Tools are handy, but you need the right tool for the job. ERP software is a powerful tool for businesses, but it’s important to know which version of ERP software is best suited to the business you’re operating.
Sure, all ERP products provide the same fundamental benefits: Automating processes to free up resources and enable smoother functioning, providing visibility on all relevant data so informed decisions can be made, performing calculations related to accounting and finance, and so on. But don’t make the mistake of thinking one version is as good as another when it comes to meeting the specific needs of a business.
This issue comes up often in the manufacturing industry, where process manufacturing and discrete manufacturing are considered part of the same industry, yet have vastly different needs. Discrete manufacturing refers building solid products, such as toys, furniture, cars, or computers, while process manufacturing refers to what could be called ‘liquid’ products, like paints, chemicals, food and beverages.
- Discrete manufacturers build something piece by piece, and once made it can be disassembled. With process manufacturing, the final product cannot be reversed. It is composed of ingredients but none of them can be removed.
- Process manufacturers make the same products in bulk. Discrete manufacturers make distinct products that may differ in appearance.
- Process manufacturers use formulas or recipes. Discrete manufacturers use a Bill of Materials (BOM).
- Process manufacturers blend ingredients to make the product. Discrete manufacturers make a product according to a sequence.
- Process manufacturers endure fewer interruptions. With discrete manufacturing, each component of the final product has a production cost and time.
It’s not enough to simply acquire an ERP product designed for manufacturing. Some are better suited to process manufacturing, others to discrete manufacturing. That’s why it’s important to seek professional advice on the implementation of IT to ensure that Software as a Service provides the service it was designed for.
Microsoft Dynamics GP the Choice for Discrete Manufacturers
According to softwareshortlist.com, some of the challenges faced by discrete manufacturers include:
- Numerous Components: A product can consist of a number of components, such as valves, springs, metals and containers. Each component must be planned out and tracked once it’s been shipped to the assembly location.
- Outsourcing of Components: The construction of certain components may be outsourced; the different parts of a machine separated by time and distance.
- Innovation: This is particularly important in the technology industries, where manufacturers have to keep up with constant upgrades to the various components.
- Regulations: Discrete manufacturers have to deal with whatever regulations pertain to their industry, such as FDA regulations in the case of medical devices.
The ideal ERP software for discrete manufacturers will have functions geared towards reducing operating costs, managing raw materials and tracking shipments. The manufacturer faces very specific demands from a number of interested parties, including suppliers, customers and regulators.
Microsoft Dynamics GP has been certified for use in discrete manufacturing by the TEC (Technology Evaluation Center), and is designed to aid in practices essential to discrete manufacturers, such as:
- Inventory management.
- Tracking customer orders.
- Analyzing finances in all departments.
- Adapting to customer needs.
Ultimately, Microsoft Dynamics GP is designed to aid in each stage of the manufacturing process, from design to shipping.
Making the Right Decision
Ineffective IT is one of the major factors hampering China’s manufacturing-based economy (articlesbase.com), and the nation is now planning a switch to a knowledge-based economy with an emphasis on Information Technology. The world’s second-biggest economy is recognizing the need for correct application of IT services.
ERP software may be designed to aid companies in decision-making, but companies need to ensure they make the right decision to begin with when they seek the ERP product best suited to their needs.
Written by Matthew Flax on behalf of Dynamics Careers, which advertises only Microsoft Dynamics jobs, such as those for GP developers, around the world.
This article is contributed by Matthew Flax and posted by Rizwan Ahmad Author and founder of cyberockk.com, He is a tech blogger from India and he loves to share his thoughts by writing articles on this site to the different topics related to technology world,