The Changing Role of ERP in Modern Demand-Driven Manufacturing

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White paper explains why more manufacturers are looking for agile, demand-based manufacturing software to work with their ERP system

The changing role of ERP in manufacturing
ERP systems are exceptional at managing transactions, but fall short in managing the activities behind those transactions.

Synchrono®, a leader in modern demand-driven manufacturing software and synchronization technology, today released a new InSync paper, The Changing Role of ERP in Manufacturing, which is based on first-hand experience working with manufacturers around the globe.

According to The Changing Role of ERP in Manufacturing, ERP systems are exceptional at their intended purpose: Gathering transactional data from all areas of the enterprise and translating it into financial data and insight for monitoring the financial health and management of the organization. ERP’s shortcomings, however, are in managing the activities behind the transactions. The Paper cites production scheduling as one of the most common shortcomings and reviews the evolution of production planning, scheduling and execution tools and why more manufacturers are abandoning spreadsheets, material resource planning (MRP) systems and other software attachments and moving to a Manufacturing System of Record. The paper answers:

  •     Why ERP attachments are not working for modern manufacturing environments
  •     What is a Manufacturing System of Record?
  •     Common strategies for layering technology to drive manufacturing operations and supply chain strategies

Greater digitization, global competition and demand for more product customization and shorter lead times is driving increased adoption of real-time Cloud technologies for managing manufacturing operations and the supply chain. In their study, The Adoption of Cloud Computing in Five Industries, The Economist Intelligence Unit reported 86% of respondents indicated that Cloud technologies will be a moderate (43%) to major (43%) factor in their industry. Specifically, 60% believed it to be very important to supporting production processes.

Advocates of these new Cloud-based Manufacturing Systems of Record appreciate the flexible configuration tools provided for adapting the software to the specific needs of the manufacturer - and for their ability to layer onto existing ERP systems to leverage transactional data. In the Gartner publication, Supply Chain Maturity Assessment for Demand-Driven Supply Chains, the research outlines five stages of supply chain maturity and the capabilities inherent in each stage. A phased approach where value-added functionality is layered on is suggested for advancing to greater stages of maturity.

As a Manufacturing System of Record, SyncManufacturing synchronized planning, scheduling and execution software for demand-driven manufacturing layers onto a manufacturer’s existing ERP system to help them quickly achieve a mid-high stage of supply chain maturity. An on-demand demonstration of SyncManufacturing software is available at http://www.synchrono.com.

The Changing Role of ERP in Manufacturing is available for download at http://www.synchrono.com.

About Synchrono
Synchrono® LLC enables the demand-driven visual factory of the future; synchronizing people, processes, machines, materials and data to drive production flow from order inception to delivery. The award winning Synchrono Demand-Driven Manufacturing Platform includes a production planning, scheduling and execution system; ekanban inventory replenishment and supply chain collaboration software; a data collection, historian and automated workflow engine; alert management and monitoring software; and a real-time visual factory information system. The Platform components may be implemented independently or collectively to enable the Internet of Things and an unprecedented foundation for communication, collaboration and continuous improvement. Synchrono helps clients manage constraints, improve flow and drive on-time delivery to maintain a competitive edge. Sync with us at http://www.synchrono.com and follow the Demand-Driven Matters blog at http://www.synchrono.com/blog.

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Pam Bednar
Synchrono
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