Aberdeen: Process Manufacturers Want Features beyond Core ERP

December 19, 2008 // Published as a news service by IHS

Aberdeen found that 62% of manufacturers are unable to respond to a mock or real recall within the time required by regulatory bodies.

However, leading companies are 96% more likely 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," said Cindy Jutras, vice president and group director, Aberdeen.

"Aberdeen's research shows that best-in-class process manufacturers have improved in this critical capability by a 20% margin year over year," Jutras said.

"Sixty-five percent 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.

"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%," Jutras said. "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 the following recommendations to improve performance:

• 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.

To obtain a complimentary copy of the report, titled ERP Plus in Process Industries, visit the Aberdeen web site.

Source: Aberdeen Group.