The role of ERP in your manufacturing process

As a manufacturing business, you understand the need to respond quickly to market forces in order to keep up with delivery and cost targets. The manufacturing business is becoming increasingly competitive as technological advancements help businesses optimises and streamline their processes. With recent investments into the industry, as well as the South African government’s plan to attract $100-billion (approximately R1.3-trillion) in foreign direct investment (FDI) into the country over the next 5 years, the industry is set to continue to experience growth.

To gain a competitive edge, manufacturing businesses need to evolve and adapt to changing times. This means seeking ways of improving their offerings and systems to accommodate growing customer service demands and maintain industry competitiveness. The quickest way to do this is to implement the latest technological offerings. A dynamic and modern ERP system can help manufacturing businesses by offering a cohesive, enterprise-class solution to manage all core business processes. From purchasing to manufacturing, inventory management, sales, customer service, and financials both locally and internationally.

The role of an ERP system in the manufacturing process is to essentially streamline and optimise all core business process. Keep reading to find out the key benefits of an ERP system for your manufacturing business.


Visibility is a key determinant when it comes to making strategic decisions for your warehouse business operations. Real-time visibility is indispensable to your manufacturing business in terms of improving efficiency and reducing your bottom line.

Visibility of your manufacturing operations means that your management team is able to make informed decisions about the core business processes. You will be able to see how much inventory you have at any given time, as well as how quickly it is being moved from your factory to consumers. The real-time application of capturing data means that you gain accurate insights that can assist you in making important decisions for your business such as when you need to order more raw material and when you have a surplus of products.

A modern ERP system will take a multitude of data points like orders, inventory, purchase cycles, supply chain reports and make the data actionable. You can be sure that you are making business decisions based off of informed and accurate data. So no overordering or underestimating demand for your products.

Smarter Management

Managing inventory in a smarter way is a key benefit of an ERP system. Managing inventory in the manufacturing process is a two-part endeavour – management of the raw materials and then management of the final products. It is imperative that your manufacturing business has these two elements synchronised in order to ensure optimal production and delivery.

By implementing ERP software, processes such as billing of materials, tracking materials and inventory management can be updated automatically so there will never be a discrepancy between what you have and what you need. You will be able to accurately manage the purchasing of raw materials and the entire manufacturing process, so you are able to get a desirable balance between supply and demand, ultimately assisting in reducing your bottom line.

Flexible and adaptable

To keep up with perpetually changing markets and supply demands your business needs an ERP system that is flexible and adaptable. To respond quickly and accurately, a modern ERP system integrates your entire supply chain. In the manufacturing business, the focus on technological and operational preparation of products means that you need to be organised and able to quickly respond to change.

As your business grows and expands, the technology behind you will need to adapt and change to suit your growing requirements. A modern ERP system will do just that – customisable and scalable. By investing and implementing an ERP system you can rest assured that you are providing your business with a solution that will grow alongside the ever-changing and dynamic needs of your business.

At Lorge we want to help your manufacturing business to increase capacity, implement new processes, manage new business units and expand to new geographies with a flexible business management solution designed for growth and international trade.

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