By WorkWiseSoftware
In 2018, manufacturing was a leader of U.S. Gross Domestic Product by Industry with six consecutive quarters of growth. In fact, durable goods manufacturing grew 2.6 percent in the second quarter of 2018.
With such a growth in this industry, manufacturers are seeing an uptick in business, which means there is an extreme need for the organization of daily business processes that cannot be handled by one person or a small team of people. With a booming amount of growth in consecutive quarters, manufacturers should turn their attention to a modern software designed to help the manufacturing industry, enterprise resource planning software, also known as ERP.
Manufacturing ERP Software
What is Manufacturing ERP Software?
Manufacturing enterprise resource planning software (ERP) creates an efficient, leaner and better automated and integrated business through technology solutions.
At its simplest, Manufacturing ERP software is a database management system, which focuses on solving the issue of “silos” in businesses by optimizing communication and the flow of information between manufacturing processes and departments. (Think of silos as the invisible walls that separate business departments from one another.)
Manufacturing ERP software functions as a business management technology solution, meant for its software users to store, manage, communicate and access data across all functions (silos) of a business.
How Manufacturers Use ERP Software
- Enhanced department communication – manufactures tend to work in large work spaces with multiple departments, they all serve different purposes but work toward one goal which is to create a specific product. A benefit of ERP is its ability to increase communications between those many departments because it allows information to be shared and updated, creating one unified system. Overall, it improves internal relationships.
- Automate daily business process – The beauty of ERP is that it can automate processes for you, eliminating tedious tasks that are typically done manually. The software can also provide accurate information while automating tasks, which simplifies business operations.
- Up to date information – Employees can consolidate all information into a single system, eliminating the chances for duplicate data entry and making information easier to find across all departments.
How ERP Software Helps Manufacturers
Enterprise resource planning software focuses on three main manufacturing processes:
- Fulfillment – Manufacturing ERP software connects information from different departments and grants visibility into daily manufacturing operations, inventory, and supply chain all in one system. Check inventory, order materials, and predict future demand, from a single dashboard.
- Production – the software allows manufacturers to streamline the process in order to keep up with shop floor changes, manage quality, schedule maintenance operations among other things.
- Materials – ERP users have control over material functions like shipping, purchasing and requisitions. Users are also able to keep track of business inventory, so that users can replenish materials needed to make products in a timely fashion, ultimately enhancing the customer service experience.
How Can ERP Systems Help Manufacturers with Growth?
Manufacturing ERP software solves a number of challenges and provides invaluable benefits to manufacturers seeking to reduce costs, manage growth, streamline processes, and gain a competitive advantage.
So how does ERP help spur growth? In a word: Efficiency. Time critical information is stored and accessed in a central database allowing all departments to access and update data in real time. Tasks can be automated, reducing the time needed to pull data and communicate it across departments, ultimately leading to better productivity.
Additional Benefits of Modern Manufacturing ERP Systems
- Cost Reduction: With one source of accurate, real-time information, Manufacturing ERP software reduces administrative and operations costs. It allows manufacturers to proactively manage operations, prevents disruptions and delays, breaks up information logjams and helps users make decisions more quickly.
- Flexibility: Modern ERP manufacturing software systems are robust, flexible and configurable. They are not a one-size-fits-all proposition but can be tailored around the unique needs of a business. ERP systems also have the ability to adapt with the ever-changing needs of a growing business.
- Competition: Manufacturing ERP systems may require an investment, but there’s also a cost to doing nothing. Manufacturers cannot afford to put off an ERP implementation while their competition invests in ERP and begins reaping the benefits.
