Question 1

What is Discrete ERP Software?

Accepted Answer

Discrete ERP refers to ERP software specifically designed for manufacturing companies that deliver distinct (i.e., discrete) products in large quantities. This means that each finished product can be manufactured and sold separately from any other product. A few examples of such products are computers and electronics, fashion and apparel items, or furniture and appliances. Very complex products such as heavy machinery and airplanes can also be considered discrete, but they are not mass manufactured and require a lot of engineering and customization. Manufacturing from these industries would benefit more from using ETO ERP software, which is designed for advanced manufacturing. 
 Key Benefits of Discrete ERP Software 
 
Provides a single source of truth for manufacturing information
Improves business processes and aligns internal and external stakeholders to deliver products on time and at the highest quality
Helps define and manage product costing and profit margins, as well as monitor the profitability and financial success of the company

Question 2

Why Use Discrete ERP Software?

Accepted Answer

Manufacturers can use discrete ERP to define, plan, and monitor operations across all departments in the company. The most critical challenges that can be addressed using this type of software are as follows: 
 Cost reduction and improved profitability — These are vital to any company but particularly crucial for manufacturers who invest heavily in production equipment, raw materials, personnel, and utilities (such as electricity and water). Discrete ERP helps manufacturing companies track all these costs and allocate them to the various products delivered by the company to calculate their total cost. Since the profit made by the company is the difference between the price and the total cost of their products, manufacturers need to lower costs without compromising on quality. 
 Improved productivity — Productivity can be improved through increased collaboration and better visibility into manufacturing operations. Since discrete ERP provides a single database and one system to manage most processes and operations, employees from multiple departments can use their time more efficiently and perform better. Improved collaboration with external parties such as suppliers and contractors can also help employees be more productive. 
 Quality control — Quality can have a significant impact on the customer experience and the profitability of the company. Also, a lack of compliance with safety and health laws and regulations can disrupt the activity of the manufacturer and cause accidents that may damage equipment and put the lives of the employees at risk.

Question 3

Who Uses Discrete ERP Software?

Accepted Answer

Most departments of a manufacturing company can benefit from using discrete ERP, however, the ones that benefit most from using this type of software are: 
 Production — Planning, scheduling, and monitoring manufacturing operations are critical for manufacturers. Companies need to understand what products need to be manufactured, in what quantities, and when they should be ready to be shipped to customers. 
 Accounting — Different types of costs are allocated to various activities, and discrete ERP software keeps a record of all financial transactions between the company and its customers, suppliers, and employees. Accountants also use discrete ERP to track payments from customers and to suppliers, for cash and treasury management, month and year close, and financial statements. 
 Logistics — Logistics departments use discrete ERP to plan deliveries to customers and manage the inventory of raw materials and finished products. Logistics managers need to ensure that there is enough inventory to fulfill demand at any time and to reduce waste that can be caused by inventory control errors.

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G2 Grid® for Discrete ERP Software

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Best Discrete ERP Software - Page 19