Share on Pinterest
Share with your friends










Submit

Will US Manufacturing Growth Drive Technology Advances?

Will US Manufacturing Growth Drive Technology Advances?

The US manufacturing sector has been enjoying some good news lately. Manufacturing in the United States grew for the sixth consecutive month in February, as reported by the Institute for Supply Management. During that same period, inventories contracted, which is proof that manufacturers know that to compete and grow, they need to be as flexible and efficient as possible. Cloud ERP is specifically designed to help manufacturers become more flexible and more efficient, and the ecosystems built around cloud ERP give these firms the end-to-end solutions they need to apply these principles to their entire organization. We believe that the continuing growth and contracting inventories will drive manufacturers to embrace cloud-based ERP ecosystems and the technology innovations that these ecosystems make possible. According to the most recent monthly executive survey from the Institute for Supply Management, the US manufacturing sector grew for the sixth consecutive month in February. The Purchasing Managers’ Index (PMI) was 57.7% for the month, a 1.7% increase over January and the highest total since August 2014. The PMI passed the 50% threshold for manufacturing growth back in September 2016. Indexes for new orders and production also increased for the sixth consecutive month in February. New orders […]

How to Sell New Cloud ERP Systems to CFOs

When hoping to move to a new manufacturing cloud ERP system, sooner or later, you will need to have a discussion with the Chief Financial Officer (CFO) or the person who acts as such for your company. The CFO’s job is not to join in on your enthusiasm over all the terrific benefits that you plan to achieve with your cloud-based ERP system. That’s not what CROs do. We need to understand that the CFO’s role, with us and everyone else, is to turn down many proposals to assure that the few most important can thrive. Thus, the CFO asks the right questions to provide the rest of the C-suite with the correct risk/reward insights so that they know when to approve a suggestion or not. Since there are only so many resources in an organization, the CFO needs to assure that they are allocated properly. What to Tell a CFO about Your Proposed ERP Manufacturing Software First of all, you need to explain that what you are now using to track the business no longer works. At any particular time, if someone asks you how much you have in inventory or if you are making money on that big […]

Quantitative and Qualitative Benefits on Implementing a New ERP System: Part 5

The Bottom Line To purchase a new software suite, vendors must show owners and upper management how the new investment will make money and provide a solid return on investment. Dino Farina, Proveris Scientific founder and CEO knew that his company was consistently overbuying parts and materials just to assure that it had enough in inventory to meet order demand for its nasal and aerosol testing instrumentation. His question was, with cloud manufacturing ERP, would Proveris be able to determine how many of its most popular machines could be built with the inventory on hand? “We were constantly trying to get the answers to such questions,” emphasizes Farina. “By the time we finally got the data, the answers were too late. With manufacturing Cloud ERP, we will now be able to not only find out how many units we can manufacture with the inventory on hand but whether we need more inventory, how much, how soon and at what cost. This will make our business more efficient by increasing our cash flow and improving our resource planning, while giving our customers faster deliveries on their orders.”

Quantitative and Qualitative Benefits on Implementing a New ERP System: Part 3

Both Continuous Software Enhancements and Customizations Must be Addressed Most small companies do not have the resources to develop and maintain all of the features their growing businesses demand. The old legacy softwaredoes not allow the customizations and integrations they need and they do not want to get caught into a future legacy problem. However, It makes little sense for an owner of a smaller business to invest in a new Cloud ERP if the new software won’t provide the answers needed that are so sorely wanted from the present elementary system. To spend more money to be in the same vacuum of information is simply a waste of money, even though it might interface with salesforce.com. Yes, there might be some improvements but not enough to force a solid payback on the new ERP. The same holds true for larger concerns. With the supply chain now being global, additional importance is placed on certain features of ERP, such as multi-plant inventory, planning and tracking offreight and other shipment logistics, plus having to track consigned inventory and sub-contract expenditures. Increased machine automation in some industries means that they require more analysis regarding the cost of materials versus the cost of […]

Quantitative and Qualitative Benefits on Implementing a New ERP System: Part 2

Qualitative Benefits of a Cloud ERP System Now, let’s focus on the qualitative approach to making the ERP case. The best examples I can give are the reasons our customers gave us for implementing our Cloud ERP solution. There were basically two main groups of customers and all used salesforce.com®. If the company was smaller and growing, they were previously using spread sheets or very simple ERP packages that they had outgrown. “We had been running all of our reports in Quickbooks,” reports Northeast Lantern Vice President Christopher Heal. “We then needed to take the various reports, export them into Excel and formulate a single new report just to find the information we needed. Nonetheless, we still didn’t track inventory or have a snapshot of our production flow. Manufacturing cloud ERP will now help us do that, which will mean our customers will be able to get product faster.” If the customer was larger, it had been using an on-premise ERP system that was no longer providing the help that they needed. A company with multiple divisions and differing ERP systems cannot obtain the global deployment and integrations of systems that it needs to be competitive. The cost/benefit analysis for […]

Quantitative and Qualitative Benefits on Implementing a New ERP System: Part 1

There have been a series of articles on this subject and the topic is covered in almost every software manufacturer’s PowerPoint presentation to a new prospect. There are many reasons, including growing revenues, creating business efficiencies, aligning the various departments of a company into a cohesive unit and so on. Lofty goals all. The truth is that every company has a unique set of circumstances and will require its own way to justify a major project. In general, a good approach is to look at the investment from both a quantitative and qualitative perspective. Let’s begin with the quantitative. The first thing most companies examine is how much inventory reduction they will obtain with an effective ERP system. Industry analysts generally agree that between a 20 to 30 percent reduction is achievable with improved management of raw material, parts, WIP and finished goods. Even if the incremental improvements are only 10 to 15 percent, this still results in significant savings. Forecasting and scheduling improvements resulting from an effective ERP system will have a positive impact on purchased materials and components. With the ability to provide firmer commitments with predictable lead times to the company’s vendors, purchasing departments can negotiate better […]