ERP has never been a one-size fits all solution and as the manufacturing industry evolves, that fact has never been more important than it is today. A recent industry study shows that many manufacturers, especially mid-market process manufacturers, are experiencing significant struggles because their ERP systems do not support the specialized processes the manufacturers of today require to optimize their processes, increase their profits, better serve their customers, or drive growth. It is becoming more important than ever for these companies to invest in modern ERP systems that offer the features and functions they need for success both now and in the future.
According to the study, mid-market manufacturing companies are experiencing significant functional gaps in their operations due to a lack of support from their ERP systems. Below are some of the major takeaways from the study which illustrates the very real and immediate need for specialized ERP systems for manufacturing organizations today.
How serious is this need?
- 67% reported that they need a solution with more industry-specific functionality than their current ERP system gives them.
- Those who did not have a dire need for such functionality still think it would be nice to have and could make their company more competitive and profitable (28%).
Put those two figures together and that is 95% of those surveyed are calling for ERP systems that are more flexible and can adapt to their specific operational needs!
Not surprinsgly, process manufacturers were among those who expressed the greatest need for an ERP system with industry-specific functionality. Companies with engineer, procure, construct (EPC) contracting and aftermarket service management also expressed a need for such flexibility, as well as those who see managing return on assets (ROA) is a critical part of their business.
Why are these companies in such dire need? Because without an ERP system that supports their processes, they are experiencing the following:
- 58% report they are doing too much non-value added work (double entry in multple systems) which is impacting productivity.
- 53% lack real time visibility into their information which increased business risk.
- 23% are unable to grow their business as quickly as they would like.
- 28% report being unable to serve their customers as well as they would like.
How are these companies surviving without the ERP system they really need? They are relying on ERP systems that lack the functionality they really need and supplementing them with spreadsheets, outside applications, and other solutions that may or may not integrate with their ERP systems. Many companies who would like to switch to a more specialized ERP system or who need to make switch can’t because, with their size and limited budget, they cannot justify the cost of a large system when they do not need everything that comes with it. Additionally, many such companies lack the IT resources to manage large, complex systems.
Sage ERP X3 was designed especially for these mid-market process manufacturers, wholesale distributors, discrete manufacturers, and accounting and business service organizations who need a better way to manage their financials, inventory, and manufacturing processes without the expenses and hassle of traditional ERP systems. Sage ERP X3 is fast to set-up, easy to learn, and simple; but it is also an extremely strong and flexible solution that gives these companies the specialized functionality they need now and plenty of room to grow in the future. Learn more about Sage ERP X3 here.