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ERP for Manufacturing Business: Benefits of Integrating it with the Supply Chain Industry

Manufacturing and production industry is in an ever evolving state, mostly because these industries are usually the ones who’s consumers experience change in trend more quickly than if compared to a digital business. Because of this, the manufacturing industry’s competition has become lethal and the business scenario, ever so hostile.

In such a case, businesses are looking towards making their operations agile and efficient so that they could maintain their market place and identify new business opportunities. Enterprise Resource Planning (ERP) offers end-to-end business solutions for a number of industries and manufacturing is one of them.

An ERP specializing in providing solutions to manufacturing industries helps streamlining the core business processes like production plans, finance and sales plans, management of supply chain etc. ERP software comes with customizable modules and features that are scalable and able to grow with the business.

Many businesses, especially if they are related to manufacturing industry, have plans of adding more products to their line. For such businesses, ERP is no less than a blessing because with it, they can expand and improvise as much as they want and without losing on the initial and core ERP benefits.

ERP Software for Manufacturing industries - Solutions
ERP for my Production Business

Do I Need an ERP for my Production Business?

ERP solutions are better known for addressing issues related to digits industries and
businesses and if you are new to the world of ERP, you must be thinking that how can an ERP help my manufacturing business. Have you ever faced issues like late product or consignment delivery? Delayed project delivery due to data discrepancy? Or faulty sales and statistics forecasts? If your answer to any of these is yes, then YES, you need an ERP solution for your manufacturing business.

The manufacturing industry is more prone to data mishandling since, in this industry, field work is more common and there could be a considerable time between the data recorded and inputting of it into the system. Therefore, risk of changes in the acquired and inputted data are high and since each step in it is important, it can have immense effect on the entire process.

In-depth knowledge about the operations gives better chance of optimising of each step and yielding greater business and process benefits. An ERP simplifies the work by harmonizing the entire manufacturing process as if offers upgrade to the latest technology which reduces management cost and influences the total cost of ownership. It provides wide variety of support for ordering, configuring, engineering, stock control, just-in-time (JIT) manufacturing processes etc.

Benefits of ERP for Manufacturing Industry

ERP offers a multitude of benefits to manufacturing industry through which companies can introduce agility into their business operations.

Some core ERP benefits for manufacturing include:

Identification of Potential Product Issues

Identification of Potential Product Issues  

One of the chief reasons due to which product delivery is delayed is that the manufacturers couldn’t identify the issues at early stages. It is identified only after the prototype or, in many cases, after the final release, after which the manufacturers have to go all the way back to the initial stages. This whole process is time consuming and can be endlessly frustrating for the entire team.

On the other time, if a business is having an ERP software implemented, then it can recognize and track the recurring and potential product issues at the early stages. When identified early, issues are easy to handle and correct. Manufacturers can swear by ERPs like Lansa ERP and the ease of early detection it provides.

Decreased Inventory Management Cost (2)

Decreased Inventory Management Cost  

Since this business is all about manufactured goods, manufacturing businesses spend significant time and resources in managing and controlling the or inventory. Time that could be spent in working on important and fruitful business operations is spent on making assumptions, collecting reports and forecasting the business requirements.

The situation can be bettered with the help of an ERP like QAD, businesses can acquire accurate information and data regarding their products and its present and future demands. Through this information, they can improve business operations without going out of the way. ERP is a versatile system that is easy to use and requires less manual customization as it adjusts itself automatically.

Accurate Pricing and Solicitation

Accurate Pricing and Solicitation  

Bidding and price accuracy is crucial for businesses and if you’re an entity involved in state level and RFP type of projects, then, acquiring this accuracy is not even important but essential for your success. Business compete with each other for projects and to gain success, they try to place as accurate and best bid as possible.

ERP solutions offer the competitiveness required to determine accurate pricing and placing bids. Therefore, with its help, businesses can win projects and rise up the competition. ERP helps augmenting revenue as with more business come more profit and brand awareness, which is necessary for good market presence.JuxtAposED is a good example.

financial-management

Better Financial Management  

Financial management is one of the core processes of a business and since manufacturing business involves lots of transactional and payment activities, it requires some smart way of handling it. Numbers are hard to manage and when it comes to transactions and money, businesses are extremely careful of it. However, these activities can also take up to half of the time.

An ERP helps monitoring these transactions seamlessly by integrating manufacturing operations, supply chain activities, client and supplier relationship, warehouse and distribution etc. Businesses can manage the entire cash inflow from different departments with a single software. Infor M3 is a specialized financial management software designed for this purpose.

Successful Identification of Future KPIs

Successful businesses always have their eyes on future and where they want to be; for this purpose, businesses need to have accurate insights. Through those insights businesses can develop futuristic KPIs for the entire business and work step by step to achieve it. Forecasting for business promotion is key to long term success and, therefore, their accuracy has a huge impact on business’ success.

ERP software, SAP and others, provide businesses accurate insights regarding their business, where it is and what they need to do to reach the next level. It assures successful implementation of the acquired business insights with profitability reporting and analysis, which is needed to reach next level corporate proficiency and to set up next KPIs

Increased Data Accessibility

In time and accurate data is significant for solid business operations planning and execution. However, in many cases and especially if the business has multiple and widespread processes that are a part of manufacturing businesses, acquiring that data is no less than gold digging. To simplify the process, a business needs an agile and centralised system that could handle all the data and managers could access it any time.

ERPs like Sage MAS 90 empowers businesses to answer questions and resolve issues diligently. Through this, key stakeholders and multiple level managers could access
important data and reports to be used in critical business operations and decisions.

Competitive Decision Making

With better access to data comes better decision making capabilities. Businesses thrive on in-depth business information because through it they can take key decisions and make business plans accordingly. In a traditional environment, without an ERP, the decision makers have to go through a number of reports and data graphs, forecast reports and then also, they aren’t fully sure if the decision is right.

With an ERP, businesses and key decision makers can acquire accurate and up-to-date data, tailored reports and business forecasts. They can also flag certain items and activities that require instant attention and make scalable calculations and data analysis. ERPs like SysPro are he hoping businesses in making nearly correct assessments and promising corporate judgments.

Where there are products, purchase, retail and production is involved, there occurs obvious and huge chances of errors. To counter the situation, businesses spend hefty time and attention in finding, tweaking and fixing the errors occurred in different operations like supply chain, warehouse and inventory that could be really crucial sometimes. With efforts, hefty finances are also spent on correcting those mistakes.

ERP can make serious financial savings by decreasing errors in operations and processes. With its agile financial and accounting management, businesses can decrease time, money and efforts spent on rectifying the errors. As a result, the organizations experience a significant decrease in monthly bills and increase in time availability to work on more productive tasks.

One thing that pains the business managers is the need of different software and tools for different departments and business operations. Management of those resources can be irksome for many as with it comes the need of more workforce and monetary resources. Difference software and resources are difficult to manage as the managers majority of the time is spent in understanding, implementing and managing them.

ERP reduces this stress by being an all inclusive software designed to manage the entire business under single umbrella. It can be transformed into a benefit and the workforce can be directed towards more result oriented tasks. With it, any business can have freed up financial and human resources that could be used in more strategic efforts.

Every business wants to do more and achieve higher in less time but, this aim brings with itself a need for more people and headcount. Increase in workforce has a direct influence on increase in investment, which means businesses have to invest more finance in hiring and managing that workforce.

With an ERP, you can achieve more with less, the team’s capacity of handling orders and managing operations will double as they’ll be able to operate more effectively in less time. Manufacturing businesses have a number of operations like retail and purchase, order management and processing and client and customer administration. With so much to do in hands, organizations are sometimes required to hire additional help. However, with an ERP, all the work is done effectively and with limited human resource.

Ask any accountant or finance manager, month end closing is probably the hardest part of their job. No matter it’s a bank or an organization, closing of sales and revenue is tough and what adds to its difficulty is the accessibility of the right information and data, integration of the received data and then, its usage to form.comprehensive reports. All of these can be brain racking and is quite consuming.

With an ERP, CFO and other similar software, businesses can have the peace of mind and ease of work as it offers a totally comprehensive and integrated system to close the month easily. The data acquired through an ERP is rigorous and absolutely reliable as the system comes with accurate results, which is necessary for financial accuracy.

Production and dispatch activities are a part of manufacturing process; supply chain is a demanding business as, in it, on time production scheduling is important to keep a strong hold on the entire process. Many times, and because without an integrated system, it can be difficult for multiple teams to communicate and update regarding the next schedule. Due to this, instant access to the required information is difficult.

An ERP helps teams and multiple level management to access the desired data with ease. Since an ERP is an all inclusive business management solution, it helps manufacturing industry with production and supply schedule updates management. Through this, the entire team is in line with each other and know about important schedules.

Even the manufacturing businesses need suppliers to buy raw material and this is where many of the businesses face difficulties. Market is filled with suppliers and you can witness it first hand by the responses you get on your tender notice. However, not everyone is reliable and trustworthy and selection of the wrong supplier can actually be more than harmful for your business reputation. It can happen after working with a certain supplier for years also.

This is where an ERP can be your ultimate saviour and guide. Since the software is extreme efficient, it updates supplier information automatically through scoring method. It monitors which supplier is working as per the requirements and through the points, the businesses can see non-conformance reports also, which are helpful in deciding whether they want to continue with a certain supplier or not.

Smart Product Creation and Management

Manufacturing businesses are half about creating products and the other half about its maintenance and constant innovation. Usually, product creation involves planning, product engineering, costing and its entire management. The process can be considerably lengthy as each phase requires concentration, time and money. Moreover, the product planning and conceiving process involves waste also, which may increase the cost of product creation.

ERP provides accuracy in data that helps with the product creation and implementation process. With the access to accurate data, there is significant decrease in waste as then, businesses and companies can save in product engineering and prototype designing with less chances of revision and errors.

Tangible Shipment Updates

Companies have to wait for days, sometimes weeks, for their consignment to arrive and even after then, the concerned departments have to wait to receive the required items. For example, we talk about engineering company that builds machinery and has contracts with suppliers for different parts. For the shipment to arrive, they have to wait for a considerable time and them sort which parts are needed by different departments. The process is complicated and have good chances of error in the demand and supply report.

Once you get an ERP implemented with your business operations, you get automatic updates regarding the arrival of shipment and orders placed to the inventory by different departments. Through this, the respective departments are also notified when the required parts arrive that could be conveniently transferred to the concerned department.

Better Workload Management

This feature is especially helpful for businesses having multiple workstations. Due to business’ expanded operations, many companies divide its workload among them. However, for successful management, good interaction and communication is must. With put good communication businesses cannot function smoothly and for this, sometimes they need to install multiple software.

With an strong ERP, businesses can do all this within less time and cost and work increased effectiveness. Managers can see the workload in different business units and decide whether it needs to be shifted or not. And the best part is, they can manage all this work without compromising on the services they give to their customers.

Increased Overall Equipment Efficiency (OEE)

OEE is the gold standard of measurement manufacturing productivity percentage. The standard is used to monitor and determine the manufacturing process’ effectiveness and productivity. It is measured by combining availability, performance and quality of the processes and the good party’s it manufactures. Good parts refer to the products that are produced as per the quality standards.

With the help of an ERP, the members of the manufacturing team including technicians, product engineers, financial managers and everyone involved in the process can obtain and use the data in understanding the current conditions, underlying issues and root causes of problems arising in the process. Once the information is updated, the team can work towards bettering it and lowering the waste and cost.

Real Time Records Management

States often run internal audits to monitor the processes of the manufacturing companies and to see whether they are complying with the quality standards. Core business documents having details about its operations, working, procedures and changes are significant to demonstrate that the business is regulatory and quality compliant.

With its vigorous records maintenance system, an ERP helps businesses in documenting and saving the operations and processes records and update them with the ongoing and occurring changes. Other than audits, these documents like SOPs, change management, operations processes are helpful for the businesses as well. They can keep account of the changes and work accordingly.

Personalized Customer Care

Providing the best customer service is at the heart of every business as they want to provide memorable experience to their clients. Being professional is one thing and understanding your customer and provided ng them befitting solutions is entirely different. Businesses need to have in-depth knowledge regarding their clients, which is often missing as businesses only know what their users tell them.

Through an ERP, businesses can extract in-depth personal reports of their consumers, which is based on their history and interests. Through this feature, customer care representatives can offer deeper personalized services to clients and understand their pains, needs and requirements in a better way.

Improved KPI Measurement Capacity

Measuring of key performance KPIs is essential to determine business performance and its future goals. Businesses have to collect spreadsheets and data from every department to generate solid and accurate reports. However, the process is not reliable and can be really daunting for the managers and KPI monitors. Through this, most of their time is consumed in digging data and making of its sense.

An ERP simplifies th while process by generating the reports of each department automatically. The managers and decision makers can access the reports and measure their department’s performance. It allows businesses to expand in terms of future goals and connecting the entire business unit to achieve those goals and scale them.

ERP is a well built enterprise resource planning and management software. These resources include every asset of the business spanning from human workforce to multiple digital resources. It is a need for businesses as they could save big on time, money, waste and efforts and improve business capabilities at all levels.

Looking for Professional ERP Implementation Help?

Boundless Technologies brings state-of-the-art ERP solutions into your reach. We have helped hundreds of businesses in bettering their corporate operations through successful ERP installation, which is in their budget and for for their needs.

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