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Top 10 ERP selection criteria for manufacturers

select erp

The ERP software can only make the most of its advantages if companies choose an ERP package that exactly matches their requirements.

The ten most important criteria that project teams need to consider when choosing ERP are:

1. Production type ERP selection

Depending on whether companies produce one-offs, as a series or variant production, the ERP software has to deliver different functionalities. It is therefore important to extensively check whether the software has important features such as growing bills of material, consignment stock or "extended workbench".

2. Detailed planning

An integrated APS module (Advanced Planning & Scheduling) can be an important decision criterion in ERP selection. For example, to automatically adjust order sequences based on real-time data. Especially in a market environment in which order networks are becoming increasingly complex, urgent rush orders arrive and growing numbers of variants emerge, this is enormously important in the selection process.

3. Logistics

In particular suppliers to the automotive industry place high demands on ERP systems. These must be able to map just-in-sequence concepts and be integrated into the entire supply chain in order to meet the requirements of short lead times, on-time delivery and, of course, uncompromising customer orientation.

4. Product lifecycle

As innovation cycles become shorter and shorter, the cost of data documentation in product development increases. Here, the project team should rely on an ERP system with efficient tools for Product Lifecycle Management.

5. Master the flood of data

The amount of data has been growing steadily for years. Professional BI tools make this flood of data manageable and make it possible, for example, to provide key figures and trends at the touch of a button. As a result, medium-sized manufacturing companies can also gain important competitive advantages.

6. Growth of the software

The ERP solution should be easily scalable. Otherwise, high costs are incurred when companies hire additional project teams, set up new sales offices or expand abroad. Modern systems are multi-lingual and multi-currency capable, they control consolidation for group accounting and are localized for different countries.

7. Open architecture

The ERP solution should offer open interfaces and stable connectors. This allows companies to exchange data with customers or suppliers quickly and easily.

8. Mobile Modern

ERP systems have to be mobile. Only in this way, for example, can sales representatives access important customer or product data on the go. In addition, the production processes are also relevant for the mobile strategy. For this reason, the ERP software should offer scanner solutions and support innovative shop floor applications - which of course are designed for industrial end devices.

9. Cloud

Small and medium-sized enterprises in particular benefit from ERP cloud solutions. This is because they reduce the investment in the (expensive) technical infrastructure. Backups, maintenance, updates and the like are automatically controlled by the ERP provider.

10. Partner

Finally, the ERP provider should be understood as a partner. It should be able to advise and understand the company competently thanks to years of experience. Only those vendors who are intensively involved with the challenges of digitization and Industry 4.0 can actively and effectively support ERP users now - and in the future as well.

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