Over time businesses makes decisions to grow in new directions which can lead to challenges in the future. We’re seeing three distinct types of companies in our target industries of Construction, Distribution and Manufacturing that have adopted new avenues of growth. We call these multi-industry hybrid companies.
One type is a distribution company that starts a lucrative value-add business to convert lower margin products into higher margin by offering modified or tailored products. An example is a packaging product distributor that creates custom packaging for a product used by an Original Equipment Manufacturer (OEM) looking to reduce its manufacturing labor costs.
The second type is a manufacturing company that reaches capacity in its production operation and decides to add more buy-sell products. Expanding a manufacturing operation can be costly so dedicating some floor space to warehouse consigned or purchased inventory can add margin without a large investment.
The third type is a manufacturer that manufactures and installs a product. Aktion has a few clients that make cast concrete products and also need to install and service their products. This example has combined needs for inventory, manufacturing and project accounting which is an interesting combination of requirements.
Again these are just three examples. There are many more and I will go into a detailed analysis of specific challenges and solutions for these Multi-Industry hybrid businesses.
Of these three types, the majority are running their business using multiple disparate, disconnected software systems or, even worse, using a central accounting system and manually managing these additional requirements using spreadsheets and other home-grown methods.
As an ERP reseller and technology adviser, Aktion receives inquiries weekly from companies who need to modernize their business software and are looking for a single, integrated ERP system that meets the company’s diverse needs and growth capacity.
We anticipated these diverse and evolving requirements and earlier this year invested in adding staff, services, skills, and deliverables to provide these multi-industry companies with the software and support they need to run their business. The Multi-Industry (MI) Division was launched in January 2020.
The MI Division includes application consultants and software engineers focused on servicing the complex needs of a multi-industry company. To ensure the success of the new division, Aktion transitioned senior staff from our Distribution, Construction and Manufacturing practices.
The cornerstone solution of the MI Division is Acumatica Cloud ERP. Four years ago, Aktion became an Acumatica Gold Partner. Acumatica is a modern, cloud-based, integrated ERP solution that delivers everything a hybrid company needs to manage operations. Acumatica developed its own XRP platform which gives each customer control over integrations and upgrades, even in a SaaS environment.
Acumatica offers Construction, Distribution, Manufacturing, Field Service and Commerce editions. Each of these editions may be combined to include cross-over functionality needed for hybrid company requirements making it an ideal platform for Multi-Industry division customers.
In future blogs, I’ll go into more detail about some of the common hybrid business scenarios we’re addressing. Every business is unique and presents its own set of challenges, however; we’re seeing commonality and repeat scenarios to solving these complex challenges.
If you’re a hybrid company that’s struggling to find a solution, just know there is one available – Acumatica.
Bob is Vice President, Multi-Industry Division and leads a team of IT professionals in delivering next generation ERP software including Acumatica Construction Edition, Acumatica Cloud ERP for Distribution and Acumatica Manufacturing Edition, services and support to mid-market companies.
Phone Number: 123-456-7890