The manufacturing industry is constantly going through technological advancements that are pushing it towards greater heights. It is one such industry that has been in the rise even post the pandemic,but only for materials that can help cater to curbing the crisis. However recent stats say that businesses will soon be able to establish a clearer picture as to what works and what doesn’t in this industry.
Though convenience plays a major role in the development of business plans for the year 2020, the trend reports are inclined towards a different inference. People are looking to make the most out of ordinary wear and turn a regular looking product into something that is fancy above par.
So eventually, though products will continue to evolve at a slow pace, the way in which they get produced will alter altogether, making it totally transformed within the next 20 to 30 years.
But that’s not all!
The industry has more than just the right buzz about automation and machine intervention making it a business must in today’s world.
“Industries are facing a dynamic shift in terms of operation, existence and maintenance, giving birth to newer versions along the way.”
This paradigm shift has paved the way for industry 4.0 to come into existence and will continue to be in the inroads from here on.While industry 4.0 can comprise several things, the entirety of it is the involvement of big data and automation to establish efficiency in the processes. The complete implementation of this will however be a huge capital investment and include costs that will compete with other business expenses.
So where does ERP come into the picture?
Enterprise resource planning has been in the industry scene for quite some time now, but the magnitude of its existence was only felt when companies started to face struggles in managing business costs that quatrippled when many processes were included. This was just the beginning of how necessary ERP was going to be. It eventually took up mammoth importance along the way.
The ERP stats could not be more promising!
It’s estimated that ERP implementation has led to business process improvement for 95% of businesses. This is for the most part as compared to the 5% companies that are yet to incorporate ERP into their business plans.
But this is where the stats get interesting!
According to Netsuite,
“Manufacturing companies are the No 1 users of an Enterprise Resource Planning software”
So how has implementing ERP helped manufacturing companies gain the most out of their business investment?
The answer lies within the question itself!
As businesses ambush towards a more complex consumer requirement, making necessity a commodity, the need to implement the latest technology has become vital on the whole. Infact, Gartner predicts that by 2022, artificial intelligence will have successful integration into ERP systems. Making it a sign of greater add-on value for profit-making companies.
IoT has been on the headlines too but this time it will find its way into ERP solutions to better life for businesses all around the world. The inclusion of machine learning and other tech softwares have smartened the business space to such an extent that man-held processes have been entirely wiped off.
“More and more companies are trying to discover a more intelligent ERP system that can include AI, automation and machine learning”
However, lets just look at the pros of having ERP built into your manufacturing business. While the benefits are endless, here are 6 factors that stand out in terms of providing an advantage to businesses in the manufacturing industry.
Better automation and management of work orders
Businesses can now take advantage of an automated work order system with the implementation of ERP and thus improve efficiency to a greater extent. These work orders include the date and time of the execution, the sales order, customer name, staff details etc. These work orders will have a routing code which makes it easy to monitor and maintain.
Integration of all departments
ERP can bring together all departments of a company without having to forfeit for any management decisions. Businesses can now incorporate all aspects of its businesses steadily and without much effort. This way will also allow for managers to get a real time view of the different aspects to a business.
Streamline supply chain & order management
For any growing business there is always a need to incorporate the entire process in a timely manner, this way there is no need to hold off any department that could potentially be a profit making segment of the company. Through this feature, the company can now run a full-fledged supply chain management system that allows procurement control, stock management, delivery of goods etc. this will also aid in better logistic strategies along the way.
Overall Inventory Control
This is an important factor that allows for any manufacturing business to bring out the best that it can offer. By using ERP software for Manufacturing, businesses are then able to tackle external issues that can alter the business climate as well as monitor stock movements that flow in and out of the company.
Secure data storage
As soon as businesses bid goodbye to the regular paper based system of filing and report keeping, companies have come to understand that they are able to make the most of their businesses when effectively having an ERP cloud-based system in place. This way, there will be access rights to all managers to handle data, anytime and anywhere.
Improvise data accuracy and decision making
ERP softwares enables businesses to get complete control over all its operational aspects such as sales performances, customers, stocks and finances, profit and losses etc. All the data provided will definitely benefit the company and its stakeholders in deriving exact estimates and lead to faster business decisions.
Overall, businesses that are in the manufacturing industry tend to face the biggest advantage with the implementation of the ERP and this will only add value to the company if implemented at an early stage.
While all these benefits are just some of the many factors on What is ERP?How ERP can contribute to the company’s growth, the manufacturing industry on the whole has still got a long way to go in terms of accuracy and efficiency while automating the business using ERP.
What is ERP?
ERP is the type of software that organizations use to manage their day to day activities. This includes activities such as accounting, project management, risk management and supply chain.
What is Manufacturing ERP?
The manufacturing ERP is the software and systems that use ERP modules to manage, plan and deliver specific functionalities. They basically support businesses that are in their manufacturing field.
Which Industries use ERP?
The major industries include: healthcare, manufacturing, construction, distribution and business services
What are the Key Features of Manufacturing ERP?
Some of the features include:
Efficient inventory tracking
Active quality control
Complete and integrated process automation
Well-structured project life cycle
How does ERP help in manufacturing?
ERP manufacturing helps in fully automating all business processes and provides accurate information. It also helps users in effortless navigation
Why is ERP necessary for Manufacturing Industry
With the integration of ERP, businesses are able to keep track of their processes and operations without much effort. This automation helps the manufacturing industry work more efficiently.