- 26 October 2016
ERP systems are used in a wide variety of industries, including but not limited to aerospace, engineering, financial, manufacturing, and retail. ERPs provide organizations with the ability to streamline and centralize their processes into one central database for easier access, communication, transparency, and speed.
ERP Application by Industry
Benefits: Distributors serve many industries, including retail, agriculture, and vehicle manufacturing. Distribution centers have many different moving parts, including inventory and fleet management, and require real-time information delivery to keep the distribution chain moving seamlessly.
Example: Distribution centers see a lot of activity, from inventory management to goods transportation. An ERP system can quickly identify and approve incoming supplier vehicles, assess and transfer product information, and direct each vehicle to the correct delivery location within the distribution center.
Benefits: The manufacturing industry serves a wide array of customers, including those in aerospace and defense, furniture and medical device retail, and more. ERPs can help break down large orders, schedule production, and monitor project completion so that issues and bottlenecks can be addressed at the time of the incident, as opposed to after the delivery date has passed.
Examples: When manufacturers receive complex purchase orders, an ERP can manage the schedule of that complex order, break it down into its simpler parts, dispatch those orders to their applicable departments, manage variables along the way, and alert upper management if a breakdown in production occurs so that an alternate plan can be executed and the order can stay on schedule.
Benefits: The professional services industry includes accountants, marketers, consultants, engineers, and more. These organizations frequently have unique and often more complex business needs that set them apart from transportation, manufacturing, and others of the like. An ERP system can help service providers cast off their isolated spreadsheets and assist with connecting their systems to better function towards a common end goal.
Example: Service organizations often include multiple complex disconnected systems that are isolated in their purpose. This creates information silos that house important customer data. An ERP system can interconnect that data to create a comprehensive, clear picture of each customer and help the business anticipate needs and match the right customer with the right service provider the first time, every time.
Benefits: Construction sites require a wide variety of materials to be delivered and used correctly. An ERP system can track items and get them to where they are needed while delivering important information about which group they belong to, and how they can be used appropriately.
Example: Materials at a construction site may not all be delivered at once and instead arrive piecemeal. An ERP system can help manage the delivery of these materials, and communicate to the foreman and other specialists exactly when the entirety of the materials they need to complete their job are located on-site and available for use. This streamlines communication and automates time management.
Benefits: The transportation industry requires the movement of items from one place to another. This may be in the form of busses, trains, container ships, railways, airlines, and more. ERP systems can help calculate the best management of this transportation and ensure that the transported objects get from one place to another effectively and efficiently.
Example: Oftentimes shipments are set to drop off and pick up installments at varying locations. An ERP system can alert the destination that the shipment is arriving, and calculate the correct unloading/reloading configuration to ensure that the next shipment can be easily unloaded at the next location without having to move around the previous shipments. The ERP manages the most optimal configuration and route for shipments to save time and energy.
Each industry has unique needs that can be addressed by an ERP system. By interconnecting systems and managing time, projects, and materials, an ERP system can create seamless communication and take much of the manual work out of the process, freeing up time, adding a new level of sophistication, and guaranteeing accuracy.