ERP for The Manufacturing Industry – Role, Benefits & Applications
Manufacturing companies are the No. 1 user of ERP software.
Without a doubt, the above statistical data proves that every manufacturing company is incomplete without ERP Software. While Buying, comparing, and implementing the right kind of Enterprise Resource Planning system that fits in well with the overall functioning of the company can be a huge task, it also involves a lot of investment-based decisions.
However, it is worth it when it comes to the host of benefits it offers in the long run.
Another noteworthy piece of data is that “The ERP market remains in a phase of rapid expansion, with total market size expected to exceed $49.5 billion by 2024.”
Let us understand how ERP software has transformed the manufacturing industry.
Role of ERP In Manufacturing Industry
In simple words “ERP for a manufacturing business gives an overview of its core manufacturing processes, in a nutshell, all at one place”.
With ERP, a manufacturing unit can also track the yield and important metrics such as operating time, cost, efficiency, time loss, and more.
This overview is pre-defined as per the process and gives real-time data on operations such as inventory management, order processing, quality checks, audit requirements, equipment setup, failures, defects repairs, etc.
ERP has become a necessity for every manufacturing business, whether it is a small or medium enterprise looking to scale up or it is a large organization looking to streamline its operations.
Benefits of ERP In Manufacturing Industry
# 1 - Determining the ROI
ERP helps businesses in decision making and to determine where their performance and ROI comes from.
# 2 - Provide KPIs to make smarter decisions
The metrics and data received from ERP helps in long-term decision making and making changes in strategies that are not performing well.
# 3 - Accessibility to Information
With ERP, businesses gain access to all types of information including operational, performance-oriented or financial – all in just one system.
# 4 - Creation of a Supply Chain
A better supply chain can be established with streamlined purchase, production, sales and distribution process.
# 5 - Improve Performance
Performance across the internal staff can be improved as well as customer service can be improved with the available information on one source.
# 6 - Effective Resource Utilization
An ERP software gives an overview of resource performance, which can be used to use the resources to their optimum levels to get better outputs.
# 7 - Business Forecasts
With ERP, real-time data is obtained which can be used to forecast material requirements and prepare a timeline for production.
# 8 - Report and Track Benefits
An ERP system automates many manual tasks and supports reporting to a large level where staff can fetch reports from one system to another and eliminate many time-consuming manual tasks such as the creation of spreadsheets.
# 9 - Quality Assurance
The ERP software gives you in-depth data on the performance of each component within your operations, so it becomes easy to detect faults and know where improvement is required. Hence, consistency in the quality of the product is maintained.
# 10 - Cross-departmental Information Flow
With ERP, you have all the data available in just one click which makes it much easier to facilitate actions and to manage information flow with vendors, suppliers, stakeholders and clients.
Key Features of ERP In Manufacturing Industry
Below are the key features a complete ERP Software for manufacturing industry includes
Sales
- Item Management
- Contacts Management
- Lead Management
- Quotation Generation
- Stage Tracking
- Lead Activity Tracking
- Periodic Reminders for Open Leads
- Customer Types
Inventory
- Item Master
- Purchase Order
- Purchase Manufacturing and Buyouts
- Delivery Challan
- Quality Control
- Replace Materials
- Service
- Service Report Upload
Production
- Sales Order
- Bill Of Materials
- Material Allocation
- Replace Materials
- Test Certificate
Masters
- Customer Master
- User Master
- Item Master
- Category Master
Need customized ERP Software, with integrated features according to your business operations? Get in touch with our experienced team of ERP experts today!
If you are struggling to process and analyze data, want to reduce costs, eliminate downtime, automate tasks, replace faulty systems, or are expanding into a bigger manufacturing unit, it is the right time to upgrade to a customized ERP software that takes your business productivity, processes and profits to the next level.
At iTechnosol, we believe in developing custom solutions that stand out and help you achieve desired outcomes. We carefully analyze your existing business processes and work in collaboration to give you an optimized ERP solution along with implementation.
