Given that many of Visual South’s customers and prospects are “to order” manufacturers, one of the prime operational areas they are typically looking to improve when we speak with them is costing. Additionally, many companies we work with are engineer-to-order, configure-to-order, and project-oriented manufacturers, so job costing is critical.
I visit companies all the time that are looking for an ERP software solution. In almost all cases, these companies mention that they need to manage inventory better. Solid inventory management for manufacturing companies is a result of solid processes, but solid processes are difficult to execute if you do not have a tool like ERP software (Cloud Suite Industrial or VISUAL) to support them. Below, I list some of the inventory management issues I hear about all the time and how ERP can address these issues, which will hopefully help you determine if your current solution measures up.
Budgeting for an ERP purchase can be a significant challenge. There are many cost factors to consider when replacing your current system and choosing an arbitrary dollar amount as your ERP budget is a mistake. But it is a mistake that many first-time ERP shoppers make.
Visual South has helped hundreds of manufacturers implement and optimize operations with their ERP systems. Often there are functional gaps between the ERP software and the business requirements of the customer. When this situation arises, we have a couple of options to close the gaps, such as using the development toolset to add functionality or develop a bolt-on application. Some consider this approach customization.
QuickBooks is an accounting-focused application that’s built for small businesses. Offering a lot of great features, it is one of the most commonly used accounting programs for all types of small companies. However, it is not an enterprise resource planning (ERP) system. There’s some improved functionality available with QuickBooks Enterprise, but companies tend to outgrow that functionality quickly—especially work-order-driven manufacturers. We have seen many companies struggle when trying to determine how to use QuickBooks for manufacturing.
This blog is written assuming that you are following some sort of methodology for managing your ERP evaluations. The following questions are geared toward helping you decide which vendor to work with, not the mechanics of the evaluation itself. If you don’t have a methodology, my suggestion would be to first download our ebook to get some fantastic advice on how to carry out your ERP evaluations. You can download it here.
ERP users run the spectrum in regard to their ability to properly use their current system. Some are Jedi masters, many are proficient, and others know only the basics. Oftentimes, a user’s ability is directly related to their role in the organization and amount of training they’ve received on their ERP system.
Visual South works with manufacturers who use work orders, so this article focuses on job shops and discreet manufacturers. In this type of environment, production’s job is to deliver a certain quantity of a certain product. There is a defined start and a defined finish. Maybe production has made it before, maybe they haven’t. They may make it again, they may not.
Engineer-to-order manufacturers seldom make the same product twice, which makes them unique when compared with their make-to-stock and make-to-order counterparts.
These engineer-to-order manufacturers are project oriented and manage front-end loaded engineering efforts. They handle manufacturing processes, actual costing environments, potentially unique revenue recognition requirements, and installation and potential after-market service requirements.
Infor CloudSuite Industrial (SyteLine) is a purpose-built ERP application for those in the discrete manufacturing sector, with specific focus on To Order manufacturers and mixed-mode manufacturers that build to order and to stock. If your company fits within these categories, there are many benefits of using Infor CloudSuite Industrial (SyteLine) ERP on the shop floor, as well as throughout the entire organization.
