34SCSERP Traditionally ERP systems arewithin thefour wallscompany meaning that integration across enterprise boundaries restricted. As organisations learn become more customer-facing supply chain visibility and control will increasingly beessential for commercialsuccess says NickAllen. wwwsupplychainstandard corn Getting ahead Increasing supply chaincomplexity major concern for just about every sector acrossthebroad industrial spectrum According worldwide study small andmedium-sizedenterprises the discrete manufacturingindustry just publishedby IDC ManufacturingInsights andconducted onbehalf Infor andIBM some 58.9 per cent WesternandNorth American respondents statedthat complexity critical issue regardless thesizethebusiness. The report highlights thedifficulties companies faceensuring fulfilmentduecomplexglobal supply chains. lackclear visibility intomarket demand coupled with longsupply chainsandpressure reducecostshaveall placed heavyemphasis ontheneedforfarmore sophisticated resourcesystemscapable offering the clarityrequired for orchestrating highly complex and global supply chains. Whilethe report indicates that respondents the survey donotfindeasy fmdhard measuresforthe valueERP systems 82.7 per cent discrete manufacturersbelieve theirERP system helping them somehow The key benefits citedinclude making better decisions increasing profitability and reducing manufacturing costs As organisations learnbecome more customer-facing supply chainvisibility andcontrol will increasingly beessential forcommercial success. Ronald Teijken directorindustrymarketing manufacturing and logistics Sterling Commerce believes that although ERPhas provided standardised system for major processes withinmanufacturing companies for manyyears theeffectstherecession havemeantthattraditional supply chains have changed considerably andERP systems arenotwell suitedsupport theextended supply chainprocesses. Heseesthat tradingpartners havefluctuated greatly during therecession andmanufacturers no longer work asindividuals business silos They nowhavemuch larger business collaborationnetwork throughout which they needshareinformation he says. HistoricallyERP systems havebeen perceived as cumbersome restrictiveand costlysays Teijken What' moretraditionallyERP systems arewithinthefourwalls company meaning that integration across enterprise boundaries restricted They alsotend be developed vertically across companybutfail integrate with otherareasthe supply chainoutside thefour wallsthebusiness. Teijkensays manufacturersnowneedsolutions that canorchestrate their order management across multiple instances ERP systems Whatneeded he says solutionthat crossesthewallsboththe enterprise and different business partners andwhichalso easy integrate andexecuteon top existing infrastructure. Reflecting this requirement for greaterconnectivity beyond the enterprise Solarsoft Business Systems has launchedcloud-basedversion itsERP platform The company says itsiVPERP system alreadybeing used by 350 manufacturing companies Productdirector Steven Hargreaves says One theclearest advantages choosing thecloud option thatmanufacturers gain earlier access new capabilities without having wait until newfiscal period forthe capitalbudget Hosted service-based solutions areaccountedfordifferently and treated asmonthly operatingexpense withpredictablecharging structure and upgrades and maintenancebuiltin. Moreandmore companies areadopting cloud computing not only trade morecollaboratively with suppliers butbridge thesiloswithin theirown organisations givingvisibility across multiple divisions operating units Alstom Transport major manufacturer railwaysystems implemented an ondemand supply chain management system from Wesupply ironout inconsistent andunreliable intersiteservicelevels across 20itssitesworldwide The resultwasan improvement from70 per cent 90 per cent16monthsandsignificant reductioninventory costs. Theinternal collaboration acrossour sitesfacilitates an improvedtrustingrelationship enablingimproved control scheduling andfulfilment while providing real-time global viewour businessfrom any location says AnnieSaillardsupply chaindirector Alstom Transport The company nowmore easily ableexchange orders andcommitments between itsinternal September 2010logisticsmanager N° and issue date : 100901 - 01/09/2010 Circulation : 13988 Frequency : Monthly LogistMan_100901_34_309.pdf Web Site: http://www.logisticsmanager.com/ Page : 34 Size : 80 % 1115 cm2 Copyright (Logistics Manager) No reproduction without authorisation 1 / 2
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34SCSERP
Traditionally,
ERPsystemsarewithin
thefourwalls of a
company,
meaningthatintegration
acrossenterprise
boundariesis
restricted.
Asorganisationslearn to becomemorecustomer-facing ,supplychainvisibilityandcontrolwillincreasinglybeessentialforcommercial . success
, saysNickAllen.
wwwsupplychainstandardcorn
Gettingahead
Increasing
supplychaincomplexity is a majorconcernforjustabouteverysectoracrossthebroadindustrialspectrum . According to a
worldwidestudyof smallandmedium-sizedenterprises in
thediscretemanufacturingindustry justpublishedbyIDCManufacturingInsightsandconductedonbehalf of InforandIBM some58.9percent of
WesternandNorthAmericanrespondents statedthatcomplexity is a
criticalissueregardless of thesize of thebusiness.
Thereporthighlightsthedifficultiescompaniesface in
ensuringfulfilmentdue to complexglobalsupplychains.A lack of
a majormanufacturer of railwaysystems , implementedanondemandsupplychainmanagement systemfromWesupply to
ironoutinconsistentandunreliableintersiteservicelevelsacross20 of itssitesworldwide . Theresultwasanimprovement from70percent to 90percent in 16monthsand a significant reduction in
andintegratingwiththeSAPsystemalready in placeacrosstheorganisation.
RobGibney,
UKcountrymanager at Imtech ICTLogistics Solutionssees a growingrolefortransport andwarehousemanagementsystemsbeingdeliveredthroughSaaS . Thecompany is launching a SaaSversionof itsestablishedproduct in January .
" Thegrowingcomplexityandinterconnectednature of businesscanbea barrierformanytransport companieswanting to
upgrade or keeppacewithIT systemdevelopments ,
" hesays .
" Weseethefutureasbeingable to wrapallthefeatures of ourdevelopedsoftwareofferinginto a
SaaSbased product , making it availableon a monthly feebasis .
Theidea is thatcompaniescantry it outfora few
monthswithouta need to commit,
andcritically,
implementation time is dramaticallycut. "
According to Gibney,
theSaaSmodelholds a lot of
advantagesforthesoftwarevendortoo .
" Froma
software
supplier' s point ofview
,
thewholesupportandsalesimplementationmodel is muchbetter
,
sowecanreduceourcostsandpassthosesavingson to
ourcustomers,
" hesays .
Betatesting ofa SaaSversion of
thecompany' s
software is currentlyunderwaywith a European launchscheduled forJanuary2011.
ThebigERPvendorstooarelooking towards thecloud.Oracle