Roger Meloy

Engineer-to-Order ERP Rationale Explained

Most ETO (Engineer-to-Order) firms take at least twelve months to decide on the appropriate ERP (Enterprise Resource Planning) system. This lengthy process is due to the fact that many ERP vendors claim to be ETO savvy and are not in fact. There are exceptions to the rule. Recently, Big Sky Engineering (www.bigskyeng.com) located in Middleton, Wisconsin, just outside of Madison in south-central Wisconsin, made an important technology decision relatively quickly.

Formed in 1997, with the goal of providing economical automation solutions to the ever-changing packaging industry, Big Sky picks standard, off-the-shelf components whenever possible to simplify maintenance and eliminate machine downtime; however all of the machines are built with future retooling in mind. Their primary market is packaging automation machinery for consumer goods companies (such as SC Johnson).

Chief engineer for Big Sky, Peter Dettmer originally contacted Cincinnati-based ETO ERP leader Encompix (www.encompix.com) via their website in November 2004. Encompix, which usually serves the mid-market ETO manufacturer was hesitant to pursue this opportunity because of Big Sky’s small size and spent much effort pre-qualifying. However, due to Big Sky’s recent explosive growth and plans for future growth, Encompix considered this a deal worth pursuing. Despite a much higher price point than the competitors, the functionality demonstrated in the Encompix overview session made Big Sky’s decision quite easy. To keep sales costs down, Encompix combined a site survey and demonstration into a one day session. The three owners of Big Sky were heavily involved in the process and able to negotiate directly to get this deal closed by mid-February 2005. In return for a discount, Big Sky agreed to purchase one extra user and pay in full for software and maintenance by March 15. Encompix crafted a somewhat revised implementation plan for this smaller than usual customer.

Big Sky’s Rationale for ETO ERP Encompix Selection:
1) Experience with manufacturers similar to their business
2) Ability to integrate with Inventor
3) Obvious understanding of the way they conduct business
The Encompix initial implementation is for eight concurrent users with an agreement to protect the user price for the first year. Encompix has filled the manufacturing software requirements of Engineer-to-Order companies since 1992. The company name reflects the commitment to developing business application solutions that encompass the complex areas of project-based and job-based manufacturing. Encompix provides ETO manufacturers with a competitive advantage by improving bottom line results.

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