13. What security measures should businesses be aware of when selecting an ERP system?
What is a Manufacturing ERP System?
A Manufacturing Enterprise Resource Planning (ERP) System is a software solution used by manufacturers to streamline business processes and operations. It integrates with all departments in a manufacturing business, such as engineering, production, inventory management, purchasing, etc., and provides users with greater control over the entire organization.
Why You Need Manufacturing ERP System
Using a Manufacturing ERP System helps manufacturers increase efficiency, improve customer service, reduce operational costs and save time. ERP Systems also help manufacturers streamline the processes required for successful product delivery, from order to delivery. ERP Systems automate processes like production planning, inventory management and critical resource optimization, as well as order and delivery management.
Top Manufacturing ERP System Features to Look For
- Fully Integrated Platforms: An ideal Manufacturing ERP System should include financial, sales, operations, and support functions in one centralized platform. This allows users to gain real-time visibility into their production process and operations.
- Robust Production Planning: A reliable Production Planning Module is important as it helps organizations track information related to production capacity, forecasting and scheduling, and materials management.
- Scalability and Flexibility: ERP Systems should be able to easily scale up or down to meet the changing needs of manufacturers. Additionally, the system should be able to integrate with third-party applications and be flexible enough to adjust to the manufacturer’s custom needs.
- Reporting and Analytics: ERP systems have a variety of reporting capabilities, such as dashboards and data visualization tools, that can give manufacturers a better idea of their operations and how the organization is progressing.
- Data Security: Data security is a top priority for all manufacturing firms. An ideal Manufacturing ERP System should provide robust security measures to protect sensitive information.
Budgeting For Your Manufacturing ERP System
Budgeting is one of the most important factors when it comes to selecting a Manufacturing ERP System. Manufacturers should consider their organization’s size and requirements, such as the number of users, type of organization and the number of features required before selecting a system. Generally, manufacturers should expect to pay for the ERP System on an annual basis, typically about 10-15% of their total software budget.
Steps to Find and Get Started With Your Manufacturing ERP System
The following steps will help you select and obtain the best Manufacturing ERP System for your organization:
- Define your organization’s requirements and budget
- Research the different ERP Systems available in the market
- Compare their features and pricing models
- Schedule a demo with the vendors and evaluate their systems
- Check customer reviews and feedbacks
- Negotiate the terms and conditions with the vendor
- Choose the system that best suits your organization’s needs and budget
- Set up and configure the ERP System.
The Best 5 Manufacturing ERP System on the Market
An optimal Manufacturing ERP System should include features such as integrated platforms, robust production planning, scalability and flexibility, and secure data management. Here are the 5 Best Manufacturing ERP Systems on the market in 2021:
Odoo
- Advantages: Odoo is an open-source Software as a Service (SaaS) offering a variety of manufacturing solutions, such as inventory management, production planning, customer relationship management (CRM), and customer support. Odoo also provides powerful reporting and analytics, scalability and flexibility, and is extremely affordable.
- Disadvantages: Odoo does not offer data encryption and is not suitable for large-scale enterprises.
SAP ERP
- Advantages: SAP ERP is an Enterprise Resource Planning system that offers a variety of features for manufacturers, including inventory management, production planning and control, customer relationship management, supply chain optimization, and analytics. SAP ERP is extremely secure, easy to deploy, and offers scalability.
- Disadvantages: SAP ERP is expensive and complex to use and configure.
Oracle NetSuite Manufacturing ERP
- Advantages: Oracle NetSuite is a cloud-based ERP system that provides manufacturers with a variety of features, such as production planning, scheduling, inventory management, customer relationship management, and analytics. The system also offers flexibility and scalability.
- Disadvantages: Oracle NetSuite is expensive and not suitable for small businesses.
Microsoft Dynamics 365
- Advantages: Microsoft Dynamics 365 is a cloud-based ERP System that offers powerful features for manufacturers, such as inventory management, customer relationship management, and analytics. Dynamics 365 is highly scalable, flexible and secure.
- Disadvantages: Microsoft Dynamics 365 is not user-friendly and is highly expensive.
Epicor ERP
- Advantages: Epicor ERP is an enterprise resource planning system that offers powerful features to manufacturers, such as production planning and scheduling, materials management, customer relationship management, and analytics. Epicor ERP is scalable and user-friendly.
- Disadvantages: Epicor ERP is expensive and does not offer features for smaller businesses.
ERP System and Key Features Summary Table
ERP System | Financial | Production Planning | Reporting | Flexibility | Data Security |
---|---|---|---|---|---|
Odoo | Yes | Yes | Yes | Yes | No |
SAP ERP | Yes | Yes | Yes | Yes | Yes |
Oracle NetSuite Manufacturing ERP | Yes | Yes | Yes | Yes | Yes |
Microsoft Dynamics 365 | Yes | Yes | Yes | Yes | Yes |
Epicor ERP | Yes | Yes |