Enterprise Resource Management (ERP), despite its name is for companies of all sizes. Moving towards a cloud-based ERP system can be a daunting process, and you may be questioning the return on investment and the sustainability of such a project. However, as things migrate towards the digital sphere, there is no doubt that an ERP system is the best move your manufacturing business could make to give you the competitive edge. An innovative ERP system will help your business to consolidate systems, improve business processes, and access real-time data to make informed decisions.
Here are the top 5 benefits your manufacturing business will gain from implementing such a system.
1. Inventory Management
As a manufacturing business, inventory is an essential part of your business. Inaccurate counts can wreak havoc on your business.
Inaccuracies lead to either insufficient or excess inventory. Insufficient inventory may result in a halted production line which could incur expedited shipping costs, delay deliveries and ultimately leave your customers frustrated and unsatisfied. On the other hand, having an excess of your inventory means a waste of storage space, and your products may become damaged or obsolete.
Inaccuracies usually occur due to human error and the use of multiple systems. Beyond this, manually imputing data is a time-consuming process. If your warehousing staff are using one system and your purchasing staff are using another this is a recipe for disaster.
With an effective ERP system, you will be able to consolidate all data into one centralised location. More than this, you will be able to accurately track your inventory at multiple points through your supply chain – production line, at inspection points and in shipping. System users will be able to access the information in real-time, which means errors are reduced, your overall visibility in increased and your staff, across all departments, can focus their time on valuable tasks other than manual input of data.
2. Reduce Costs
The right modern ERP system will help your manufacturing business reduce overall operational costs. This is done by the effective use of automation which saves your staff and business time with manual data entry. The real-time visibility and access to business data also means less errors to correct for and pay for. By lowering error rates with an effective ERP, you curtail the losses your business will face. The automation process also frees up the time of your staff to focus on value-added tasks thus increasing productivity and minimising labour costs.
Additionally, the upgrade and maintenance of a modern ERP system is far lower than legacy systems. As your business grows and expands you will need additional software and customisation but with a cloud-based ERP your business can easily be scaled up or down as per requirement.
As a manufacturing business, the ability to track inventory accurately, through the entire supply chain, means that your business can integrate this information efficiently with production planning and thus eliminate excess inventory and reduce warehousing costs. Beyond this a robust ERP software system will give your business the ability to save wherever is possible through the improved visibility that real-time centralised data provides.
3. Keep up with demands
The manufacturing industry is becoming increasingly competitive due to improvements and advancements in the capabilities of technology. As such, your manufacturing business needs to incorporate an innovative ERP software solution as part of your own technological advancements.
With an ERP system you gain a 360-degree view of your entire business operation through access to real-time data. This sort of access allows you to analysis and generate comprehensive reports that can help you adjust and respond to market changes. Through valuable insights your strategic decisions can be made through regular reporting, which allows your business to estimate and plan more efficiently in order to keep up with industry demands. The demands within the market are varied and constantly in flux, but with real-time visibility your manufacturing business will be able to capitalise on consumer purchasing trends.
With a comprehensive ERP solution, you will be able to make informed, spot-on, and faster business decisions. Additionally, your business will remain aligned with your overarching goals and also optimise your day-to-day operations, through visibility into every department and key performance metrics
An effective ERP system will automate your business processes and in turn streamline your entire manufacturing operation. Through an effectively streamlined process, all important data is available and accessible in one centralised location that gives complete visibility. Many ERP systems automate serial and lot tracking and traceability which saves your business time and money.
By automating your processes, you reduce dependency on manual processes that are time-consuming and error-prone. This will not only accelerate the production process but also minimise errors and ultimately improve profitability. By integrating and automating all process, your business will gain important insights into all aspects of your business.
Furthermore, through automation and real-time visibility your entire team will be able to monitor the production status, without any dependence on an individual or team. For example, the designing team can monitor the progress of the production and update the purchasing and finance departments about requirements of additional raw materials
As a general rule of thumb, if a process is definable and repeatable then it is beneficial to automate it. Automation streamlines your manufacturing business processes, adding to the overall value of your business. Automation also saves your business a lot of time that can be reinvested into your core business activities.
5. Increase productivity
Through the use of an ERP system the overall productivity of your manufacturing business will increase. Through automation your business processes are streamlines and this allows you to achieve operational efficiency.
By eliminating manual input of data, your business effectively minimises errors and this saves your staff time. This freed up time can be used for more value-added tasks within your operations. Beyond this, the centralised location of data as well as real-time visibility means that across all departments your team is able to function as one unit.
Every business has its own objectives, processes, and requirements. Above all, today’s businesses need technologies that add benefit and streamline business processes, ultimately bridging the gap between business processes and people. To optimise your manufacturing business, you need to implement a comprehensive and modern ERP solution that synchronises all information and communication within your business. Get in touch with Lorge today to find out which solution best fits the requirements of your manufacturing business and optimise for the future.