Installation and implementation of an ERP for Manufacturing Companies are always an Investment as this is costly affair. Therefore when Companies are making the investment in Manufacturing ERP then they have to compare and choose best Manufacturing ERP and make wise Investment
Challenges To choose the Best ERP
This is really a tough job to choose a best ERP always for everyone. To choose a best ERP the Investor has to look into two things First part is the features and utility and second part is the Cost involved. This is utmost important to check whether the ERP shall meet the need and expectation of the company as per its requirements.
There are many Manufacturing ERP on the web and market but which is useful and which is not meaningful, this not certain by visiting to the website only.
Again the Company has to decide that it has to go on cloud or web based version.
Once choosing the cloud again a challenge that the data has to be hosted on Company own cloud server or Host the data on the ERP provider.
Another challenge with the most of the small and medium enterprises are that they don’t have IT professional internally and depends on third parties for all IT work.
The directors or the Top Management understand the Manufacturing flow, grey areas, limitations and advantages of its own company but not clear that how much the ERP shall cope up with its own problem as the ERP is made for the Industry as such. Therefore some time Top Management is choosing a poor performing ERP at cheap price or Choosing a highly performing ERP which is not meaningful to his business
Difference in MRP and ERP
This is Really confusing for all Manufacturer that MRP and ERP is the same or there is any difference. This is very important to understand that MRP is restricted term and ERP is wide Term. ERP includes the MRP.
MRP stands Manufacturing Resource Planning which is focused only and only on production part which includes the Production Planning, Raw Material Planning, Assembly and Sub Assembly Planning, Inventory and Purchasing with Suppliers and Quality Control.
ERP stands Enterprises Resource Planning and not focused only MRP but also includes other part of Company like Sales, Purchase, Finance, MRP, HR & Payroll, Asset Management etc. ERP is extensive and covering all aspect of operation in any company whether manufacturing or service Industry. ERP control and start from beginning of the Enquiry received and till the post sales activities including maintenance, guarantee and warranties. ERP gives an overall picture of the Business and show the positioning of the business internally as well externally
Benefits of the ERP System for Manufacturers
- ERP replacing the manual work and exl sheet which is having tons of information but Management is not able to analyse and convert this information in decision making.
- Old software is prevailing in the market having the limitation of storage and window based system. Once the Hard disk is damage or system is damaged then data has been lost and call to software vendor to install again. Cloud based ERP is replacing the old software and make the system ready to use.
- SAAS – Software As A Services is the new concept which is removing the cost barrier for small firms and can use according the capacity and pay on monthly basis.
- All functionality like Sales, Purchase, Finace, HR-Payroll, Project Management, Asset management, MRP at one place and no need of integration of different 3rd Party software with each other.
- These are c;oud based or can be hosted at client server – flexibility is there and easy to handle the data confidentiality.
Top Five Manufacturing ERP System
Market is full of ERP System but which is useful System as per the need and expectation of the company as well as the size and complexity of the organization.
ERP providers are divided in the Tier I, II & III for ease of convenience and software utilities and cost and investment.
For Large Enterprises Tier I ERP Like SAP and Oracle is Suitable. For Medium and Small Enterprises Tier II ERP are suitable but one thing is Noticeable that Large Enterprises can Choose Tier II ERP as they can save the Investment because most of the Tier II ERP having almost same features and Functionalities which Tier I consist.
Absolute™ ERP
Absolute is Tier II provider a ok and tested platform for all type of manufacturers. Absolute ERP is based on the whole ERP as such and can be fragmented on the basis of Modules. Absolute ERP is also Flexible with third party Integration like e-commerce platform Amazon and alibaba.
The Compnay can make its own plan to purchase which module and they can add on more modules as per requirements.
Absolute Provides Sales, Purchase, Supply Chain Management, Asset Management , Financial Management, Accounting, Production Management, Project Management and HR & Payroll with ready to take decision on the baisi on interactive dashboard and Reports.
Absolute automate the production planning against the specific sales order or running production with outsource process. The adjustment of Machines, Manpower and Shift and time is auto adjustable by the system itself and Management can involved itself for decision making.
Absolute is user friendly and managed from setting part at the back end and no need the interference of Absolute Team when running the business.
Report system is very good and allowing Absolute Clients to make unlimited Reports as per its requirement which is chargeable in another ERP. All reports can be downloaded in XLS formats free of cost whether in other ERP it is given as an add on with extra price.
Absolute System for Database can be hosted on premises or as a cloud-based on the basis of AMC.
Microsoft Dynamics 365 Business Central
Microsoft Dynamics 365 is Tier II provider but often included in Tier I because many large enterprises are using this ERP. Microsoft Dynamics 365 having good reputation as the name Microsoft is added and it has a god reputation and goodwill. Investor can easily believe in the security and longevity of the system.
Dynamics 365 includes the Financial Management, Operations, Project Management, Sales, Purchase and CRM with Interactive dashboards and useful reporting system.
Dynamics 360 provide the customization through the third party but easily customizable and having the adaptability with the integration of other systems. The maintenance is done through the Third party too so it become bit costly due to involvement of the third party and contractors.
Involvement of the 3rd party is big imitation for the Dynamics 365 which is consuming more time and depend the competence of the 3rd party resources to accomplish the project timely. This adds cost and places the adopting company one step removed from the actual provider.
Microsoft Dynamics 365 Business Central is deployable both on-premise and as a cloud-based application and can be hosted on Microsoft’s own cloud platform.
RootStock
Rootstock is Classified under Tier II ERP category. This is the ERP which is using the Salesforce platform. Salesforce itself a big cloud based CRM and very popular worldwide. Rootstock provide highest level of integration with other applications.
Rootstock is cabapble for Production Planning and Scheduling with Sales, Purchase, Inventory, Financial Management but lacking with the HR & Payroll System. Rootstock is offering solution within the salesforce ecosystem and focusing on the need of the specific sector.
The advantage of the rootstock is mainly for construction companies as it is having the CAD module which is very usefull tool for Engineering designs for Civil, Electrical and Electronics Industry.
Rootstock is havng the informative dashboards with many reports and reports are very informative to take the decision but no of reports are limited and in case client need some more reports then it shall be provided at the additional cost. Rootstock does not involve the 3rd party for development and deployment as well maintenance and every function is managed in-house.
Delay in Customer support and customization is major drawback of the Rootstock whch is backed by many online reviews. Rootstock is available only on cloud and cant deploy on premises.
Oracle - NETsuit
Netsuit is Categorised as Tier I ERP and meaningful for Large Enyerprises specially though very recently Oracle has given some basic solutions at low cost to Small and Medium Entreprises.
NetSuite is a cloud based solution that unites all of the ERP and professional services automation functionality to meet the business requirements and needs of both product and services companies in one single system. NetSuite PSA consist Production Planning, Shop Floor Planing, Sales, Purchase, Accounting, Project Management and Asset Management. The efficacy of the system is Human Resource Capital which automate the HR and Payroll.
It provides
- Streamline business processes and free up the time and resources needed to accelerate growth, drive innovation and remain competitive.
- Combine data with visual analytics to generate meaningful and actionable business insights.
- Easily add and customize functionality as your company grows by leveraging a highly scalable business management system
SAP
SAP is Classified under Tier I ERP category. SAP offers almost all utilities which the customer needed as per its own industry requirements. SAP provide Customization but it takes lots of time and Investment. SAP is meaningful for large and very Large Enterprises. SAP is available oncloud and on promsies both.
There are various software corporations for SAP that are providing SAP software solutions globally to enhance customer relations and business processes. The SAP software solutions have been accepted by more than 50 per cent of the countries around the globe. This Enterprise Mobility Solutions provider is becoming popularised in the rest of the countries as well.
The SAP software solutions implementation once a roadmap is created. There is a segregation of roadmap on the basis of stages. There is a preparation stage, a planning stage, understanding stage, terminating preparation stage and the last one is the support stage. There is an implementation assistant which aids the implementation execution. The implementation of the SAP ERP turns simpler with the help of the implementation assistant.
Epicor
This Tier II provider offers a platform for any manufacturer with over $1 million in sales. It is also flexible in that the core functionality of the basic ERP can be augmented through the purchase of additional modules a la carte. This provides companies with the option of purchasing only what they need with the flexibility of adding additional modules later. Epicor offers production management, supply chain management, and scheduling as well as financial management. The platform offers manufacturers the ability to utilize make-to-order, configure-to-order, and make-to-stock shop floor control and manage it all within the out-of-the-box software functionality. The system is easy to customize and is scalable. It is also compatible with all mobile devices.
Epicor also offers a Quality Performance Management (QPM) module that is not often found in other ERP systems. This type of module is often only obtainable through ISVs (Independent Software Vendors) in competing vendor platforms.
Some downsides include a common complaint about slow customer support. It also has limited flexibility in invoicing and order modifications and does not offer any standard integrations but does have an open API on demand. It also has a very limited import and export functionality, an oddity given that Microsoft import/export capability is available in most of its common products. In the case of Epicor, import/export can be done only through the purchase of an ISV add-on.
The system can be delivered on-premise, hosted, or as a cloud-based SaaS application. While Epicor does not disclose pricing, estimates are around $175 per user per month after implementation costs.
How to Choose the Right ERP
Very Difficult - How to choose a right ERP for my business
- Make a Budget
- Decide want to go Tier I or Tier II ERP Players
- Get the demo first
- Understand about your need and expectation
- Compare the cost
- Decide on premises or on Cloud
- Check the Reviews on google and elsewhere
- Decide how much customization is required and who is easily ready to do at reasonable cost
- Ask for Quotation and Compare Each module, utilities, functionality and cost.
- Last but not ask for t references for Implementation and get the feedback from existing clients.
Establish, Schedule and Maintain the Production, Machine, Material and Human Resource Planning through Automated System of Absolute™ ERP