ETO Multi-site Manufacturing Requires AX 2012

Dec. 17, 2011 - PRLog -- The ETO manufacturer faces several unique supply chain challenges, such as Multi-site supply chain, material requirements pegged to project or project task (WBS), and unique, one-of-a-kind materials for specific product or project. Streamline Systems recently published a vital tool for Engineer-to-Order manufacturers; the white paper is objective and looks at the history, trends, and future of ETO manufacturing.  Larry Cohn and the ETO experts at Streamline Systems work with industrial manufacturers to manage and grow their businesses through the effective use of software designed for engineer to order manufacturing companies. The paper discusses the development of ETO ERP Solutions, including AX2012 ETO ERP. The Streamline Systems ETO ERP white paper may be requested at:  http://www.streamlinesys.com/engineer-to-order.php.
Additionally, the third installment of the ETO Streamline Systems blog,  http://www.streamlinesys.com/blog/ focuses on how AX 2012 enhances the ETO Supply Chain .
Multi-site manufacturing supply chain
Many ETO companies build at multiple manufacturing sites, across legal entities.  Each site has their own supply chain staff working to handle the material requirements at their facility, even when there are common materials that could be planned and purchased for all facilities at a greater volume discount.  Many ERP systems are not able to handle the multi-site supply chain with ease.

With AX 2012, ETO manufacturers view and manage the supply chain across the enterprise, consolidate purchases and gain the benefits of lower overall material costs.   The multi-site company can automate many of the supply chain processes, create centralized supply depots where applicable and gain the cost savings of consolidated purchasing.  AX 2012 helps ETO manufacturers to establish a centralized procurement desk capability across the organization to support procurement policies and processes.


Project-oriented planning tools
Another interesting aspect of the ETO or BTO builder is the need to link or peg materials directly to specific projects or tasks within the WBS of the project.  Traditional ERP solutions cannot handle project/task material requirements without obscuring material availability or diluting costs for common materials applied to a project.  ERP for ETO must link materials to projects and specific tasks while providing bucketed supply chain overviews, planned orders, exception messaging, rescheduling and order qualifiers.
With AX 2012, the Project Managers and planners have the best of both worlds.  Since requirements come directly from project tasks materials are delivered exactly when they are needed.   Planners have project- oriented shortage reporting and visibility.  They use a single bucketed supply screen to evaluate and execute the supply plan, including creating or firming purchase or production orders or Kanban supply.
Unique, one-of-a-kind materials
The ETO supply chain professional deals with unique, one-of-a-kind, materials.  Their sourcing often involves an extensive search usually followed by a bid or Request for Quote process.  In many cases the items may never be used again.  Minimum order quantities and other supplier constraints put additional cost pressures on the ETO builder.
AX 2012 makes it possible to quickly process these unique requirements through an integrated RFQ process.  From the RFQ they can be immediately converted to a purchase order that schedules and assigns the material directly to the project. The supply chain professional can save valuable time and reduce steps that add overhead and result in the potential cost impact of delayed materials.  AX 2012 ETO for ERP provides a means to handle non-stock items so unique materials do not have to live in the product master data forever.
AX 2012 ETO from Streamline Systems can also be followed via Twitter @StreamlineSysAX.

Streamline Systems, LLC
www.streamlinesys.com
Larry Cohn
PRinfo@streamlinesys.com
720-200-0142