Top 5 Drivers Impacting Manufacturing ERP Strategies

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Today, 92% of manufacturers have implemented ERP (Enterprise Resource Planning) to streamline, automate, and integrate business processes. As a complete and auditable system of record, ERP has the ability to help organizations gain visibility into operations, streamline processes, promote efficiencies, manage demand, increase employee productivity, service customers, and reduce costs. Truly, ERP can deliver transformational capabilities that enable a growing business to take advantage of opportunities and execute on a larger scale.

A recent Aberdeen Group research paper entitled ERP in Manufacturing 2012, The Evolving ERP Strategy, identified the top 5 drivers impacting manufacturing ERP strategies:

  1. Must reduce costs
  2. Need to manage growth expectations
  3. Must improve customer response time
  4.  Delays in decision-making from lack of timely information
  5. Interoperability issues across multiple operating locations

 

In order to remain competitive and keep operations working at peak efficiency, manufacturers must tailor their ERP software in reaction to constant business changes and needs. A successful ERP implementation goes well beyond just getting the system up and running. Manufacturers must embrace an ongoing strategy for business process optimization (BPO) and continually adjust or expand the ERP system to meet changing business needs.

In response to the pressures listed above, manufacturers are leveraging ERP to improve business performance. The same Aberdeen Group study lists the following strategic actions taken by the top companies to improve efficiency and productivity:

  1. Streamline and accelerate business processes
  2. Standardize business processes
  3. Optimize the use of current capacity
  4. Link global operations to improve interoperability and collaboration
  5. Provide timely information to front-line employees

 

Successful ERP strategies can provide a competitive advantage, increase productivity, and enable growth. Manufacturers must make a commitment to leverage ERP and other technologies to improve performance and operate more efficiently. Those manufacturers that invest in ERP and formalize an ERP strategy are able gain a competitive advantage. Conducting a Business Process Review (BPR) or assessment of your current ERP system, requirements, and gaps provides a road map for manufacturers to drive improvements across the organization and maximize your investment in ERP.

by AcumenIT

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