Knowing the true cost of your manufacturing process will help you win more business
This is the first of many in a series that we will be posting on our blog that will cover ways in which you can outsmart your competition using ERP Software.
For today, we are going to focus on knowing your true manufacturing costs. This is crucial in today’s competitive atmosphere, as it is quite common to find companies who actually have no clue what these manufacturing costs truly are.
When one considers that production starts in engineering well before it makes it to the manufacturing floor, it is easy to see how companies that are not properly using an ERP manufacturing software application are at a disadvantage. ERP Software is going to allow you to track the actual time that a product stays in engineering, the resources that are involved in producing the product, and the materials that are needed to manufacture the finished goods. When you consider that the true costs of the materials used combined with time involved in production are being calculated by your ERP software solution, one can rest assured that an accurate cost is being properly calculated.
So, by being able to determine this cost, a company that is using an ERP solution is going to be able to determine what the product should be priced at. These steps are often well received by the sales department as they are able to quote on projects more competitively and in the end, win more business.