Manufacturing is one of the highly dynamic and competitive industries. The high level of competition in this industry requires manufacturers to race to meet the increasingly and rapidly changing consumer demands. In order to achieve their objectives, manufacturers must be able to accelerate all the processes and make everything more efficient.
One of several actions that can be taken by manufacturers is to utilize ERP software. The system is basically built to simplify the entire operations, improve efficiency and reduce costs (read this article for more info). Then, what are the main benefits of ERP software for the manufacturing industry? Find out the answers below.
1. Safer Data Storage
Manufacturers should have been able to eliminate error-prone manual processes. Relying on paper records is very inefficient and unsafe since they get torn and lost easily. Even hard disks can’t guarantee data security, especially when there are many people who use them.
With ERP software, manufacturers can access various data through a single system. Managers can provide access rights for staff who are responsible for managing data. Cloud-based ERP systems even allow those who have access rights to manage data at any time and from anywhere, as long as their devices are connected to the internet.
2. Complete Inventory Control
Inventory management is an important factor for the smoothness of the manufacturing processes. By using ERP software, manufacturers can monitor their internal and external stock movements more comprehensively. The systems also allow companies to identify the most and less marketable products so that they can manage purchasing and procurement more efficiently as well as bring innovations to market.
3. Link All the Departments of a Manufacturing Company
ERP systems are able to integrate all departments of a manufacturing company, such as financial division, human resource, inventory, sales, customer service, and more. This means the company doesn’t need to manually and separately monitor each department. All the departments can coordinate through one system and managers can get complete data from each of them in real-time.
4. Automate Work Order Management
ERP software enables manufacturers to automate work orders which include the date and time of execution, customer name, sales order, sales contract, product quantity, staff who are given responsibility, and others. Each work order has a routing code to make it easier for management to monitor the route. Supervisors can checklist each task based on a work order that has been created and ensures that all the tasks work properly.
5. Streamline Supply Chain & Order Fulfillment Process
With ERP software, manufacturers can ensure that the entire process runs smoothly and customer demand can be met in a timely manner. Supply chain management feature includes coordination, procurement control, stock management and delivery of goods. Through this feature, manufacturers can create better logistics strategies, and thus it will greatly assist them in cutting down operating and administrative costs.
6. Provide Accurate Data & Improve Decision-Making
ERP software enables manufacturers to get complete data on all aspects of their business operations, such as sales performance, customers, profits and losses, stocks, finances, labor, and many more. All the data generated is certainly helpful for the stakeholders to make more accurate estimates and effective forecasts, thus empowering management to make smarter and faster business decisions.