This post was written by Nidhi Mahajan.
If you are a successful manufacturing company, then odds are that you’re producing quality products for an in-demand market.
Manufacturing is what you do best but in the modern, complex and highly competitive global economy, there is so much more to business than just producing quality products.
Having to deal with all the other aspects of the business can slow you down and take you away from what you do best. It is, however, essential that all the details are properly managed and controlled.
Fortunately, technology can assist you in streamlining your business systems as well as freeing yourself and staff to focus more on those aspects of the business that actually make the money.
One of the most effective solutions available is an enterprise resource planning (ERP) system.
Good ERP software will seamlessly connect all aspects of your business, speeding up processes, reducing or eliminating human error and providing valuable reporting. The information provided by the reporting will give you additional, up-to-the-minute control as well as a number of insights that can be gleaned from the data.
It will streamline your business, improve customer satisfaction and give your company a competitive advantage.
Let’s look at some of these benefits in more detail.
As in most businesses, manufacturing companies have complex operational requirements. As the company expands, these requirements grow and become extremely time-consuming. They are also prone to inevitable human error when managed manually.
The smooth running of these operational issues is critical to the success of your business as proper management and control are necessary. However, as these demands expand, the time spent on these issues means less time driving the factory or the sales team.
An ERP for manufacturing will dramatically enhance and improve efficiencies. The centralized data and automation will minimize errors and delays. It will also provide you with powerful, insightful reporting.
This reporting has many benefits and will help reduce costs, speed up cash flow, minimize delays and help you identify inefficiencies as well as opportunities.
As ERP integrates all departments, it is working from only one uniform data source. This results in real-time data that is accurate, which lowers operational, administrative and staff costs.
It also provides information that will allow you to manage operations more effectively, reducing errors, bottlenecks and delays which can cost money. It also aids in more accurate forecasting which will further reduce costs and improve profitability.
Manufacturing ERP systems also reduce production errors and improve quality control. This saves on time, staff costs and materials. The improved control over inventory and finished products, and better planning from timely, accurate data, will reduce unnecessary inventory costs and streamline the production process.
The insightful reporting will also allow for faster and better decision making.
Most manufacturing ERP systems allow the company to share production-related information internally as well as with external parties such as suppliers, distributors and vendors.
This happens in real-time and improves efficiencies and reduces delays. It can have a very positive effect on productivity as well as improving customer satisfaction.
Some of the main advantages current ERP systems offer is flexibility and the ability to tailor them to your specific requirements. As the business grows and evolves, the ERP system is able to adapt to your changing needs. It can also be customized in relation to changes in the market or third parties with whom your company interacts.
Improved Product Quality.
The ERP software systems will allow you to identify production issues immediately and often even predict them before they occur. They will determine where in the processes the issues originate, making solving the problem easier and quicker.
The benefits of this are pretty obvious and it will improve productivity and quality which in turn will improve sales and ultimately profits.
If your competitors are investing in ERP and you do not, you run the risk of putting yourself at a distinct disadvantage on a number of fronts. Although a quality system is a considerable investment, the advantages it provides means it will pay for itself over time.
Manufacturing companies are generally late adopters of technology, particularly for internal systems. Often the factory has the very latest, state-of-the-art technology and the internal technology is neglected. This will slow you down and cause unnecessary delays and compromise customer service.
Those manufacturing companies that have adopted and embraced the technology are starting to reap the rewards.