Modern day manufacturers walk a tight rope of impossible deadlines, customized products, just in time delivery and lean inventory levels. They also need the ability to respond to changing market conditions swiftly. Running a modern manufacturing business is similar to running a marathon, on a tight rope on a really windy day!
Even small manufacturing businesses can build efficiencies into their processes by implementing an ERP solution. A cloud-based ERP solution covers all aspects of their business operations, is scalable as the manufacturer can plug in more modules as the business grows, affordable and does not require a dedicated IT department to run.
An ERP solution can create a wave of benefits that will ease the burden of the manufacturer. Some of these benefits include:
Real-time Process Visibility
Most SMBs use accounting software as their primary method to keep track of their business. The problem with this is that accounting does not provide a holistic view necessary to help top management respond to market trends. An ERP application, on the other hand, provides real-time knowledge of every aspect of the business from accounts receivables, bad debt, current manufacturing pipeline, inventory situation, raw material stocks and even employee productivity. This allows for quick decision making. Take the example of a paint manufacturer, who wants to keep track of multiple batches of products, containing different types of paint products, with vastly different expiry dates. Using an ERP solution they can automate batch splitting and merging. This enables them to create small/ large batches, depending on the demand and keep track of the individual product in the batch even after delivery. The ability to create customized batches helped the manufacturer have competitive advantage against more established and bigger competitors.
Today’s manufacturer has to be able to switch between production runs. An ERP application brings in flexibility in the production process by providing scheduling strategies to handle unexpected orders or order changes through features such as capacity planning, work order management and materials requirements planning. In fact a Materials Management module can help firms plan production schedule and identify when materials should be ordered. This helps facilitate inventory management and ensure products are delivered on time, thus helps in transforming a company’s warehouse and operational procedures. Some of the benefits include:
- Request for Quotation (RFQ)
- Procurement Management
- Internal / Warehouse Stock Transfer
- Auto Indent Based on Re-order Levels
- Multiple Units of Measurements
- Material Valuation
- Lot / Serial No. Tracking
- Supplier Management / Rating
- Purchase Register
- Purchase Returns
- Material in Transit
- Lead Times shortened
- Reduction in Excess Inventory
- Improved Calculation of Material Requirements
Automating Processes and Functions
Nearly two-thirds of small and mid-size manufacturers use manual tracking processes, where the possibility of errors and duplication increases substantially. By automating manufacturing processes and transactions, manufacturers can free their staff for other important activities.
Better Inventory Management
Companies need to be able to shift from one product to another with minimal delay and loss of manufacturing time. For that they need real-time visibility over inventory. An ERP gives organizations accurate data about inventory availability. Instead of trying to maintain spreadsheets and paper logs of which materials or products are available, an ERP application can maintain that data in real-time, making it more accurate and current than manual inventory management.
Increased Ability to Customize
As an ERP system streamlines the manufacturing process; it becomes easy for a manufacturer to offer short-run, customized manufacturing services. An ERP will monitor interchangeable components of the process, and those components that aren’t interchangeable can be switched to create a custom product.
An efficient ERP system comes with a host of features that help the manufacturer shave costs and increase margins. For example you can use your ERP system to manage:
- Label printing with bar-coding
- Yield management among a host of other activities.
So if you are looking to give your manufacturing business a boost that comes from an efficient ERP solution, Click here to check out our easy to use & innovative offerings.