When sales for wines plummeted by 30% worldwide in 2009, wineries in Napa Valley responded by pinning their business hopes on direct-to-consumer sales. That's meant focusing heavily on marketing and distribution and utilizing tools not normally associated with pinots and malbecs.
Many have turned to Enterprise Resource Planning (ERP), integrated technology systems that let all the various pieces of a business operation communicate with each other.
ERP historically has been synonymous with manufacturing. But as the systems have grown more cohesive, flexible and standardized, they have crossed over into industries such as pharmaceuticals, insurance, utilities, banking and, yes, wine.
The reason for this is simple: ERP, regardless of industry, provides a company with the infrastructure, visibility and control needed to manage intricate day-to-day operations.
"From distribution to warehouse management, to outbound traffic, to all the financials, ERP has come to mean the entire enterprise," says Rod Winger, senior director for product marketing at Epicor.
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"Why can't someone purchase management like an iPhone application?"
-- Rod Winger, senior director for product marketing, Epicor |
For manufacturers, the needs for ERP are somewhat unique. For instance, today, ERP is used for automating manual processes, improving inventory control and scheduling. According to a recent study by IT research firm Aberdeen Group, manufacturers are also using ERP for industry quality standards, compliance requirements and strict traceability.
This hasn't happened quickly -- or easily. By the estimate of George DiGrandi, president of JGI Consulting, companies are now implementing their third or fourth generation of enterprise systems. And, more importantly, they are becoming more sophisticated users.
"We've lived through a lot of horror stories," says DiGrandi. "Manufacturers that are implementing new systems are doing a much better job of differentiating what they want in an ERP system versus some of the things that are nice to have."
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