The Business of Manufacturing


For decades, the manufacturing of products has been a complex business with a common set of challenges:

  • Bring to market complex and customized products and adapt to new manufacturing methods
  • Balance supply and demand in scheduling production
  • Manage inventories efficiently to reduce material cost
  • Minimize total cost of manufacturing

However, the way manufacturers do business is constantly changing – and those who adapt have the competitive advantage. Right now, big changes are taking place:

  • End-to-end business processes and systems
  • Collaboration internally and with the supply chain
  • Data analytics and business intelligence
  • Mobile devices everywhere
  • Software in the cloud, including ERP

So, how will manufacturers achieve the modern demands of flexibility and collaboration, without overlooking the operational excellence needed at the core of their business?

Experts Say: Manufacturing Leaders Choose All-in-One ERP and Perform Better on the Cloud

While recognizing the fact that effective manufacturers have ERP as an essential component of their organization, an Aberdeen Group report titled The Unified Manufacturing Environment1, concludes that all-in-one ERP suites provide the greatest advantage. It reads:

“The most successful organizations have ERP solutions that provide a greater amount of modules providing functionality across the organization. Note that LEADERS are more likely to have a variety of modules contained within their ERP system out of the box, which provide end-to-end manufacturing functionality.”

Another Aberdeen Group study also found an advantage for manufacturers who choose SaaS ERP solutions. The resulting report, The Case for Cloud ERP In Manufacturing: Alleviating Outdated Concerns2, shows cloud ERP solutions outperforming in several key manufacturing metrics.

They further found that the benefits of ERP are amplified when it’s also a cloud solution:

“These organizations ship orders more effectively, make quicker decisions, have more accurate inventories and financial reports, and enable their employees to be more effective. That is not to say that there is no influence on these metrics from ERP. Organizations with closest ERP solutions have received greater benefits as a direct result of their SaaS solution. This may be that the solutions are newer and perform more effectively, as mentioned above; it’s all about if the solution can effectively support the business, but, all other things equal, it appears cloud solutions produce an advantage.”

Also cited is Aberdeen’s “SaaS and Cloud ERP Observations: Is Cloud ERP Right for You?,” where they compared the benefits in using SaaS ERP to those of on-premise ERP:

  • Improvement in inventory turns: 45% versus 41%
  • Reduction of operational costs: 22% versus 14%
  • Reduction in administrative costs: 20% versus 13%
  • Reduction in inventory: 14% versus 11%
  • Improvement in complete on time shipments: 19% versus 14%

Contact Us for more information.

Footnotes:

1The Unified Manufacturing Environment: Transparency, Collaboration, and Decision-Making with End-to-End ERP, Nick Castellina, Research Director, Business Planning and Execution, Aberdeen Group, April 2015, page 5.

2The Case for Cloud ERP in Manufacturing: Alleviating Outdated Concerns, Nick Castellina, Research Analyst, Business Planning and Execution, The Aberdeen Group, March 2013, page 10.

For decades, the manufacturing of products has been a complex business with a common set of challenges:

  • Bring to market complex and customized products and adapt to new manufacturing methods
  • Balance supply and demand in scheduling production
  • Manage inventories efficiently to reduce material cost
  • Minimize total cost of manufacturing

However, the way manufacturers do business is constantly changing – and those who adapt have the competitive advantage. Right now, big changes are taking place:

  • End-to-end business processes and systems
  • Collaboration internally and with the supply chain
  • Data analytics and business intelligence
  • Mobile devices everywhere
  • Software in the cloud, including ERP

So, how will manufacturers achieve the modern demands of flexibility and collaboration, without overlooking the operational excellence needed at the core of their business?

Experts Say: Manufacturing Leaders Choose All-in-One ERP and Perform Better on the Cloud

While recognizing the fact that effective manufacturers have ERP as an essential component of their organization, an Aberdeen Group report titled The Unified Manufacturing Environment1, concludes that all-in-one ERP suites provide the greatest advantage. It reads:

“The most successful organizations have ERP solutions that provide a greater amount of modules providing functionality across the organization. Note that LEADERS are more likely to have a variety of modules contained within their ERP system out of the box, which provide end-to-end manufacturing functionality.”

Another Aberdeen Group study also found an advantage for manufacturers who choose SaaS ERP solutions. The resulting report, The Case for Cloud ERP In Manufacturing: Alleviating Outdated Concerns2, shows cloud ERP solutions outperforming in several key manufacturing metrics.

They further found that the benefits of ERP are amplified when it’s also a cloud solution:

“These organizations ship orders more effectively, make quicker decisions, have more accurate inventories and financial reports, and enable their employees to be more effective. That is not to say that there is no influence on these metrics from ERP. Organizations with closest ERP solutions have received greater benefits as a direct result of their SaaS solution. This may be that the solutions are newer and perform more effectively, as mentioned above; it’s all about if the solution can effectively support the business, but, all other things equal, it appears cloud solutions produce an advantage.”

Also cited is Aberdeen’s “SaaS and Cloud ERP Observations: Is Cloud ERP Right for You?,” where they compared the benefits in using SaaS ERP to those of on-premise ERP:

  • Improvement in inventory turns: 45% versus 41%
  • Reduction of operational costs: 22% versus 14%
  • Reduction in administrative costs: 20% versus 13%
  • Reduction in inventory: 14% versus 11%
  • Improvement in complete on time shipments: 19% versus 14%

Contact Us for more information.

Footnotes:

1The Unified Manufacturing Environment: Transparency, Collaboration, and Decision-Making with End-to-End ERP, Nick Castellina, Research Director, Business Planning and Execution, Aberdeen Group, April 2015, page 5.

2The Case for Cloud ERP in Manufacturing: Alleviating Outdated Concerns, Nick Castellina, Research Analyst, Business Planning and Execution, The Aberdeen Group, March 2013, page 10.

For decades, the manufacturing of products has been a complex business with a common set of challenges:

  • Bring to market complex and customized products and adapt to new manufacturing methods
  • Balance supply and demand in scheduling production
  • Manage inventories efficiently to reduce material cost
  • Minimize total cost of manufacturing

However, the way manufacturers do business is constantly changing – and those who adapt have the competitive advantage. Right now, big changes are taking place:

  • End-to-end business processes and systems
  • Collaboration internally and with the supply chain
  • Data analytics and business intelligence
  • Mobile devices everywhere
  • Software in the cloud, including ERP

So, how will manufacturers achieve the modern demands of flexibility and collaboration, without overlooking the operational excellence needed at the core of their business?

Experts Say: Manufacturing Leaders Choose All-in-One ERP and Perform Better on the Cloud

While recognizing the fact that effective manufacturers have ERP as an essential component of their organization, an Aberdeen Group report titled The Unified Manufacturing Environment1, concludes that all-in-one ERP suites provide the greatest advantage. It reads:

“The most successful organizations have ERP solutions that provide a greater amount of modules providing functionality across the organization. Note that LEADERS are more likely to have a variety of modules contained within their ERP system out of the box, which provide end-to-end manufacturing functionality.”

Another Aberdeen Group study also found an advantage for manufacturers who choose SaaS ERP solutions. The resulting report, The Case for Cloud ERP In Manufacturing: Alleviating Outdated Concerns2, shows cloud ERP solutions outperforming in several key manufacturing metrics.

They further found that the benefits of ERP are amplified when it’s also a cloud solution:

“These organizations ship orders more effectively, make quicker decisions, have more accurate inventories and financial reports, and enable their employees to be more effective. That is not to say that there is no influence on these metrics from ERP. Organizations with closest ERP solutions have received greater benefits as a direct result of their SaaS solution. This may be that the solutions are newer and perform more effectively, as mentioned above; it’s all about if the solution can effectively support the business, but, all other things equal, it appears cloud solutions produce an advantage.”

Also cited is Aberdeen’s “SaaS and Cloud ERP Observations: Is Cloud ERP Right for You?,” where they compared the benefits in using SaaS ERP to those of on-premise ERP:

  • Improvement in inventory turns: 45% versus 41%
  • Reduction of operational costs: 22% versus 14%
  • Reduction in administrative costs: 20% versus 13%
  • Reduction in inventory: 14% versus 11%
  • Improvement in complete on time shipments: 19% versus 14%

Contact Us for more information.

Footnotes:

1The Unified Manufacturing Environment: Transparency, Collaboration, and Decision-Making with End-to-End ERP, Nick Castellina, Research Director, Business Planning and Execution, Aberdeen Group, April 2015, page 5.

2The Case for Cloud ERP in Manufacturing: Alleviating Outdated Concerns, Nick Castellina, Research Analyst, Business Planning and Execution, The Aberdeen Group, March 2013, page 10.