TM ERP Buyers Guide 2015 by Optic Juice

BUYERâ&#x20AC;&#x2122;S GUIDE 2015

What you need to know before you invest

What’s in this report? P3 Introduction Finding the right ERP system can be tricky, but once found, it can bring harmony to any organisation.

P6 Controlling Variaton Sofa and chair manufacturer, Meadowmead, shares how it is utilising WinMan’s Product Configurator to provide a wide array of options across its four furniture brands to create perfectly bespoke customer orders.

ERP 2015

BUYER’S GUIDE 2015

P8 The clarity to choose HSO shows how its software can amalgamate all areas of an organisation.

P10 Three steps to achieving ROI on your ERP KCS Datawright examines where an ERP system’s return on investment comes from

P12 Seeing it from both sides Commercial sales manager at Prodware Justin Herbert analyses the correlation between an increase in sales margin, an effective supply chain and the right ERP system.

P14 What does the Internet Of Things mean for ERP and CRM? Stephen Wilson from Ebecs unravels the implications that IoT has for ERP and CRM systems.

P16 Streamlining manufacturing operations with SAP Business One IIS Group reveals how its leading ERP solutions can be the answer to manufacturing’s most intricate problems.

P18 Exel celebrates 30 years of ERP innovation IT solutions provider, Exel Computer Systems plc shares it’s successes in 30 years of being in business.

Editorial

This report was compiled for The Manufacturer magazine by: Malcolm Wheatley, IT Editor

malcolm@malcolmwheatley.co.uk

Callum Bentley, Editor

c.bentley@hennikgroup.com

Design

www.opticjuice.co.uk

Sales

Henry Anson, Sales Director

design@opticjuice.co.uk h.anson@hennikgroup.com

In order to receive your copy of The Manufacturer kindly email subscribtions@sayonemedia.com, telephone 0207 4016033 or write to the address below. Hennik Group cannot take responsibility for omissions or errors. Terms and Conditions Please note that points of view expressed in articles by contributing writers and in advertisements included in this journal do not necessarily represent those of the publishers. Whilst every effort is made to ensure the accuracy of the information contained in the journal, no legal responsibility will be accepted by the publishers for loss arising from use of information published. All rights reserved. No part of this publication may be reproduced or stored in a retrieval system or transmitted in any form or by any means without prior written consent of the publishers.

INTRODUCTION T

his year’s Annual Manufacturing Report (http:// bit.ly/AMR2015) paints a better picture of investment in information and communications technology (ICT) than has been the case for a number of years. It is clear that companies are focusing on upgrading and renewing their ICT infrastructure including their ERP systems, which makes sense after a pause that has gone on for so many years. Analytics and reporting, CRM and SCM are all among the current range of priorities and the main driver is the need for product improvement. Investment in ICT has rebounded strongly in the past 12 months; 71% said they had spent more in the current financial year than the previous one and just over half (51%) said they expect to spend more again, in 2015. Businesses have been upgrading their existing infrastructure (27%) in the drive to improve analytics and reporting (40%); planning and scheduling and workforce management (36% each); supply chain management and customer relations (29% each) heading the list of priorities. It is interesting to note that ‘product improvement’ wasn’t even mentioned as a motivation just two years ago. It is a competitive world and those who do not move forward will be left behind. Competitiveness and efficiency, customer satisfaction and profitability are key to business success and ICT underpins their delivery. As we have seen with investment in automation, expectations of major projects are being much better managed than has been the case in the past – and, as a result, customer satisfaction is rising as well. ICT is now more of a company-wide strategy, even for global organisations. Any ideas of piecemeal development should be well behind us and consigned to the dustbin of history. With the massive focus for companies migrating towards upgrading current ICT infrastructure, it is now that ERP vendors are stepping up their game more than ever to meet the demands of a sector that is becoming more tech savvy than ever. Business is booming and ERP software is fundamental to making sure that it stays that way. Callum Bentley, Editor, The Manufacturer

ERP 2015 ERP hits its quarter century

IIIIIIIVVVIVIIVIIIIXXXIXII XIII XIV XVERP XVII XVIII XIX HITS ITS QUARTER XXXXIXXIIXXIIIXXIVXXV I

I I

I I I

I V

V I I I

I X

X I I I

X I V

X V I I I X X I I

X I X X X I I I

V I

V I I

X I X V

X I I X V I I

X X X X I V

X X I X X V

entury

IXVII II IIIXVIII IV V VI VII VIII IXXXII X XIXXIII XII XIII XIV XV XIX XX XXI XXIV XXV I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVII XVIII XIX XX XXI XXII XXIII XXIV XXV

Far from moribund, Enterprise Resource Planning software continues to evolve, finds IT Contributing Editor Malcolm Wheatley.

elieve it or not, it’s exactly 25 years since analyst firm Gartner Group coined the term Enterprise Resource Planning, commonly abbreviated to ‘ERP’. Now a vast $25 billion global market, it is still dominated by the German software company that Gartner had in mind when coining the term: SAP, which together with Oracle accounts for a full third of ERP sales. The software itself existed long before 1990, of course. First, as MRPI or Materials Requirements Planning - which had been around as a reasonably

mature product since the 1970s. And second, as MRPII, which aimed to plan and manage a broader set of resources, including labour. And from MRPII it was but a small step to bolt on the accounting capabilities and sales order entry functionality that was required in order to get pretty much everything that is needed for a basic ERP system. But 25 years on, today’s manufacturers want more than a basic ERP system. Much, much more than a basic ERP system. Because as ERP has evolved over those 25 years, the old view of ERP as a competitive leveller has turned 180 degrees. ERP as a competitive leveller? Let’s step back a moment. Once, sceptics

Believe it or not, it’s exactly 25 years since analyst firm Gartner Group coined the term Enterprise Resource Planning, commonly abbreviated to ‘ERP’

asked what competitive differentiation ERP supplied, in a world where every manufacturer ran ERP systems that were largely the same. At the time, it was an argument that had persuasive logic - hence the appeal of niche ‘best of breed’ software solutions, as a counter. But today, manufacturers understand that ERP systems needn’t be all the same - and that a business with a better ERP system, or with an ERP system that was more appropriate for its needs, was indeed in a genuinely stronger competitive position than its peers running ‘me too’ generic ERP systems. In short, ERP has become the exact opposite of a competitive leveller - prompting manufacturers to seek out those better ERP systems, and craft them ever more closely to their needs. So what exactly are manufacturers looking for in ERP systems these days? And what exactly is it that constitutes a ‘better’ system? Look closely, and some broad trends are evident.

Custom-built, but offthe-shelf The first trend can roughly be summarised as ‘improved functional fit’. In short, manufacturers are looking for systems that come ever closer to the specifics of their own industry vertical and own business model. It’s a move that isn’t without its internal tensions, of course. ERP systems were once used to re-engineer business processes, and even today in-built ERP processes are marketed by many vendors as proven best practice that is usable ‘out of the box’. So the more that a manufacturer customises the ERP solution, the greater the risk of departing from best practice. Industry-specific templates going a long way to plugging the gap. Available from either vendors directly,

ERP 2015 ERP hits its quarter century

(

)

(

)

((( M ))) ( X ) H O W

M U C H

T H E

VA S T

or from their development partners - Microsoft in particular has a rich eco-system of such partners - they’re a way of getting a better fit, but without departing so radically from best practice. In the world of electronics, for instance, a decent solution needs to be good at managing things such as Bill of Materials ‘back flushing’, and customersupplied parts. The food industry, too, needs capabilities such as reverse bills of materials - taking a chicken for instance, and making multiple products from it. Likewise, the automotive industry needs lineside sequencing capabilities, while other industries need strong project management and buildto-order functionality. So look closely at leading ERP vendors - companies such as Infor, Exel, Syspro, Microsoft and SAP - and you’ll see rich capabilities in all these areas, becoming ever-more refined and fine-tuned as the years pass, and as business models change.

Cloud deployment and ‘ERP as a service’ The second broad trend can best be summed up as an evolution in the relationship between a manufacturer and their ERP vendor. Once the model was simple: choose a system, install it on your server, and pay the appropriate licensing fee. Cloud-based deployment disrupts that. Not only are there no longer any ‘on-premise’ servers to worry about, but the whole business model can also move to ‘ERP as a service’, paid for monthly, with software updates

G L O B A L

E R P

M A R K E T

continually rolled out as the vendor delivers enhancements. And talk to ERP vendors such as Infor and QAD, and the statistics in respect of cloud deployment are impressive, with QAD reckoning that around a half of all new ERP deployments are cloud-based, rather than on-premise. No wonder, then, that analyst firms such as Gartner have taken to describing on-premise ERP - especially traditional, heavily-customised, onpremise ERP - as ‘legacy’ ERP.

Device-agnostic mobile deployment The ERP industry spent years talking about the Cloud before customers really got the message. So too with mobile deployment. What’s changed? Simply this: the past five years have seen a revolution

The game changer is that ERP vendors have decided not to try and pick mobile technology winners, but to develop apps for all the main mobile platforms

I S

W O R T H

in mobile device form factors and capabilities. Tablet computers, for instance, and smart phones. And these days, ERP transactions on such devices, using purpose-built apps, involve almost no compromise or limitations due to form factor or processing power. So given the low price-point of such devices, it becomes readily possible to deploy them in situations where desktop computers aren’t as convenient - such as on the factory floor, in the warehouse, or on the road. So far, so unexpected. The game changer is that ERP vendors have decided not to try and pick mobile technology winners, but to develop apps for all the main mobile platforms. Microsoft Dynamics AX for Android? You’d better believe it - here and now. And the really good news is that having grasped the ‘device agnostic’ nettle, ERP vendors are unlikely to reverse tracks. Once again, computing is becoming more open.

Continued development Roll it all together, and it’s clear that there’s a lot going on, and on a wide variety of fronts. And that’s before getting into specific technology developments such as in-memory processing, where SAP and Oracle are making waves, and the emerging ‘Internet of Things’ paradigm, where Microsoft is again making the running. 25 years old this year, ERP is arguably just getting into its stride. Interesting times lie ahead.

Connect ERP 14 May 2015 | Reading

fi ve mistakes

#ERPConnect

THE

OF AN ERP IMPLEMENTATION ERP mistake

ERP mistake

Poor planning and not setting project priorities

Underestimating the importance of accurate data

one

ERP mistake

two

Not properly vetting ERP vendors ERP mistake

four

ERP mistake

five

Not attending Connect ERP

three

Miscalculating the time and resources required to fulfil the project

erpconnect.co.uk Gold sponsors

Silver sponsors

Controlling Meadowmead, one of the UK’s leading sofa and chair manufacturers, explains how it is using WinMan’s Product Configurator to offer a vast range of options across four furniture brands, each made to an individual customer order.

he Product Configurator has applications across a wide spectrum of bespoke manufacturing environments as it allows products to be defined with all their available options. It can also use built-in rules to determine which options can be combined. To give a simple example from the automobile industry, a car sun-roof can be selected on a saloon but not on a convertible. The WinMan Product Configurator is integral to the WinMan ERP system and not only handles simple features and options, but also complex engineering rules across a range of industries. For example, if a product exceeds a certain length it may need to be made from a different material and have extra support

factored in. Intelligent engineering parameters and constraints can be easily incorporated. Meadowmead’s Bob Ashcroft explains: “We have 500 different fabrics, 15 different leg colours and lots of other options – we have millions of combinations. So it is obviously important to get that out into the manufacturing arena correctly. “The Product Configurator is the tool we use to create the order for each specific one-off item. It generates the order and creates a schedule of the work involved – including labour time for each process – and generates a bill of materials.”

The WinMan software is extremely configurable. It is very easy to tweak the system to our exact requirements

Ashcroft says that to enter a sales order, you launch the Configurator, choose the model and then select the different options – body fabric, cushions, legs, etc. For each option, the Configurator opens a selection box offering all the possible choices. The Configurator knows what styles and fabrics are allowed for each brand and only offers those choices. The Configurator also provides pricing information for each option. “As you select all the different options, you are building up the works order bill of materials as you go along,” says Bob. “When you have finished, the Configurator creates a back-to-back manufacturing order and sales order. When you confirm the sales order it will launch the manufacturing order.” Production planning starts with the manufacturing orders created by the Configurator, which are allocated to specific teams/cells and grouped together into daily production plans. Ashcroft says: “We have to decide up-front which orders we are planning into which team and create a daily ‘work to’ list which we call a production plan. We group together a number of orders per day, per cell.

ERP 2015 WinMan ERP Systems

“WinMan enables us to rank the sequence we are putting the works order in. When we print the production plans they are in ‘work to’ order. We then start at the top and work our way down.” These production plans have been created in parallel with WinMan’s transport allocation facility enabling the customer to get their delivery with their lead time. This produces van loading sheets for the despatch area

showing exactly what is supposed to be going out on each van. These are similar to the production plans and list all the sales orders line by line for each delivery with details of the customer – including contact details, a description of the product and the amount of space it will take up on the van. WinMan also has an important role to play in providing traceability from raw materials to the finished product – an important consideration for fire retardancy certificates. The wood is all traceable too, and this will become increasingly important as the company moves towards FSC (Forest Stewardship

Council) certification for the use of sustainable timber. The underlying advantage of WinMan for Meadowmead was its flexibility and the ease with which it could be tailored to suit the company’s specific needs, says Bob Ashcroft. “The WinMan software is extremely configurable. It is very easy to tweak the system to our exact requirements.” He says the whole administration process has become streamlined: WinMan is geared towards supporting lean principles of reducing waste effort by supporting an organisation’s optimum business processes. “We had three or four different databases and spreadsheets all over the place – so we were always plagued with multiple entries and transcription errors. Now it is all in WinMan – there are benefits all round. “It is easier to track production, it is a lot easier to maintain schedules and the analysis and dashboards are 100 times better than we had before.”

ERP 2015 HSO

The clarity to

an ability to integrate the system with existing Microsoft solutions such as Office and SharePoint, and a strong, long standing relationship with Microsoft.” Commenting further, Nick Carr, AAF Ltd project manager, ERP implementation said: “HSO came in and delivered a very professional and knowledgeable demonstration. They seemed to understand our business from the outset and gave confidence that they would deliver AAF Ltd a powerful solution whilst minimising the risks involved. “Ten years ago when we first took a look at ERP alternatives, we had originally decided The company, which operates heavily in the power to progress with an generation and oil and gas industries, wanted to replace its existing system with an off-the-shelf solution alternative system. This in response to incremental growth, increasing customer time round we included Microsoft Dynamics demands and a growing need to be more agile across AX in the mix and its business, combined with upward labour cost came to understand pressure on margins. the close functional fit “The growth of our business stretched the and capabilities that capabilities of our current systems,” explains Robert Microsoft Dynamics Carling, AAF Ltd general manager. “HSO was AX provides right out selected because the company was able to demonstrate clear fulfilment of functional requirements, of the box; Engineer to Order support for tight project manufacturing control and scheduling; excellent production capability for our made to order components, procurement, our warehouse and inventory management, our financial ledger, our logistics and ability to manage resources— everything. With Dynamics AX we gain the functionality needed to develop a secure and future proofed platform for growth.”

Having the ability to integrate all areas of the business to create one version of the truth is what most businesses strive for. HSO explains how their software can help achieve this goal.

eploying an enterprise resource planning (ERP) system is an expensive proposition, not just in terms of licensing cost and maintenance, but in terms of resources and time. However, selecting the right system and the right vendor to implement it will greatly increase productivity and be a secret weapon in terms of competitive advantage, to companies in any industry.

AAF partners with HSO for ERP overhaul AAF Ltd, a leading supplier of air filtration solutions across the globe was looking to replace the company’s legacy ERP system. After a review of an initial 97 ERP systems and a shortlist of 17, which included all the major players, Microsoft ERP partner of the Year 2014, HSO Enterprise Solutions, was selected to implement a company-wide ERP project based on Microsoft Dynamics AX 2012. The review included a competitive pitch process spanning the operational breadth of the business, tested and scored against a predefined demonstration script covering all core technical requirements, as well as the capabilities of solution partners to deliver.

HSO was selected because the company was able to demonstrate clear fulfilment of functional requirements, an ability to integrate the system with existing Microsoft solutions such as Office and SharePoint, and a strong, long standing relationship with Microsoft

Microsoft Dy Partner of th

HSO Business Ap Retail Services E Distribution M

www.hso.com

Microsoft Dynamics ERP Partner of the Year 2014 HSO Business Apps and CRM for Retail Services Equipment Rental Distribution Manufacturing

ERP 2015 KCS Datawright

Three steps to achieving

Where does the ROI of ERP come from? At KCS Datawright, we don’t think it’s a question that’s asked often enough, or indeed, searchingly enough, says general manager Andy Gough.

he argument states that you have to have manufacturing ERP. Everybody does. And this is true. But implementing ERP because ‘everybody does’ will not necessarily deliver much by way of ROI. Here are three pointers from KCS Datawright to maximise the ROI of your ERP investment.

efficiency #1 Turning improvements into value Compared to having multiple systems, manufacturing ERP is much more efficient. There’s far less re-keying of information from system to system, far less time spent correcting the inevitable errors, and far less time hunting for data.

But in terms of converting that improved efficiency into an ROI that’s discernible on the bottom line, too many ERP implementations take refuge behind glib statements and wishful thinking. The point is this: After your investment in manufacturing ERP, fewer people will be carrying out tasks such as re-keying. So what are they going to be doing instead? That said, it’s not necessarily about redundancy and people losing their jobs. Just as valuable - if not more so - is redeployment into tasks that add value, such as customer service roles.

supply chains #2 Slicker free up cash For most companies an investment in ERP means automatic access to improved supply chain processes -

If after implementing your manufacturing ERP system, you discover that lead times and inventory levels haven’t come down, then it’s time to ask some searching questions

more sophisticated forecasting, for instance. Other benefits also include better inventory control and reordering systems, geater visibility into supplier performance and further visibility into procurement spend. And what’s more, these are knowns from the outset. At KCS Datawright we routinely see major improvements when customers adopt our manufacturing ERP system -shorter lead times, reduced inventory levels, fewer stockouts, and less time spent processing sudden rush orders. Plan for these improvements. Proactively target them, and consciously strive to turn them into bottom line benefits. Put another way, if after implementing your manufacturing ERP system, you discover that lead times and inventory levels haven’t come down, thus releasing cash, then it’s time to ask some searching questions.

enabler of a move #3The to barcodes Finally, an ERP system is a great way of driving factory floor and warehouse productivity improvements, as it provides a seamless transaction backbone, with orders and materials smoothly flowing through the system. Most obviously, this makes a manufacturing ERP system an ideal way to leverage technologies such as barcodes and RFID tags - not just reducing errors and eliminating mislaid inventory and orders, but also directly impacting factory floor and warehouse productivity. So if what’s always held you back from a move to barcodes is the absence of an integrated manufacturing ERP system, then it’s time for a re-think.

Putting it all together So is an investment in ERP a smart move? For the vast majority of manufacturing businesses, yes. But too few of those businesses are being demanding enough in terms of seeking out and securing the hard cash benefits of their ERP investment. Our message: don’t join them.

datawright

ROI from ERP?…it’s just a health check away

Whether you are new to Manufacturing ERP or have an existing system, KCS Datawright can provide a free ERP health check. Assess the ROI from your existing ERP system Support your business growth by establishing your future ERP requirements Improve the effectiveness of your current processes

Your Business Your Way Book your free ERP health check today Contact us now or visit KCS Datawright at ERP Connect, 14th May 2015 UK +44 (0) 191 419 4190 | erp@kcsdatawright.com | www.kcsdatawright.com

Seeing it from

both

sides

resource utilisation, production scheduling, process optimisation, and more. They employ a mix of discrete, process, and lean manufacturing methods that are often managed through separate systems. This limitation makes it difficult to satisfy customer demands without breaking the bank, particularly across multiple sites and geographies. With the globalisation of supply chains and increasing demand for both innovation and cost minimisation, manufacturers need easy-to-use, flexible solutions to aving been in the position of customer and now supplier, I know more effectively manage their business. that embarking on an ERP project Europeâ&#x20AC;&#x2122;s largest Microsoft is always a business-changing experience Dynamics partner and it is the role of the project leadership to make sure it is a very, very positive one. It is No matter what size company you are, it is very a significant investment, in time, cash and important to find a partner that can address your resources, so it is absolutely vital to have a needs and can be by your side throughout all stages singular focus on ROI. of the development, implementation and utilisation In industries like manufacturing, growth of your project. As the largest Dynamics partner in is king and growth happens when you EMEA, our focus is to ensure that Microsoft Dynamics have the agility and speed to address is fit for purpose. As an example of one of our vertical new customer needs and fulfill those solutions, we have developed Dynamics to support needs quickly and cost-effectively, the semi-process industry. Our solution, which now through an efficient supply chain. supports over 1000 users, covers the key functions At Prodware we understand that of life sciences and chemicals such as procurement, manufacturers rely on technology for production, traceability, cost of quality control, product design, inventory management, logistics, distribution, sales, marketing and finance.

Justin Herbert, Commercial Sales Manager at Prodware UK explains how the right ERP system can help increase sales and margin with a more efficient, agile and speedy supply chain.

Innovation in manufacturing In my experience, efficient and effective quality control, integrated management of external suppliers along with advanced planning and multi-site production are all paramount to success. In todayâ&#x20AC;&#x2122;s market, I believe you need: Detailed market and customer insights: Inspire innovation with a complete view of customer data through full traceability to the supply chain, finance and the plant floor. Improve business visibility with financial dimensions of operational processes. Visual contextual intelligence: Respond rapidly to customer demand with readily available, easyto- understand and visual contextual intelligence built into the operational decision making process.

ERP 2015 Prodware UK

To find a flexible solution: Increase production planning and execution flexibility by unifying process, discrete, and lean manufacturing operations in one system. Find a solution that will support your organisation end-to end with rich, core ERP capabilities, including, HR, finance, procurement and resource management. A single technology platform: Ease ERP implementation and administration, and gain IT efficiencies, with simplified application lifecycle management. Ensure you optimise IT investments to improve total cost of ownership (TCO) and productivity through interoperability between your ERP and other Microsoft technologies. Mobile device experiences: Improve your employee’s efficiency by enabling them to stay connected to individual processes. The goal is to make these mobile applications personal, providing an experience that is engaging, action oriented and takes place where real

business happens. For example it is ideal for shop floor data collection, warehouse or field-based staff, giving access to the information they require when they need it.

Finding the right long term partner is crucial When I was in the role of the customer I was lucky enough to find a professional, long-term partner so when I see a Prodware customer making the following statement it gives a good sign of expertise and support services. VES Andover Ltd designs and manufactures a wide range of commercial heat recovery and ventilation products for public, commercial and industrial buildings in the UK. Paul Tarrant, IT Executive at VES Andover, comments, “Thanks to Prodware’s way of working, we have seen significant strides in how we are supported and the level of cooperation offered. This has given us

more confidence that Prodware is the right long term partner and that it has the desire and capability to support us, as we adapt to meet our own commercial challenges.”

COME AND SEE US AT ERP CONNECT Come and talk to Prodware at ERP Connect where you can explain your issues and learn about our approach to finding the right solution for you. Find out more about ERP Connect at www.themanufacturer.com/ eventsites/erp-connect/

Growth is in your hands

Connect and empower your people Revolutionise your entire business operations and leverage the power of mobile technology. With Microsoft Dynamics for Manufacturing from Prodware, you can achieve greater flexibility, visibility and agility. Contact us or visit us at ERP Connect on 14th May 2015 to find out more

info@prodware.co.uk | tel. +44 (0)161 705 6000 | www.prodware.co.uk 13

What does the Internet Of Things mean for ERP and CRM? Unless you’ve been as out of touch as the recently-found Beagle 2 Mars space probe, it’s hard to escape the buzz surrounding the Internet of Things. Stephen Wilson from eBECS explains.

ot so long ago, the Internet of Things meant nothing to most people - and now, the sense is dawning that it’s a genuine gamechanger. Simply put, the Internet of Things extends Internet connectivity to devices, and not just desktop computers and smartphones. And that has important implications both for ERP, and CRM.

Serving customers better In manufacturing, the concept of Vendor Managed Inventories underpins many lean initiatives. So to do kanbans - more recently, in the form of ‘electronic’ kanbans. And both concepts are commonly built into ERP systems. The problem is getting the data in order to trigger a replenishment. Take Vendor Managed Inventories: these days, few staffing budgets

permit the sort of ‘hands on’, peopleintensive approach to Vendor Managed Inventories that was common in the 1980s and 1990s. Likewise, the best sort of electronic kanban is one that goes direct from the factory floor to the supplier -bypassing corporate procurement systems altogether. Enter the Internet of Things. By coupling sensors and similar devices to the Internet, it’s very easy for re-order points and kanbans to be instantly transmitted to suppliers’ ERP and CRM systems. Efficiently, securely, and without human intervention.

Enabling new sales models Just as the Internet of Things has burst onto the scene, so too has the notion of servitisation. Simply put, servitisation is about providing customers with services, as well as products - and sometimes, instead of products. During the last recession, many manufacturers of large pieces of equipment and expensive machine tools saw their order books dry up. Customers still wanted the manufacturing capabilities that those machine tools and pieces of equipment represented. But they were unwilling - or unable - to commit to the upfront capital investment needed to purchase them. Various rental and leasing models emerged. But that often meant financial intermediaries taking a slice of the pie.

A better option would have been a ‘pay for use’ business model, just as RollsRoyce does with its aero engines. The problem: getting reliable, accurate, and timely usage data, in order to bill the customer. Yet it’s a problem for which the Internet of Things provides a handy solution. Simply put, the machinery and equipment in question simply ‘calls home’, via the Internet of Things, to report usage figures directly into the respective manufacturers’ ERP and CRM systems.

Better insights into customer behaviour How do customers actually use your products? How extensively do customers use them? When do they use them? And why do they use them? In an attempt to find the answers, it’s easy to spend a small fortune on marketing surveys and customer focus groups. Enter - once again - the Internet of Things, which can provide just those insights. Nor need concerns over privacy be a barrier. Intelligently packaged, such connectivity can be seen as a boon for both parties - supplier and customer. Equipment at customer premises, for instance, can report back to ERP and CRM systems if consumables are running low, or if maintenance might be required. More extensive data can be linked to proactive maintenance or faultfinding programmes. Radical? No more so than supermarkets sharing real-time Point Of Sale data with consumer goods manufacturers. Once regarded as heresy, it’s now routine.

The Internet of Things: a brave new world Of course, none of this will happen overnight. As with any disruptive new technology, adoption will be gradual at first, while businesses explore the art of the possible. But forewarned is forearmed, and if the Internet of Things isn’t currently in your technology road map, then here at eBECS we’d certainly argue that it ought to be.

ERP 2015 eBECS

oshizaki is the world’s largest manufacturer of commercial ice-making machines, and the second-largest manufacturer of commercial refrigeration equipment. Its European operation, Hoshizaki Europe, comprises a European sales and service headquarters in Amsterdam, and a manufacturing and distribution facility in Telford, UK. At the same time as the business realised it had outgrown its current ERP system, it became aware of Microsoft Dynamics AX, having acquired a Danish company that had successfully implemented the solution. The challenge was finding the right implementation partner to handle the UK-based manufacturing and distribution operation. “We’re a large company, and we were looking for a firm capable of partnering with a business of our size,” explains Jason Stokes, IT Coordinator, Hoshizaki Europe. “But just as importantly, we needed to find a partner with the right skill set—and with eBECS, we found the depth of manufacturing and inventory management skills that we required.”

Results & Benefits The first implementation phase included embracing the functionality covered by the previous legacy systems. This was followed by implementing wholly new functionality, such as purchasing and manufacturing. Specific benefits of the move to Microsoft Dynamics AX 2012 include: End-to-end integration Instead of a clutch of standalone systems lacking integration, Hoshizaki Europe now has complete end-to-end, order-to-cash business process, covering new machines for sale, as well as spare parts and service. Manual re-keying has ended, bringing substantial savings in employee time and effort. “As a combined, integrated system, Microsoft Dynamics AX is delivering significant efficiencies,” states Stokes. A single version of the truth With manual re-keying of data into different systems, and those different systems’ different internal processes, Hoshizaki Europe had lacked a single, consistent view of its business. Worse, as well as overlaps between different

In 2010, Hoshizaki Europe realised it had outgrown its existing patchwork of ERP legacy systems. Lacking full integration, individual functions within the business were forced to use these separate systems to complete tasks, consuming additional staff time and resource in the manual re-keying of data, and making it difficult to obtain ‘one version of the truth’. systems, there were also gaps, calling for manual workarounds and paperbased systems—again bringing inconsistent views of the business. Stokes explains, “From a reporting and control point of view, the move to a single system has delivered greatly enhanced visibility. Instead of debating which set of figures is correct, we can take better decisions and take them sooner.” Improved business processes Previously, parts were purchased by two separate departments—one sourcing items from the parent company in Japan, the other sourcing from elsewhere. Using Dynamics AX 2012 to provide an

integrated end-to-end order-to-cash system, the business has been able to significantly streamline its business processes, orienting them around best practice and delivering efficiency improvements. Stokes explains, “We needed to rationalise and create a single, merged Bill of Materials. The result has been a significant streamlining in our operations and improved internal efficiencies.” Better inventory control Through a combination of identification technologies such as barcoding, and by creating a seamless integrated end-to-end process covering parts ordering to machine construction and aftersales service, Hoshizaki Europe is enjoying significant improvements in inventory turns. “We’re far better able to keep track of inventory and match safety stock levels to actual demand, reducing the inventory we need to carry,” says Stokes. Better customer service A single, integrated single ERP system, containing details of every customer order, has delivered substantial improvements in customer service, thanks to the end-to-end visibility it provides. Stokes states, “Sales staff can refer to the system while talking to the customer, and see information they couldn’t see before— such as a product’s build date. It gives them a much more complete view of all customer ‘touch points’ and customer service has significantly benefitted as a result.”

ERP 2015 IIS Group

Kick start your business with the m

Streamlining manufacturing operations with SAP Business One

Morgan Browne, Chief Executive, IIS Group

Try SAP Business One today with

How the IIS Group helps meet unique manufacturing challenges with the world’s leading ERP solution.

he IIS Group has helped manufacturing firms over the past decade to cut costs, eliminate waste and improve performance with the world’s most popular ERP solution – SAP Business One. A SAP Business One manufacturing solution can help transform businesses quickly and easily – from plant-floor to delivery. With tools to manage sales and CRM, production and MRP, inventory and warehouse control, purchasing, banking and much more, your manufacturing firm will be able to remove disparate solutions and function seamlessly from one solution. Finally, different departments within an organisation can integrate to optimise. That means businesses will no longer have to juggle data between

With SAP Business One we’ve increased turnover by 14% for the past two years we’ve used the ERP solution 16

different systems and avoid manual duplication. Third-party bolt-ons can be eliminated and data can be centralised to create accurate, trustworthy reports. With SAP Business One, manufacturers can manage demand whilst maintaining lean inventory levels. And with powerful reporting tools included as standard, organisations will have access to accurate data that spans the entire supply chain to forecast and quickly match availability with demand. The ability to successfully meet demand and deliver projects on time will grow customer satisfaction and loyalty. Also, the full visibility and control provided by SAP Business One has been proven to fuel growth, result in fewer stock outs, optimise stock and provide better control over key business processes.

• Over 350 successfu • SAP HANA specialis • SAP Gold Partner company • UK’s leading SAP B the • For 2 users to 250 –

Mollart Engineering is a family-run specialising in deep hole drilling and expert design, development and Ifproduction you’d like to see how SAP Business One can ta of tools and associated processes. Back in 0121 2 2012, the Surrey-based manufacturing firm www.iisgroup.eu decided to swap several disparate IT systems in favour of SAP Business One to manage every aspect of its business. • Manufacturing

• Wholesale & Distribution

Some of the issues the company was suffering from included data silos, a lack of integrated software and inaccurate insight into true production costs. But with the deployment of SAP Business One, Mollart witnessed not only improved production visibility but also profits. “We’ve witnessed an increase in turnover by around 14% for the past two years since the implementation of SAP Business One,” said Mike Pragnell, Operations Director. “SAP Business One has given us greater control of our inventory and decision-making. Restocking is a far simpler process now.” Mike added that in addition SAP Business One has delivered accurate reports and reduced the complexity when completing marketing documents to be distributed to customers. Furthermore, in addition to the SAP Business One manufacturing solution, Mollart also deployed a number of B1 Apps – a series of modules developed by IIS Group to customise ERP solutions with additional functionality. Mollart and the IIS Group worked closely to further develop one module, B1 Production, to include tools such as for trial kitting, configure to order and work floor production processes in one solution. As a result, Mollart was awarded the IIS Group and SAP Run Faster Award for their use of SAP Business One and also selected as a finalist for the ICT in Manufacturing category at the Manufacturer of the Year Awards 2014.

• Retail & Ecommerce

Kick start your business with the maket leading ERP solution for SMEs Bring your business processes into one place with SAP Business One – the world’s most popular ERP solution for small to medium-sized manufacturing firms. In SAP Business One your business can control: • • • • • •

Morgan Browne, Chief Executive, IIS Group

Sales & CRM Inventory & Distribution Accounts & Financials Production & MRP E-Commerce Much more...

IIS Group helps trim costs, eliminate waste and improve performance with our customised business management solutions.

Try SAP Business One today with affordable finance options now available • • • • •

Over 350 successful ERP implementations SAP HANA specialists SAP Gold Partner UK’s leading SAP Business One VAR For 2 users to 250 – from just £59 per month

If you’d like to see how SAP Business One can take your business to the next level contact IIS Group:

0121 289 3232 • Manufacturing

• Wholesale & Distribution

www.iisgroup.eu

info@iisgroup.eu

• Retail & Ecommerce

• Professional Services

• Healthcare

• Oil and Gas

ERP 2015 Exel Computer Systems Plc

EXEL

CELEBRATES

OF ERP INNOVATION Exel Computer Systems plc, the UK-based author and developer of EFACS E/8 Enterprise Resource Planning (ERP) system, has announced a landmark achievement of 30 years’ success in delivering innovative IT solutions for the manufacturing sector.

t was back in 1985 that Dr John Ellis, Exel’s founder and current chairman, established Exel Computer Systems having recognised a distinct market need for capacity planning systems whilst working on research projects at PERA. This led to the development of the first version of EFACS, a Unix and Informix based software solution for capacity planning and manufacturing. Since the company’s inception in Nottingham in 1985, the team at Exel

has been continuously developing, improving and expanding on that solution to stay at the leading edge of technological advances, and in many ways they have helped to deliver some of the advancements made within the manufacturing and service industries. Over the past 30 years, EFACS has grown from a capacity planning and production solution into a fully integrated comprehensive business solution, incorporating full ERP, financials, CRM, field service, document management, business intelligence, workflow, and mobile applications. Jonathan Orme, Exel’s sales, operations and marketing manager, has been with the company for more than 20 years and reflects on the significance of Exel’s longevity, a rare thing in the technology industry. “To a large degree 1985 was like a different world; televisions only had four channels, a family home could be bought for £25,000, and the first dot com domain in the world was registered. Now think of how

much the IT/technology market has grown and changed throughout this time, especially in the areas of mobile communications technology. Throughout these years we have remained committed to understanding our customer’s real business needs and continuing to develop powerful yet customisable solutions that meet these needs in the most future-proof way possible. This is why we have such a high proportion of customers still using our solutions five, 10 and even 20+ years later.” During the past 30 years Exel has supplied some of the best known manufacturing and service companies worldwide such as Royal Crown Derby, Triton Showers, Naim Audio, TT Group, James Fisher Nuclear, Meyer Group, Safestyle UK and Magellan Aerospace. One such customer is President Engineering Group (PEGL), winners of the Chamber of Commerce Manufacturer of the Year Award 2014. Marie Cooper, financial director comments on the significance of EFACS E/8 in helping them achieve this. “A key factor in PEGL’s ability to increase productivity and efficiencies was the implementation of an upgrade to our ERP system, supplied by Exel, to their 8.5 version of the EFACS solution. We had used EFACS 8.2 for over 15 years but the innovation brought by the new technology has allowed us to be more proficient in processes and has given a flexible and adaptable foundation to add in other functionality such as the QA module and touchscreen technology to the shopfloor.” Jonathan Orme concludes: “To date, Exel has sold hundreds of systems, and there are thousands of users of our software in over 20 countries around the world. However, the key to our success remains being a technology led Software Author, which is as true today as it was back in 1985.”

Connect MES | 17 June 2015 Birmingham

#MESConnect

software drive your business YOUR

SHOULD

NOT STOP IT! In this highly regulated industry, it is vital that your MES provides access to your manufacturing data in real time and maintains complete traceability across all your production lines to ensure the integrity of your brand. Connect MES unites all the premier vendors in one place, at one time to enable you fully evaluate your options to ensure you select a system that will meet all your business needs.

mesconnect.co.uk Sponsor

ERP2015

Elizabeth House, Block 2, Part 5th Floor, 39 York Road, London, SE1 7NQ T +44 (0)207 401 6033 F + 44 (0)207 202 7488 www.themanufacturer.com