Here at Exact MAX, we talk every day with electronics and high tech manufacturers that are looking for ways to control their costs, maintain high quality standards, manage complex supply chains and meet very demanding timelines. They want to know if an ERP system can help them better manage their business issues and get a leg up on their competition.
The good news is ERP can! So today we thought we'd do a recap of one of our previous posts on this topic. Read on for the 5 must-have ERP features to be on the lookout for if you're an electronics or high tech manufacturer.
1. Shop floor execution
Controlling costs is one of the most important tasks for electronics manufacturers and excellent shop floor execution leads to lower costs. To be certain your team has the tools they need to set the right priorities and eliminate waste, look for visual shop scheduling tools that let your planners maximize throughput. It will also help your shop supervisors always know the right job to work on next to ensure on-time deliveries to customers.
Since outsourcing is also an important part of electronics manufacturing, look for an ERP system that provides simple procedures for sending material out and receiving it back in when it’s ready. In between those times, you need visibility to ensure that you can make accurate delivery promises and decisions regarding materials.
2. Lot and serial tracking
Electronics/high tech manufacturers are subject to a variety of strict national, regional and international regulations. You need lot and serial control to be able to prove item composition and country of origin for duty drawbacks, VAT taxes or for RoHS and WEEE compliance. In the event of safety, environmental or performance issues, accurate product genealogy can simplify recalls (learn more about managing recalls) and minimize the cost of compliance.
3. Quality management and document controls
Maintaining and following procedures and recording inspection and test results is crucial to compliance with regulations and certifications such as ISO, so every electronics/high tech manufacturer should ensure that any ERP system under consideration has robust quality capabilities and the ability to attach and manage documents such as procedures or test specifications.
4. Warranty tracking
Consumer electronics, computers and other electronic industry products often include warranties that spell out the manufacturer’s obligations and the buyer’s specific rights. Your ERP system should be able to recognize the warranty period based on the item’s serial number or ship date to track warranty costs and to ensure correct invoicing for out of warranty work.
5. Compliance controls
Electronics and high tech companies are subject to many forms of compliance today and governmental regulations will likely increase over time. To comply with current and future regulations, ensure that your chosen ERP vendor is familiar with the compliance regulations that are unique to your industry and offers tools to support those requirements.
Although it's not necessarily a feature, you should also be on the lookout for a system that will be able to grow with your company, both in terms of adding new users and in providing new functionality as your company's needs change. The good news is many vendors continually add new features and functions with each new release. During the evaluation process, be sure to get a feel for how the vendor delivers ongoing innovation in value.
If you're looking for more tips on how to conduct your search for a new ERP system, be sure to check out our white paper: 7 Questions Electronics & High Tech Manufacturers Should Ask ERP Vendors.
