What is common to enterprises involved in Paper, Packaging, Raw Materials, Oil and Gas, Utilities, Real Estate and Industrial Manufacturing? All these industries have a capital-intensive asset base. Naturally, the performance of these companies is dependent heavily on the utilization and value generated by these underlying assets. Such businesses operating in asset-intensive industries are constantly challenged by demand volatility and mismanaged asset utilization. To compound their existing challenges, they require large capital expenditures and are also more susceptible to environmental impact and compliance pressures.
Some key challenges before these Capital-intensive businesses are –
- Reduce Cost of Asset Ownership
- Ensure Regulatory Compliance and Safety
- Drive down Operational expenses and ensure sustainable growth
It is imperative for asset-intensive organizations to gain visibility and control to maximize their return on assets. Assets could be in the form of manpower, materials, heavy machinery and much more. Enterprise Resource Planning (ERP) Solutions for Asset-intensive industries helps the business in all stages of their lifecycle ranging from Capital Planning, Procurement, Operations, Maintenance and Retirement.
Here are a few ways in which ERP Solutions like Oracle JD Edwards can help –
Better Asset Management & Monitoring
A major chunk of expenditure for these businesses is around MRO (Maintenance, Repair and Overhaul) of their assets. Reactive, proactive and predictive maintenance can help in minimizing the repair costs and downtime for assets. ERP systems provide you timely reports of health and safety incidents which help in improving equipment availability. Providing information digitally for maintenance and repair works helps in ordering processes and optimizes up-time.
ERP systems provide you tools to plan, manage and report operational effectiveness and asset utilization from multiple locations across the globe. It allows you to quickly respond to asset under-utilization and provides information which can help regularize asset allocation across projects.
On the go Reports with Mobility
Gain remote assistance and full access to project details on tablet and smartphones using mobility features of an ERP solution. For example, JD Edwards mobile applications allow user-defined reports, intuitive user interface giving access to critical business insights anytime, anywhere.
These mobility solutions also allow the workforce to edit data while they are offline. Most solutions offer integration for maps, emails, contacts, etc. So the field engineer can access customer, employee or supplier contact information on the go improving the order fulfilment efficiency. It also helps in reducing the response time to critical health and safety incidents.
Better Vendor and Rental management
Businesses often have to partner with several contractors and subcontractors for servicing needs. ERP modules for rental management help in managing rental of inventory items and capital equipments. They provide interactive reports which help in analysing the vendor performance from time to time and optimize the procurement process.
Actionable Incident Impact reports
ERP solutions have built-in health and safety solutions which enable you to proactively track and monitor all types of incidents, especially occupational incidents. The system sends automatic notifications on incidence occurrence.
These systems also help in producing regulatory reports for OSHA and Bureau of Labor Statistics. Overall, an ERP system helps in preventing injury, equipment damage and incidents with environmental impact.
Reduction in Inventory & transportation costs
ERP Solutions are designed to improve the flow of materials efficiently by reducing the lead times. It also gives a real-time access to inventory quantities and location. It helps in reducing the overall cost of carrying inventory.
Finding the lowest-cost carrier is easier with an ERP system in place. Decreased freight costs, improved on-time delivery and improvement in transportation cost visibility and allocation are some of the additional benefits of an ERP system with a robust Transportation and Inventory module.
Lately, a significant number of Asset-intensive businesses are exploring the option of Cloud Solutions as it offers predictable costs & service and reduced exposure to disastrous events or emergencies. Low total cost of ownership is also a crucial factor. A robust ERP Solution like Oracle JD Edwards can certainly provide all the above benefits and help enterprises achieve sustainable growth while minimizing the risks associated with a capital-intensive industry.