Smaller Manufacturers Need Software that fits there business model

Interesting article I read by Industry Expert Christopher Baum on the Software Advice Blog – He writes that the ERP manufacturing software industry is optimized and focused on larger manufacturing facilities with greater than 100 employees. The problem with that is according to the article “about 90 percent of the manufacturers in the United States employ less than 100 people. Smaller manufacturers have adopted ERP to varying degrees but have always struggled because the systems were not optimized for smaller operations”.

Todays manufacturers are much smaller, much more dynamic in terms of their software needs and most importantly need a solution that can change quickly to the type of manufacturing they do. You tend to find today many repetitive manufacturers are making customizations to their products to satisfy the requirements of their customer or geography. This moves away from the traditional manufacturing structured build approach to more of a quick turn style – quote it, build it, bill it.

Today most of the smaller companies do not have the time or the resources necessary to maintain many of the current ERP solutions in the market. Many solutions seem to have been built for the 1970’s with little change to meet the flexibility of the global and domestic marketplaces. They assume dedicated personnel to manage each of the key functions in the software.

Traditional software solutions have a step by step process that usually takes longer to setup then it does to quote then build the product. Capturing data after the fact has more importance then proper setup so a good flexible solution will allow that approach as opposed to following strict setup guidelines needed prior to any transactions occurring.

It seems smaller companies do not see the benefit of a formal ERP system when it requires each and every step to be performed in setting up an item that will only be produced one or two times. They need to find something similar quickly and easy (product search) and be able to quickly copy the skeleton of the job or product structure, make some quick changes quote it, release it as an order, produce it, bill it and report it.

What the large ERP software manufacturers don’t seem to understand is that the marketplace has changed. The challenges that a small manufacturing concern has to deal with forces them to be a leaner organization with less overhead and an ability to improve transactional velocity (the speed at which a transaction can be executed is a primary competitive issue in being able to be competitive against less cost labor from foreign competition). It also forces them to change their approach and take on types of business that they wouldn’t in the past. It may be complimentary but a different type of manufacturing (more make to order vs. repetitive). The software needs to be able to handle these variations with ease not workarounds.

The article goes on to discuss changes that have occurred and are needed in the industry. He discusses the integration of the buyer and seller, data storage and sharing and Integration of ERP and other systems.

The article points out one of the most important things that this author has been saying for some time. Build it and bill it and don’t tell me I need more people to run my system to do it!


About e3consulting

Welcome to E3 Consulting. As proven experts implementing the latest CRM, ERP and Accounting Software in the Manufacturing and Distribution industries, we have made it the goal of our business to help our clients obtain the bottom line results their individual companies require. Educate, Enable and Empower For companies in the manufacturing and distribution industries, the ability to simplify their business operations is vital to their ability to succeed. E3 Consulting will provide the consultation; technology and the project management tools that companies need to improve their business processes and their bottom line. What We Do Does your company need a revamp of existing business systems? Do you have a technology project that is going beyond time and over budget? Are your costs out of control and productivity lagging? When you contact E3 Consulting, we take a hard look at the reality of your business operations and break it out into segments, to find out which aspects of your business process workflow need attention and which are working as they should be. It is our intent to look at your operations, your accounting, your workflow and your technology and create a cohesive plan that will have your business running effectively and efficiently. Our Process Every company runs differently, and it is those processes specific to your business combined with your workflow goals that give the staff at E3 Consulting the canvas we need to use our long history of business development, project management and technology to map out the path your company needs to follow to improve your bottom line. Think of your business like a lego block structure. Each block that is missing reduces the stability of your company. We can look at your overall operations and use our knowledge of the marketplace cutting-edge technologies to find the blocks that are missing from your overall business concept. We will introduce the right technology tools to improve your operations, and then continue in a project management position as necessary to ensure ongoing smooth operations. Our Experience E3 Consulting has a long and successful history of project management, business operations consultation and technology implementation and management within Manufacturing, Distribution, Service, Healthcare, Finance and Accounting businesses. Principal, Brad Tornberg, is a successful technical and business expert with an MBA in Finance from Farleigh Dickinson University and. He holds Microsoft Certifications for Customer Relationship Management (CRM) sales, implementation and training. He also has a series 6 and series 66 securities license and a New Jersey Life and Health License. He is well published having written many articles for The Practica
This entry was posted in Uncategorized and tagged , , , , , , , , , , , . Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s