If you're an electronics manufacturer and you've found yourself in the position of needing an ERP system, or a replacement ERP system, be aware that not all ERP systems include the basic functionality necessary to support critical processes in electronics manufacturing. To ensure you get the functionality you need to run your electronics manufacturing business, consider these things during your ERP vendor evaluation process...

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 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.

Outsourcing is still an important part of electronics manufacturing, so your chosen system should provide 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.

Lot and serial tracking

Electronics 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 and minimize the cost of compliance.

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 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.

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.

Built for growth

The ERP system you choose should 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.

Compliance controls

Electronics 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.

Consider all these factors when you evaluate a new ERP system and you can be confident the vendor you choose will be able to support your company for many years to come.