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Benefits of ERP applications in non-manufacturing industries?
What are the benefits of implementing an ERP application in non-manufacturing type industries? Is it mostly for the accounting capabilities? Can an ERP application still help lower operating costs in a non-manufacturing setting? What do you think?
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1 Answer
NIck -
Depending on the nature of the industry and the culture of the organization, the answer is a definitive MAYBE.
Similar to manufacturing companies are service/repair/overhaul companies. They, too, must collect inventory usage, labor collection and traceability. So for them it is a definite, yes.
Within the service industry, it isn't likely that they desire the data collection and production controls of ERP. I doubt that custodians, nail salons or pet groomers would gain any benefit, so it is a definite , no.
Interestingly, a great example of 'lean manufacturing' is a restaurant. They use limited raw materials to create a wide variety of custom products on an 'as ordered' basis. However, the data collection and overhead of an ERP system would end up sending their customers down the street...
However, the intrinsic value of ERP is integrating ALL/EVERY daily business transaction into a single 'version of the truth'. Tremendous amounts of data is collected, stored and can be retrieved. When an appropriate ERP system is properly implemented, a standard work procedure results that makes 'the system' easier to follow than circumvent. Different employees end up doing the same jobs the same way and the data collected is consistent.
There are a lot of companies in a lot of industries that can reap tremendous benefits from those features...
Hope this helps!
Jim
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