ERP essential to successful production outsourcing

One of the key lessons for SME manufacturers looking to move production overseas is that effective ERP systems are an essential prerequisite. That’s the top line message from a White Paper on outsourcing from Syspro ERP system developer McGuffie Brunton. In the ‘Role of IT’ section the White Paper states: “Despite the obvious advantages made possible through manufacturing outsourcing, many organisations find it difficult to effectively incorporate overseas partners into their business practice, and so establish viable outsourcing or offshoring programmes.” McGuffie then postulates that the main reasons for this are the obstacles to gathering data, providing analysis and sharing information in a timely manner. “Any solution that can enable companies to better perform these tasks can help reduce risks and significantly improve the potential for outsourcing and offshoring to deliver a substantial return on investment,” it says. Commenting on the White Paper, Howard Joseph, Sales Director of McGuffie Brunton, said: “We set out to examine the growing trend of smaller firms following in the footsteps of larger manufacturers in moving some, if not all, of their production to lower cost base countries,” explains Howard Joseph, sales director of McGuffie Brunton. “The document also addresses the issues and problems surrounding such a major move; how to avoid the pitfalls; how businesses can make anticipated gains; and the pivotal role that information technology can play in making it a successful venture.” The White Paper draws upon the findings of recent reports and studies on the subject, and the typically positive experiences of a number of McGuffie Brunton system users. Joseph cites Premier Percussion, one of the world’s largest producers of wooden drums and a Syspro 6.0 ERP system user, which now successfully manages production at the company’s UK factory and outsourced facilities in both Taiwan and China. He also points to industrial controls manufacturer Amot, which uses the same system to look after facilities in the UK and China, and has achieved significant costs savings by tracking the China operation, making sure that production runs smoothly and employees understand the system. The Outsourcing White Paper is free of charge and available by calling McGuffie Brunton on 0161 876 4498, or e-mail sales@mcguffie.co.uk