Learn More About Mixed Mode ERP Software
What is Mixed Mode ERP Software?
Mixed-mode ERP software helps production managers plan, implement, and monitor manufacturing operations. Employees responsible for quality control use this type of software to ensure that the finished products comply with regulations and customer requirements. Mixed-mode ERP software is used by manufacturing companies that need to manage multiple types of production, such as discrete, process, and engineering to order (ETO). This type of software allows manufacturers to switch from one product type to another to diversify their product portfolio and attract customers from multiple industries. Other departments such as sales, purchasing, and warehousing also benefit from using mixed-mode ERP solutions by identifying the resources required to fulfill demand, manage inventory, and deliver the finished products to customers. Accountants also use mixed-mode ERP systems to track costs and manage financial transactions and reporting.
Mixed-mode ERP software is usually implemented as a standalone solution that includes modules for production, operations, and front and back office. Some vendors provide light functionality for finance, CRM, and HR. It also integrates with accounting software, CRM all-in-one software, or HR management suites for advanced features. Integration with product lifecycle management (PLM) software or computer-aided design (CAD) software is also required for product design and development.
Key Benefits of Mixed Mode ERP Software
- Provides a single data repository for all operations (manufacturing, back office, and front office)
- Offers an integrated system for multiple types of manufacturing, instead of separate systems
- Improves the customer experience by delivering the right product at the right time
- Manages materials, human resources, and shop floor capacity for multiple types of manufacturing
- Provides advanced product configuration features for discrete, process, and ETO manufacturing
- Tracks KPIs and performance across multiple locations or business units
Why Use Mixed Mode ERP Software?
There are several reasons why a manufacturing company would use mixed mode ERP software. This software gives organizations the ability to better anticipate and quickly respond to fluctuations in market demand. It helps bring products to the market at the right price in the shortest span of time, while adhering to the customer’s specifications. Additional reasons are listed below:
Plan and track production across the company and its locations — Mixed-mode ERP software enables manufacturers to increase flexibility in production planning and execution and allows for various production strategies and supply mix regardless of how the supply chain is modeled. This software gives companies the ability to optimize production forecasting and scheduling along with materials planning. It allows the system to find the resources for different types of manufacturing, such as discrete, process, and ETO.
Manage costs and profitability for all operations — This software offers cost management tools and reporting for both completed and work-in-progress jobs. It helps to accurately capture labor time and log material costs back to each job and item to identify which products are making or losing money. It also helps companies create quotes and proposals customized for the specific needs of each customer. Mixed-mode ERP software can project profitability on similar orders in the future and help keep costs in line with customer expectations.
Track logistics operations for sales, shipping, and returns — Mixed-mode ERP software uses reporting and analytics for sales, procurement, and production to fulfill demand. It can also manage shipping, delivery reports, third-party shipper integration, warehouse and inventory management, and many other logistics components.
Monitor product quality — Manufacturing management teams can isolate and measure the quality of components and finished products manufactured and purchased. This allows them to focus on improving quality in the areas that will impact their business the most.
Who Uses Mixed Mode ERP Software?
Manufacturing managers and employees — Manufacturing managers use this software to identify demand and plan production accordingly, while tracking product quality and production disruptions.
Procurement and supply chain — Procurement teams use mixed-mode ERP to source raw materials at optimal cost and quality and then deliver finished products to customers.
Accounting — Accounting and finance teams use this software to track costs (labor, raw materials, utilities, etc.), revenues, and profitability (by business unit, product or family of products, customer segment).
Executives — Executives use mixed-mode ERP software to track the overall performance of the company and to define and improve strategies for product development, market expansion, sales, and marketing.
Kinds of Mixed Mode ERP Software
All-in-one mixed-mode ERP software — Delivers features for manufacturing, logistics, CRM, marketing, sales, accounting, HR, and payroll. All these features can be delivered as a suite or a mix of multiple modules, which can be bought and used independently.
Best-of-breed mixed-mode ERP software — Focuses on manufacturing and logistics features which are part of the same software product and cannot be bought separately. Accounting functionality or integration with accounting systems is usually provided. Front office and back office are “light" and integration is provided with HR, CRM, and payroll products from the same vendor or partners.
Mixed Mode ERP Software Features
Product management — This feature defines ingredients and raw materials for each product, organizes them, and manages how they are used to make the product.
Quality management — Manufacturing management teams need to measure the quality of components and finished products manufactured and purchased. Mixed-mode ERP allows them to focus on improving quality in the areas that will impact customer satisfaction and improve revenues. Quality management also helps mixed-mode manufacturers comply with health and safety regulations.
Accounting — Accounting features help to eliminate redundant data entry that wastes time, increases chance of errors, and raises administrative costs with a single-point entry process. Using real-time, accurate data from integrated ERP software, end-of-month closing can be completed faster to achieve a more streamlined accounting process.
Front office — This module helps streamline sales and marketing processes and ensure all business units operate under the same vision and have the same goals. Front office needs to integrate with the shop floor and manufacturing operations modules to achieve greater control and visibility over the entire business.
Back office — Back office features offer visibility and flexible control over back office operations, from job costing and finance to engineering change management, materials management, and production. Back office may also include features for HR, workforce management, and payroll.
Logistics — Logistic features help mixed-mode manufacturers manage procurement and delivery operations. They can be beneficial to any manufacturing business that is looking to increase efficiency, speed, and customer satisfaction across all of its operations. It also helps in managing business information, integrating numerous systems, streamlining workflows, and achieving efficiency.
Other Features of Mixed Mode ERP Software: Batch Management Capabilities, BOM Capabilities, Credit Limits Capabilities, Demand Capabilities, Engineering Capabilities, Field Service Capabilities, Formulas & Recipes Capabilities, Inspections Capabilities, Integrations Capabilities, Inventory Forecasting Capabilities, Payment Settlements Capabilities, Rework Capabilities, Warranty Management Capabilities
Potential Issues with Mixed Mode ERP Software
Integration — Integration with back office and front office is often required,as ERP doesn’t always provide advanced features for marketing, sales, HR, or payroll. Also, mixed-mode ERP integrates with PLM for product design and with supply chain management for logistics activities. All these integrations is expensive, complex, and may generate errors and duplicate data when not performed properly.
Market consolidation — Only a handful of vendors provide mixed-mode ERP which means that buyers don’t have many options to choose from. The alternative is to combine two or more ERP systems which are sold separately by different vendors.
Alternatives — Suites and point solutions can be good alternatives but they have their limitations. Suites are a mix of products which makes them more complex and expensive. Point solutions focus more on manufacturing and offer negligible help for back office, front office, and logistics.
Software and Services Related to Mixed Mode ERP Software
Product lifecycle management (PLM) — PLM software manages data during the development of a product, from inception through the manufacturing, servicing, and disposal processes. Companies use PLM software to increase productivity and collaboration, improve quality, bolster creativity, and shorten time to market for a product. It is used across various industries, helping integrate data and documents, business systems, and people involved in the product creation process. It allows those involved to systematically track all the changes a product goes through during its development.
Quality management software (QMS) — QMS helps businesses assess and maintain the integrity of produced goods and customer experiences. A QMS typically delivers features such as inventory inspection records, documentation, and reporting related to undesirable events (e.g., complaints, defective merchandise), corrective or preventive action forms, and process automation assistance to minimize deviation. Manufacturing and supply companies can use QMS products to audit the production process from start to finish, avoid a wide variety of potential hazards and issues, and increase revenue through repeat business from satisfied clients.
Suppy chain management (SCM) software — SCM software helps control business processes along the supply chain, manage supplier relationships, and assist in forecasting and planning. This software helps companies in managing and planning the unpredictable movements of supply and demand by utilizing consumer analysis, buyer history, and complex algorithms. It also assists in planning for the future and increasing production efficiency.
Workforce management software — Workforce management software helps organizations plan, manage, and track employee work, including labor requirements, employee schedules, and paid time off (PTO). Workforce management platforms offer a variety of features that enable users to optimize workforce efforts. Companies use workforce management software to forecast labor demand, create and assign employee schedules, track attendance, and report on workforce efficiency.
Payroll software — Payroll software allows companies to manage and streamline payroll processes and ensure employees are paid timely and accurately. These systems help HR and accounting teams automate payroll processes and support accurate bookkeeping. This software also calculates wages, taxes, and pre- and post-tax deductions, along with helping organizations comply with various state and federal taxes and social security requirements.
