Difference between Configuration Manufacturing ERP vs Customized Manufacturing ERP

ERP Configuration

ERP Configuration?permits enterprises to change settings within the ERP based on their requirement without changing the source code. The settings include languages, currencies, time zones, industry-specific business workflows and processes, financial reports, data analytics, business intelligence, etc.

These configuration settings are ready-made within the ERP and are a part of the source code. According to needs, enterprises can adjust the settings and configure them as and when they consider necessary. Industries can personalize the ERP for each department or a business function or an entire business unit.

Following are the examples:

ERP Personalization

1. Make use of a browser-based interface to publish the configurator to dealers and end-users.
2. Personalization of reports, trends, field labels data analytics, etc.
3. Plan sequence of questions, color schemes, screen layouts, etc.
4. Creation of employee roles and departments specific to the enterprise.

ERP configuration features can be improved with each software upgrade, thereby adding more features and improvements within the source code itself. Earlier configuration settings remain unaltered by a software upgrade, unlike ERP customization which has the possibility of being overwritten by an upgrade.

However, ERP configuration can be a time-consuming process as the ERP dealer has to understand client requirements and accordingly modify the settings/configurations to suit them.

The configurations will have to go through intensive testing and enough training should be given to the IT team so that they can manage and maintain the settings. As compared to ERP customization, ERP configuration is a one-time task.

Advantages:

1. No changes involve to the ERP source code.
2. Cost-effective as compared to ERP customization.
3. ERP configuration can be improved and altered with each software upgrade.
4. Customization scope can be included as configuration settings.
5. Involves one-time configuration to the ERP based on client requirements.

Disadvantages:

1. Third-party and internal application integration cannot be met with ERP configuration and it requires customization.
2. Not all requirements can be included in ERP configuration.
3. Additional modules cannot be added through ERP configuration and require customization.

ERP Customization

An?ERP customization?operates specifically to enhance business processes. It is customized when an enterprise wants to add or alter modules/functionalities based on their requirements, apart from what the standard version has to offer. It also includes integrating with third-party or internal applications to improve its capabilities and provide a comprehensive, automated solution.

ERP customization includes working at the source code level and therefore involves comprehensive planning. The whole process involves understanding the requirements in detail, think a customization plan, development, intensive testing, final implementation, training, and bug fixes.

It includes immense time and cost depending on the scope of changes and the enterprise size. The larger the enterprise, the more requirement and time, and costs are taken to customize the ERP.

Advantages:

1. Gives the freedom to add modules and functionalities to standard ERP products.
2. Provides the flexibility to meet an enterprise’s operational requirements.
3. ERP vendors offer low-code customization which can mitigate most of the cons of ERP customization.
4. Unique to enterprise workflows & business processes

Disadvantages:

1. Need a skilled development team with detailed technical, domain, and ERP knowledge.
2. Development time and cost increase depending on organization size.
3. No or limited support from the ERP vendor for customized modules
4. Further customization is required for future needs.
5. It can cause delays and shoot off the budget.
6. Requires robust maintenance & internal resources

ERP dealers offer low-code customization which mitigates most of the limitations of ERP customization. Low-code customization means that enterprises can select to customize a certain module or functionality with restricted development efforts without influencing other modules or customization.

Customized ERP solution for manufacturing process management provides access to fully customized modules for logistics and supply chain management. This module enables enterprises to effectively track and monitor their activities, the logistics module is responsible for improved freight tracking, shipping, and vehicle routing.

Choosing between Configuration Manufacturing ERP Software and Customized Manufacturing ERP Software

It is difficult to choose between configuration manufacturing ERP and customized manufacturing ERP. It depends on the enterprise according to its needs. Many factors are involved when deciding and implementing an ERP like enterprise size, industry type, number of subunits/branches, number of stakeholders, business processes, existing software used, budget, etc. Depending on these factors, manufacturing industries can choose which to implement.

ERP configuration mostly suits small and medium enterprises. It doesn’t hold for niche industry segments that belong to the SME group. They may need customization to suit their operations. Also same applies to large enterprises that most of the time, would need an ERP customization. However, depending on their industry type and operations, some might use configuration.

Therefore, there are no rules that a particular setting fits a particular industry or enterprise. Before deciding, enterprises need to understand properly what they want and accordingly take an informed decision. The result of a wrongly implemented ERP is high and costs high on operations, revenue, and profitability.

Delight ERP is one of the best ERP software development companies in Rajkot, Gujarat, India. Delight ERP Software is an important cloud-based solution. It provides configuration ERP and Customized ERP for manufacturing industries. It also provides?Production Management ERP software?which helps manufacturers with production systems. You can configure or customize the ERP based on your requirements.

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