By Tim Sands

“Matchmaker, matchmaker, make me a match; find me a find, catch me a catch.”  Ok.  Maybe not everyone knows all the songs to Fiddler on the Roof like I do, but you get the gist.   Today’s topic: dating.  Not really dating in the traditional sense of the word, but dating like matching the best ERP system for your business.  In ERP selection, like in life, the cheapest date isn’t necessarily the one you want to marry.  Time to do some due diligence.  There are many types of ERP systems out there in all different sizes, shapes, colors, and styles.  Since the goal of your company is to partner with someone who fits your business  for the long haul, it’s prudent to do the homework, the vetting, if you will.  It’s better to do it right than having to repeat the whole process again in a year or two.

In my profession, I run across prospects that are looking at several different ERP solutions - as they should.  Sometimes they include systems in their search that are focused on discrete manufacturing.  Discrete, roughly defined, means things are being measured in “eaches” like nuts and bolts, shelf brackets, or roof trusses.  Systems that are designed for those types of manufacturers are much different than that of ERP systems made for process manufacturers. Discrete systems manage a simpler process and consequently are much cheaper.  Sure, discrete systems might handle the basics of standard based manufacturing, but they can’t really do what a process manufacturer needs nor solve the problems they are looking to solve.

That’s when it is important to step back and look at the real business issues and outcomes a company is looking for.  The advice I give my prospects when they are starting a project is to do their homework.  I tell them, “Whatever you do is ok with me. All I know is you will want a system intended for your industry and a solid vision that gives them a clear upgrade path, that will cause less headaches, and result in less money you’ll need to  put out on your end later.”  Isn’t that true?

That said, start with answering the basic question: What do we make?  What type of “stuff” do you make?  For example, in the inventory or manufacturing process, is there a need to convert various units of measure?  Perhaps it’s a good idea to see that the software contains tools for specific gravity conversions.  Next, there might be a need for automatic unit of measure conversion.  An ingredient may be measured in grams when making a small batch, but measured in kilos when making a large batch as an example.  The list goes on.  There are many other components to this decision and I have provided two different white papers on this topic:  Process vs. Discrete ERP software – What is the Difference?,  and Process vs. Discrete ERP software – The bottom Line.

When making a big investment like an ERP purchase, it’s imperative that you do all you can to do it right the first time.  Invest sufficient time and effort into the decision making process – including things like weeding out the cheapest date.  When you are in process manufacturing, make sure to look under the hood, shop around, get references, and find out what you are getting yourself into. Selecting a new ERP solution will likely be the largest IT decision your company will ever make as it will become the information backbone of your company. The right system will provide you and your managers with critical information about how to better manage your business and drive more dollars to your bottom line for years to come.

Attend the January Webinar: Not all Manufacturing ERPs are alike – 8 Questions to ask when searching for an ERP.

Jan 18th @ 2:00 pm CST & Jan19th @10:00 am CST  Register online.