Why Your Business Needs an Industry-Specific ERP to Improve Return on Investment
Introduction
A multi-step procedure is involved in purchasing ERP software. Deciding to convert your company digitally and spend money on an ERP solution is the first step. The second stage is choosing the ERP software that will streamline your business operations and provide the best return on investment (ROI) for your firm.
Step two is far more difficult for many firms to complete than step one because there are so many different ERP systems on the market. Should you select a general solution applicable to several industries? Or spend money on niche-specific ERP software for your industry?
We've created a brief overview of industry-specific ERP to help your firm make the decision.
What's the difference between an industry-specific vs. a generic ERP system?
Enterprise resource planning (ERP) software is a type of business management software that helps companies manage and automate their day-to-day business activities. It was developed to improve efficiency and streamline processes across various departments and industries. Initially, ERP vendors created generic solutions that could be used by a wide range of businesses, focusing on basic functions such as finance, reporting, and business intelligence.
However, as ERP technology evolved, some organizations realized that these generic solutions were not able to provide the specialized functionality they needed to fully support their unique business processes.
To address this issue, ERP vendors tried to offer customizations and multiple system integrations, but this approach only increased implementation costs and made the software more complex to manage. In response to this challenge, some technology vendors decided to branch out into developing industry-specific ERP software. These solutions go beyond basic functionality to include specialized features and functionalities that are tailored to the specific needs of a particular industry.
For example, in the food and beverage sector, industry-specific ERP software may include features such as traceability, food safety, and compliance management. These solutions are designed to be easy to implement and use, with a "plug and play" format that allows for rapid deployment and a fast return on investment. By providing specialized functionality, industry-specific ERP software can help businesses in a specific sector to improve their operations and gain a competitive advantage in their market.
What Advantages Can You Gain from Using Industry-Specific ERP Software?
When it comes to selecting a new ERP system, many industry executives are opting for software that is specific to their industry. This is because industry-specific ERP software offers several advantages over generic solutions. One of the main advantages is that it is specifically designed to address the unique pain points and challenges that businesses in a particular industry face. This means that it can be more effective in optimizing business processes and increasing efficiency.
Another benefit of industry-specific ERP software is that it typically comes with built-in features that are tailored to the needs of the industry. This eliminates the need for costly and time-consuming customizations and can make the deployment of the software much more straightforward. Additionally, many industry-specific ERP solution providers offer other critical business systems within their suite of solutions, further reducing IT scope.
Another advantage of industry-specific ERP software is that it can be more cost-effective in the long run. Generic ERP solutions may appear cheaper initially, but they often require additional features or multiple systems to be purchased to fully meet the needs of the business. On the other hand, industry-specific ERP solutions are designed to provide the functionality you need and can minimize the total cost of ownership without sacrificing functionality.
Another benefit of industry-specific ERP software is that it can be scaled and customized as the business grows. This means that it can adapt to meet the changing needs of the business, driving longer-term ROI as well as immediate value. Additionally, technology vendors that specialize in a particular industry will be better equipped to understand the unique needs of that industry and will share the goals of their clients. Furthermore, industry-specific ERP technology is constantly being refined in line with industry regulations and requirements, and businesses can benefit from the expertise of other customers in their sector.
Do any good Industry-Specific ERP software examples exist?
Food and Beverage ERP:
This type of ERP system is specifically designed for the food and beverage industry. It offers advanced functionality beyond basic ERP features, such as comprehensive end-to-end traceability on an ingredient level. This allows food companies to track the origin of their ingredients and ensure compliance with food safety regulations.
Additionally, Food & Beverage ERP software can create trade agreements that are better suited to the way food companies do business. It also includes built-in allergen management and one-click recalls and product withdrawals, which can help companies quickly and effectively respond to food safety incidents.
Process Manufacturing ERP:
This type of ERP system is designed for batch-process manufacturing environments, such as chemical and pharmaceutical manufacturing. It includes vital formula and recipe management features, which allow companies to manage their production processes and ensure consistency in their products.
Additionally, it includes materials requirement planning (MRP) functionality that is tailored to the industry. Our solution also offers full forward and backward lot number genealogy on all raw materials from PO receipt through final sale, which allows companies to trace the origin of the materials they use.
Industrial Manufacturing ERP:
This type of ERP system is designed for companies engaged in industrial manufacturing, such as metalworking, machinery and equipment manufacturing, and fabrication.
One of the most popular industry-specific features of Industrial Manufacturing ERP is automatic bill of materials (BOM) generation, which allows companies to quickly turn quotes into accurate inventory requirements.
Other key benefits include the ability to support mixed-mode manufacturing, which allows companies to produce products using a combination of different manufacturing methods.
Dynamic production scheduling based on time and material constraints is also supported, as well as non-standard quoting options to create one-off builds on the fly.
Imports and Distribution ERP:
This type of ERP system is designed for companies engaged in imports and distribution. Industry-specific ERP streamlines and optimizes the entire supply chain while giving companies a real-time view of profitability by taking account of both above-the-line and below-the-line costs.
For example, Distribution ERP functionality provides a profitability scorecard tool, which enables distributors to access and analyze customer, supplier, and product-level profitability to see exactly which elements are driving their business.
ERP for Fashion and Apparel:
This type of ERP system is designed for companies engaged in the fashion and apparel industry. For the supply chain and manufacturing requirements of the fashion and clothing sector, our end-to-end solution offers a one-stop shop.
It features built-in EDI, PLM, and shop floor control, along with a warehouse management system and vendor management portal that eliminates the need for third-party services or plugins. The system also includes specific features that are essential for fashion and apparel companies such as size, color, and style management.
Equipment Dealer Management ERP:
This type of ERP system is designed for companies engaged in equipment dealerships and rental businesses. It includes several features to support sales, leasing, and parts, such as real-time availability, equipment lifecycle information, and service histories. This allows rental companies to manage their equipment inventory, track service history, and optimize their rental fleet.
In summary, these industry-specific ERP systems provide advanced functionality, tailored to the specific needs of each industry, which can help companies streamline their operations and increase efficiency, while also complying with industry-specific regulations.
Will an Industry-Specific ERP improve my Return on Investment?
Successful implementation of an ERP system is largely dependent on finding a solution that meets the specific needs of your industry. Industry-specific ERP software can provide a better fit as it is designed to address the unique requirements and pain points of your sector. This can lead to a quicker return on investment compared to generic ERP solutions. However, the choice of technology vendor and their level of expertise also play a significant role in achieving ROI. Partnering with a specialized ERP software provider can yield powerful results while also ensuring long-term scalability for your business. Our goal is to assist companies in preparing for future success by offering industry-specific features that enhance business processes, improve profitability, enable data-driven decision-making, and secure the longevity of your operations.