The Types of ERP by Industry and Technology: Information You Should Know
Introduction of ERP
Enterprise Resource Planning (ERP) is considered the standard for modern companies to manage their operations efficiently and comprehensively.
It serves as the foundation for businesses to achieve their goals as they transform digitally.
ERP involves the management and integration of various business processes, often in real-time, with the help of technology.
The term is also used to refer to ERP software, which helps organizations control all aspects of their operations.
The software acts as a "single source of truth" for all employees and centralizes a company's information in a unified database, eliminating the data silos that arise from using different systems in different departments.
There is a wide range of ERP platforms available, tailored to different industries, and with varying structures and functionality developed by different providers.
Before choosing an ERP solution, it is essential to understand the different types available in the market.
Organizing ERP Systems by Industry:
ERP software's versatility, which is one of its biggest advantages, has led to its adaptation for use across a wide range of businesses and even sub-verticals within those industries. While some capabilities are common to almost all types of ERP software, others are developed with functionalities that are intended to assist organizations in overcoming issues that are completely exclusive to their industry.
ERPs for food and beverages:
- The industry of food and beverage manufacturing and distribution is enormous, both in terms of its monetary value and the variety between its various product categories.
- This would incorporate, but not be limited to:
Beverages (both alcoholic and nonalcoholic)
Packed foods that are prepared and frozen
Seafood, poultry, and meats
Snacks, spices, ingredients, as well as sauces and dressings.
- All food and beverage firms require bidirectional traceability, quality assurance, inventory control, and recipe management features within their ERPs, regardless of the kinds of products they deal in.
Food safety features, including those for segregating and labeling allergens and managing recalls, are also crucial.
ERPs for manufacturing:
Manufacturing operations occur in a variety of shapes and sizes, just like the food and beverage industries, but the first way that they are often distinguished is by the nature of their manufacturing processes. There are two types of manufacturers: discrete manufacturers, which are built by assembling various parts to create a whole that can be disassembled into its parts when necessary, and process manufacturers, which combine various materials and ingredients to create a new whole that cannot be separated into its constituent parts.
Formula management is a crucial feature that the businesses that generate them require from their ERP solution to assure constant quality. Process manufacturers are differentiated by the fact that they utilize extremely exact formulas, making it a function that they must have.
Computer and electronics manufacturers, electrical equipment manufacturers, fabricators of metals, and producers of transportation equipment are all examples of discrete manufacturers, often known as industrial manufacturers. Although some of their requirements differ from those in the previous list, discrete manufacturers, which include apparel and fashion companies, all require specialized inventory management solutions integrated into their ERPs to keep track of all of the parts and supplies they have on hand.
ERPs for retail and distribution:
Finally, there are companies involved in distribution and retail, as well as ERP systems specifically designed for them. Here, supply chain visibility is a must because these are the entities in charge of getting the items from the producers to the consumers, whether that means delivering them to their front doors or putting them on store shelves.
Additionally, these companies need the ability to manage commissions, royalties, chargebacks, and consumer allowances. Strong warehouse management capabilities are also required, as vast stockpiles of various lines must be monitored and refilled regularly. Electronic data interchange (EDI) integrations are also required to expedite and standardize transfers and transactions.
Classifying ERPs by Technology:
The classification of ERP systems based on hosting models is an important factor to consider when evaluating different solutions.
On-premise ERP systems allow businesses to host their hardware and data within their facilities, but this often comes with added costs and IT demands.
As a result, cloud-based ERP solutions have gained popularity in recent years and are recommended as the preferred deployment method.
Cloud ERP systems are typically delivered as Software as a Service (SaaS), which offers numerous advantages over on-premise solutions. This delivery model provides greater flexibility and reliability, as users can access their data from anywhere with an internet connection.
Additionally, updates are performed automatically by the provider's IT team, reducing the workload for the business's own IT staff. Moreover, with redundant offsite servers, cloud-based ERP solutions provide enhanced data security compared to on-premise systems.
Due to its distinctive, industry-specific technology, Food & Beverage ERP stands out as a solution in the food and beverage sector. The ERP is built on the 365 Business Central platform, which provides a user-friendly interface and compatibility with other popular Microsoft applications, such as the Office suite. This integration makes it easier for businesses to streamline their processes and access the information they need in real-time.
Learn about the benefits of using ERPs:
You now have a comprehensive understanding of the different ERP systems available on the market and are prepared to make an informed decision for your company.
However, before you do, we would like to highlight the advantages of choosing our ERP provider.
Our team possesses a deep understanding of ERP technology and its implementation best practices. We will act as your trusted advisor and partner throughout the entire deployment process, offering guidance and support to ensure a successful rollout and maximum return on investment. Our commitment to our clients extends beyond the deployment phase, and we will always be available to help you achieve success.
Furthermore, our ERP solutions are tailored to meet the specific needs of various industries, having been developed with decades of experience and understanding of the challenges businesses operating in these industries face. We "speak your language" and can offer a customized solution, rather than a one-size-fits-all software package.
Additionally, our ecosystem of complementary systems will help you excel in other critical areas of your business. For example, our OEE solutions will improve efficiency and get the most out of your machinery and personnel, while our EAM systems will help you effectively manage your manufacturing hardware, reducing unplanned downtime and minimizing the cost of ownership.
Our PLM platforms streamline new product development, accelerate time to market, and our Routing & Scheduling simplifies distribution and delivery planning while reducing costs.
Our Business Intelligence provides actionable insights and robust KPI tracking for better decision-making and our EDI streamlines and automates data transfers.
In conclusion, choosing our ERP provider offers numerous benefits, including in-depth knowledge of ERP technology and its implementation, tailored solutions for various industries, and a suite of complementary systems to enhance your operations and streamline processes.