September Blog Series: Debunking Myths
Insights from: Ron Scott (Pre-Sales Consultant) and Ted Root (Senior Sales Executive)
ERP myths for building product manufacturers
Many building product manufacturers use spreadsheets and disparate systems to evaluate their data. They often believe two things about ERP systems: first, ERP will slow down their businesses because it is too data intensive and second, the structure introduced by an ERP solution will be a constraint that limits production and customer service.
These two thoughts could not be further from the truth. An integrated ERP system does add structure around the entry of data, and in the process, provides an environment for more accurate and timely data, which enables employees to have the right information when they need it to make good business decisions.
Why building product manufacturers need an ERP system
Building products manufacturers that are hesitant to dive into an ERP replacement project due to the perceived complexity and potential interruption to the business should keep in mind the adaptive nature of Microsoft Dynamics AX ERP. It has the capability to be deployed across many lines of business, which have completely unique requirements, without the commitment to a single template.
In the past, the big bang approach was the only implementation option, and with its extensive parallel processing, it could bring a large organization to its knees. But that's no longer the case.
Dynamics AX is flexible and has strong integration tools, which enable other options such as a phased approach or implementation by business unit. These options also come with a lower risk and can help reduce the time for return on investment. This means manufacturers can focus instead on areas they perceive to be the greatest pain.
Cleaner ERP Data from Microsoft Dynamics AX helps drive better business decisions
Quite often, the biggest benefit seen from the implementation of Dynamics AX is more timely and accurate data. This helps produce trusted business intelligence (BI), which can enable more proactive planning.
Many manufacturers are running older ERP systems that are functionally weaker or less intuitive than Dynamics AX. As a result, users began continuously bypassing ERP in order to use other point solutions, which more often than not are a series of Excel spreadsheets containing important business data sitting on someone's desktop computer.
This can be a potentially dangerous way to manage data, resulting in a system that requires extensive data consolidation and manipulation to produce information that is ultimately outdated by the time it is ready for review.
Dynamics AX offers a broad range of standard functionality as well as a community of integrated solutions that now makes it possible for an entire organization to run on a single, user friendly and intuitive ERP system.
When everyone is on one system, it helps simplify the presentation of timely and actionable information from a single version of the truth.
Dynamics AX ERP addresses specific challenges for building product manufacturers
One common challenge for building product manufacturers is fixed production paired with seasonal demand, and since adding manufacturing facilities is cost prohibitive, smoothing the seasonal demand is the only option.
The Dynamics AX ERP system provides strong tools to help enforce accurate inventory levels as well as integrated demand planning tools, which will assist in providing more accurate forecasting. Many free flow processes can be controlled through integrated workflows and shared workspaces.
Creating an overall flow of information throughout the manufacturing businesses
Once AX is installed and running, a manage by exception approach can be leveraged. Tools like alerts, cues, and workflow all help ensure that the proper processes are followed and attention is focused in the necessary areas.
Fullscope's unique knowledge and expertise
With over 15 years of experience in the manufacturing sector and 120 employees each averaging 12 years of manufacturing experience, we provide indispensable knowledge gained from hundreds of successful implementations.
We continue to develop intellectual property (IP), and our team has written software that has been adopted by Microsoft and integrated as standard AX functionalities.