The Solution Provider Ecosystem for Discrete Manufacturing Enterprises

Summary

For many Discrete Manufacturing Enterprises, technology solutions are not all just about ERP (enterprise resource planning).  Certainly the ERP is at the heart of the technology portfolio of any discrete manufacturer. In addition to the core roles played by ERP solutions, many other areas often are necessary to provide full support for the broad range of requirements that many discrete manufacturing companies now face. Our software solution selection practice has led us to develop a different view of the solution providers from the traditional analyst view of corporate size vs. vendor size and functional footprint.  We recognize that for the discrete manufacturing industry the solution set that an enterprise may need goes beyond just the core ERP system. 

Our view of the ecosystem is as follows.  We will start with those areas that are outside of what most ERP solutions can provide.

An additional note to what you are seeing below in the ecosystem graphics is that some vendors are in a box with another vendor.  This is a typical pairing of the software solution with the systems integrator or value added reseller of that product.  Many of the larger main stream products (e.g. SAP, Oracle, Infor, MS AX or Nav) build their solution generically without any specific industry focus.  These companies often market their products through integrators or resellers.  The value added resellers have added industry specific configurations, modifications, or work flows to the baseline generic product.  Thus, it is the combination of the software product with the integrator/reseller that makes the solution discrete manufacturing specific. When we lead software selection efforts, we advocate that we work with the resellers and their associated solution instead of just the software company.  Do one examination of the team as a whole, since that is where the discrete manufacturing content comes from, rather than choose a product and then go through another selection to choose the integrator/reseller.

Manufacturing Execution Systems (MES)

In industry, a manufacturing execution system (MES) is a control system for managing and monitoring work-in-process on a factory floor. An MES keeps track of all manufacturing information in real time, receiving up-to-the-minute data from robots, machine monitors and employees.  These solutions are at the heart of an efficient manufacturing operation. 

MES can operate across multiple functional areas within the shop floor management arena.  These areas can include: management of product definitions across the product life-cycle, resource scheduling, order execution and dispatch, production analysis and downtime management, product quality data sampling and reporting, or materials track and trace. Manufacturing execution systems are also the system of record for the creation of the “as-built” documentation and lot tracking for what has been produced. To accomplish all of this they are often central to capturing the data, processes and outcomes of the manufacturing process. This can be especially important in regulated industries, such as food and beverage or pharmaceutical, where documentation and proof of processes, events and actions may be required.

Additionally, the MES can be seen as an intermediate step between the Enterprise Resource Planning (ERP) system and a Supervisory Control and Data Acquisition (SCADA) or process control system.  The SCADA systems have direct integration with the machine and process controllers that manage the activities of and interactions between the different automation systems that may be present on the shop floor.

Transportation Management and Delivery Systems (TMS)

A transportation management system (TMS) is a subset of supply chain management concerning transportation operations and may be part of an enterprise resource planning system. A TMS usually “sits” between an ERP or legacy order processing and warehouse/distribution module.  The TMS can be used to manage small parcel freight (e.g. FedEx and UPS), less-than-truckload freight (LTL), full truck load freight (TL), local route delivery planning and execution, as well as enterprise owned fleet management operations.

Warehouse Management Systems (WMS)

A warehouse management system (WMS) is a software application that supports the day-to-day operations in a warehouse. WMS programs enable centralized management of tasks such as tracking inventory levels and stock locations.  By combining a warehouse management system with a wireless network, mobile computers, radio frequency identification (RFID) technology, and voice picking applications, Barcoding can help fully extend your enterprise to the mobile worker, while increasing operational efficiencies and enhancing your customer service.

Integrated Business Planning/Demand Management (IBP/DM)

Integrated Business Planning (IBP) is the business planning process that extends the principles of S&OP (sales and operations planning) throughout the supply chain, product and customer portfolios, customer demand and strategic planning, to deliver one seamless management process. Integrated Business Planning is industry’s best practice model.  Demand planning is a multi-step operational supply chain management (SCM) process used to create reliable forecasts. Effective demand planning can guide users to improve the accuracy of revenue forecasts, align inventory levels with peaks and troughs in demand, and enhance profitability for a given channel or product.

Enterprise Resource Planning (ERP)

ERP is the heart of any enterprise’s information technology infrastructure.  This is the system that houses the general ledger, accounts receivable, accounts payable, asset management, inventory management, order management, procurement, and other basic modules.  This system is the heart and lungs of an enterprise.  Very little of what is here is actually differentiating but all of it is essential to an efficient, well run, best practices enterprise.

The Solution Ecosystem

This graphic shows how the supporting bubbles circle the central ERP environment.

Related Articles

This graphic shows how the supporting bubbles circle the central ERP environment.

These other articles published by GLB Global have content related to this topic.  Please feel free to review them as well.

Solution Ecosystem for Food and Beverage Enterprises

PLM Ecosystem for F&B – Why these vendors?