Saturday, July 21, 2018

Attributes of an effective ERP for the energy industry

by Shaw Denton (writer), New York, September 17, 2014

Credit: Synergy Resources
ERP Solution Provider

The implementation of manufacturing ERP software for the energy industry includes business specific ERP customization and setting a strategy to enable flexibility for further improvements.

ERP solutions have become essential in the energy industry to help companies provide service to their supply chain and to fulfill customer demand. Whether it’s an electrical valve manufacturing business or an oil field company, companies need unique insight into order management. By using cutting-edge manufacturing ERP software for energy industry, the companies that deal in energy based products or services can improve their process efficiency.

Whether a manufacturing company offers products and services for natural gas, coal, petroleum, wind, solar, geothermal or nuclear energy generation, it needs robust ERP solutions to keep the costs down. Moreover, customization and intricate product configuration become easy with the help of some VISUAL ERP solutions. The first step in installing ERP solutions is to get the business’ specifications.

Business specific ERP customization

Before implementing an ERP tool, the first step is to identify the specific needs of a business. The tracking capabilities of an ERP system should be utilized only when the customization requirements are clear. If the customization is carried out well, then a manufacturing company gets the following benefits:

  • All manufacturing processes come under the ERP-based tracking
  • Financial periods are closed faster
  • Supplier management becomes more efficient
  • Order history can be maintained easily for personalized customer interaction

After ERP customization is over, the next step is to make a strategy for production optimization.

Setting the strategy for enabling flexibility

Manufacturing units in the energy industry need to respond quickly to trends and change customer demands to maintain their competitive edge. The production pattern needs to be altered in a flexible manner. One of the bottlenecks in the manufacturing process that adversely affects the production efficiency is a traditional ERP solution. So, the objective of installing a new one is to integrate manufacturing and financial data.

Assume that a company manufactures a specific type of electrical valve that needs to be customized for each customer. To improve efficiency in this kind of manufacturing that requires a high level of customization, the ERP solution should provide material requirement planning, comprehensive production scheduling and effective tracking.

Monitoring of results for further improvements

The results of the ERP solution implemented in the manufacturing process needs to be monitored for dynamic improvements. In the example given above, a well-reputed ERP solution provider offered a product configurator solution to the manufacturer for better efficiency. It allows customers to place orders for customized valves easily via manufacturer’s online portal. This integration improved all the business processes of the relevant manufacturing company including customer service.

Monitoring all the aspects of the ERP solution helps to learn about the areas that need more focus. For example, the integration between finance and production operations can be further streamlined by monitoring results on a continuous basis.

About the Writer

Shaw Denton is a writer for BrooWaha. For more information, visit the writer's website.
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