ERP Software

ERP Software Manufacturing

During the short two decade history of ERP software, manufacturing firms and their specific software needs and application requirements have played a defining role. Before the development of the very earliest software, manufacturing business owners and CIOs usually ran their businesses with separate software systems for each department. These isolated platforms limited the ability of managers to coordinate shop floor activities and scheduling. Simple processes like timed order placement, receiving, process scheduling and the handling and distribution of finished products were needlessly complicated, since different departments could access or update shared databases without the use of complicated software conversions.

The first ERP software manufacturing business solutions were called MRPs, or manufacturing resource planning systems, and they allowed a variety of departments responsible for a variety of business functions to access a shared server infrastructure. This collective single or multi-tier server architecture offered firms the ability to house shared databases and run standardized software applications that provided all users in the company with a similar interface. As a result, marketing, sales, human resources, accounting and other departments could share information in real time. Shop floor efficiency became tighter, asset management improved, and better communication led to a reduced overall potential for error.

But the earliest ERP software manufacturing solutions were expensive, and because of poor employee training or unclear goals, many of the very first implementations failed to produce promised returns on high initial investments. But these earlier failures provided lessons that allowed providers to steadily improve their product offerings, and before long, manufacturing businesses that adopted ERP systems began to see their revenues increase. Soon the appeal of these systems spread beyond the world of manufacturing, since they facilitated a wide variety of general business functions like accounting and payroll. Later, additional applications were developed for front office functions as well, like customer relationship management.

As the efficiency and functionality of new ERP modules improved, popularity also surged with the approach of the new millennium. Business owners were concerned that their current outdated and isolate legacy systems would eventually lead to business slowdowns, and since they knew they would need to upgrade eventually anyway, they rushed to replace their old systems with integrated ERP platforms before the year 2000. 

Now the ERP software manufacturing and general business market is expanding to smaller business clients as product offerings become increasingly customized, streamlined, and affordable. Smaller business owners can also take advantage of ERP alternatives that have become available in recent years, like various versions of “software as a service” or SaaS. SaaS hosting solutions can provide access to shared server infrastructures that allow clients to house data and run applications without needing to purchase entire server architectures and maintain them on their own.

Written by :

tracey boxer