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Business Process Optimization Using ERP And CRM

For any business to be successful, it has to manage its operations deftly, both within its organizational framework as well as with the outside world. Today, a lot of innovative solutions and software are available in the market to address to both these needs and make management easier. These are Enterprise Resource Planning (ERP) and Customer Relationship Management or CRM.

ERP utilizes ERP software applications to improve the performance of organizations’ resource planning, management and operational control. ERP software is multi-module application software that integrates activities across functional departments like product planning, purchasing, inventory control, product distribution, order tracking, finance, accounting and human resources aspects of an organization. The goal of ERP is to improve and streamline internal business processes, which typically requires reengineering of current business processes. The users of ERP systems are employees of the organization at all levels, from workers, supervisors, mid-level managers to executives.

Whether a small or home-based business venture or a large corporate, the customers shape future potential of any business venture. Hence keeping the customer happy is one of the baselines of a successful business. Achieving customer satisfaction involves various things like understanding their problems and solving them quickly, and serving them in a better manner thenceforth. And so to simplify things, we have Customer Relationship Management or CRM.

CRM is a term for methodologies, software, and usually Internet capabilities that help an enterprise manage customer relationships in an organized way. For example, an enterprise might build a database about its customers that describes relationships in detail so that management, salespeople and perhaps the customs themselves can directly access information. Most online shopping portals can be cited as an example. Effective CRM application involves customizing the CRM software to match your own business type, whether it is B2B or B2C, and making sure that the customer care executives understand the basic premise and technicalities of operating the software.

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Discrete vs. Process ERP Software

Discrete vs. Process in ERP
by Chris Shaul

One of the saddest things is a manufacturer who chooses an ERP software system that does not a fit with what they do. For example, a chemical producer who selects and implements software designed for a type of company which manufactures solid objects such as furniture. There once was a company that provided consumer packaged goods to the convenience marketplace who selected fish disassembly software. These are obvious mismatches. But the specifics may not be clear.

There are two types of manufacturing. There is discrete manufacturing, or a company that assembles products from widgets. There is also process manufacturing, or companies that blend liquids. Process manufacturing companies process formulas or recipes. While the majority of manufacturing is discrete (automotive, aerospace, or anyone else who builds component parts), there are a select group of manufacturers who are process manufacturers. These include food processors, cosmetics, chemical producers, paints and coatings manufacturers, and anyone else who deal with liquid or batch produced products.

What makes process manufacturing different from discrete? Process manufacturing uses formulations or recipes. A discrete manufacturer uses Bills of Materials (BOMs). A discrete manufacturer assembles along a routing, whereas a process manufacturer blends in a batch.

There are companies who operate in both environments and are often called mixed mode manufacturers. These manufacturers need both a process and discrete manufacturing system.

So what sort of ERP system works with these types of manufacturing modes? This can only be answered by looking at the markets these software companies serve. There are certain products which are clearly process, such as Batchmaster Software or Ross Software. These software deal with formulations, batching, and the other specific issues around process manufacturing. There are other software systems that are clearly discrete such as DBA software, Intuitive, or Made2Manage. These handle Bills of Materials, Routings, and specific discrete requirements. These are all systems that serve their niche.

When you get into larger systems, there is not a clear cut solution as they operate in Mixed-Mode. For example QAD software can handle both discrete and process requirements. Others that can do the same are MS Dynamics AX, Deacom, Ramco, and of course the Tier 1 players SAP and Oracle.

So the real lesson is to understand what you do first before looking at software. Are you a processor of liquids, or do you assemble individual items to create an assembled product? Knowing this will go a long way to help you properly choose software that fits you like a glove.

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Chris Shaul is an ERP Consultant and a regular contributor to ERPandMore.com

It’s Still About the Process

Process Improvement must be coupled with ERP implementation. The following talks about this connection:

It’s Still About the Process
by John K. Waters

As enterprise systems evolve from ERP to ERM, adding more functionality to tame and streamline back-office processes, the process of choosing the right solution grows more complex. Use this guide to sort through popular offerings.

Software Magazine – It’s Still About the Process