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discrete industries. And we see even All Other
process manufacturers averaging a 7% reduction, more than double the overall inventory
reduction. So even though the average process
manufacturer does not achieve impressive cost
reductions, the inventory that is sitting on the
shelf is more valuable. While product deemed
obsolete in the discrete world of hard goods
might have some salvage value, product past its
shelf life in the world of process manufacturing
is a total loss and may even cost you more to
remove it safely from your warehouse.
These more impressive results in “usable”
inventory is likely a factor contributing to why
process and hybrid manufacturers achieve even
better results in metrics that have a more direct
impact, not on the bottom line, but the top line
Think what it could do for your business if you
were able to increase production and improve delivery. But will your current solution get you there?
SUMMARY AND KEY TAKEAWAYS
Are you a business driven by recipes, where
lot traceability is a necessity, product recall is
a very real possibility, and data collection on
the floor needs to be in real time? Are you
sacrificing efficiency and control over processes
in favor of throwing all your capital at making
more product? Are you struggling to determine
how best to utilize those resources for expansion? Are you living in fear of a recall that could
potentially bring your operation or company to
its knees? Is your current ERP solution designed
to handle your special needs as a process manufacturer? Does it seamlessly integrate with any
These are not rhetorical questions. The wrong
answer to any of the above could be costing you in
terms of real costs and lost opportunity or damaging your brand.
If this is the case, it may be time for something new, either extending or replacing your
current solution. If so, look beyond the basic
core functionality of yesterday’s ERP solutions.
Look for one that truly addresses
your unique needs and goes beyond to gain better control all the
way from deep on the plant floor
to the top floor where strategy
is set and growth decisions are
made. Make sure all the pieces fit
together now and in the future, for
real-time access to data, seamless
execution, and intelligent deci-sion-making.
About the author: Cindy Jutras is a widely recognized
expert in analyzing the impact of enterprise applications
on business performance. Utilizing 40 years of corporate
experience and specific expertise in manufacturing, supply chain, customer service and business performance
management, Cindy has spent the past 9 years benchmarking the performance of software solutions in the
context of the business benefits of technology. In 2011
Cindy founded Mint Jutras LLC ( www.mintjutras.com),
specializing in analyzing and communicating the business
value enterprise applications bring to the enterprise.
Figure 3: Other Improvements Since Implementing ERP
(Process and Hybrid)
Source: Mint Jutras 2014 ERP Solution Study