It is inevitable that for many companies experiencing growth, there comes a point when MRP software is needed. Here are 10 things you need to know before buying manufacturing software.

1. 10 THINGS YOU NEED TO
KNOW BEFORE BUYING
MANUFACTURING SOFTWARE

2. As the New Year begins, many businesses are planning expenditures for the
entire year. For many of these companies, those plans include equipment,
staffing, material, and a host of other useful things that will allow them to more
effectively manage their business.
But for some companies, especially those in the small to medium sized category,
one thing on their shopping list is manufacturing software.

3. It is inevitable that for many companies experiencing growth, there comes a
point when spreadsheets, Google Docs, and an ad hoc collection of other
software no longer works well for planning and scheduling or for managing
finance and inventory. As growth accelerates, managing these disparate sources
can impede efficiency and lead to costly errors or missed deliveries.

4. Must Haves
Regardless of other features and considerations, there are certain “Must Haves”
for manufacturing software to be useful. These include:
Strong Materials Planning and Costing – A software must allow for
scheduling, forecasting and materials plans. There should also be robust
reporting to allow decision makers to act on what they see. Scheduling should
be dynamic and have multi-level BOM capability.
Shop Floor Management/Control – This database allows control of shop
activity from capacity to staffing to work in progress.

5. Must Haves
Inventory/Supply Chain – For many SMBs, inventory is critical in controlling
cash flow. No one wants to have too little to complete orders but too much can
bind up valuable cash required for purchasing. Inventory control should allow
for low inventory alerts, lot tracking, shipment planning and a host of other
features.

6. Manufacturing Software – a Long List to
Choose From
With the power of the internet and the proliferation of cloud computing and
Software as a Service (SaaS), there are many options to choose from when
selecting manufacturing software. As a small or medium sized business, this
number of options can be confusing. In-house skillsets required to fully
understand the options may not be available as many staff members in smaller
operations perform many numerous tasks.

7. Manufacturing Software – a Long List to
Choose From
But manufacturing software selection is critical for several reasons. First, it will
be the engine that drives efficiency and ensures a company can control costs
and meet deliveries. Secondly, it is a long-term investment that will become part
of the company culture as the enterprise grows and the system matures. And
third, selecting the wrong software can make worse the problems the software
was supposed to solve.

8. Manufacturing Software – What to Know
Upfront
But the choice doesn’t have to be one that includes high anxiety. With a little
research, common sense and an understanding of your business, the list can be
narrowed down to a few vendors that will fit an operation perfectly. Here are
some of the key requirements to know before purchasing manufacturing
software:

9. Know Your Strategic Requirements – Some areas of small to medium
businesses (SMBs) may need more automation or tracking than others
depending on production strategy. While others want to automate everything
possible to stay ahead of rapid growth. And companies considering software
should develop their need for manufacturing software around their strategic
plans for business growth and market penetration. If you know you are adding
new production lines or service offerings, this should be included in
consideration of required functionality even if they may not begin production
until some point in the future.

10. Know Your Functionality Needs – No one wants to overpay for an expensive
contract and unnecessary functionality. In the beginning stages of selection, an
honest assessment of current needs will help. Understanding needs and
ensuring those needs are met with the right contract will reduce unnecessary
costs associated with too much or too little functionality. Most agile software
providers offer plans that allow upgrading for added functionality and some
even offer functionality a’ la carte.

11. Determine the Impact on Staff – Manufacturing software isn’t just a computer
program. It is a purchase that will become an integral part of a company
culture. Long learning curves can have a negative impact on that culture and
result in less efficient practices instead of good ones. By establishing these
effects up front, new programs can be vetted for impact to ensure success after
purchase.
Try Before You Buy – Many vendors offer full feature trials that allow you to
use your data in a real-world environment. This can be an invaluable tool to
determine the fit, as well as to discover functionality you hadn’t considered but
fits for a stronger value add.

12. Negative vs Positive Customization – Customization with manufacturing
software can either help or inhibit a company.
Negative Customization: If the customization required results in long learning
curves, extensive training, added cost, or a lengthy “debugging” process, it can
drain resources and be difficult to use throughout its life cycle.
Positive Customization: If the customization is available in an intuitive
interface that can be performed by any staff member with no effect on
functionality, or one that creates improved functionality, then this agile flexibility
will have a strong positive effect.

13. Speak with Existing Clients – If possible, speak with other companies who
have used the software. Most vendors can supply references of real-world users
who have had success with the software. This gives companies considering
adoption the ability to ask questions about bugs, customer service, learning
curves and other use case scenarios.
Seek Professional Advice – Most SMBs don’t have the in-house skillsets
required for a deep code-level evaluation of manufacturing software. And while
most vendors in this space today offer quick and simple export of data into their
platform, a reputable ERP expert can lend advice and help point out things that
may not have been considered.

14. Data Security – In a world where data hacks and breaches are common, it is
good practice to vet the vendor for security. Good vendors will disclose
protocols, certifications and safeguards designed to protect their client’s data. It
is always good to know this beforehand.
Integration – Every company has other software programs that are vital to its
operation. These may be specialty programs that do not impact manufacturing
software. But, most good platforms will at least have the ability to integrate with
programs such as Xero, QuickBooks and others. These tie-ins can greatly
enhance the effectiveness and utility of the manufacturing software and improve
a company’s operations by eliminating another set of dual steps when
integration is required.

15. Updates – While there are some benefits to on-site hosting, most cloud-based
service providers can offer a tremendous advantage by comparison. With
cloud-based systems, a company is always using the latest version and updates
are continuous. Choosing a hosted on-site option may open a company up to
expensive upgrades or to degraded service levels when upgrades are not done.
There are many options for manufacturing on the market today. And while the
process of choosing a new software can be daunting, it doesn’t have to be.
With research, planning, accurate assessment of needs and reliance upon staff,
the best options will become apparent to point you to the right provider.
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