Manufacturing companies rely on the effective management of inputs and outputs. It’s the nature of the industry. Companies must organise resources from suppliers globally, track their inventory, and adjust their orders according to predicted sales. It’s not straight forward, especially when done manually.
Fortunately, though, Enterprise Resource Planning (or ERP) is designed take over these labour-intensive processes and streamline the entire business. For manufacturing companies, this can help save a substantial amount of both time and money - but that’s not all.
ERP can improve many facets within the processes of manufacturing, helping drive business growth and achieve better results all round. In this article, we explore four of these benefits and how manufacturers can take advantage of ERP.
1. Easy forecasting and reporting
Many manufacturers have faced the troubles of unexpected demand for a particular item. Stock begins to run out fast and there isn’t enough time (or resource) to get the product shipped out in a timely manner.
An ERP system helps avoid these situations by generating forecast and sales reports based on past inventory transactions. This avoids the clutter of excess inventory, as well as the troubles of out-of-stock products.
For example, manufacturing demands per individual items may vary based on the time of year. This means that seasonal products will require higher volumes of production leading up to their expected peaks, which can be forecasted through ERP.
2. Complete inventory control
Manufacturers need tons of different parts and pieces to build their products, which need to be stored. However, a lack of capital (and available space) are huge reasons why buying large amounts of raw goods in advance isn’t sufficient. In short, managing inventory is one of the biggest challenges that manufacturers face - and getting it right can make all the difference.
Thankfully, with ERP, manufacturers can benefit from an inventory management system which monitors internal and external stock movements in real-time. This enables companies to identify the most ample and under-marketable products so that they can manage purchasing and procurement more effectively.
3. Safer data storage
When it comes to data, manufacturing companies must comply with industry and government standards. Poor data security is something that can ruin reputations, as well as cause huge financial stress. It must be taken seriously - relying on paper records is inefficient and unsafe.
But fear not. Through the help of ERP, manufactures can access various data sources through a single, secure system. Managers can provide access rights to the staff responsible for managing specific data, and cloud-based firewalls provide a layer of protection against any malicious web traffic. With a modern ERP, your data is as safe as it can be.
4. Improved productivity
We’ve all heard the phrase “Time is money” before, and it’s especially true in the world of manufacturing. Maximising the time available for producing products is key in this industry, but often requires smarter, not harder working.
With the ability to manage schedules, streamline financial operations, oversee sales processes, reduce data error, and ensure efficient communication between employees, a well-planned ERP solution is certain to save time and money for manufacturing businesses.
ERP for manufacturing with Nolan Business Solutions
At Nolan Business Solutions, we have the knowledge and experience needed to support your ERP needs. We have over 30 years’ experience providing ERP consultancy, development, support, and training for clients all over the world, with many in manufacturing.
Why not get in touch with our expert team today? We’re always happy to answer your questions and would love to show you the value we provide through ERP.