ERP or BI for Manufacturing- What Is Most Profitable?
In today’s highly competitive market, organizations are continuously looking for ways to maintain their competitive advantage and increase sales while lowering costs. Having good analytics helps organizations identify whether they are getting the most out of their resources. How do we know the money they spend is going to good use? Are resources being maximized? Should we be using ERP or BI (Business Intelligence)?
An ERP (Enterprise Resource Planning) solution for a manufacturer will have analytics embedded inside it it. What we need to consider is if these solutions have the flexibility of analytics required to sustain a competitive advantage, and whether Business Intelligence would be a better solution for organizations in the manufacturing industry. While occasionally ERP might be enough to meet organizational needs, if you are not lowering your production costs, improving sales, and managing supply chains effectively then Business Intelligence might be a better way for you to go.
If you have chosen an ERP solution over Business Intelligence then you should ask yourself if your ERP solution helps you to:
Determine which customers are most profitable
Identify what products have the best margin growth
Recognize how company profits are developing
When you are using an ERP solution, you need to have a continuous view of your organizations operational status, and have visualizations that provide your management team with constant access to business strategy.
Why Is Business Intelligence Different?
If you want to move beyond the limited scope of ERP analytics, then a Business Intelligence solution is for you. Business Intelligence will help you to move toward an inclusive approach to setting metrics and collaborating on tasks. You can create a more cohesive view of the organization by focusing on these organization-wide business issues.
In the manufacturing Industry, the added value of implementing a Business Intelligence solution comes from an increase in profitability by gaining insight into demand and sales trends, and minimizing inventory investment. You can also improve your sales performance by analyzing sales trends, and customer buying behavior. Your operational effectiveness will be improved when monitoring key operational metrics, identifying excess inventory, etc. Overall, your supply chain will be optimized through evaluation of supplier performance in terms of quality, delivery and price.
Make sure you can identify which solution will work best for your manufacturing business: ERP or Business Intelligence? What will help you to achieve full organizational performance and efficiency?
Contact MXI today for professional advice on ERP versus BI Business Intelligence.