The manufacturing industry has become increasingly competitive. The need to design, build and deliver the highest quality products in the timeliest manner at the lowest cost possible is essential to win and retain customers.
Enterprise Resource Planning, or ERP, can be the answer to manufacturing businesses looking for an integrated solution that encompasses all aspects of the business, including resources, operations, monitoring, reporting, sales, accounting and finance. Manufacturing ERP systems solve a number of challenges and provide invaluable benefits to manufacturers seeking to reduce costs, manage growth, streamline processes and gain a competitive advantage.
In this blog, we highlight some of the major benefits of implementing an ERP system for your manufacturing business.
Manufacturing companies have complex operations, which grow more complex with the size of the business. ERP software automates those processes, making data available in a centralized location, visible to all departments needing that data. Whether development, design, inventory, procurement, production, finance, sales, delivery; authorized individuals from any department have ready access to data in order to make quick and informed decisions.
ERP automation will increase efficiency, improve productivity and help the company maintain customer commitments. It results in less dependence on manual processes, which accelerates the production process, reduces error rates and improves profitability.
Increased Visibility and Collaboration
All departments can access the functions and data across the entire business in real time. This allows visibility into designs and plans, production status, quality control, inventory, cost of goods sold, and more. This benefits coordination among teams and accelerates the execution of processes and procedures.
Because comprehensive data is available in real-time in the ERP solution, managers have insight into every department and process. It allows them to analyze key metrics and make informed decisions faster and more accurately. It also helps management optimize the day-to-day operations.
Increased Sales and Customer Satisfaction
ERP systems provide more control over inventory so that an accurate count and location of products is available at a glance. This allows you to maintain appropriate levels of stock and have a clear view of customer and sales data so that orders are filled without delay. Sales and marketing teams can access the data, customers can track their orders and the warehouse can see when supplies are getting low.
With the ERP system, manufacturers get more accurate production planning, enhanced inventory control, streamlined scheduling and coordinated distribution because of the real-time availability of data. This enables them to improve their delivery time, which is critical to customer satisfaction.
Knowledge is power. Access to data related to costs and expenses can enable the more effective allocation of resources to reduce production expenses. Because the ERP software organizes maintenance data, it provides the capability to better manage repairs, schedule maintenance and minimize downtime.
Because there is one source for accurate, real-time data, ERP reduces administrative and operations costs. Decision makers have direct access to be proactive in preventing disruptions and delays in production.
ERP provides tools to monitor and control inventory levels, so cash flow is maximized by stocking the minimum amount of inventory to satisfy the requirements. You can analyze trends and changes in demand.
Improved visibility into all financial aspects of production can help identify potential areas for savings and reduce cost of goods sold.
ERP systems also reduce overall operational costs by replacing the manual, time-consuming and error-prone processes with automated streamlined ones.
Improved Product Quality
ERP systems provide managers with immediate information on product defects and production issues. It gives them more control over their teams and activities and allows them to take the necessary steps to ensure products of the utmost quality.
E3 Consulting Can Provide You with an ERP Solution!
If your manufacturing organization doesn’t have an ERP solution in place, E3 Consulting can help! We offer several ERP solutions for manufacturing organizations. We can assist your company in implementing the solution, as well as provide training, customer support and resolve issues.
We have over 30 years of experience in helping businesses grow. Want to know how your business stands in today’s competitive environment? Just complete our Business Fitness Evaluation Form for a free assessment.