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Buyers Beware: Not All ERPs are Manufacturing ERPs

Buyers Beware: Not All ERPs are Manufacturing ERPs

The saying, “a tree is a tree is a tree,” doesn’t apply to ERP. Contrary to what many providers may tell you, every ERP solution is not necessarily a manufacturing ERP solution. ERP customers need to understand that what you don’t know about an ERP suite is just as important as what you do know. Let’s consider a company that makes clothing apparel. They take raw material and turn it into a finished product in their 100,000-square-foot manufacturing facility. It’s a complex process that requires systems that fully comprehend and manage the complexity. What that company needs to understand is that an ERP for a manufacturing company like this is a very different product than the ERP being sold by many software vendors. In recent years, any company selling a financial-centric package with a few added embellishments like purchase orders and inventory are now assuming the mantle of ERP. However, ERP goes much deeper than that for a manufacturing company. ERP’s Manufacturing Roots The concept of ERP has its original roots in manufacturing. When ERP was described in 1990, it was depicted as the logical extension of MRP to MRPII to ERP. MRP dated back to the mainframes in the […]