Study: Tier II ERP solutions work well for manufacturers and distributors

Tier II ERP suppliers are maintaining a strong presence in the manufacturing and distribution industries by consistently offering solutions that meet customers' complex business requirements, according to a recent study by Panorama Consulting Group.

06/17/2009


Tier II ERP suppliers are maintaining a strong presence in the manufacturing and distribution industries by consistently offering solutions that meet customers' complex business requirements, according to a recent study by Panorama Consulting Group.

ERP pie chart

ERP pie legend

The study was based on online polling data and focus group interviews involving 670 individuals from manufacturing and distribution companies that have implemented ERP within the past three years.

The study confirmed that SAP is the leading supplier of ERP software, commanding 35 percent of manufacturing and distribution market, followed by Oracle, which controls 24 percent of the sector. However, it also revealed that Tier II suppliers have 27 percent of this market, which is even greater than the 23 percent share these vendors control 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."

There are a large number of Tier II ERP suppliers. Some most well-known names in this group are:
• Infor;
• Epicor;
• QAD; and
• IFS;

The Panorama Consulting Group study also includes details about manufacturing and distribution ERP implementations.

"The average implementation duration for manufacturing and distribution companies is 19 months, compared with

The study also shows that manufacturers and distributors experience an average total cost of ownership of $8.2 million, or 8.6 percent annual revenue. Companies spend almost 23 percent 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," Kimberling adds. "ERP solutions can help companies increase operational efficiency, coordinate global supply chains, and modernize their warehouse and logistics functions."

This study also includes insight into implementation variables and common pitfalls of ERP selection and implementation.

More details from the study are available on the Panorama Consulting Group Web site .





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
Strategic outsourcing delivers efficiency; Sleeve bearing clearance; Causes of water hammer; Improve air quality; Maintenance safety; GAMS preview
World-class maintenance: The three keys to success - Deploy people, process and technology; 2016 Lubrication Guide; Why hydraulic systems get hot
Flexible offshore fire protection; Big Data's impact on operations; Bridging the skills gap; Identifying security risks
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Getting to the bottom of subsea repairs: Older pipelines need more attention, and operators need a repair strategy; OTC preview; Offshore production difficult - and crucial
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role that compressed air plays in manufacturing plants.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me