Process manufacturers demand features beyond core ERP

Source: PlantServices.com

Jan 07, 2009

Aberdeen’s latest ERP benchmark report, “ERP Plus in Process Industries,” found that best-in-class process manufacturers have implemented features beyond core ERP to better respond to process variability and regulatory requirements, including recalls. For example, Aberdeen, reports that best-in-class companies are 96% more likely than all others to have forward and backward lot traceability and are 1.7 times as likely to be able to respond to recalls in the time required by regulatory bodies.

“In many of the process industries, the ability to respond to a potential recall is essential. Aberdeen's research shows that best-in-class process manufacturers have improved in this critical capability by a 20% margin year over year. A full 65% are now able to respond to a mock or real recall in the time required by regulatory bodies, (up from 54% last year) and 25% are able to do so in a matter of minutes (up from 19% last year), indicating more automated processes and better control,” says Cindy Jutras, vice president and group director for Aberdeen. “In contrast, we saw a reverse trend in the 80% of respondents which are not best-in-class, whose ability to respond dipped by 20%. As regulatory requirements stiffen, business velocity quickens, and the rate of change accelerates, the majority of process manufacturers are not keeping pace.”

The report makes specific recommendations to improve performance, including the following:

  • Use industry-specific features of ERP to automate the process of complying with regulatory requirements, including mock and real recalls
  • Use continuous improvement teams to build out ERP capabilities
  • Reduce dependence on spreadsheets and manual processes
  • Make integration of enterprise applications a priority

A complimentary copy of this report is made available due in part to Fullscope and Tectura. To obtain a copy, visit http://www.aberdeen.com/link/sponsor.asp?spid=30410182&cid=5382.

For additional access to complimentary ERP research, visit http://research.aberdeen.com/index.php/ERP-and-Finance/.

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