Manufacturers need more ERP

////Manufacturers need more ERP

It has been proven time and again how useful ERP implementation can be for high-tech manufacturing organizations. However, according to a report from the International Data Corporation, many firms are not properly utilizing this software. In many cases, this likely means these companies are missing out on creating a better experience for their customers and perhaps even losing business.

The report, which is titled “A Call to Action for High-Tech Manufacturers,” said 45 percent of businesses said integration between customer-facing portions of the business and the back office is one of the biggest issues. Stiff IT systems may lead to this. organizations could benefit from revamping their entire system, but many are hesitant to do this due to the time and money it would likely take.

Some key stats from this report showed:
– Approximately 35 percent of manufacturers said their ERP is vital for customer experience and works well in the back office , leaving 65 percent without these solutions
– Delivery is important for many, as 26 percent of respondents said the most critical factor of pushing new products and purchases ahead is how they are delivered and packaged
– High-tech manufacturers will focus on adopting IT to help better serve customers, as nearly 36 percent say they do this
– About 28 percent said ERP supports every-day business operations

Staying current
Pierfrancesco Manenti, head of IDC Manufacturing Insights research practice in Europe, Middle East and Africa, said keeping up with the pace of technology today may be difficult, but it is necessary for companies that don’t want to lose their place in the market.

“More frugal consumer behaviors in developed countries and demand from unstable emerging economies are pushing high-tech manufacturers to launch initiatives aimed at achieving superior customer loyalty through technology innovation,” Manenti said.

Tom Miller wrote on ERP Focus that the decisions on whether to adopt a new ERP strategy usually come from the executive level of a business, but other discussions will need to take place across the business to ensure the correct solution is adopted and put into place. Manufacturing companies will have to take a few modern aspects of ERP into account when they are adopting a new solution, including whether they need to consider mobile or  cloud computing as part of the software.

Security is also an issue to consider among those businesses implementing the software, as sensitive data will certainly be readily utilized and accessed across an ERP program. Miller said security of modern ERP can actually be considered a benefit.

“With our own ERP managed by us, we have the best security we can afford,” he wrote, speaking about his company. “A [software-as-a-service] ERP will use secure, remote sites to manage our data with the best possible systems and people managing it and keeping [it] from prying eyes.”

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.