Manufacturing remains one of the major industries for the UK economy. Traditionally, many manufacturing companies tended to use standalone IT systems and software packages to manage and control their business operations ranging from all areas of the business. This probably consisted of multiple different systems for planning, production, billing, delivery and customer service which can produce inaccurate data, slow down production and planning through systems not being integrated and not transferring data between one another effectively. This causes disruptions to production and slows down every process throughout the manufacturing procedure.
Why Are Manufacturers Choosing To Use ERP Software Systems?
ERP software solutions enable manufacturing companies to automate business processes and create efficiencies throughout their production and operations. It allows them to share operational data with internal systems and also external systems such as suppliers, vendors and distributors connected to their business to create one seamless platform in which to run their operations.
The use of manufacturing ERP software has allowed for significant growth to market shares, revenue and profit margins which enables the manufacturer to gain a substantial advantage over their competitors within their market.
What Benefits Do Manufacturers Get From Using ERP Systems?
There are an array of benefits that can be attained through implementation of manufacturing EPR software:
Cost and time saving through automation
Cost and time savings can be achieved through the automation of processes in various different parts of the organisation. For example automated billing and sales order processing can reduce the amount of human input needed which not only reduces the amount of errors which saves time rectifying issues but also means that you staff do not have to be constantly on hand to manually carry out this process.
Other areas of the production process including scheduling, material handling, resource allocation and procurement can also be automated to provide complete integration with every area of the business and help to reduce time and costs in the process. Automating these processes ensures you always have the materials you need to make your products, at the right time with the right people for the job on hand to ensure timely delivery.
Improved visibility and control
Improving your visibility and control throughout all areas of the business is vital for decision making at all levels of management. This is achieved firstly by ensuring that the data entering the system is accurate through automation and that the data does not need to be duplicated or triplicated at any other point in the process to avoid further inaccuracy being added.
Processes being automated helps to reduce human error, normally errors made within production planning or scheduling can be highly costly to a manufacturing organisation, so being able to reduce errors being made reduces the overall cost to fix.
Manufacturers need to ensure that full traceability and tracking can be achieved to from start to finish throughout the manufacturing process. Automating serial number and barcode tracking allows manufacturers to trace products and items which may need recalling or quarantining or even for auditing purposes. In the event of a recall, manufacturers will be able to recall the products with the most efficiency by tracking where they have gone and when in minimal time.
Improved material resource planning and inventory
Manufacturing ERP software provides real time information on the availability and location of all stock throughout multiple locations, which allows manufacturers to optimise their logistics and delivery. This also allows stock to be maintained at optimum levels to ensure enough materials are being held to meet the demand for products. An ERP solution will also detect shortages amongst inventory to allow for timely supply which does not affect production.
Improved production capacity and planning
ERP software allows manufacturers to simulate the effect of an under/over sales prediction which also provides the likely outcome of each scenario to be able to aid production capacity planning for the future. It also optimises how many items or amounts of stock are required to mirror the estimated sales demand for the products they create, this means that you will always have what you need to meet demand which helps to reduce wasted stock.
ERP systems are able to highlight shortages within different Bill of Materials (BOMs), resources and skills required for each item to be produced so that these shortages can be replaced or filled within a timely fashion to ensure on time delivery of products to customers.
How is Manufacturing ERP Changing The Way The Industry Works?
Manufacturing companies are starting to realise the benefits and returns that ERP software has to offer, and those using ERP software lead the way ahead of their competition. It has typically been thought that ERP is only for ‘the big companies’ which had typically been true until the emergence of cloud ERP. Cloud ERP allows smaller companies to take advantage of the same functionality that traditional ERP possesses, only for a much smaller and less significant cost. This is changing the landscape as now smaller manufacturing companies are able to compete on a much better level with larger organisations helping to level the playing field.
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Stay Ahead of Your Competition, Speak To Syscom
We have been able to help many manufacturing companies achieve outstanding results through the implementation of both Dynamics 365 and Syscom’s own authored ERP8 software solution. We have been able to significantly improve the way in which processes are automated throughout the manufacturing process, creating cost and time savings.
If you feel like your manufacturing process and systems could be improved through an ERP solution, get in touch with us today to find out how we can help you stay ahead of your competition.
Call us on 01384 400 600, email email@example.com or submit a contact form below.