Jewelry ERP software vs generic ERP
This post we will discuss a few ways of simplifying an ERP selection process and will point out the differences between a jewelry ERP software and a generic ERP solution.
As mentioned in our previous post, the jewelry industry was in lack of an industry-specific software until recently. Those jewelry companies who needed a solution to automate parts of their business processes had no other choice than to use different systems for inventory tracking, customer tracking, and production tracking.
They were facing two major problems:
- the lack of key functionalities for handling industry-specific item type configurations or processes
- these separate systems didn’t or hardly communicate with each other
No other choice left then implementing a generic ERP, with all the functional limitations and difficulties.
Some companies developed in-house solutions to cover the gaps they met when searching for a jewelry software vendor. Developing an in-house, custom ERP solution may sound like the perfect solution, however the financial investment rarely pays off as technology and maintanace costs (IT department included) usually go higher than benefits. This topic will be covered in a later post.
Jewelry ERPs are basically vertical ERPs because of their industry-specific nature, typically they are operating on a niche market.
Can a non-jewelry ERP software meet the needs of a jewelry business?
In our opinion no, because these systems often can't meet the objectives of a jewelry business, since they lack key functionalities. Generic ERPs were designed to fit "any businesses", trying to vertically extend a core product for different industries (e.g. Microsoft Dynamics NAV). Does that software vendor understand jewelry industry specifications? Highly doubtful. Instead, they leave companies with a number of issues:
- high software customization costs
- high maintenance fees
- functional incompatibilities
- partially automated workflows
- the support team of the ERP vendor doesn't understand industry-specific issues
A long term partnership with a vendor who understands the unique requirements of the industry will increase your chances of a successful project and contribute to a fast ROI.
Jewelry specific ERP software modules typically offer deeper functionality for your specific business and operation needs than a generic ERP package. An ERP application developed specifically for your industry is better equipped to handle your manufacturing processes with minimal or no customization. This means faster, more affordable implementation and maintenance.
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