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TRANSCRIPT
Datix ERP Consulting
COPYRIGHT DATIX 2015, ALL RIGHTS RESERVED
Comprehensive Plex
ERP
Reviews Guide
Comprehensive ERP
Reviews Guide
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Copyright Datix 2015, All rights reserved
| Table of Contents |
Chapter 1: Introduction
Chapter 2: ERP in the Cloud
Plex Systems vs. NetSuite
Chapter 3: ERP for Manufacturing
Plex Systems vs. Microsoft Dynamics AX
Chapter 4: ERP for Economies of Scale
Plex Systems vs. SAP
Chapter 5: ERP for Database Management
Plex Systems vs. Oracle JD EnterpriseOne
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Copyright Datix 2015, All rights reserved
How to use this E-book:
Over the past 17 years, our experts have spent a considerable amount of time with clients evaluating
software to help them meet their business needs. Throughout that process we have noticed that one
thing has remained a constant truth: fitting software to your business is about selecting the right tool
for the right job.
No one tool or software is a best fit for every type of industry or business structure. As such, a
significant amount of research is necessary for an organization to properly select a system to support
their business functions and extract the maximum amount of ROI from an ERP software project.
Organizations that place an emphasis on software yet fail to consider the processes the software is
intended to support often end up over budget, have poor user adoption and realize elongated time
to recoup project costs. This misconception can severely hinder an organization’s vision and growth,
and is why considering your unique processes on the front end of your ERP selection process is
especially important.
That’s why we’ve created this guide. It’s a way for businesses to easily see the strengths and
weaknesses of each system in comparison to others in the ERP class. This will better allow the
organization to determine which ERP system may best support process models across their
enterprise.
With the help of this e-book, your business can start to perform the necessary due diligence required
to ensure that your next ERP software system:
1. Generates ROI
2. Is Adopted By Users
3. Supports Organizational Processes and Outcomes
4.
About Datix:
Datix has been implementing and designing enterprise software solutions for the last 17 years. Datix
consults with manufacturing and distribution businesses in the mid-market to assist in building out
their enterprise software systems. That’s our M.O. We’ve built partnerships with some of the most
popular software used inside of these businesses, and have created a powerful reputation as an
expert who understands how all these systems should work together.
At Datix, we get it. We know enterprise software, and can visualize how it can work to support a wide
range of different business objectives. We are innovative thought leaders that are constantly
developing proprietary applications and solutions based on the challenges we see clients face the
most. Businesses work with us when they want to mitigate risk, solve problems and improve the way
their business operates.
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Copyright Datix 2015, All rights reserved
| ERP in the Cloud |
As a top ERP consulting firm, we speak to a wide variety of different businesses on a daily basis. If
there’s one thing we’ve learned, it’s that all organizations are different. Even businesses that operate
in the exact same space have different practices and processes. That’s why when we’re asked by
companies if they should start moving to a cloud ERP system right now, we don’t have an all-
encompassing answer. As it turns out, there is usually a subjective answer for each company. The
secret is discovering which business factors make certain organizations better candidates for a cloud-
based ERP system than others.
The truth is that the future of software technology is
quickly moving in this direction. However, it makes a
lot more sense for some organizations than others.
We discuss the possibility of a cloud ERP along with
many manufacturing and supply chain verticals. Some
businesses could financially benefit from moving to
cloud infrastructure as soon as possible, while others
can choose to possibly transition in the future if an
aggregate market dictates them to do so.
| Plex Systems vs. NetSuite |
NetSuite versus Plex Systems is an inevitable comparison many businesses will encounter if they are in
the process of considering a move to cloud architecture or are currently already migrating to a cloud
platform. Our recommendation is to always hunt for the right tool for the right job and there are
many differences and factors to consider when choosing between these two systems.
In our comparison of NetSuite vs. Plex Systems, we explore the more elementary facets of software
selection relating to these systems, common issues that have been experienced and what ultimately
plays the biggest role in cost payback for different companies interested in implementing these
systems.
Overview - NetSuite vs. Plex Systems
NetSuite has positioned themselves as the largest cloud ERP in the world and is currently experiencing
unbridled growth in a number of verticals. By comparison, Plex has become the cloud ERP of choice
for many in the manufacturing and distribution market and is considered by business technology
researchers to be the innovative leader in the manufacturing space. So, in the battle of NetSuite
versus Plex, which cloud ERP best fits which kinds of businesses? Let’s take a look at some of the
factors at play:
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Business Size — NetSuite vs. Plex
While NetSuite and Plex ERP systems are often pitted against one another, likely because they are two
of the most evolved and established cloud ERPs, they do serve slightly different demographics. We’ll
get in to which industries each fits best — and why — later on. However, it’s primarily important for
businesses to start by understanding the physical limitations of their enterprise software.
In fact, both Plex and NetSuite fit small and medium-sized enterprises very well. Each software system
can accommodate all the needs businesses of this size require, including the ability to scale up or
down on demand to adequately meet the needs of small businesses with big business goals. The
biggest physical differentiation between the two is chiefly that Plex ERP can also accommodate large
businesses with global enterprise needs. While there are some cases of NetSuite fitting into larger
businesses, users of these organizations have occasionally claimed that they experienced serious
difficulty scaling the ERP software to accommodate elaborate process models.
Consequently, Plex is likely the better fit for many large businesses that may be considering both.
However, investors will want to cross-reference with other industry examples to ensure that their
desired software truly fits. It is important to remember that there are some large businesses Plex is not
equipped for, as we will see in later chapters.
Industry Fit — NetSuite vs. Plex
This is where the comparison really becomes an exercise in carefully selecting the right tool for the
right job. We can draw a pretty clear line between which cloud ERP fits best for different types of
businesses. The split directly correlates to how each system is distinctively structured and what
modules and features are included in the packages.
NetSuite largely prioritizes financials in their software. This means businesses in the e-commerce,
retail and hospitality industries will be drawn naturally to some of its robust accounting and e-
commerce features.
First off: NetSuite’s financials are very flexible. That’s why they are such a great fit for the retail industry
and e-commerce businesses. These kinds of organizations rely on this functionality more than others
and are thus will be more accustomed to a complex set of financial tools. NetSuite also has several
helpful business intelligence attributes embedded in their software offering that will supplement these
financials well. Furthermore, the software makes it easy for multi-channel distributors to configure
automated processes (possibly those that may need to integrate with a service like Amazon.com).
While NetSuite offers a tailored overall business fit for many in the commerce sector, most
manufacturing businesses will find Plex Systems the clear winner in this area of business for what they
need their software to accomplish. While NetSuite offers a tailored overall business fit for many in the
commerce sector, most manufacturing companies will find Plex Systems the clear winner in this area
of business for what they need their software to accomplish.
Our biggest concern with NetSuite is that it is often marketed as an all-encompassing cloud ERP for a
wide range of businesses while the software itself is not really constructed in a way that supports
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every type of business. NetSuite’s aggressive sales force has a bit of reputation for forcing round
software into square-sized businesses. This may be what has contributed to some of the more
negative reviews about NetSuite from users. However, when aligned correctly, NetSuite can certainly
work excellently for your business, specifically those in the retail, e-commerce, financial, B2C and
service industries.
On the other side of the coin, Plex makes no bones about which kind of companies they design their
software for. Right up front they position their solution as the cloud manufacturing ERP system.
Plex offers a wide range of features and modules for manufacturers that are noticeably missing from
NetSuite’s offering. For example, Plex offers dynamic capabilities that can support supply chain,
inventory, maintenance, manufacturing and HR management that are must-have for manufacturing
businesses making a move to the cloud. Plex is also the only ERP system with an embedded MES
system. This allows businesses to connect all smart machines and data on the shop floor with their
Plex ERP system. This functionality offered by Plex is much more comprehensive and accommodating
to those in the manufacturing space than NetSuite. In fact, it’s almost not even fair to compare them
on this functionality alone.
Plex’s manufacturing module contains tools that give businesses better change control, quality
management and sampling abilities. These features (and more) make Plex the choice solution (cloud
aside) for businesses with high production volume or process manufacturing needs. NetSuite simply
cannot compete with businesses that have these kinds of manufacturing, supply chain or highly
volatile distribution needs. Plex also has embedded business intelligence that has received great
reviews from users whom require seasonality, compliance and quality management.
Mobility/ UX / Remote Access — NetSuite vs. Plex
Since both NetSuite and Plex are both cloud-based ERP solutions, accessibility and mobility are
largely better than most other ERPs on the market (as others typically offer both cloud and on-prem
solutions). Both offer very nice interfaces for users. The two also recently launched brand new modern
user interfaces that have been said to improve UX for both systems. Users whom have navigated both
systems typically come away feeling that Plex UX is slightly more intuitive than NetSuite. However, as
with all new software, there is a learning curve with both.
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When it comes to mobility, Plex takes a slight edge over NetSuite. In the end, it really comes down to
the greater number of options offered by Plex. While NetSuite has a well-built mobile website, Plex
offers a mobile ready web presence, Android app and iOS app, as well. This gives Plex users new
ways to access the software, making it more comfortable for mobile users that may be more
accustomed to application-based utilization.
However, both systems offer dynamic and speedy web portal access -- a major advantage of cloud-
based software in general. A strong Internet connection will permit both systems to run very quickly
and offer remote users a better experience than just about any other ERP software on the market.
Company Reputation — NetSuite vs. Plex
NetSuite was founded in 1998, and is positioned as the largest cloud ERP provider in the world. The
vendor built a model that exploded among retail and growing e-commerce businesses and used that
as a launch pad to help them become an innovative driver in the cloud ERP movement.
Plex was founded in 2006, and is the fastest growing manufacturing cloud ERP in the world. Plex built
their entire model on shop floor production oversight and materials tracking. Their software were
adopted very early by an extremely high percentage of the auto manufacturing industry and has since
found large even more adoption among those with high volume process manufacturing components
intrinsic in their business model.
One clear area of differentiation when comparing NetSuite and Plex Systems the experience they
provide users of their product. Through looking at consumer satisfaction reports, we can see that
both have tremendous success stories across many different industries. However, Plex really stands
out when it comes to customer service and customer reviews. NetSuite suffers a bit from being
slightly less customer-oriented during the peak stages of their growth. Their software is often
implemented inside organizations that do not fit NetSuite’s business model well – that is,
organizations often seemed rushed to
implement the software as NetSuite
installations are largely focused on go-live,
rather than road mapping the project with
unique processes of each business in mind.
This has led to the normal complaints and
rumblings that software vendors generally
deal with, but they’ve also had to deal with
several major lawsuits because of this as
well.
On the other hand, Plex Systems may be the most positively reviewed ERP software in the world by
customers. This can largely be attributed to two main factors:
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1. Plex does not envelop where they best fit, and is typically only implemented inside of businesses
where they can be relatively well aligned.
2. Their attention to customer service is prioritized internally. This seems like a marketing message
from the company, but the truth is that reviews have shown that customers are generally very
happy with the support and help they receive from Plex. Or this might quite possibly be because
Plex Systems has been noticed as one of the Best Places to Work – happy people make happy
employees. Happy employees provide customers enjoyable experiences.
Another factor to consider is the partner networks of NetSuite and Plex Systems. This likely plays a
role in many of the reviews as there are not many partners of any vendor certified to deploy ERP
infrastructure in the cloud. NetSuite has a very large partner network that is extremely competitive.
This leads to a lot of deals, and some subpar implementations (not necessarily the software’s fault).
This risk can often be mitigated by certified business process modeling experts on the front end. Yet,
in stages of looming customer expansion, NetSuite may have neglected their capacity to provide
clients with enough viable resources to make that happen.
Plex’s partner network is very small and has been built largely around implementation and business
process expertise. This is probably another reason why their software receives high marks on
consumer reports. We often talk about how important the implementation process is, and working
inside a partner network that supports that same message shows Plex understands it too. This leads
to more successful implementations across the board and is likely the reason customers endure a
pleasurable ERP project experience.
Wrap Up
NetSuite versus Plex is a formidable battle. Both systems are innovators in their marketplace and are
both growing at an extremely rapid pace. Their dual-popularity can directly be attributed to their
forward-focused visions of a cloud-based ERP system for their target markets.
Ultimately, it once again always comes down to selecting the right tool for the right job. What you’ll
probably find is that most manufacturing businesses will be happier with a Plex solution; while those in
e-commerce, retail, and financial organizations will likely be happier with a financials focused service
like NetSuite (although these are not definitive statements).
| ERP for Manufacturing |
There are manufacturing enterprises all over the planet. Each is uniquely different from the other, but
there are also several constants these businesses generally have in common. Just about every
manufacturer must order something, sell something and ship something. Determining which ERP
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software system is best for these functions appears relatively easy right? By now, you should already
know it is not.
The unique processes running through the veins of every production line is a game changer for how
each manufacturer buys, sells and ships. So now, which ERP system is the best fit for your business’
manufacturing model? Let’s break down each of the most popular options.
| Microsoft Dynamics vs. Plex Systems |
Microsoft Dynamics AX and Plex Systems are both considered leading providers of ERP for batch and
process manufacturing in their respective segments of industrial markets. There are several reasons
why manufacturing business may consider both systems. However, in most cases, you will find that
one is generally a better fit for you than the other. We’ll help you navigate through the differences in
the following comparison.
Overview - Microsoft Dynamics AX vs. Plex Systems
A major difference between Microsoft Dynamics AX and Plex Systems comes down to the segments
of the industrial space that they service. The Plex Systems ERP software is built specifically for process
manufacturers and has an avid following in this industrial class. Dynamics AX is primarily known for
powerful functionality tailored to human resources, retail and operations management needs;
however it does contain some nice features that could make it a great fit for small and mid-sized
manufacturing companies.
Plex’s rich, deep rooted manufacturing background – coupled with its availability on a cloud platform
– has been proven to increase efficiency for manufacturers in need of a true manufacturing ERP
system. By comparison, Dynamics AX has found a niche among small & medium-sized manufacturing
companies who require simple configurations with less of a need for agile process modeling.
Scalability – Dynamics AX vs. Plex
Microsoft Dynamics AX largely services the small and medium sized midsection of manufacturing and
distribution. Yet, some businesses moving from small scale processing to larger-scale strategies find it
challenging to scale the functionality of Dynamics AX on demand. A lack of flexibility in the build out
of AX has made some customers reluctant to change processes and practices due to the somewhat
rigid nature of some of the configuration.
Dynamics AX is a great fit for businesses that have very little complexity in their manufacturing
practice and may not plan to grow significantly within the next ten years. However, Dynamics AX
often becomes laggard, or slow to move through processes, when scaled up for sophisticated
business modeling – as many companies have become dictated to do to compete in their respective
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markets. This can be discouraging for a business who purchases an ERP system for efficiency and
agile throughput of data.
Conglomerate economies of scale generally require the handling of large capacities, sophisticated
materials acquisition, batch and lot traceability and scheduling measured in real time. For example, as
a manufacturer or distributor increases capacity for private label assembly or do not process a
standardized set of materials, new transactions could bottleneck the Microsoft Dynamics AX system,
while Plex is perfectly built for such occasions. It all depends on the complexity of your business and
its goals.
Plex Systems is best suited for medium and large businesses that require sophisticated quality
management schemes post-growth. These enterprises generally acquire specialty materials and
process large amounts of inventories for a list of commodities of volatile markets (food, automotive).
Processes often involve assemblies for seasonal variations that are both complex and require
extensive auditing for regulatory bodies. Scaling the system for an enterprise with end-to-end
production occurring at multi-site environments where products experience several points of contact
is a key hallmark of Plex Systems.
Plex Systems ERP is a reactive, agile application for complex process manufacturing; however it can
be overkill for smaller manufacturers with standardized assemblers. However it may be worth
mentioning that because Plex Systems operates in
the cloud, it does collect and configure continuous
data in real time, which is an
important attribute for any business, no matter
their structure or size.
Plex is a valuable resource for businesses that seek
to become more data-driven and require flexibility
in the build out of reports and dashboards of the
more hands-off operations. Plex Cloud contains a
built-in BI feature that is specifically configured for
manufacturing businesses. Dynamics AX can easily
integrate with Power BI, but an organization will still have to align the BI tool to their business to draw
something meaningful.
Ease of use – Dynamics AX vs. Plex
Not even the most powerful ERP on the planet is a fit for all businesses. Generally it requires expert
customization and integration with other business software to generate proper ROI. Yet, not all users
within a company own the degree of technical understanding to allow this to happen. For that reason,
many ERP vendors focus on ways to repurpose complexity into something most of us can actually
drive conclusions and results from. Microsoft Dynamics AX understands this very well.
Since Microsoft Dynamics AX belongs to the Microsoft family, most modern work forces are
experienced with its standard interface and navigation. This can help mitigate discomfort throughout
a changeover process.
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The system can be easily synced with other Microsoft products such as Outlook and Microsoft Office,
rendering it available inside a suite most users are already familiar with.
Furthermore, Dynamics AX is a powerful yet straightforward system driven by the ease of use
methodology. And while many position ease of use at the top of their buying criteria docket, it isn’t
always what they’ll find when it comes to the finished product. Sometimes the subjective goals of the
business push the Dynamics ERP to execute functions beyond the scope of its development and
inadvertently cause the system to perform poorly.
We find some IT groups are often times open to implementing new applications to push the
Dynamics system to perform to non-technical user requests. But this isn’t always the fault of IT as
Microsoft and its partners offer products that can achieve particular objectives; it simply comes down
to ensuring there is an ideal plan behind the integration so all mapping works in tandem as a unit.
Likewise, because a majority of users own a skill set linked to a longevity of experience with Microsoft
products, their requests seem harmless as they believe certain functions are only a button away.
What we generally then find is IT groups
that become fixed on integrating an
outstanding number of bolt on
applications provided by other Microsoft
suites outside the AX product. Configuring
them to do what needs to be done
suddenly becomes a complex, time
consuming process. Even worse, these
kinds of modulations can cause someone
to accidentally choke critical areas of the
original Dynamics configuration. Not to
mention that if those integrations
manipulate the Dynamics AX architecture the vendor may void service contracts and leave the
organization managing their own service support tickets.
If processes call for specialized custom features that are pivotal to process models, procuring a more
dynamic all-encompassing system is certainly worthy of your hard earned investment dollars.
The ERP offering from Plex Systems provides an all-in-one manufacturing ERP solution that is built to
include all facets of a shop floor to the accounting suite from a single platform. Plex Systems
recognizes many will need to inevitably integrate separate systems – some even happening to be
instances of Microsoft. So, not only does Plex provide agile features and an array of deep functionality
for integration, it plays well with external applications and web-based tools (not that many will need
these, as Plex is one of the few software developers providing manufacturers a large breadth of
product features most vendors advertise as add-ons). Plex exposes REST API to users so that these
integrations can happen easily.
Microsoft Dynamics AX UX/UI configuration is simple and easily adopted by modern users of digital
systems. However, when the time comes to delve new functionality to the system, it may force the
ERP system to tackle tasks in areas which it was not configured to handle. This is where Plex is often
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the better fit. It really comes down to weighing the familiarity of Microsoft vs. the powerful functions
of Plex.
Migrating to Cloud – Dynamics AX vs. Plex
One thing many may not know is that the latest release of Dynamics AX system is the first of the
Dynamics family to be built upon SaaS architecture. That’s right, the new Dynamics AX is offered in
the cloud; but this is new territory for Microsoft. While this certainly broadens the functionality
Microsoft offers businesses it may take time before everything is fully ironed out. This means
businesses looking to make the jump to the cloud (for all of the reasons mentioned here), Dynamics
AX may not be the most logical first choice.
Plex Systems is one of few ERP systems on the market providing only an instance of their software
through SaaS architecture. This has been the only platform in which has Plex Systems has utilized
since its inception over a decade ago, and is often revered as a leading expert of ERP configuration in
the manufacturing space. Microsoft is (and always will be) a purveyor of innovation, but is ironically
late to cloud-led ERP software, unlike Plex Systems.
If a cloud-led system is a requirement of your team, Plex Systems is by far the most advanced and
serviceable ERP system for modern manufacturing and distribution businesses available. Businesses
seeking to move their data to the cloud will likely benefit far more from the Plex experience.
| ERP for Economies of Scale |
The best ERP for your business will largely be determined by the vision of the business and how the
software will scale this vision systematically. As mentioned in previous chapters, nearly every
manufacturing business largely does many of the same things. Some ERPs are better equipped for
traditional manufacturing processes than others; but economies of scale require a highly reactive
infrastructure to incorporate their vision with new logistics.
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Some systems are very rigid and require companies to use them as outlined by the publisher, while
others can be turned inside and out to allow for flexibility to your business. Which ERP is best to scale
your business largely depends on how uncommon or complex some of your business processes are.
| SAP vs. Plex Systems |
SAP vs. Plex Systems is becoming a more common comparison for many businesses. The design of
these two systems fit well for similar industries and business types, which make them natural
competitors for mid-sized and large businesses.
Overview – SAP vs. Plex Systems
SAP services a rather large portfolio compared to most of its competition. We attribute this to the
longevity of the SAP brand. The company launched its first system in 1972, and is a seasoned veteran
of the on premises ERP movement.
SAP’s latest ERP version was released in 2006, and was built upon an underlying layer of Java and
ABAP code. SAP eventually did infuse new features and functionality with its enhancement package
(EHP7) in 2013 for more than 83,000 total customers
worldwide.
SAP touches an array of business industries and is
not necessarily tailored to perform best for one
enterprise type over another. However, the largest,
most global-reaching corporations, whose processes
generally involve asset management, human capital
management and operations management -- but
not necessarily capacity and production oversight of
factory floors, generally look to SAP for their ERP
solutions.
SAP is a proven formula for global parent or holding
companies that require rigorous snapshots of subsidiaries in which they manage. The majority of
these SAP users operate back office systems such as finance, controlling, materials management and
asset accounting.
SAP owes its success to the functionality compounded inside these modules over the last two
decades. Yet, maintenance costs of these legacy ERP components is more expensive which has some
users questioning whether the system fits the M.O. of what they’re trying to accomplish – that is, use
the software to increase efficiency and decrease costs.
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Plex Systems includes these services in its all-inclusive solution that is quicker and easier to perform in
the cloud. It’s limitless software for manufacturing and capacity-driven communities. The ERP vendor
is often revered for its seamless upgrades, customer satisfaction and shop-floor focused road
mapping at no extra cost to the customer. Its customers primarily include manufacturing bodies in
automotive, aerospace, defense and food and beverage. Because Plex is built solely on cloud-
technology, its applications house capabilities that service manufacturing quote to cash, and
everything in between at a significantly lower cost (great for mid-sized companies). This enables those
with stake in the investment to turn profits into returns in a shorter amount of time.
This game-changing model is a leading reason why industrial communities are gearing up to
implement Plex Software in the coming year. Since the inception of Plex Systems in 2006, they have
managed to deploy their services across 20 countries, powering over 1,100 plants with a 95 percent
renewal rate. Instead of costly software upgrades, Plex earmarks rolling updates. This is simply a
unique advantage of having Plex, and a hallmark of the vendor’s continued pledge to align their
revenue with customer satisfaction. This model enables the customer to realize ROI on their
infrastructure sooner. Likewise, IT groups are less likely to deviate from critical responsibilities to move
systems to latest versions.
Industry Coverage
Plex Systems is very transparent when it comes to the industry types they service. They offer cloud-
technology for manufacturing – not banks, governments or hotels. Plex was built from the ground up
by process manufacturing engineers themselves. The ERP is designed to connect supplier, material,
machine, accounting, human resource and BI needs for both discrete and process manufacturing
businesses of all sizes.
In its earliest stages, Plex Systems was built as a MRP tool – configured as a communication device to
provide factory floor information to management on a real time basis. Plex has since evolved that
system into a scalable, efficient, all-encompassing ERP for mid-sized, large and global industrial
groups—including automotive, aerospace, the DOD and food producers. Every aspect of Plex has
been configured to support those specified attributes of modern industrial processing; including BOM
tracking, accounting compliance and advanced quality management.
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Comparatively, SAP does not offer a native ERP through the manufacturing lens. Instead, SAP offers a
manufacturing execution system – a segmented solution, compatible with the SAP Enterprise Suite.
The MES tool of SAP does an excellent job capturing production data in real-time when mapped
according to defined business process models. Since the MES tool is typically a separate solution from
the primary ERP system, companies inadvertently purchase both to retrieve the same functionality
they’d find in an ERP built upon an MRP foundation. Programming ERPs atop a materials resource
planning solution alleviates the complexity of the implementation, as much of the system would
readily support the majority of shop floor production requirements from a single system.
Unfortunately, user reviews mistake SAP to perform all the functions
from SAP’s Enterprise Suite. Yet, after the bolt on configuration, the
software could seem rather dilatory to users post go live. A likely reason
is there may have been a critical mistake in uniting separate systems
during the implementation and no consideration of the risks appraised
on the implementation road map.
From a customer’s perspective, this inevitably is hard to dismiss after
funding an SAP project – first to implement it, then to integrate it, and
inadvertently having to troubleshoot many issues after go live.
Process and discrete manufacturers will quickly find that Plex simply
offers greater value for their business (if they’re interested in a
deployment model for industrial groups of scale); while other types of
businesses will likely enjoy the phased-in solution SAP offers. After all,
it’s about finding the right tool for the right job; and Plex is the right tool
for process, high volume and regulatory guiding economies of scale.
Implementation Time
Manufacturing-led ERPs in the cloud, like
Plex Systems, are extremely flexible and can
be completely customized around business
processes. However, those businesses with
twenty plus years on their current legacy
system may mistake flexibility with volatility
and be apprehensive to move to a system
requiring such attentiveness to detail.
The distinctiveness of Plex Systems
architecture stands to balance its volatile
configuration with an array of identified
industrial needs readily hard wired in the
application. It requires no additional investments in database licenses, middleware or IT operations.
Also, implementation time is much less with Plex than other vendors as the language of the system is
derived from a production floor, which is easy for those using the system to adopt. This will smooth
over any discomfort users may experience during an implementation process.
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Plex is browser-based, meaning businesses avoid having IT teams install or maintain hard and soft
“wares.” One of the best elements of procuring an instance of Plex is that you don’t have to open up
real estate on-premises for hardware – allocating capital that can be better utilized for other
opportunities. Plex Systems also manages a comprehensive data center to take complete control of
enterprise operations. This enables customers to focus on continuously improving processes, address
user inquires and train power users rather than testing software environments daily.
SAP is acquired as an on-premises solution for the most part. SAP requirements generally include
desktops, servers and other meaningful hardware; as this has been the demand that companies have
generated. Nonetheless, SAP deployment time has been somewhat shortened over the last five years.
This is most likely due to a large work force experienced with SAP software over the last 40 plus years
of existence.
A reduced implementation time should reduce costs, but this is not necessarily always the case. Since
SAP is beneficial for large oversight management, configuring a system to house the company’s
requirements will inevitably elongate implementation time. Generally, large corporations need to
integrate financials with subsidiaries, which can be a complex process if the child company runs on a
secondary instance. And because most parent companies allow child enterprises to utilize their own
ERP systems, it can take years (if not decades) for a project to be completed on time. It also largely
depends on how keen a parent company is to align its subsidiaries with a corporate model.
Subscription Based Model
One of the unique features of Plex is its subscription-based delivery
model. Plex uses this as incentive to continuously win customer
business by creating advocacy for its brand. And rather than having
the customer amass charges for every new user license, Plex
encourages system usage by offering logins for both employees and
partners at no additional charge.
Instead of incurring hefty costs every time a business goes to upgrade,
Plex has eliminated versioning and instead rolls out upgrades on a
continual basis. Essentially, this solution continuously moves
customers to a whole new state without disruption.
Plex’s historical up time is in excess of 99.99% – equaling less than an
hour of downtime per year. This is great because cost of ownership is much less. Moreover,
companies have the ability to retain business customizations whilst live on the latest system,
encouraging user adoption and lessening disruption from updates.
SAP software rose in popularity from its solutions as a global integration tool and bridging economic
barriers like currency, exchange rates, language and culture automatically. Today most ERP vendors
can provide this functionality at much lesser cost model than SAP with agility and data transparency
tied in at no extra charge.
SAP has built very powerful software but to aggregate all the functionality needed to meet those
expectations, buyers of SAP generally procure separate solutions to get there. This can amount
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incremental costs further down the road. As we mentioned previously, SAP functionality is architected
in combination with solutions outside the SAP Enterprise Suite, rendering the system rigid and
financially unstable.
Regardless of all the computing power of SAP, businesses fail to move to latest versions because it’s
such an enormous amount of work on premises. This could be a benefit, however, since the IT
department remains consistent in their job of managing the same legacy hardware with faithful
values.
SAP’s contractual agreements with customers offer little to no flexibility – making it extremely
important to choose the right tool for the right job. The contract required to sign with SAP holds a
company with the vendor until expiry; unlike the SaaS model that requires customers be locked in for
only a year.
Wrap Up
SAP vs. Plex is an arduous battle. Both systems provide a strong offering to different kinds of process
manufacturing and financial oversight businesses. What you’ll probably find is that most growing
manufacturing businesses, with some level of complexity, will be happier with a Plex solution (if they
are directly interested in moving to the cloud); while those in the largest financial, banking and human
resources organizations - with multiple subsidiaries across multiple industries and hiring scope for
those with business acumen - will likely be happier with something like SAP (although, once again,
these are not definitive statements).
There are always other factors at play, but it’s important that businesses perform proper selection and
implementation practices in the beginning to mitigate project risks.
| ERP for Database Management |
To this point we’ve distinguished the features, capacities and markets of today’s leading ERP providers
in comparison to a first moving Plex Systems. We’ve compared the young vendor to its primary
competitor in the categories of cloud, manufacturing and scalability. We’ve now reached our
comparison of Plex Systems to its most audacious competitor yet –JD Edwards Enterprise One ERP
and its Oracle driven database manager.
| JD Edwards EnterpriseOne vs. Plex Systems |
We might first start off by saying these two systems service some industries much better than others.
Most buyers of software today have grown favorable of best of breed solutions, or systems tailored
specifically to the type of jobs and tasks that make up their business processes.
As we’ve mentioned in our previous comparisons, Plex Systems makes no bones about the segment
best suited for their ERP solution. Plex Systems is largely installed in a manufacturing environment,
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with unique configurations suitable in an automotive, food and beverage and process production
capacity.
Oracle’s JD Edwards EnterpriseOne ERP suite is a well-established solution for these types of
businesses as well, having performed installations for over 150 medium to large supply chain
enterprises. However, they have come up with a very different means for using software solutions as a
platform for a supplier-customer environment.
Overview – JD EnterpriseOne vs. Plex
Plex Systems boasts strong MRP functionality beneficial for tracking data on the shop floor, such as
batch and lot numbers, serial numbers and input materials. In fact, Plex Systems was established to
sharpen the visibility of processes at the detail level of production process to mitigate the risk of
process variation and nonconforming products. It is this type of advanced data management that is
so effective for even the largest of manufacturing supply chains. Highly regulated industrial businesses
(food, automotive, aerospace) are becoming more prone to acquire a system with this type of
functionality as regulatory bodies tighten the gap for production variation.
JD Edwards EnterpriseOne provides a well-rounded sales-order management module, complete with
a configurator – an automated selection and configuration tool to connect front-end sales and quote
entry with back-end fulfillment ops and manufacturing systems. This type of functionality is
exceptional for a business operating in a highly specialized selling capacity dealing with a massive
amounts of new data transactions happening daily on a global scale (retail, distribution, travel and
transportation) but may not be a choice solution for a medium or large industrial manufacturer.
There are limited capabilities in the JD Edwards Enterprise One supply chain and production
management modules, and even less its financial-oriented sister ERP. JD Edwards Enterprise One is
remarkable at tracking quotes, but not a bill of materials forwards and backwards in production. In a
case of tracking materials from quote to cash – and thereafter—the product configuration enrichment
(a staple of Oracle) of JD Edwards Enterprise One may not be beneficial for a business seeking to
harbor a solution instigating functionalities for quality over quantity.
Employee Turnover
Before contacting either vendor, a buyer should research these companies to understand their
products, organizational culture and sales approach. They should familiarize themselves with the type
of leadership they follow, who’s in charge and what their values are. This should give the buyer a
better idea of what to expect in the selling processes, the integrity of the sales people and the
experience they’ll have during an implementation – or lack thereof.
You may already be familiar with Oracle’s legendary sales force, led by former CEO and respected
leader Larry Ellison. During his reign, Oracle successfully completed nearly 100 acquisitions of tech
companies increasing capacities and viability of its products. And with that, product prices rose as
Oracle become the dominate provider of legacy and modern business applications.
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Nearly every technology, code or database we’ve come to know today is pegged to Oracle. And
while increasing the breadth of the portfolio benefited Oracle, it has decreased the choices for
consumers. This is especially true for those organizations whom may be looking to migrate to a
solution outside the Oracle ecosystem.
And what was once viewed as a brilliant model has recently come under fire by the new
administration. The company has chosen to enter the technology hardware space, as well as develop
solutions built upon SaaS architecture. While this has given Oracle the opportunity to be a primary
source for all of the components of IT infrastructure – either on-prem or in the cloud – it has caused
issues internally Oracle can’t seem to nix.
This could be the result of Oracle’s new approach to provide both forms of enterprise architecture
and a change in their go-to market strategy. Over the last several years, the successor of Larry Ellison
has reorganized Oracle’s sales department to run leaner; phasing out hundreds of the once
legendary sales force. He has placed lofty quotas on the sale of hardware and amped up
requirements to sell a top to bottom infrastructure. Only a handful of large companies can afford to
obtain infrastructure top to bottom without looking around for competitive pricing of separate
components (I.e. hardware vs. software). The majority of sales territories have become smaller and
many analysts are questioning if that has contributed to the high attrition rate at Oracle and
noticeable employee turnover with hundreds leaving each quarter (some leaving for competitor Plex
Systems).
Those that stay remain urgent to close deals; therefore focus efforts on convincing a buyer to
purchase not only software, but hardware as well. And because Oracle has heavily invested in the
hardware provision space we can expect this to be an ongoing issue that will inadvertently leave
clients owning JD Edwards Enterprise One campaigning for new project resources, shorter
implementation time and more financing.
By comparison, Plex Systems was named one of 2014’s Best Places to Work by the Detroit Free Press,
which can only mean one thing - low employee turnover. This is especially important to consider
when considering an ERP project with your finance dollars on the line. From a project management
standpoint, Plex employees find value in seeing a client’s project through, reducing the chance of
project change over and derailment. Furthermore, Plex employees are being compensated for work
they already enjoy doing. It just happens that they develop an intelligent machine for the market in
which they have hands on experience in what matters most: manufacturing.
Plex Systems hires seasoned manufacturing experts that understand the ins and outs of a shop floor
framework to match Plex applications to specific manufacturing needs. From a sales perspective,
Plex’s single cloud platform makes the sales team focus on business process models and drive value
from understanding customer requirements, compared to Oracle with its many products, services and
legacy hardware that may end up convoluting the client message.
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Cost
Organizations deserve a solution that optimize process and capture new value that will drive ROI on
the purchase. So between JD Edwards Enterprise One and Plex Systems, which one is making that
happen for the industrial market?
JD Edwards Enterprise One is an open platform priced between $15 – $400K (plus hardware,
implementation and continuous improvement) depending on the size and scope of your business
model. We compare that to Plex’s Manufacturing Cloud ERP with a yearly subscription based model
costing businesses $5K per month on average.
Plex uses a subscription-based delivery model. They use
this as incentive to continuously win customer business
by creating advocacy for its brand. The continual
renewals are paid year after year. And rather than have
the customer amass charges for every new user license,
Plex encourages system usage by offering logins for
both employees and partners at no additional charge.
Instead of incurring hefty costs every time a business
goes to upgrade, Plex has eliminated versioning and
instead rolls out upgrades on a continual basis.
Essentially, this solution continuously moves
customers to a whole new state without disruption. Likewise, companies have the ability to retain
business customizations whilst live on the latest system; encouraging user adoption and lessening
disruption of upgrading.
Recently, Oracle decided to offer its JD Edwards Enterprise One solution on a cloud platform as a
subscription model. This is great way for Oracle to sustain their position in the business technology
space, and provide the same functionality many depend on through a less expensive model.
However, we are concerned the company will leverage the Oracle brand and keep their SaaS model
price high whilst deploying limited capabilities for the industrial segment.
Nonetheless, included in the high cost is the well-established Oracle Database that can be hosted on
a variety of operating systems as long as the company keeps the ERP on premises – Microsoft
Windows, HP-UX, Linux x86-64, OpenVMS and more. A JD Edwards Enterprise One solution that
plays well with established internal platform can make installation costs lower and cause less change
in procuring latest hardware.
Wrap-Up
JD Edwards Enterprise One and Plex Systems is an arduous battle. Both systems provide a strong
offering to a diverse group of businesses differentiated by their ERP buying criteria and data oversight
for their global enterprise.
Ultimately, it always comes down to selecting the right tool for the right job and the right company.
What you’ll probably find is that most growing manufacturing businesses with some level of
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complexity, will be happier with a Plex solution (if they are directly interested in moving to the cloud);
while those in transportation and travel, communications, or professional service organizations with
business acumen and sales-oriented backgrounds will likely be happier with something like JD
Edwards Enterprise One (although these are not definitive statements).