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ICIM is a very customizable ERP software package that will allow most company's the ability to have it meet their specific needs. I found that it is easier to make it work for you rather than force your needs into a "packaged" product.

Dan Patton -
Drees Wood Products, Inc.

ERP Applications


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ICIM®ERP Software Which Tier is Right for You?

Background
ERP systems have evolved over the past decades from their origins as MRP systems to MRP II and then finally to ERP. ERP vendors range in size from Fortune 100 companies to small independently owned companies. The software packages and their vendors are, for your understanding, classified into three broad categories: Tier I, II and III.

Tier I
These are the most well known of the software packages: SAP®, BAAN®, ORACLE®, and PeopleSoft®, to name a few. These software packages handle everything from the banking industry to supermarkets.

Characteristics include:
  • Used by many Fortune 500 companies. Tier I vendors are starting to market to midsize manufacturers. In some cases, they sell software purchased from other vendors. Other vendors offer a subset of their own software under the assumption that smaller companies don’t need as much functionality.
  • Used by large international companies
  • In a lot of cases a full time “team” is required on the part of the company implementing the software.
  • Implementation teams are usually augmented with third party consultants
  • Usually priced by modules and by number of users

Tier II - this is where ICIM ERP fits
These vendors are a good fit for most small and midsize manufacturers. The software provided by these vendors offer rich functionality and run on a variety of technologies. Expect higher involvement from these vendors or their representatives (see below) in the implementation of the software. For companies with any type of complexity in manufacturing, sales or engineering processes; software packages in this Tier would be a good choice.

Characteristics include:
  • Offer a high degree of functionality.
  • May be targeted to a specific industry. Some software packages were first developed to support a specific industry. These work well in their particular industry but struggle when used outside that industry.
  • The software is normally sold through a Value Added Reseller (VAR). The same VAR will offer implementation services as well (see note below).
  • A significant amount of consolidation has taken place amongst Tier II vendors. It is not uncommon to see one vendor offer many different ERP packages.
  • Usually priced by user

Tier III
These vendors offer what is often referred to as “canned” software. If across the board, standard business practices are used throughout the company or if all that is required is accounting and light inventory control, these packages will probably be a good fit.

Characteristics include:
  • Easy to use screens.
  • Installation CDs. Usually windows based.
  • Self-taught tutorials are usually the extent of the training.
  • Many times priced by module.

Value-Added Resellers
An important note that needs to be understood is that many software vendors, especially Tier I and II providers, utilize Value-Added Resellers (VARs). A VAR will sell one or more ERP packages offered from various vendors. The VARs will typically not only sell the software but offer implementation services as well. When dealing with a VAR, the VAR must be evaluated as thoroughly as the ERP Software Packages itself. Though the software might be a good fit, the VAR may not be up to the task of assisting in implementation.  Another factor to consider is what type of relationship the VAR has with the software vendor.  Are there certifications required to become a VAR of that particular software? If a change is needed in the software, how does the VAR work with the vendor to get it done?  If you like the software but don’t like the VAR, don’t count on being able to change the VAR; many have exclusive contracts to represent the vendor within a particular region.