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How can ERP Simplify Manufacturing?

On Monday, 30 May 2016
How can ERP Simplify Manufacturing?

Every small and medium-sized manufacturer, be it discrete, process or mixed-mode manufacturing - is looking for a cost-effective solution to satisfy customer demands, across multiple sites and geographies. For achieving a sustainable competitive advantage in the markets, these businesses need flexibility in operations, ability to quickly response to market needs, higher quality products and exceptional front-end or customer service. .

ERP (Enterprise Resource Planning) solutions designed for manufacturing businesses primarily include supply chain management, MRP (Manufacturing Resource Planning), Finance, HR and Operations management. Let us look at some of the ways to simplify manufacturing by leveraging enterprise technology –

Improve Visibility

ERP systems offer consistent and accurate data in real time across the business. Everyone from engineering team, shop floor team, finance & control, purchase, delivery teams have complete visibility into production planning, inventory levels, product quality, cost of goods and much more. This significantly improves communication gaps and keeps the entire enterprise on same page.

Make more on-time deliveries

Manufacturing ERP solution offers detailed demand forecasting & planning features. These solutions also offer better collaboration with vendors, suppliers and distributors. This improves the scheduling and coordination between various procurement and distribution channels. As a result, there is reduction in the production & dispatch delays and improvement in on-time product availability to the customer, resulting in customer delight.

Produce better quality products

Manufacturing ERP software helps you monitor product defects and problems. The systems help you pinpoint design or production process problem areas and take the course correction steps. This results in reduced losses from wastage, defective manufacturing and also boosts green manufacturing by minimizing damage to the environment.

Get one version of truth for better Decision Making

Manufacturing ERPs offer a birds’ eye view of the entire business operations. This helps the management and decision makers in identification of specific areas of improvements and act on them quickly. Key Performance Indicator or KPI Dashboards and Reports help in effectively measuring the performance of the organization as a whole. The drill-down reports help in getting to the root of problem areas. ERP solutions transform the management from being reactive in nature to becoming pro-active and agile.

Better People Management

With ERP Solutions, manage Time and Attendance in a more standardized manner. You get to define your own logic for Bonus, Deductions, Leaves and other parameters. The readily available resources reports help you in putting the best people in the most suitable roles all the time.

Manage Finances Effectively

Real-time visibility into business finance can do wonders. It will help you in finding the lowest priced vendor for raw materials. Sales teams can quickly react to pricing changes and act more dynamically to market changes. Managers can keep a tight check on worker productivity by minimizing overtime and effectively managing labour and payroll expenses. ERP systems lead to fewer errors in the accounting system which results in more savings for the company and better bottom-line results. Not to mention quicker month-end closing.

As a result of all these individual contributions, the business can boost efficiency, control expenses, and increase sales and profitability. In today’s global marketplace, the ability to cut through manufacturing process complexities and get a transparent view of the entire business through a single ERP solution is the best way forward for any manufacturing enterprise.

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