufacturers.
A recent study by the Panorama Consulting Group, another
independent firm in the ERP space like TwinEngines, found
that SAP is the leading supplier of ERP software, followed by
Oracle. However, the study also shows that the Tier II ERP
vendors can also meet the complex requirements found at
manufacturing and distribution companies.
The study was based on online polling data and focus group
interviews involving 670 individuals from manufacturing and
distribution companies that have implemented ERP within the past
three years.
It is interesting that the study showed
that only 18% of manufacturers and distributors implement ERP using
a 'plain vanilla approach':
- That is, 82% of the time a manufacturer or distributor had
to pay for additional customizations as part of the ERP
implementation.
- 47% had some customization involved and 35% had 'heavy'
customization during implementation.
- Customizations for manufacturers and distributors is higher
than other industries due to the higher degree of specialization
and complexity found in many manufacturing operations.
It is important that you understand your own requirements
for selecting an ERP system. Focus on the business process and the
business needs, not just the look and feel of the ERP software.
Chances are that the ERP system you select is not going to solve
100% of your requirements and needs. So when you look at
the required customizations, consider whether a low-cost, custom
ERP extension is the better, quicker alternative. One that is
focused on the specific business issue.
An implementation plan following these major phases has yielded
the most effective use of ERP software based upon our
experience with small and mid-market manufacturers and
distributors:
- Document requirements, processes and business needs
- Select the ERP system and identify areas requiring
customization
- Implement the ERP system without major custom work
- Follow a phased approach to add ERP extensions to meet your
unique requirements, processes and needs.
When the ERP extensions reside in an enterprise platform
that integrates to not only the ERP system, but to other
front-office and shop-floor systems, information is visible and
synchronized for the entire company. This increases
efficiencies and leads to a competitive advantage.