While there are plenty of enterprise resource planning systems on the market for various industries and markets, they don't all provide the same benefits. There are classic, all-in-one systems that provide end-to-end services in a single package and more open platforms that allow for easier modifications and expansions.
While there are advantages and drawbacks to each kind of system, modular ERP is often a better fit for companies in the manufacturing, warehousing and fabrication markets. The ability to add on different components to a system on an as-needed basis improves responsiveness and allows companies to stay agile. The significantly reduced amount of downtime required for an addition or change to the current set of modules means more consistency from ERP, even when a business is changing and developing. Whether organizations want to improve back-office financial visibility or work floor processes like barcode data collection, a modular system allows for easier implementation.
The fact that just 34 percent of manufacturers have a single ERP system in place, according to research from software company IFS, shows companies are becoming more complex in their operations and need flexible software to meet expanding needs. Being able to easily customize a system can help organizations better address their needs in a timely fashion.
Simplify the ERP experience
Research from Aberdeen Group shows that a common reason for the adoption of this software is the need to enhance responsiveness, in terms of both speed adapting to change and the costs of doing so. However, using more than one ERP system because of operational deficiencies or expanded needs can limit the ability to respond. Information needs to flow through two or more systems that may be located in different locations and may or may not be compatible to an acceptable degree.
The reduced ability to react resulting from traditional ERP is another reason to choose more adaptable, modular ERP like Microsoft Dynamics NAV. As new equipment, locations or employees are added to a company, ERP can be modified quickly to adjust to the new situation. Components can be selected based on individual need to keep options open, instead of waiting for a scheduled upgrade or until conditions become bad enough to warrant an update.
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.