Global ERP hinges on centralized planning, says vendor
by Staff -- Manufacturing Business Technology, 4/1/2004 12:00:00 AM
Sure, using an ERP system internationally requires multicurrency, multilanguage, and other "multi" capabilities, but the trickiest part of a true global solution lies in centrally coordinating demand and production management. Dennis Michalis, CEO of ERP vendor Glovia, points out that more users are deploying global production-planning capabilities within ERP, putting a supply chain spin on what global ERP requires.
"For users, the 'multi' support is foundation stuff," says Michalis. "Today, users are looking more toward global planning."
Michalis points to Panasonic Mobile Communications, Tokyo, a Glovia user as well as an example of a manufacturer that pursues global operations using Glovia's ERP suite. Michalis says this Panasonic division plans centrally out of Tokyo for its sales in Western Europe, even though it has manufacturing operations in China and packaging in Eastern Europe.
Another customer attracted to Glovia's global capabilities is Varco International, a Houston-based manufacturer of oil drilling systems and rig instrumentation. Varco purchased additional factory planning functionality from Glovia and upgraded to the current version of the vendor's suite to better centrally manage global manufacturing operations.
Michalis says Version 7 of Glovia's suite supports global operations via several capabilities. On the demand side, the system aggregates forecast and customer order data coming from multiple locations and channels, and incorporates capable-to-promise functionality. On the supply side, the system places global demand in the optimal local production facility based on available capacity and inventory levels, while also considering factors such as cost or customer delivery date.
However, warns Michalis, even though an ERP system may have global capabilities, the end-user organization must make significant business processes changes to succeed at planning and executing globally. "Emotionally, the entire organization has to be committed to central planning, and make sincere efforts every step of the way," he says.
For ERP vendors, concludes Michalis, global ERP can require significant development work. In Glovia's case, he acknowledges, "taking our factory planning engine up and out of the factory took a lot of architectural wrangling." For users, the trend is to operate less on a plant-by-plant or even country-by-country basis, and "involve headquarters as the mastermind for fulfillment."
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