Manufacturing ERP software can help production-focused companies to increase their manufacturing performance and provide resource planning, analytics, and process automation.
Manufacturing ERP systems offer several business benefits:
- Reduction in total costs of manufacturing – lower expenses, increasing output;
- Ability to automate manufacturing processes – increasing labor productivity, reducing errors; and
- A holistic view of the entire manufacturing process – better management of production capacity, minimal risks for out-of-stock items.
These are just some examples. There are more possibilities that this type of software offers your manufacturing company.
When manufacturing and distribution companies need to improve their efficiency and overall profitability, they must implement manufacturing ERP software.
What is manufacturing ERP software?
Manufacturing ERP software is business software that manufacturing companies use. It is also known as enterprise resource planning (ERP) software.
Manufacturing ERP software allows companies to manage manufacturing operations more efficiently through better information management and sharing. This ultimately improves manufacturing company workflow efficiency, resulting in lower production costs and higher profit margins.
For manufacturing companies, their ability to compete – within the industry or globally – depends on how well they can streamline their manufacturing processes. Manufacturing ERP software can help with this process because it helps them manage all aspects of manufacturing from a single platform instead of having separate applications for each department. In addition, manufacturing ERP software offers customized dashboards that give manufacturing companies real-time data on their operations.
This manufacturing ERP software also includes features such as:
- Quality Control – Control of inventory and goods in the process;
- Manufacturing Operations Management – Transparent tracking of processes, from sourcing to shipping; and
- Enterprise Resource Planning (ERP) – An integrated system for more efficient auditing, reporting, and planning of various manufacturing activities and resources.
There is a difference between manufacturing ERP software and other types of business software. Manufacturing ERP software is platform-independent, which means it can be used with any device or application that runs on an operating system or browser. Manufacturing ERP software provides more than just financial reports. It also offers manufacturing dashboard views such as a Master Production Schedule (MPS), labor hours, lead times, scheduling reports, and dashboards that allow manufacturing management to obtain data quickly.
Here are the 7 reasons why manufacturing ERP software is essential for growing your business:
- Real-time overview of your business
Manufacturing ERP makes it easier to monitor the whole production process. You’ll be able to add all of your suppliers and subcontractors, monitor inventory levels in real-time, make changes on the fly if necessary, and get immediate feedback on all levels of activity.
- Scalability with your business
Manufacturing ERP can grow with you as your business grows by allowing for custom reporting capabilities that allow management to see how it performs and identify areas where manufacturing performance might benefit from additional attention or training.
- Improved trackability
Manufacturing ERP systems offer full trackability so that manufacturing can monitor exactly where their time is being spent. This allows manufacturing to manage the process better, including allocating staff and equipment resources as necessary to maximize performance.
- Identify bottlenecks along with your manufacturing
Manufacturing ERP software offers full visibility into current manufacturing processes so that you’ll be able to design the ideal manufacturing process for your business more easily.
- Real-time insights into inventory movements
Manufacturing ERP systems allow businesses to be agile through real-time inventory levels. Being too lean might result in lost sales revenue; having too much of an item on hand could increase costs due to waste or spoilage.
- Comply with industry regulations
Manufacturing ERP software helps manufacturing companies comply with industry regulations by tracking every aspect of manufacturing activity, ensuring that documentation (such as certifications) is maintained at all times.
Manufacturing ERP systems provide manufacturing companies with the tools they need to attract new customers, including total visibility into manufacturing processes and reporting that makes it easy for your business to stand out in the eyes of prospective clients.
Manufacturing software applications can help managers and production lines in a number of ways.
Advantages of manufacturing ERP software:
- They typically provide real-time inventory tracking for manufacturing operations. This makes it easy to manage parts and monitor the flow of supplies in and out of warehouses, manufacturing facilities, or any other storage locations.
- It also simplifies the process of sending order requests to suppliers, receiving items from them when they are ready, shipping finished products back to customers, handling warranty issues, and providing support for returns.
- Automating manufacturing processes helps companies get more out of their resources by running manufacturing facilities at maximum capacity without overpaying for unnecessary resources that aren’t being used because there’s nothing else for them to do.
- ERP manufacturing software also helps manufacturing companies to increase the speed at which they respond to customer requests by enabling manufacturing managers and manufacturing lines to respond quickly, whether those requests are for new products, custom modifications to existing products, or changes in order volume. By speeding up manufacturing processes and facilitating improved communication between departments, manufacturing ERPs can help manufacturing facilities stay competitive globally.
Disadvantages of manufacturing ERP software:
- ERP systems might impose some structure on manufacturing operations that managers and workers may not like. For example, an automated system might fail to give workers room to use their own judgment when there’s no clear-cut correct solution for a particular situation. Some manufacturing environments might require more flexibility than manufacturing ERP software offers.
On the other hand, manufacturing companies may need to be taking pains to improve their manufacturing processes if they’re struggling to stay competitive in an era of constantly evolving technologies and global competition. Automated manufacturing ERP systems can provide the structure that manufacturing lines often need to keep up with constantly changing production requirements without becoming too rigid over time.