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Aug 27, 2008 Home > Articles
 
Manufacturing Sector Still Relies on ERP Solutions
by Joe Taylor Jr., Consultant
While many industries have embraced the principles of Enterprise Resource Planning, the manufacturing sector still leads the way for businesses looking for innovative, integrated solutions. Previous generations of ERP solutions for manufacturers allowed managers to reduce defects and streamline production within a facility. Today, manufacturing leaders rely on ERP tools to manage every step of a process, from connecting with vendors in their supply chains to coordinating distribution at shipping partners.
 
Today's steel business only vaguely resembles the heavy industry that emerged in the 17th Century. Companies like Trident Steel in South Africa must stay competitive in the marketplace by turning raw steel into highly sophisticated forms for clients ranging from skyscraper construction companies to automotive manufacturing plants. An integrated solution from the Oracle Accelerate series of products allows Trident to coordinate production across job sites throughout the world. In addition, supply chain monitors allow Trident's leaders to ramp up production quickly in response to customer orders.
 
Manufacturing companies in softer industry segments also rely on ERP to make sound decisions. The Crazy Shirts Company of Hawaii implemented its first ERP system nearly two decades ago, at a time when integrated solutions first became affordable for mid-sized manufacturing companies. Having grown to accommodate Internet sales, as well as sales at nearly four dozen boutiques, company officials realized their aging system was holding them back. Implementing an Oracle Accelerate solution allowed Crazy Shirts to boost productivity and profits while reducing mistakes and maintenance costs.
 
 
 
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Powerful ERP Solutions Not Just for Large Manufacturing Companies
Of course, manufacturing businesses with only a few hundred employees can still harness the power of ERP solutions without the fear of skyrocketing IT costs. For instance, the Copper State Bolt and Nut Company turned to the Oracle Accelerate program for a process management solution that could unite all seventeen of its distribution centers. Implementing the solution quickly and without the requirement for long-term consulting partners has allowed Copper State to focus on improving its core business without developing another cost center.
 
Reducing costs and improving productivity are two of the most important ways that manufacturing companies can improve their bottom lines in today's competitive marketplace. Modern ERP solutions offer the ability to mine company data for new opportunities to streamline operations. With the help of off-the-shelf and easily customizable platforms, IT managers can implement strategic, integrated solutions that can actually lead to higher profits.
 
Sources
Oracle
Wall Street Journal
ZDNet
 
About the Author
As an internal consultant for a Fortune 500 company, Joe Taylor Jr. coaches business owners on technology. He holds a Bachelor of Science in Communications from Ithaca College.
 
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