Job shops looking to implement or upgrade their ERP systems in the coming years face many strategic decisions. With continuous technological advancement and changing business needs, the ERP landscape is evolving rapidly. 

What is Job Shop ERP?

Before exploring future trends, it’s important to understand what job shop ERP is. A job shop is a manufacturing business that produces discrete parts in small batches or individual pieces for different customers. Due to this make-to-order model with low-volume and high-mix production, job shops have distinct ERP requirements compared to other industries.

Job shop ERP software is a type of manufacturing ERP system designed specifically for the unique workflows of job shops. Key features include optimized scheduling, costing, inventory, and CRM capabilities tailored to job shops’ project-based approach. Advanced manufacturing features like machine connectivity, quality management, and traceability are also critical.

Overall, job shop ERP aims to provide full visibility and control over the entire production process from order entry to delivery. Integrated modules for estimating, purchasing, production, shipping, and accounting help job shops efficiently manage low-volume production for many different part designs.

Trend 1: Increased Flexibility and Customization

One major trend impacting future job shop ERP is the demand for increased flexibility and customization capabilities. With a diverse and evolving customer base, job shops need software that can adapt quickly as their business changes.

Leading ERP vendors have recognized this need and are enhancing the configurability of their platforms. Modern job shop ERP offers “citizen developers” easy-to-use tools for customizing fields, forms, and workflows without involving costly IT resources. Examples include low-code/no-code tools for building new screens, reports, and business rules through simple drag-and-drop interfaces.

Some vendors also provide powerful application programming interfaces (APIs) that allow advanced developers to deeply integrate the ERP with other systems. This two-pronged approach to customization empowers both office users and professional programmers to tailor the ERP as needed.

Looking ahead, expect job shop ERP to evolve even more customizable “frontend” interfaces that hide underlying complexity. Cloud-native platforms also make it easier for vendors to push ongoing customization and extension capabilities through regular updates. Increased flexibility will be crucial for job shops to configure ERP systems to match their evolving operations through 2024 and beyond precisely.

Trend 2: Advanced Manufacturing Technologies

The rise of new manufacturing technologies is another major trend transforming job shop operations and ERP requirements. Technologies like the internet of Things (IoT), additive manufacturing, robotics, and augmented/virtual reality present huge opportunities but also integration challenges that ERP must address.

Leading job shop ERP vendors are enhancing their systems with advanced manufacturing capabilities like:

• Machine connectivity: Interface ERP directly with CNC machines, 3D printers, assembly robots, and other equipment for real-time production tracking, quality monitoring, and predictive maintenance.
• Digital twins: Create virtual replicas of manufacturing environments in ERP and leverage sensors/analytics for capabilities like remote equipment monitoring, virtual commissioning, and simulation-based planning.
• Additive manufacturing workflow management: Help job shops handle design, planning, costing, and quality control for parts production using 3D printing technologies.
• Augmented reality work instructions: Leverage AR/VR capabilities for remote technician support, hands-free assembly guidance, and training.

As the adoption of these technologies accelerates through 2024 among job shops, ERP will play an increasingly vital role as the core system integrating advanced manufacturing data and processes across the enterprise. Capabilities like predictive quality management and data-driven decision support will also rise in importance.

Trend 3: Growing Role of Cloud Computing

The trend of cloud computing migrating business software is also shifting job shop ERP. Where on-premises installations were once the norm, cloud-delivered or “Software as a Service” (SaaS) models now dominate new purchases and upgrades. Research indicates SaaS adoption among ERP users more than doubled from 2020 to 2021 alone.

Key drivers for this transition include the benefits of clouds for job shops:

• Low upfront costs with predictable subscription pricing vs. high initial on-premises licensing fees.
• Easy global access from any device for mobile field staff and home office employees.
• Always up-to-date software and automatic upgrades.
• Robust security, backup/redundancy, and support are included at the vendor level.

Moving forward, ERP vendors are investing heavily to enhance their cloud offerings, from infrastructure to functionality. Multi-tenant SaaS architectures are becoming smarter with embedded analytics, while newer “cloud-native” designs fully leverage elastic cloud scaling, containers, and microservices.

By 2024, on-premises ERP will likely be relegated to only the largest enterprise job shops, with cloud dominance the norm elsewhere. Therefore, cloud compatibility and migration paths will be crucial selection criteria for any new job shop ERP deployment in the coming years.

Trend 4: Prescriptive Analytics and AI

Alongside cloud computing comes an amplified focus on data and prescriptive analytics across ERP systems. Building on operational data collected historically, forward-thinking vendors infuse job shop ERP with self-learning artificial intelligence (AI) and machine learning capabilities.

Examples of emerging prescriptive analytics in job shop ERP include:

• Production scheduling optimized by AI for maximum throughput, efficiency, and on-time completion based on real-time shop floor data.
• Predictive quality management using ML to identify anomalies, detect defects, and recommend corrective actions.
• Intelligent procurement advises on optimal parts, materials, and supplier selection to minimize costs and downtime.
• Self-optimizing performance/KPI dashboards highlight areas for improvement based on benchmarking and pattern recognition.

For the job shop seeking to gain a competitive advantage, these intelligent features will drive highly strategic benefits through proactive decision support, planning, and continuous process enhancement. Vendors that most deeply embed AI/ML capabilities into core ERP workflows will have an edge through 2024 and beyond. Robust data availability and easy model customization will also be important criteria.

Trend 5: Integrated Partner Ecosystems

To reduce total integration costs and complexity for job shops, ERP vendors are expanding integrated partner ecosystems around their platforms. Rather than fragmented point solutions, these ecosystems deliver fully embedded third-party applications certified to work seamlessly with the core ERP system.

Key areas seeing deeper ecosystem integration include:

• CRM/marketing automation for demand generation and quoting.
• Project management for comprehensive project costing and billing.
• Augmented reality/mobile maintenance apps with built-in ERP data access.
• Environmental health/safety modules integrated into regulatory workflows.
• Condition monitoring equipment with ERP device connectivity.
• Cloud-based CAD/CAM software tightly linked to estimation and production.

For job shops, these unified ecosystems streamline operations by consolidating disparate systems onto one fully integrated platform. They reduce double data entry and ensure all departments work from a single source of truth. Vendors emphasizing broad and tightly integrated partner networks will offer the most comprehensive and future-proof job shop ERP solutions through 2024.

Choosing a Job Shop ERP System: Key Considerations

With the evolving technological landscape, deciding on a new job shop ERP is an important strategic decision requiring careful evaluation. Beyond basic functional requirements, consider the following criteria tailored to future trends:

• Flexible and customizable with low-code/no-code tools for self-modification.
• Embedded advanced manufacturing functionality or strong IIoT/manufacturing cloud strategy.
• Proven cloud hosting model with rigorous security standards and scalability.
• Committed to a roadmap showing leadership in AI/ML, data analytics, and predictive applications.
• Robust partner ecosystem, including essential manufacturing and client-facing solutions.
• Thorough digital transformation services for migration, change management, and training.
• Reputation for rapid feature innovation and dedication to manufacturing vertical.

Also important is the strength of your existing ERP vendor or switching to a specialist job shop provider. Consider long-term viability, responsiveness, and total cost of ownership holistically when selecting a future-proof partner. With thorough due diligence and emphasis on emerging trends, you can confidently optimize your shop’s ERP future through 2024.

FAQs

1. How do I evaluate new job shop ERP vendors?

Thoroughly researching any potential new ERP vendor is crucial. Beyond evaluating core functionality, request demos and ask directly about each trend discussed in this article. Request client references, especially those in your industry niche. Run test migrations/integrations to validate solution capabilities. Consider not just the vendor’s current offering but also the technology roadmap and innovation culture. Partner ecosystem, implementation approach/TCO, and support model are also important. Do your diligence to reduce risks down the line.

2. Should I upgrade my existing on-premises ERP or switch to the cloud?

For aging on-premises ERP systems, migrating to a new cloud-hosted one brings clear long-term benefits. The key considerations are your specific system’s limitations vs. upgrade costs, future scalability needs, and your company’s appetite for change. Upgrading may extend the on-premises system’s life, but investing in new cloud technology better positions you for the trends discussed. Consider your vendor’s cloud migration services and whether moving also allows switching to a specialist job shop provider. Weigh short-term disruption vs. long-term strategic advantages of migrating to a cloud-native, AI-empowered and fully integrated ERP platform.

3. What kind of change management is needed for an ERP implementation or migration?

Any new ERP deployment, whether on-premises upgrade or cloud migration, requires thoughtful change management. Communicate the “why” extensively and solicit early user feedback. Provide comprehensive end-user training tailored to each role. Consider appointing well-respected employees as super users or champions during the rollout. Phase implementation judiciously and give staff time to embrace changes. After go-live, continue training and enablement while closely monitoring support metrics. Addressing cultural readiness and compliance is just as important as technical execution for success.

4. How do I ensure a new ERP supports the future growth of my job shop?

When selecting a new ERP, focus on flexibility, scalability, and a partner committed to ongoing innovation. “Future-proof” your choice by vetting providers’ roadmap for advances in manufacturing IT, analytics, and industry trends. Prioritize seamless expansion capabilities like additional users, locations, or hardware capacity. Seek built-in tools to modify configurations without adding costly IT resources. Qualify your support model’s sustainment for 10+ years. Establish governance to regularly review solutions against shifting priorities. With these strategies, your ERP selection remains optimal as your job shop evolves.

5. How can I maximize the return on investment from a new ERP system?

To fully leverage your ERP investment, focus on both tangible and intangible benefits. Quantify savings from reduced waste, optimized production/scheduling, and informed decision-making. Track KPIs like on-time delivery and manufacturing productivity gains. Leverage embedded analytics, reporting, and dashboards. Conduct training needs analysis and enable knowledge transfer. Empower employees across departments through mobile access and data visibility. Standardize processes on the new system. Maintain security, backups, and system health. Govern the use of advanced features like AI. Clear change communication helps acceptance for maximizing ROI long-term.