FOCUS ON CONTROL TECHNOLOGIES
ERP process examples
■ Inventory management : From MRO to equipment spares , ERP can act as a centralised resource for inventory tracking , data analysis and replenishment strategy .
■ Supply chain : ERP enables visibility and organisation for vendor performance tracking and can draw on data from internal and external sources to assist with more efficient supply chain planning and management .
■ Maintenance : Manufacturing ERP software facilitates effective maintenance by centralising scheduling , ticketing and work order management , while also enabling powerful data tracking and analytics to improve maintenance effectiveness .
■ Equipment performance tracking : ERP modules can store , track and analyse equipment performance data from sensors and reports , enabling more informed , proactive , targeted maintenance .
■ Quality assurance : Enterprise resource planning software can track QA results , creating vast data stores over time that can play a role in the early identification of maintenance needs .
■ Purchasing : With ERP , purchasing and requisition can be easily organised and can operate with visibility into other relevant areas of the operation .
■ HR : In addition to manufacturing operations and support , ERP can also be applied to HR functions such as performance reviews , goal tracking and more .
Material Requirements Planning ( MRP ) is a function of ERP .
the forecast period ,” added the analyst .
The Cloud ERP market was estimated to be worth roughly US $ 18,523.50 million in 2021 and is expected to reach US $ 47,760.01 million by 2028 , based on primary research by the analyst . It projects North America to dominate the worldwide Cloud ERP market . The cloud-based ERP market in Asia-Pacific is expected to grow the fastest , followed by Latin America and the Middle East . In Asia-Pacific , the demand for transparent and modernised manufacturing processes is expected to drive the growth of cloud-based ERP software during the forecast period .
Market shifts
According to analyst Grand View Research , the large enterprise segment held the largest ( over 39 %) share of the ERP software market in 2022 . The rising need of large enterprises to maintain and align complex processes such as production planning ; inventory management ; procurement ; order fulfilment and shipping , among others , is attributed as one of the key factors driving the segment ’ s growth . The high spending capacity of large-sized enterprises on implementing modern technology and software solutions also facilitates the adoption of cloud-based ERP software in the market .
However , it expects the medium enterprise segment to witness significant growth and dominate the market by 2030 .
“ Factors including cloud-based ERP ; increased operational efficiency ; reduced production cost and on-time product delivery are expected to augment demand over the forecast period . In addition , the expansion of firms requires proper management of databases which is expected to propel market demand further . Compliance with stringent government regulations in various industries has facilitated the utilisation of ERP software , increased productivity and reduced operational complexity in numerous sectors ,” explained the analyst .
Mainstream manufacturing companies and ERP software vendors in North American and European markets are engaging in numerous partnerships , contributing to segment growth . Rising automation and digital transformation processes across the manufacturing industries in the emerging countries of the Asia-Pacific are also anticipated to offer numerous opportunities to the ERP market .
“ Additionally , the growing need for businesses to make quick strategic decisions to enhance the productivity and profitability of the industry allows companies to deploy ERP solutions that generate reports based on realtime insights into market conditions , thereby contributing to market growth ,” explained the analyst .
“ North America dominated the ERP software market with a share of over 35 % in 2022 . The Asia-Pacific market is expected to grow due to the booming manufacturing sector and growing small and medium enterprises ,” it added .
28 | ismr . net | ISMR July / August 2023