The business landscape is ever-changing, and manufacturing companies must quickly adapt to their customersâ€™ needs by using manufacturing ERP software. Those who are still using legacy systems may have a harder time automating their workflows. This increases the risks of them losing their edge against more updated competitors. However, digitalization is not always a walk in the park.
Digitalization could put a strain on the tech stack of IT departments because of the need to invest in new equipment and training. Here, ERP software can be a viable solution in making the digital transition smoother for manufacturing companies.
8 Reasons Why You Should Consider a Manufacturing ERP Software
1. Greater adaptability
Implementing cloud ERP in your operations can help you set up a holistic approach to optimizing your workflow. This leads to improved business performance and supply chain management.
A manufacturing ERP software lets you automate processes, thus greatly reducing your workflowâ€™s dependency on manual methods. In addition, authorized personnel can monitor the production status in real-time without having to schedule meetings. Besides speeding up and enhancing the production process, these functionalities are great for minimizing errors and, ultimately, boosting your profits.
2. Better inventory control
Proper inventory management is a must in manufacturing for a smooth and error-free operation. Cloud-based ERP software like Acumatica ERP is an essential tool that lets you monitor movements in your stocks, whether internal or external, with real-time accuracy.
By having better visibility of your stocks and inventory, you can easily identify popular products, often-used raw materials, and under-performing finished goods. This way, you can develop an adequate and efficient procurement schedule that can prevent any delays in your operation and keep your warehouses unclogged with unsold goods.
3. Enhanced collaboration across departments
One of the advantages of employing cloud ERP solutions is that you can put unique systems of different departments into one application and one interface. This approach makes things more efficient since it enables better collaboration between teams. Migrating data from siloed spaces into a singular platform lets your employees easily access necessary data to perform their tasks.
You wonâ€™t have to manually monitor each department on separate platforms. Instead, ERP systems let you integrate all your departments, including finances, human resources, warehouse, sales, and customer service, into one single application. This can optimize your data usage in various operations, greatly reducing disruptions and solutions made in a hurry.
4. Streamlined processes
On top of enhancing collaboration, manufacturing ERP software can also help streamline your process, reducing the time it takes to finish a work order. Cloud ERP statistics have shown that it can standardize 77% of back-office operations, making it easier for employees to do their tasks.
Beyond that, data availability from all departments in a centralized location gives real-time insights. You can then use this to monitor, predict, and address problems in optimizing machinery lifecycles. This prevents costly errors and disruptions, ensuring a smooth process to meet customer demand promptly. With this, managers can simply monitor and follow up on tasks immediately.
5. Quicker response to market conditions
ERP software provides real-time data analysis across the board. This will help you predict trends in your industry and create a comprehensive plan to respond to market changes quickly. For example, you can use system-generated reports to plot varying market demands and determine how you can cater to consumersâ€™ purchasing trends.
Its supply chain management feature also enables manufacturers to implement better logistics strategies. These include coordination, procurement control, stock management, and goods delivery, helping you optimize your revenue.
6. Cost reduction
Having to dedicate time and precious resources to maintain physical onsite solutions can be expensive and may not have the efficiency they once had. Here, cloud-based ERP solutions are a great and cost-effective alternative.
Updating and maintaining the software doesnâ€™t fall on your shoulders. Rather, the cloud solution vendors will be the ones to take care of improvements and any bug fixes. This lets you divert your resources from updating and maintaining your systems to other important and core business functions.
Cloud ERP solutions reduce your overall operational costs, from automating and streamlining your processes with real-time data to ensuring a faster lead time and minimizing labor expenses.
In addition to these benefits, you can have better inventory visibility that enables you to plan and improve your inventory management, preventing the costly mistake of under or overstocking your supplies.
7. Strategic decision-making
Accurate market trend predictions go hand-in-hand with strategic decision-making. Using real-time data from all departments, you can quickly make smart decisions that will help your company adapt to and survive the changing business environment.
This complete visibility of all aspects of your business enables you to better grasp where your business stands and optimize your business for day-to-day operations. From sales performance to machinery costs, manufacturing ERP software enables you to make more informed decisions at an opportune time.
8. Improved customer satisfaction
As a manufacturer, you can also use real-time data from ERP software to predict customer demand cycles and pattern your production after them. Combining this with a B2B e-commerce platform can make work orders easier to process, especially with separate portals for regions, brands, or clients.
Moreover, using cloud ERP solutions can facilitate on-time delivery through careful planning and enhanced inventory management. This strategy is vital in maintaining customer relationships. By being more efficient with your processes, you can reduce lead time and improve customer satisfaction.
Out with the old, In with the new
The benefits of using manufacturing ERP software in your day-to-day operations are far-ranging. Because it provides real-time data, you can get a more accurate view of your business performance, predict market trends, and create comprehensive plans to keep customers satisfied. As such, you can make good decisions that allow your company to become adaptable and responsive to changes in the manufacturing landscape.
If youâ€™re looking for help in your digitalization journey, Yondu is Acumaticaâ€™s partner in the Philippines. Acumatica ERP has a manufacturing management module that can be fully integrated into your system. Likewise, Yondu develops customized manufacturing management software for your business model and processes.