ERP software is a class of software solution which essentially allows companies to integrate several parts of their business operations into a centralised system. This business management software allows organisations to automate operational services, allowing them to better manage their business in one centralised system. These services include:
- Sales, (including E-commerce)
- Accounts and Finance
- Management of Supply-chain
- Warehouse Management
- Manufacturing and Logistics Management
How does ERP benefit manufacturing companies?
As the manufacturing industry continues to rapidly grow and expand, many manufacturing companies are be-ginning to consider investing in an ERP software, as it can provide a plethora of benefits for the company’s overall productivity. With this rapid expansion and evolution of the manufacturing industry comes more competition, pushing companies to make their production processes as smooth as possible.
What are the Benefits of ERP?
ERP software gives your business greater flexibility by providing operational management, information insights and allows your organisation to make more confident decisions surrounding cost reduction. It’s highly customisable which makes it applicable to any manufacturing business; including both process and discrete. However, it should be noted that companies are advised to not customise their solutions too heavily. Highly customised solutions can have conflicting effects on solutions effectiveness as employees become distracted by ‘nice to have’ features instead of gaining real value from the ‘essential’ features.
ERP essentially streamlines your business processes. All your important data is available in one, central location, allowing for complete visibility of all your business functions. This means all your important data is available in one, central location that allows for complete visibility for all your business functions. This integrated automation will provide you scope to conveniently manage production order whilst calculating costs all from one software platform.
This automation software will increase your team’s productivity whilst better managing projects and workload. This automated software gives you and your team more time to work on more valuable and creative business projects.
Accurate and real-time information is provided through one source with ERP, this ultimately reduces the cost of administration and operations. The improvement on your company’s visibility can help you identify areas to reduce, such as cost of production.
What Kind of ERP do I Need?
Before you choose your ERP software, there are a few factors you should consider in relation to the business you currently obtain. The requirements for both types of manufacturers will differ, process and discrete manufacturing business have different operational processes and therefore will need the appropriate ERP software.
Without a viable ERP source, process manufacturing companies can run the risk of various challenges within their production processes.
Examples of these include:
Increase Productivity & Profitability
As your business expands and your processes grow in complexity, it can be challenging to share information to every aspect of your business. With ERP, you can seamlessly link and divulge all your information. This will provide you with better visibility in real-time, increasing efficiency and profitability.
Manage Complicated Processes
Process manufacturing involves using intricate formulas for the creation of batched items. An ERP software can support these complex processes by providing secure storage of recipes and formulas, quality control and contingencies to ensure batch consistency.
Smaller to midsize regulations can often struggle with stricter industry regulations such as Global Harmonized System of Classification and Labeling of Chemicals (GHS). By using ERP software, companies of all sizes can generate nutrient analysis, create compliant labels and even generate statements for your ingredient and allergen notifications.
Customisable Certificates of Analysis
ERP can help you create CoA’s completely tailored to your industry requirements.
Discrete manufacturing companies also experience their own set of challenges that ERP software can help eliminate.
Controlling product design changes of their products is a challenge that most, if not all manufacturing companies will experience.
With ERP’s auto components, you can decrease the time it takes to market your newly designed goods by seamlessly aligning your R&D with your design changes with your customer’s needs.
ERP software will allow you to produce reports and analyse relevant data to ensure your products are meeting the industry standards.
This removes the opportunity for any unplanned downtime or costly emergency repairs.
Supply and Demand
With ERP, discrete manufacturing businesses can become more efficient at stocking popular products by synchronising with your stock levels.
This also means you can prepare your business for seasonal fluctuations, increasing customer satisfaction and profitability.
Things To Consider Before Choosing ERP
Before making your decision, there are four main aspects of your business to consider. The software that you choose to provide you optimum results will be mainly dependent on these factors. These are as follows:
– The size of your business
– It’s processes
– It’s complexity
– It’s desired outcomes
Be mindful to choose the correct ERP software for your business and not the one with the attractive sales tag or clever marketing. Request a demo before purchasing, to ensure that it’s the right solution for you and your colleagues.
Ensuring that the ERP you purchase is the right solution that provides you with the right functions required for your business is another important factor to take into consideration. Don’t compromise your business processes if you believe they are important to achieving your business goals.