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 Engineers' Choice Awards highlight some of the best new control, instrumentation and automation products as chosen by...
The System Integrator Giants program lists the top 100 system integrators among companies listed in CFE Media's Global System Integrator Database.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
This eGuide illustrates solutions, applications and benefits of machine vision systems.
Learn how to increase device reliability in harsh environments and decrease unplanned system downtime.
This eGuide contains a series of articles and videos that considers theoretical and practical; immediate needs and a look into the future.
Motor specification guidelines; Understanding multivariable control; Improving a safety instrumented system; 2017 Engineers' Choice Award Winners
Selecting the best controller from several viewpoints; System integrator advice for the IIoT; TSN and real-time Ethernet; Questions to ask when selecting a VFD; Action items for an aging PLC/DCS
Robot advances in connectivity, collaboration, and programming; Advanced process control; Industrial wireless developments; Multiplatform system integration
Motion control advances and solutions can help with machine control, automated control on assembly lines, integration of robotics and automation, and machine safety.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.

Find and connect with the most suitable service provider for your unique application. Start searching the Global System Integrator Database Now!

Future of oil and gas projects; Reservoir models; The importance of SCADA to oil and gas
Big Data and bigger solutions; Tablet technologies; SCADA developments
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Automation Engineer; Wood Group
System Integrator; Cross Integrated Systems Group
Jose S. Vasquez, Jr.
Fire & Life Safety Engineer; Technip USA Inc.
click me