In the industry, 4.0 times equipment management companies have new requirements and challenges and are looking for E2E industry-specific ERP solutions to manage the challenges and fulfill the requirement. In this blog, we will elaborate on these topics.
1. Equipment Management Companies’ Requirements
The key requirements of equipment (dealer) management companies can be summarized as follows:
2. Challenges of the Equipment Management Companies
Currently, the equipment (dealer) management companies have very big challenges to fulfill this requirement due to lack of end-to-end integrated equipment management business software:
· Lack of end-to-end integrated Equipment ERP that supports operations globally
· Multiple systems and applications operating with limited integration
· Continuous challenges around data consistency and data access
· Reporting challenges, lack of holistic view on performance
3. End-to-end Equipment (Dealer) Management Business Software
Therefore, an end-to-end Equipment (Dealer) Management Business Software is extremely important for equipment management companies for managing the Equipment Lifecycle. It is essential for the equipment management companies because the equipment is core and represents great value. Managing is crucial for their business operations. It leaves a positive impact on almost every part of the business from the vendor (OEM) to the customer services. Most of the organizations use this Equipment management business software to purchase and sell equipment (Fit-Equipment) and parts (Fit-Parts). Besides this, the equipment can be rented (Fit-Rent) and should be serviced (Fit-Service) based on the demands of customers and the rental department. It is very important that the equipment management software is embedded in SAP because all the equipment management core processes are highly processed are integrated with other ERP processes like financial, controlling, procurement, and HR.
Fit-EM (Equipment Management Business Software) is developed by FIT Global and is the unique equipment management business software embedded in the world-class SAP ERP. SAP and Fit-EM deliver the one ERP platform to support all the business processes of equipment (dealer) management companies.
The solution combines the best of the two worlds. SAP delivers the solid standard ERP processes and Fit-EM delivers the equipment management core processes.
4. The Equipment Management Core Processes
a. Equipment purchase and sales (Fit-Equipment)
The core processes start with the purchasing of the equipment. This equipment can be new equipment order by the vendor/OEM manufacturer or second-hand trade-in with the customer. The equipment can be sold to the customer or can move to the rental fleet. The equipment configuration is one of the most important topics during equipment sales and procurement.
b. Parts purchasing and sales (Fit-Parts)
Equipment management company purchase the parts from OEM manufacturers and/or other vendors to sell the customers and/or to use in the equipment services process. The parts processes are highly integrated with service processes. The most important topics in the parts area are the details parts planning and back-order processing.
c. Service (Fit-Service)
The service processes for a (heavy) equipment company can be quite complex. The service has a complicated and different kind of quotations and contracts. The standard defined service jobs with standard job codes and component codes can be huge, should be updated regularly and the execution & confirmation should be done very carefully.
d. Rental (Fit-Rent)
Equipment rental is a relatively new process for the equipment management companies, but getting more important, and rental business is growing fast. The equipment availability, pricing, and cycle billing are some of the challenges processes. Fleet management is very important for rental and utilization of the fleet should be managed very well.
In the Industry 4.0 times, companies are looking for E2E industry-specific solutions to manage their challenges and fulfill their requirement. These kinds of the solution are needed to have a solid foundation and support the changing business model and processes.
To have complete and an end-to-end equipment management business software FIT Global and SAP co-developed the Fit-EM embedded in the standard SAP ERP and offer a unique solution for the equipment (dealer) management companies.