Vision33 BlogSAP Business One Blog for SMEs

Improving financial visibility, labor tracking, better access to inventory management; all typical reasons why pipe, valve, fitting (PVF) distributors adopt enterprise resource planning (ERP) solutions. But for a pipe and valve company that conducts engineer to order (ETO) manufacturing, selecting your next ERP solution requires careful consideration. Doing business with customers in the global market for industrial valves or even in other regions in North America requires a way to efficiently manage specifications about each client project. Choosing an ERP with integrated project management and budgeting means that you can tighten the pipeline of project information in your organization and ensure the next batch is best.

As the quality of overseas metal pipe and valve imports catches up to those manufactured domestically, there’s been a shift in end user buyer behavior. Companies that once purchased quality metal pipe and valve components manufactured in the U.S. are increasingly turning to cheaper overseas suppliers. Today, pipes and valves imported in the U.S. accounts for 40% of total sales in the country. Now more than ever, PVF distributors are having greater difficulty forecasting sales when end users’ purchase decisions (like in other standardized commodity-based markets) are subject to price fluctuations of supply and demand. This presents an interesting management challenge: How can a PVF distributor generate better sales pipeline for their products while contending with market pressures that often favor low-price options from oversea markets?