Updated By SaraNextGen

On April 24, 2024, 11:35 AM

Implementing a generic cloud ERP versus a manufacturing cloud ERP: What and how would you choose?

Identifying Cloud ERP Software is a very important decision-making process while selecting SaaS-Based ERP Software services for your enterprise. There are two different types of ERP one is generic ERP and the other is a manufacturing ERP. Manufacturers need to identify a manufacturing ERP and trading concerns need to identify a Generic ERP that suits best for their business.

• Who doesn't want to progress, everybody does and so is your business?

• Every business owner either small or big wants to make progress in their business and build their brand.

• But there are a lot of factors when it comes to business improvements and one such improvement can be seen with well-planned systems in your factory or office or your plant.

• Either you are a trading concern or a manufacturing unit we all need a cloud ERP system to manage our business efficiently.

• However, the right systems and infrastructure have to be in place to make it happen.

• Now that you know that you need an ERP system to control your business process in and out of your organization.

• It's time to review Cloud ERP Software and the overall cost of implementing these systems for your business.

• But before that, you need to understand the type of ERP that can align with your business.

• So here are several questions that come to mind and you need to address them with your cloud ERP vendors.

• And based on it they may prepare a demo for your concern.

• The basic question that needs to address might be many but here are some of few question that you should address it to your ERP vendors.

• What is the size of your organization?

• What kind of business are you into?

• Are you into trading or manufacturing?

• What type of manufacturing, whether it is discrete or process manufacturing?

• What niche you belong to such as automotive, garments and apparel, services, pharmaceutical, etc.

• What is your current scenario and how you want to improve your business with an ERP?

• Challenges that you are facing in your current business operations

• What are the modules that you require in an ERP?

• No of users you need in your business?

• What type of installations you would prefer a cloud hosting or on-premises hosting?

• What is your budget range?

• And so on.

• This will allow your ERP vendors to understand what exactly would fit or which product would fit your enterprise.

• So which ERP should you choose? Generic or Manufacturing

• ERP software often seems intimidating for most business owners who have failed to implement ERP software either in the past or are not satisfied with the current ERP installation.

• A failed ERP implementation leads to wastage of money and time and also resources.

• But what does a failure depend on?

• There are various reasons that an ERP system implementation may fail.

• And it depends on factors such as user’s acceptance, non-initiative of stakeholders, or heavy customization that may be unrealistic for ERP vendors.

• So the first step in selecting the right ERP system is to take a thorough demo of as many products as you can.

• At least compare 10 ERP products with all the possible options and features that you need.

• And then compare their cost.

• But how do you approach the right ERP vendor for the demo?

• This is one of the important questions that many customers fail to identify.

• I have often seen businesses mostly feel any ERP can satisfy their business needs but that is not true.

• Now that you know what you need

• You also know that you are either a manufacturer or a trader or both.

• If you are a trader almost all ERP software can deal with your requirement unless they aren’t unrealistic, so going for a Generic ERP would make sense.

• But if you are into manufacturing, not all ERP can fulfill your needs; you need a full-fledged manufacturing ERP to get your requirements fulfilled.

• And in most case manufacturing ERP may also fail if it lacks an MRP integration that is the core of any manufacturing ERP

• MRP stands for manufacturing resource planning and most MRP software can run even independently without the involvement of any ERP system.

• Manufacturing is one of the most complex product development and a production house in any industry.

• So as a manufacturer if your core purpose is to handle your shop floor machines, manage time and people, and research new product designs and development you would require an advanced manufacturing ERP.

• But don’t stop here

• Identify your core manufacturing process whether it is discrete manufacturing or a process manufacturing

• So before you are going for a demo or you want to make a selective list of ERP vendors from whom you want to get the demo.

• List your requirement and Google possible ERP with the right keywords

• That is how you would be able to find the list of the right ERP vendors.

• Difference between Generic Cloud ERP and a Manufacturing Cloud ERP?

• There is a huge difference between a generic Cloud ERP and Manufacturing Cloud ERP. Here are some of them

• A generic cloud ERP does not have a manufacturing module as compared to a manufacturing cloud ERP

• A generic ERP mostly covers the trading aspect of the sales and purchase module in more detail while this may or may not exist in a manufacturing ERP

• Generic ERP mostly focuses on retail sectors and trading concerns while a manufacturing ERP focuses on small to large manufacturing plants and industries.

• Whatever product features are available in a generic ERP may also be available in a manufacturing ERP but vice versa does not exist.

• A generic ERP may be simple to operate but a manufacturing ERP is always complex to operate.

• Generic ERP handles the entire business operation but a manufacturing ERP handles core manufacturing processes and shop floor within an organization.

• A generic ERP is not too costly as compared to any manufacturing ERP

• A generic ERP is simply generic but manufacturing ERP is divided into discrete and process manufacturing ERP.

• Reporting in generic ERP can be simple but manufacturing ERP reporting is highly complex.

• Generic ERP implementation can be seamlessly easy but manufacturing ERP implementation can be scary and time-consuming.