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Businesses with many ERP systems can go modular instead

Businesses with many ERP systems can go modular instead

A study from Aberdeen Group found that the average manufacturing company uses 1.9 enterprise resource planning systems to handle the wide variety of data streams and business processes that are a reality in that industry.

Considering that the point of ERP implementation is to realize business efficiencies and reduce procedural waste, it seems counter-intuitive that multiple systems would be needed to realize the benefits of such software. What may make matters worse is considering that any concerns or delays related to installation, training and adoption have the potential to be duplicated when more than one set of ERP software is used.

Although the wide array of needs that manufacturers have for their ERP systems require responsive and diverse solutions, it's possible to use just one platform to meet all of these requirements. Modular ERP software like Microsoft Dynamics NAV provides a stable functional backbone that can be customized with inventory control software, time tracking components and a variety of other add-ons. By using just one system, possible complications during implementation are limited, costs are drastically reduced and ROI is realized more quickly.

Analysis beforehand can lead to more advantages
MSDynamicsWorld points out that some businesses may be approaching the use of ERP by focusing on increasing the efficiency of current practices. While this is one component of using ERP, the source also suggests understanding the new advantages the system will enable once its installed and set up. This is one area where modular ERP can be especially effective. Current needs as well as future plans can be addressed, and modules can even be added after the initial implementation process has been completed.

Slow and steady is better than quick and disorganized
While some businesses that lack ERP or have outdated systems may want to quickly close the gap and begin the use of a new system, it's important to take time to discuss, understand and enumerate the needs of a business before committing to a specific system and plan. Even if your business chooses the right source for its ERP program, it may not receive the functionality it needs the most. Careful planning can also involve seeking input from providers – the best ERP vendors will help guide potential purchasers without trying to force a sale.

To discuss Microsoft NAV solutions for manufacturing, join the Microsoft Dynamics NAV for Manufacturing LinkedIn group.

Posted in: ERP Solutions, Warehouse Management

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