Mike on Manufacturing

How Do ERP Software Companies Survive?

By Mike Hart

You cannot operate an ERP software company out of your garage.  Overhead costs are substantial and are primarily people-based.  You need marketing and sales people, implementers and trainers, support staff, programmers, and administrative personnel. 

In my blog's Manufacturing Software Directory, I've compiled a list of 45 "mid-market" ERP systems.  With so much competition and high overhead costs, how do all these ERP software companies survive? 

Respect the Bill of Material!

By Mike Hart

The bill of material (BOM) is the foundation of any manufacturing system.  If you disrespect the BOM, you severely limit your efficiency potential.   

Disrespecting the BOM

You "disrespect" the BOM  when you don't give it center stage in your manufacturing processes.  Instead of using the BOM as the driver of MRP, purchasing, material issues, and costing, companies disrespect the BOM when they relegate it to the "cleanup" function of "backflushing" component inventory at the end of a job.