Most people don’t get too excited about cloud ERP, after all it is a dull subject for most. That said, Microsoft Dynamics Business Central is a new kid on the block, and they are making a lot of noise in this space. Business Central is part of the same platform where people go to get Outlook, Word, Excel etc. It’s part of Microsoft 365, and Microsoft Business Central manufacturing ERP is gaining a lot of fans.
A big reason why Business Central is becoming so popular has to do with how it is licensed. Business Central is among the first cloud based ERP systems that fully supports manufacturing processes, and is truly month-to-month subscription based. The dirty secret in the cloud ERP world is that most of the big systems are cloud and they are subscription – but they are year to year licenses. When you go looking into the bigger players, you are often laying out tens of thousands of dollars to get started. This is better than when ERP systems had a six figure price tag just to get going. With this new pricing model, for the Small and Medium company Microsoft Business Central manufacturing is far better.
Here at Sabre, we are experts at implementing Microsoft Dynamics manufacturing systems, particularly Business Central manufacturing. That’s not entirely bragging – it is based on a well respected thought leader. Malcolm Gladwell says that it takes 10,000 hours of practice to become an expert at something. Our typical competitor might implement one manufacturing project out of every 5. So their average consultant would take something like 25 years to achieve 10,000 hours of practice. We do exclusively manufacturing, so we achieve in 5 years what takes them 25 years.
In my years of working with manufacturers and doing ERP consulting, many customers avoided making the decision to purchase a manufacturing ERP even though they knew that their business desperately needed it. Here are some reasons why people avoid purchasing, and my top tips for maximizing a manufacturing ERP system they do buy.
Dynamics 365 MRP in Business Central is very advanced and full featured. The material requirements planning module allows users to accelerate supply chain management by automating purchase orders and production orders based on inventory and warehouse data.
It is often paired with Distribution Resource Planning (DRP) and Master Production Scheduling (MPS) to create a finished good schedule, allowing for master planning or “full planning” with a complete set of control processes which automate production and purchasing for manufacturing.