| The argument for a holistic ERP solution against best | | | | then integration ERP software is a clear winner. |
| of breed, point systems to handle organizations' | | | | Having several best of breed applications inevitably |
| supply chain management execution and logistics | | | | creates silos of information across a business. |
| requirements has waged for many years and is | | | | Whatever best of breed solutions claim about their |
| almost a religious argument. | | | | applications' ability to integrate with other business |
| The ERP solutions case has always been about | | | | management supply chain systems, there is simply no |
| implementing a common technology platform that can | | | | comparison with an integrated ERP solution. |
| deliver a fully integrated ERP system across an entire | | | | The whole principle of an ERP system is that it is |
| organization, generating cost savings and reduced | | | | already integrated - best of breed simply can't win |
| implementation times. | | | | this argument. Often each best of breed application |
| Best of breed argues that companies need the | | | | has its own reporting tools, its own database |
| additional functionality and expertise that can only be | | | | management system and its own specific means of |
| achieved by working with specialists in a particular | | | | operation or integration. A good ERP system has a |
| field. | | | | common solution for each of these across the whole |
| The answer, as is so often the case in business - is | | | | organization. |
| somewhere in between. Why should companies | | | | ERP also has an advantage when it comes to adding |
| sacrifice functionality for the significant benefits and | | | | further applications and functionality. For example, |
| cost-savings to be gained from an integrated system | | | | some solutions have created a Parcel Carrier |
| - and vice versa? There is no real right or wrong - it | | | | Integration (PCI) application that allows companies |
| is all about identifying the business drivers and how | | | | seamless integration between the supply chain |
| best to meet them. | | | | inventory management systems and the parcel |
| Not all ERP software solutions are the same. Some | | | | carriers' own systems as well as customer services. |
| established ERP systems have a supply chain | | | | In doing so, PCI allows customers to save time within |
| solutions heritage. This means the functionality and | | | | the warehouse, provide increased carrier flexibility, |
| multi-location, multi-country and vertical specific | | | | reduce errors, improve customer service and increase |
| capabilities of each element of the system holds up | | | | overall profitability. To add this functionality using a |
| well, and often more favorably, against many of the | | | | best of breed application would require considerably |
| best of breed suppliers. Even with functionally rich | | | | more in terms of time and cost to implement |
| solutions the largest extremes of warehouses or the | | | | because it would have to be integrated with existing |
| most complex transportation requirements can | | | | systems - if it were even available. Indeed most |
| probably only be handled by a specialist advanced | | | | warehouse management software systems do not |
| best of breed system. This is because the total ROI | | | | have their own transport systems and often partner |
| stacks up, but the reality is that these form a small | | | | with other best of breed solutions. As part of an ERP |
| percentage of the market. | | | | system it is already integrated and can be |
| Most companies need to look very closely at the | | | | implemented and working very quickly. |
| bigger business benefits to implement ERP as an | | | | Where an ERP solution can bring specific industry |
| enterprise-wide integrated system, against the | | | | capability, experience and high levels of supply chain |
| advantages to be gained from having the odd extra | | | | execution functionality, the argument for going best |
| feature or capability. | | | | of breed is a hard to one to win. For the sake of |
| The functionality of ERP systems has risen | | | | selective localized productivity improvements, |
| dramatically over the years and the gaps between | | | | companies are adding significant costs, increasing |
| them and best of breed applications are becoming | | | | implementation time and risk and missing out on the |
| less and less. The decision between the two may | | | | massive benefits gained from complete integration |
| come down to companies' overall IT strategies. If it | | | | and lower costs of ownership. |
| is already fragmented then it makes sense to add | | | | Companies should not just settle for either option, |
| best of breed applications for specific operational | | | | they need to know that they are getting a system |
| areas. However, if the strategy is to move to a | | | | without compromise. At the end of the day the |
| more rationalized common operating platform that | | | | secret is delivering business benefits and increased |
| can enable faster, more cost-effective deployment, | | | | profitability and finding the right ERP solution for your |
| complete integration and visibility that provide | | | | business. |
| comprehensive means for measuring the business | | | | |