Since their inception, ERP systems have demonstrated their value in connecting business functions by bringing together data and making it accessible within an organization. However, with the globalization of supply chains and the increased need for collaboration, the ERP systems that once promised to be the "do-all" solution are proving insufficient when it comes to aligning business functions outside of the four walls of an organization. Sales and operations planning (S&OP) is one of those functions.
Project-based operations that improved on-time and on-budget performance by 10 percent or more were nine times as likely to also improve dramatically on key financial metrics such as net profit margin and cost of compliance. Nearly every project-based manufacturer feels it is important for their company to improve on end-to-end project management, but less than half of the companies in project manufacturing, aerospace and defense (A&D) and maintenance, repair and overhaul (MRO) sectors with project-based operations make wide use of any recognized category of commercial software system. This includes limited use of enterprise resources planning and quality management (QMS) systems.
Less automated "standard" material handling solutions are perfect for new or smaller companies that do not require highly automated DCs. Klaus Wurm, vice president and managing director of Schaefer Systems, discusses the benefits of integrating standard elements to help such companies get their products to market quickly without big investments or lengthy implementations.