Manufacturing and distribution organizations have unique opportunities to improve their operations via ERP software solutions, according to a study issued today by Panorama Consulting, an independent ERP consulting firm in Denver. Industries included in the study include consumer products, telecommunications, energy, engineering, construction, transportation, food & beverage, retail, and metal-working organizations.
The report reveals that SAP has the leading ERP software market share in the manufacturing and distribution industry, followed by Oracle and Microsoft. The study also shows that Tier II vendors have a 27% share in the manufacturing and distribution ERP market, which is more than the 23% market share these vendors have in other industries.
“The study reveals that large Tier I ERP solutions are not the only viable options for manufacturers and distributors,” says Eric Kimberling, President and Founder of Panorama Consulting Group. “There are plenty of Tier II and industry-focused software vendors that can meet the complex requirements of manufacturing and distribution companies, especially those in the small- to mid-size space.”
The study also includes manufacturing and distribution ERP implementation results. “The average implementation duration for manufacturing and distribution companies is 19 months, compared to 20 months in other industries. These companies take an average of 4 months to conduct their evaluation and selection process, and an average of 15 months to complete the processes of fully implementing their ERP solutions,” says Kimberling. The study also shows that manufacturers and distributors experience an average total cost of ownership of $8.2 million, or 8.6% of annual revenue. Companies spend almost 23% of their total implementation budget on business implementation costs, including third-party consulting fees.
“In today’s evolving business environment, manufacturers and distributors have a great deal of opportunity to leverage ERP to enhance revenue, productivity, and overall effectiveness. ERP solutions can help companies increase operational efficiency, coordinate global supply chains, and modernize their warehouse and logistics functions,” says Kimberling. This study also includes insight into implementation variables and common pitfalls of ERP selection and implementation.
Companies such as Panorama Consulting Group offer independent ERP software selection and implementation expertise, as well as tools that help manufacturers and distributors reduce their total cost of ownership and optimize measurable business results. To offer further analysis of the study results, Kimberling will present the free webcast, “Tips to Leverage ERP to Improve Your Manufacturing and Distribution Operations” on July 16 at 10:00 am MST.