Content courtesy of Electrical Wholesaling
According to Electrical Wholesaling, the overall prognosis is positive. In the aftermath of the Epicor and Infor acquisitions, electrical distributors may be concerned that the ERP giants won’t be able to focus time and resources to develop the customized functionality needed by the industry. However, both companies have groups that are vested in the electrical market. Activant Solutions has been a strong presence in the electrical industry for many years, partnering with IDEA to work on the IDW and acquiring several electrical distributor ERP systems. Since its acquisition of NxTrend, Infor has also been actively involved in the electrical industry. The electrical industry will probably continue to be identified as a valuable target market.
For Epicor and Infor, the acquisitions mean a larger suite of services, economies of scale, and expanded market reach. Although opinions differ on how the acquisitions will affect distributors, perhaps it’s not too naive to be optimistic. By capitalizing on the economies of scale, large ERP providers are able to better support their systems and dedicate more resources to research. Development of mobile applications, eCommerce services, and cloud computing software are just some of the things that Electrical Wholesaling predicts will blossom as a result of the acquisition.
For more information about the resulting advantages of software giants for these two ERP providers and customers, read the article “The Big Grid for Battle” in the August 2011 issue of Electrical Wholesaling.