Benefits of Enterprise Resource Planning in Manufacturing


Enterprise Resource Planning (ERP) has numerous benefits that span financial, inventory control, human resource management, improved cash flow and customer service and relationship management.


Minimize Costs and Improve your bottom line

An ERP solution reduces or eliminates time-consuming, manual operational processes that often create lag and discrepancies in reporting. Streamlined processes and real time feedback optimize workforce productivity, reduce labour costs, enhance accuracy and precision so you can better manage supply chain / inventory costs. All this while providing you with complete transparency and control.



Supply Chain Visibility and Transparency


Full visual transparency of your business’s supply chain is critical to avoid production disruptions or miscalculations. ERP solutions allow you to:

  • Manage various vendors to order materials / components

  • Maintain business productivity and optimize delivery times

  • Monitor costs, budgeting, accounting and price changes when dealing with vendors

  • Run daily reports

  • Analyze and track supply chain and accounting spend

  • Automate inventory restocking

  • Identify errors / lags in problematic production areas

  • Gain a 360 degree view of the whole business operations

  • Establish HR modules and manage staff

  • Work within various segments of the business and break down the bigger picture



Link the Departments of a Manufacturing Company

ERP systems are able to integrate all departments of a manufacturing company, such as financial division, human resource, inventory, sales, customer service, and more. This means the company doesn’t need to manually and separately monitor each department. All the departments can coordinate through one system and managers can get complete data from each of them in real-time.


Provide Accurate Data & Improve Decision-Making

Making the right decisions depends on reliable data. Anything else is just a guess–not a decision. An

ERP system collects every piece of essential data, storing it in a centralized database for real-time, up-to-date access to information. From there, your organization gains insight, visibility, and control in all areas.


Key performance metrics come from the same system, also informed by accurate, up-to-the-minute data. When you use this information to make decisions, you’re basing every choice on accurate and proven information, without having to stop and examine each piece of data manually.



Automation, Automation, Automation

Just as the steam engine brought physical automation to many manufacturing processing plants, so to does an ERP system enable an organisation to automate certain manual tasks. Enabling a reduction and even removal of certain manual processes leading to a reduction in errors and associated costs.




Any employee can track and monitor production activities in real time without having to rely on an entire team. Different departments can also track production, costs, material usage, ordering and more to make faster informed decisions that boost productivity and enable you to meet your commitments.






Enhance Customer Experience


Your customers benefit from all of the above, and more. An ERP designed for the manufacturing industry can include features like self-service customer portals, automated orders, and the customer relationship management tools your staff needs to handle inquiries and problems accurately. Add in faster delivery, better quality control, and a stronger handle on inventory, and your customers are sure to notice the difference.



Safer Data Storage

Manufacturers should have been able to eliminate error-prone manual processes. Relying on paper records is very inefficient and unsafe since they get torn and lost easily. Even hard disks can’t guarantee data security, especially when there are many people who use them. With ERP software, manufacturers can access various data through a single system. Managers can provide access rights for staff who are responsible for managing data. Cloud-based ERP systems even allow those who have access rights to manage data at any time and from anywhere, as long as their devices are connected to the internet.


In conclusion, an ERP system can be a complete game changer for manufacturing organisations that are wanting to consolidate their current technology stack, reduce operational costs, increase efficiencies, remain compliant and offer improved customer service.


If you are wanting more information, contact us for a quick chat to explore what adopting an ERP can do for your organisation.

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