86% of the top 100 companies in R&D spending worldwide are from the manufacturing industry, according to one source.
The U.S. manufacturing sector would be the ninth-largest economy in the world, according to the National Association of Manufacturers.
Over the recent years, the manufacturing industry has gone through dramatic changes in the production, planning, supply chain, distribution, sales, marketing, and overall management. In such scenario, it is vital to know the role of ERP in manufacturing industries to define more strategic goals that can pave the way to business expansion.
Why Is ERP For Manufacturing Industries A Must?
Enterprise Resource Planning tool in the manufacturing industry is an answer to all the business requirements. It enables organizations to streamline each activity with a maximum efficiency that ultimately helps in growing business and profitability. ERP system simplifies all the business aspects and helps in smoother functioning of every business modules through the single software.
According to the Statista, the cloud ERP software market will be worth 28.8 billion U.S. dollars by 2022.
More and more organizations are opting for ERP and capitalizing on technology to better align business expectations with real results. In order to beat the barriers, the best ERP system for manufacturing is the topmost investment priority of today’s manufacturers.
Manufacturing ERP: A Technological Priority For Today’s Business?
Innovative technology and intuitive software systems play a critical role in designing solutions for an enterprise belonging to the manufacturing industry. An Enterprise Resource Planning system is capable of bringing major changes in the industry by offering more productive and efficient solutions, ensuring better customer experiences with contemporary methods like enterprise mobility, integrated data collection & interpretation techniques.
ERP System Should be Capable of:
- Facilitate automation and reduction in human intervention in production as well as administration
- Offer traceable & auditable transactions with automatic data captures
- Blur the distances and geographical boundaries
- Logically predict demands by integrating BI and Analytics
- Interpret problem areas and product defects
- Collect data intelligently from all touch points and put it to use across the system
- Schedule tasks concurrently with an aim to increase the efficiency
- Allow contemporary approaches like BYOD for better monitoring of processes, especially production and tracking
- Integrate QR Code and Barcodes for tracking
- The inclusion of sensor-based techniques for fully automated tracking
- Automate bill of material generation
- Gain complete visibility in all the business processes
How Can You Identify Best ERP For Manufacturing Industry?
For an ERP system to offer remarkable advantages to an enterprise, it requires systematic evaluation and inclusion of useful features. Here is the list of features to be checked at the time of selecting best ERP for your organization.
Most Essential Features Of ERP System In Manufacturing
- Well-designed Reports & Dashboards to indicate KPIs and keeping the users informed
- Self-Serviced approach to generate Business Intelligence with any anytime-anywhere approach
- Accurate market forecasts for logical capacity planning
- Automated synchronization between procurement and production with the tight coupling of stock-levels, re-order levels and manufacturing schedules
- Real-time and optimized scheduling of assets and staff for increased productivity with definite cost reductions
- Inventory tracking at all times
- Close coordination with the sales force to enable the workforce on the field to quote to the customers in accordance with production status
- Transparent order tracking for the customer to keep them informed about their status requests.
Not only selection, implementing an ERP requires your attention, too. Many enterprise owners are facing a lot of challenges in the implementation of ERP like technical issues, the right training, change management, compatibility issues, cost and analysis of requirements, and many more.
ERP system provides a complete platform to manage all your organizational activities from a single point. At every level, there should be provision or support that aids in better ERP implementation and solving issues.
If you still doubt on the capability of an ERP to manage the entire organization, take a look at the modules of manufacturing ERP.
The Ideal Modules of Manufacturing ERP Solution
|Sales & Distribution||o Sales|
|Purchase Management||o Procurement|
o Raw materials
|Supplier Management||o Supplier Evaluation|
o awarding purchase order
|Manufacturing, Planning, and Control||o Resource optimization|
|o Inventory Tracking|
QR Codes, Bar Codes
|Quality Control||o Raw material receipt|
o Intermediate quality controls
o Inspection & dispatch
o Serial number tracking
|Inventory and Warehouse||o Automated Stock levels|
o Reorder process
o Inventory status reporting or Stocktaking
o Traceability integration
o Recall procedures
|Service & Maintenance||o Automated service scheduling using predictive analysis|
o Maintenance history recording
|Analytics||o Business Intelligence|
o Knowledge Management
o Reports & Dashboards
|Supply Chain||o Collaboration with Partners|
o Demand-driven supply chain
|Human Resource Management||o Training|
|Waste Management||o Green policies implementations|
o Environment-related compliances
|Finance||o Cost Analysis|
o Profit Analysis
o Assets & depreciation
Benefits of an ERP for Manufacturing Industry
Your customer is one of the most effective brand storytellers.
Besides integrating essential data and collecting it into critical information through modern methods of reporting, ERP for manufacturing means the increase in efficiency and better-served customers. It also takes care of compliance and security at every level of your organization. Streamlined processes with increased productivity mean reductions in costs & investments allowing the manufacturing setup to offer more to the customers at competitive prices.
In order to keep your customers satisfied, modern ERP software offers the following benefits:
- Increased Efficiency & Productivity
- Assured Compliance & Safety
- Streamlined & Better Monitored Processes
- Reduced Product Defect Rates
- Cost Reductions
- Improved Customer Engagement
- Better Decision Making
What Are Your Thoughts?
ERP for manufacturing really started off as a simply Material Resource Planning system years ago, and today becomes an indispensable tool for the manufacturing industry with the potential to increase growth and revenues.
It enables strategic decision making, quicker response time, great environment adaptability, and robust integration across the manufacturing organization.
Technologies today like the cloud, BI & analytics, mobile technologies with contemporary approaches like BYOD & social media ensure that a manufacturing ERP encompasses it all with flexible budgets to suit all pockets.
Are you facing problems with the existing ERP system? Do you want to implement ERP for manufacturing industry?
We can help!
Yes, SPEC INDIA, one of the leading custom software development companies deliver end to end IT solutions for manufacturing industry keeping your requirements at the center. We believe that customization is a key and that’s the reason we provide tailored solutions that precisely meet your needs.
Think of digital transformation as a prime factor to stay ahead of the curve in this digital-oriented time.