3 Reasons VISUAL ERP is Better Than Legacy ERP Software
In order to truly understand what sets VISUAL ERP apart as the best enterprise resource planning software available today, it’s important to first understand its evolution. Like most modern technology, VISUAL has undergone a dramatic transformation throughout the years—thanks to multiple factors such as evolving technology, consumer demand and the ever-changing regulatory landscape.
When the idea of ERP first came out in the 1970s it was known as MRP—Material Requirements Planning. At the time, MRP was a “push” system in that the software catered to manufacturing companies focused on forecasted demand. The concept of MRP was to help streamline shop performance by forecasting material to buy, keeping up with demand. While it worked perfectly when demand remained steady, the problem with MRP was that it was incredibly inefficient when demand slumped. Manufacturing goods only to have them sitting on a shelf is a waste of time, money and space. Most systems started with the concept of MRP early on, but as you can see, it didn’t take long for its inefficiency and unreliability to shine through.
Fast-forward to today where the concept of MRP has morphed into ERP, but is now overshadowed by the endless benefits of VISUAL ERP. The following are just examples why VISUAL ERP is more efficient than legacy ERP systems:
1. Customized Work Flows
Companies following mix-mode manufacturing methods are known for employing both push and pull processes. Mix-mode means both making to order and making to stock. It typically involves making stock assembly of a particular project, while the final project itself is scheduled to order.
When you’re building to stock, you’re attaching a single part # to many pieces that may end up sitting on a shelf until they are needed. If you’re building to order in a legacy ERP, you must create a part # for everything you make—which in turn can clutter up your part master. Another way to seriously clutter up your part master involves buying material you’ve never bought before or don’t intend on ever buying again. Most systems would require you introduce the information for this non-stock item into your parts master; a process many will agree is a giant pain in the rear.
VISUAL ERP, however, allows you to purchase these non-stock items and create custom work orders without having to input all of the information in to the parts master. VISUAL was originally designed for custom manufacturing, whereas almost all other ERP systems are designed with MRP as their roots.
2. Total Transparency
Every ERP system will claim the ability to shorten lead times. Don’t buy into all the brouhaha. VISUAL ERP does what no other does—it offers complete and total transparency into your shop performance. VISUAL allows for simulations and what-if scenarios, in order to garner useful information on how to shorten on-time deliveries, as well as understand how tweaks to your scheduling can increase profitability and therefore impact your bottom line.
VISUAL will tell you realistically when a product can be shipped for delivery because it has the ability to see constraints before they happen. VISUAL signals where the bottleneck is—and then gives you suggestions on how to fix it. Other ERP systems allow for drag and drop on a Gantt Chart, but offer ZERO information as to why and how your scheduling impacts your overall shop performance and profitability. VISUAL will tell you if problems will occur, what the problem is, how you should fix it and then gives you the results well before you execute to the shop floor.
3. Real-Time Material Planning
The olden days of MRP leaned heavily on pre-determined formulae that took into account quantity of material on hand, how much you need to meet forecasted demand, and how long it would take to buy or make more. MRP would also tell you when you should purchase or make more material. This would, as a result, help you determine your purchase orders and work order flow. The problem with this method is that you’d have to run this MRP formula each and every time before you know how it impacts your plan. And if the formula isn’t run each and every hour, the end result is a shop making material planning decisions based on stale information.
VISUAL updates material plans in real time—meaning you’ll have an accurate portrayal of your shop needs as soon as a purchase order is received, as soon as material is scrapped, as soon as anything happens. Other ERPs can lead you to buy materials you needed yesterday. VISUAL knows your needs right now!
At Synergy, we believe Visual ERP possess the following unique attributes:
- Ease of Use
- Functionally Rich and Robust
Together, these three characteristics can help give you full visibility of your actual costs and potential throughput—which in turn allows you to price your products aggressively, as well as make promises of on-time delivery you can keep to new and existing customers. If you’re interested in improving the performance of your business, contact us today to see what Visual ERP can do for you.