Across many Enterprise verticals, Manufacturing Industries has one of the most complex set of business requirements. Indirectly this would be the main reason for the manufacturing industries to automate their business process through an effective ERP system.

But in reality, it is surprising to note that many manufacturing industries does not have ERP systems. The following are the disadvantage for such companies.

  • They are more people dependent
  • New age entrepreneurs will not be interested in taking
  • Cannot attract talented work force
  • Frequent clash among departments due to in correct data
  • Not in a position to respond on the right job status for the customers
  • Frequent stock-outs or excess inventories
  • The confusions are much more in case of multi-locations

Though the manufacturing industry knows these issues exist due to lack of good ERP software, their apprehensions are as follows:

  1. Cost of ERP: The industry is always looking for Low cost ERP solutions. As that is what they can afford. Many of the ERP systems are not affordable, since the profit margins are way too low in manufacturing segment.
  1. Simple ERP system: The work force in the manufacturing segment has limited exposure for computers. So they expect simple ERP system. Many ERP systems are designed for global industries. Such solutions will prove to complex and fatel for many manufacturing industries. But when we say it has to be a simple ERP, the system should have all the must to have features built ready, so that the Industry can take off quickly with less or no customisation.
  1. ERP with regular support: The ERP vendor has to be a long-term player in the field of ERP. There are new government regulations like GST etc., The ERP solution has to be made GST compliant, failing which the system will become redundent. More over the solution has to bug free. But if at all any bugs hits, the vendor has to be in a position to fix the same instantaneously. Otherwise the data entry will be stopped and at time all the transactions will come to a grinding halt.
  1. AMC cost of ERP: AMC and support cost is another concern for them. So the AMC cost of ERP also has to nominal.

In many countries the governments are making the usage of ERP systems mandatory. It is from 2 perspectives. One on the transparency point of view and the other is from the efficiency of the enterprise.

Right ERP system will enable the exponential growth of the organization.


Author Vijay

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