The current trends in the enterprise resource planning software market are mostly focused around flexibility and agility. Those benefits may come from three different areas: the use of cloud computing, the use of a modular ERP framework to build a customized solution that greatly reduces the need for companies to pay for features they don’t need, or a combination of the two such as a mobile inventory tracking component. While the desire to be lean and use an optimized ERP platform likely won’t ever disappear from the marketplace, there has been a recent swing toward organizations wanting ERP that completely covers all of their needs. This approach harkens back to the days of the monolithic, all-in-one systems that offered totally complete coverage but also carried plenty of drawbacks. Supply and Demand Chain Executive called this recent trend the “comeback” of large-scale ERP.
The increased desire for total coverage of operations through ERP may be especially important for manufacturing and warehousing businesses, which have a much wider variety of needs than that of an average company. Companies need to make sure they aren’t overestimating the value of all-in-one ERP software, however. There are plenty of other approaches that can be more effective than switching back to a system that has been bypassed by more responsive systems. One such alternative, modular ERP, can be quickly and easily customized to provide the complete visibility into operations that businesses desire. While this aspect is similar to the large ERP systems, the ability to further change and improve the platform after initial implementation sets it apart.
Eliminating overuse of different ERP systems
Research from Aberdeen Group shows that the average manufacturing organization used approximately 1.9 different ERP platforms in the normal course of operation. Functionally, this means that some businesses are using two or more different ERP types, sometimes even from different vendors, to get the complete insight they desire. While some organizations may feel they need to use this approach to get exactly what they need out of their ERP, they could be using a more effective solution. Modular ERP allows a wide variety of different components to be added on to a single system, improving functionality related to specific business practices as well as visibility.
Learn how to define your ERP strategy by downloading the white paper entitled “ERP in Manufacturing: Defining the ERP Strategy” from the DMS website today.