Genius ERP: ready out-of-the-box for custom manufacturing.
During a session titled The Processes of Ownership Transition at the recent National Association of Trailer Manufacturers (NATM) 2016 Convention & Tradeshow, Stephen Hauser of Corporate Finance Associates suggests: "In order to truly get the highest value multiplier for their company, owners need to ensure they follow three detailed stages; operational improvements, detailed evaluation, and the actual sale process."
An ERP can be a practical fit at the operational improvements stage of Stephen Hauser’s detailed steps for preparing for ownership transitioning, where a manufacturing specific software can add value by providing actual real-time organizational data that can be used in the later stages of a sale. Mr. Hauser presented data from a Deloitte study that further pointed out that over 90% of corporate and 96% of private equity buyers failed to achieve their expected purchase ROI, consequently putting downward pressure on EBITDA multiples paid for small- to mid-size companies.
Hauser's presentation concluded that there is a performance premium paid to companies that can increase their margin and their sales through increased operational efficiency; which, in turn, can lead to a higher EBITDA multiplier. This would be a perfect reason for a company, even on eying ownership transition in the near-term, to implement a manufacturing software ERP.
A manufacturing specific ERP software is designed to help an organization coordinate order-to-cash process, through managing purchases, inventory, work-in-process while also managing production scheduling for maximum efficiency. The data realized at each phase can be tracked and reported on, allowing quicker reactions to bottlenecks and KPI reporting. A company’s management can integrate and synchronize their processes, so the entire organization can focus on making products better, faster, and more profitable.
Despite these clear benefits resulting from the many tools and techniques of project management – most notably quality control and scheduling – it is important to have a correct and established methodology in place in order to manage tasks, set clear milestones, manage lead times, and handle stakeholders during the project lifecycle.
Genius Manufacturing ERP is designed specifically for custom manufacturers in today’s demanding and fast-paced manufacturing landscape. As such, the solution includes a complete module dedicated to project management in order to help your company reap the benefits of quality control and lead-time management.
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