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Is An ERP Enough For Department of Defense Suppliers?

Posted by James Lusk on Tue, Nov 27, 2018 @ 17:11 PM

DoD supplier trying to manage contracts via ERP and DoD-approved software

Enterprise Resource Planning, or ERP, can be a valuable tool for companies large and small to improve the flow of internal processes and facilitate better communication between the different teams within your business. In fact, 81% of organizations are either currently implementing ERP software or have completed an implementation.

But does ERP have everything companies need when it comes to fulfilling defense contracts?

Unique process needs for Department of Defense suppliers

For many companies, DoD commerce is one part of their business. In addition to their core business, they might supply government agencies with everything from heavy equipment to combat apparel.

While an ERP system makes sense to streamline many typical back-office functions, working as a DoD or DLA supplier in any capacity is fundamentally different than serving your typical customers. From finding contracts to processing shipments to tracking invoices, supplying goods to the DoD requires specific processes to be followed and requirements to be complied with.

For example, creating and printing DoD-compliant labels and submitting RFID tag tracking information is required, and many businesses use the government’s online systems to submit this data. However, data has to be entered into multiple disconnected systems, leading to a time-consuming and error-prone process for what’s often a small percentage of your overall revenue. Unfortunately, ERP is not the answer.

Why ERP is not enough for managing DoD contract fulfillment

DoD-approved software is not only designed to streamline the work of fulfilling government contracts, it has direct integrations into DoD systems that ERPs don’t natively have. Due to government cybersecurity standards, few solutions can deliver direct integration across all the systems needed to handle DoD compliance efficiently.

The alternatives are:

1) to manage parts of the fulfillment process through ERP and then submit required data to the government using their multiple disparate systems

2) to attempt to build custom ERP integrations into all the required government systems, which can become prohibitively expensive and time-consuming

3) to use a DoD-approved solution like Odyssey that can natively perform all the necessary DoD commerce tasks you need while integrating with your ERP

Clearly, the wisest choice is to rely on software that is purpose-built for DoD commerce functions. Not only does this save time and reduce errors, it’s designed to ensure compliance with government requirements – which ERP systems are not.

Helping companies turn their work with the Defense Department into a steady, efficient revenue stream is our area of expertise. Talk to us about configuring the right solution for you.

Topics: ERP