ERP is about effectiveness, not trends

///, Inventory Management/ERP is about effectiveness, not trends

Enterprise resource planning systems were a major difference-maker for manufacturing and warehousing businesses when they were first implemented. Work floor productivity, inventory management, bookkeeping concerns and most other areas of operation were less efficient before ERP,  if for no other reason than automation of these concerns means less time spent manually counting, calculating, writing and duplicating on the part of employees. In addition to the overall productivity gains provided by ERP and computerization in general, specific components of such software have helped improve individual processes.

Businesses that want to continue to get the most out of ERP software need to make sure they're balancing the desire to follow a fad with the underlying reasons why a company is deciding to add or upgrade their system. Cloud computing continues to be one of the major trend-setters in the ERP, as Forbes pointed out. The use of remote information transmission and storage has gone from the fringes of ERP to being incorporated into some major functions. The cloud definitely provides some advantages for businesses, but these organizations need to make sure they're not just choosing the cloud because of reputation. Instead, selecting an ERP system that provides the best overall fit and functionality for the unique requirements of a business is a better approach.

Modular ERP balances advances with stability
While this business software was originally the province of large enterprises, many small and midsize enterprises are now able to use ERP because the market is more flexible. More agile approaches to ERP, such as component-based systems, remove much of the need for expensive and time-consuming customization efforts that were part and parcel of the vast majority of implementations in past years. TechTarget pointed out that some current systems still experience these problems, but that's not the case for all of the options on the market.

A modular system allows businesses to build the system that best meets their needs using pre-existing, fully formed components instead of costly customizations. This can include mobile or cloud applications where such an approach makes sense, instead of simply using the cloud because it's currently a popular tech trend.

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.