These Industries Increase Their Efficiency with ERP Systems

1. ERP system as industry software vs. individual software: Differences and commonalities
2. In which industries ERP systems are common
3. The advantages and disadvantages of ERP industry solutions
4. Looking for an ERP industry solution? This software could be (your) match!
5. Conclusion: Not only an ERP individual software is individual

Who needs an ERP system? We answer these and many more questions around the topic of ERP in this article. If you are also facing the decision: "(New) ERP system yes or no?", then you should definitely keep reading. Not only do we tell you in which industries the use of an ERP system is essential, but we also explain directly the differences between ERP industry software and ERP individual software.

ERP system as industry software vs. individual software: Differences and commonalities

ERP is the abbreviation for Enterprise-Resource-Planning. An ERP system - whether industry software or individual software - covers all business areas in a single solution. According to SoftTrend Study ERP Software 2020 these are the most relevant core areas of an ERP system:

• Goods and materials management (according to 98 percent of those surveyed)
• Customer Relationship Management (according to 92 percent of those surveyed)
• Document Management System (according to 88 percent of the respondents)
• Business Intelligence (according to 82 percent of those surveyed).
• Personnel administration (according to 66 percent of those surveyed)
• Payroll (according to 55 percent of those surveyed)
• Advanced Planning & Scheduling (according to 54 percent of those surveyed)
• Development/Design (according to 34 percent of those surveyed)
• Manufacturing Execution System (according to 29 percent of those surveyed)
• Computer Integrated Manufacturing (according to 24 percent of those surveyed)

The difference between an ERP industry software and an ERP individual software can be guessed from the name: The former is specifically developed and perfected for a certain industry, while the latter is individually designed for a specific company. The functions and modules of the ERP solution are therefore either oriented towards a particular industry or a specific company.

In which industries ERP systems are common

Small, medium and large companies use ERP systems for process optimisation. The more data is collected and processed, the more important a functioning infrastructure with the ERP system at its core becomes.

Excerpt from industries for which ERP software is particularly important, and their priorities:

• Industrial companies: Production planning, control and monitoring
• Retail: Management of stock levels, orders, supply chains and sales data
• Wholesale: Management of inventory, orders, deliveries and invoices
• Service providers: Project management, resource planning, time tracking and billing
• Construction industry: Project management, material procurement, cost control and order processing
• Logistics and Transportation: Shipment tracking, route planning, fleet management and cargo handling
• Healthcare: Patient data management, appointment scheduling, billing and resource planning

The advantages and disadvantages of ERP industry solutions

Both industry solutions and individual solutions have advantages and disadvantages. This also applies to ERP systems.

Complexity

The Study "ERP in Practice" makes it clear: Slim or industry-specific ERP systems are usually less complex than individual solutions. This simplifies introduction, administration and updating and limits the amount of work. In addition, the operation requires less explanation.

Adaptability and innovativeness

According to the Study "Status quo - Use of individual software in German companies" currently 53 percent of the 201 decision-makers surveyed use an individual solution because they believe that standard software is insufficient. The results show: Currently, individual software is particularly used for interfaces to third-party systems, Customer Relation Managements (CRM) and Human Resource Managements (HRM).

The ZWE (Center for European Economic Research GmbH) has examined the influence of industry and individual software on innovative activity. The study found no correlation between the use of industry software and innovative activity. In contrast, the use of individual software showed a positive and significant correlation with innovations.

But what does this mean in concrete terms? Is individual software thus fundamentally better than industry software? No, definitely not. What is important is that for companies, the ability to adapt a software - e.g. an ERP system - is paramount. So the deciding factor is whether industry software can be individually adapted or not.

Looking for an ERP industry solution? This software could be (your) match!

One of the most popular ERP industry solutions in our OMR community is microtech office+. Why? The range of functions is extensive and can be adapted flexibly to your own company thanks to the modular structure. It combines the advantages of industry specialisation and a perfectly tailored individual software. In which industries this almost tailor-made ERP is already in wide use, you can find out in the following success stories.

Tailored ERP for the wholesale trade

According to a survey by the BGA (Federal Association of Wholesale, External Trade and Services), 94% of the surveyed German wholesale companies agree: Digitalisation is driving the change in wholesale. They benefit, among other things, from data centralisation, because the inventory management system including inventory management ensures transparent inventory levels, short delivery times and a smooth multi-channel distribution.

The Bionatic GmbH & Co. KG sells environmentally friendly and sustainable packaging solutions for the food service sector. Bionatic benefits particularly from the following factors:

• Automation from order entry to handover to logistics
• Self-explanatory and user-friendly system accompanied by online courses
• High adaptability through a freely configurable rule set
• Online shop linkage

Want to know more about this use case? Check out the entire Success Story now.

Tailored ERP for machine and plant construction

In machine and plant construction, constant material availability is of utmost importance. Because only if the needed components are available can the production planning work out. Precise inventory management, a transparent warehouse with intelligent logistics management, seamless CAD integration and well-planned production planning and control ensure optimum production utilization.

For the DIMOS Maschinenbau GmbH one thing was particularly important in their growth phase: smart management. This was the only way the company could meet the increasing order situation. They use microtech for the necessary transparency and automation. DIMOS benefits particularly from the following factors:

• Flexible adaptation during company growth
• Time saving through control and automation
• Individually adaptable functions

Want to know more about this use case? Check out the entire Success Story now.

Tailored ERP for the bicycle trade and the two-wheel industry

In the bicycle trade and two-wheel industry, two different focuses are important: internal stocks and sales via multi-channel channels. Stock level management enables precise production planning and tracking and prevents production bottlenecks. In this industry, companies must be able to react flexibly to customer demands in terms of their product range.

The European market leader Harley-Davidson (Custom Chrome Europe GmbH) offers over 25,000 spare parts in stock. The branch ERP microtech successfully enables Next Day Delivery" service. In particular, the Custom Chrome Europe GmbH benefits from the following factors:

• All-in-one system for all company areas
• Connection to online shop
• Multilingualism
• Warehouse management

Want to know more about this use case? Check out the entire Success Story now.

Tailored ERP for the Food Industry

The success of a company in the food industry stands or falls with the availability of goods. By connecting all sales channels and the transparency of goods movements, providers can shorten delivery times and increase their presence. The fact that the use of an ERP system in the food industry results in higher sales and profits is not only logical, but has also been scientifically proven: An IDC study demonstrates the correlation. In the last 12 months before the survey, the relevant companies recorded a growth in sales and profits of 5.6 percent. In contrast, companies that did not invest in ERP systems were able to achieve only 1.2 percent and 1.6 percent growth in sales and profits, respectively.

The online dealer Whisky.de GmbH and Co. KG uses microtech to efficiently get its 2,400 items online to men and women. The company particularly benefits from the following factors:

• Precise product presentation
• Automation (about 80 percent of all orders are fully automated from order to data transfer to the logistics service provider)
• Control of customer service
• Connection of merchandise management and shop system

Want to know more about this use case? Check out the entire Success Story now.

Tailored ERP for the Cosmetic Industry

In the cosmetics industry, three points are at the top of the list: high quality standards, strong bonds (on the part of customers and suppliers) and flexible adaptation to seasonal fluctuations and trends.

"Kaufmann's" can be found in all households. The manufacturer of the care cream masters the challenges mentioned with the help of microtech. The company particularly benefits from the following factors:

• Automation of recurring tasks
• Easy data transfer
• Scalability for future growth

Want to know more about this use case? Check out the entire Success Story now.

This is just an extract of the diverse fields of application of microtech's diverse ERP industry solution. Your industry was not covered? Then be sure to check out the many other Success Stories! You might recognize yourself and your current challenges in them. microtech has already written a whitepaper for your successful industry ERP planning and implementation - download it now!

Conclusion: Not only an ERP individual software is individual

In principle, we can say that almost every industry benefits from an ERP system. Whether you decide for an ERP industry software or an ERP individual software depends on your personal requirements and preferences. Your ERP should ideally map as many processes as possible and allow easy adaptation. After all, your needs can change at any time (e.g. due to internal restructuring or external market influences). You should take the time to carefully examine and test potential solutions. Most providers - including microtech - offer you a free test access or a free demo version.