Category: Engineer to Order Manufacturing, ERP Software
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Choosing an ERP Software Solutions for ETO Manufacturers
There are a number of manufacturing organizations that can benefit from having an enterprise resource planning solution integrated into their operations. These solutions allow companies to be much more efficient in their efforts, while subsequently lowering costs and making improvements when it comes to the quality of finished products. This, of course leads to better customer satisfaction which can ultimately lead to an increase in sales and revenue generation.
However, manufacturers that operate within the engineer-to-order space can also greatly benefit from the introduction of ERP system. According to Manufacturing Business Technology, as companies grow, many of their processes will need to change in order to accommodate the expansion. As a result, current standard operating procedures will need to be altered somewhat.
Failure to properly address these issues can lead to inefficiencies that can be devastating in an ETO environment. In many instances, customers will have expected delivery times for the materials they’ve ordered. If an organization can’t deliver upon these expectations, it can lead to client dissatisfaction, a loss of revenue and, worse still, a negative marketplace reputation.
That said, ETO manufacturing organizations looking to integrate an ERP solution should follow these best practices to ensure that they are selecting a platform that is agile enough to accommodate the unique needs of the organization.
- Easy to user interfaces: Nothing can be more frustrating than not being able to properly access software designed to help an individual perform their daily tasks. Many organizations will choose an ERP platform that allows end users to access the system in a way that is easy to learn and remember the required functions needed to complete certain tasks. This is especially critical in a manufacturing environment where one project will differ from the next. ETO companies, before making an ERP vendor selection, need to first be sure that their software is simple to navigate and places ease of use above all the available functionalities.
- Proper tracking tools: ETO organizations need to be very mindful of production costs. Any overruns will ultimately be passed along to the customer and this can lead to dissatisfaction and potentially, a loss of business. An ERP system specifically designed for ETO companies should be able to track both expenses and times related to manufacturing, delivery and installation, where possible. This allows customers to have a clear picture of the money being invested on a specific project and helps ETO manufacturers stay within the allotted budgetary constraints instituted by their clients.
These are just a few things to keep in mind for engineered-to-order firms exploring ERP solutions. Certainly, there are others. However, the suggestions listed here can lead to a company making the correct choice the first time around, which should always be the goal.