The marketplace is full of ERP and warehousing software solutions, many of which are rich in functionality accompanied by a rich price tag that can only be considered by enterprise-level manufacturers or upper-level SMEs. However, in the case of most SMEs cost is a critical factor. Therefore a shopping list of core Lean-focused modules and capabilities should be borne in mind before sourcing a system. This functionality will then act as a sound backbone for an SME's existing or developing Lean methodology in the warehouse, and indeed on the shop floor. 

Some prospective end users still harbour the belief that a low purchase price equates to minimal functionality and second-rate performance. However, this is no longer the case. By sourcing a reputable, state-of-the-art Lean ERP solution all core warehousing modules are not only available but able to be implemented within a very short timeframe without protracted pilot programmes and expensive consultancy bills. Indeed, in many cases such a complete ERP system, including all the critical warehousing functionality, can go live within four to six weeks.

Inventory management plus

So what core functionality should you demand from such a system? With regard to warehouse management, the best Lean ERP systems should of course be able to provide and store information concerning bar coding, receiving, stocking, picking and shipping. But, more crucially from an inventory management perspective, it needs to be able to allow manufacturers to give their suppliers advanced notice of what they are likely to order based on their supply schedule. The manufacturer will generate an estimate over time as to what it will require in terms of stock. This will be communicated to its supplier down to raw material or component part level, which helps the supplier to work to the customer's best guess as to what it will require over a certain timeframe. This ensures that minimum inventory is held and production can be run as close to a Just in Time procedure as possible.

Traceability of data

Another must-have component of the package is easy traceability of data. Through ensuring every relevant member of staff has access to appropriate information on the computer network, operations can be speeded up, opportunities for error reduced and a host of other benefits, such as proof of origin regarding parts batches and materials, and having clear visibility regarding which products were distributed to which clients, and when.

Future-proof & flexible

The other critical area of consideration is to select a system that is both future-proof and flexible. Despite the hype, much of this is actually deliverable through modern software built on open architecture such as Microsoft .NET. Issues such as interconnectivity and interoperability with other systems are largely redundant now, but the forward-facing nature of the technology should ensure that as other developments in warehouse technology are required - such as automated forklifts, barcode scanners, RF, RFID etc. -  these can be easily incorporated into the system.

An affordable, Lean-focused ERP/warehouse management software solution, with all the essential elements of functionality for the modern SME, is a reality. Things have come a long way over the past few years. Such systems are no longer the preserve of the big boys.