Efficiency is a critical factor in the manufacturing industry. It enables companies to stay competitive and profitable in a highly demanding market. Just one inefficient operational component can have a ripple effect that could bring the entire process to a grinding halt.
Manufacturers face various daily challenges that can affect productivity. Some of these include poor inventory management, a lack of efficient communication between departments, manual administrative tasks and time-consuming syncing of siloed data. To remain competitive and guarantee operational efficiency, manufacturing companies need to use advanced technologies.
This is where Enterprise Resource Planning (ERP) solutions come in. ERPs are software designed to integrate multiple facets of an organization’s operations, providing a unified platform that streamlines processes. They have become a necessary adoption for small to large businesses worldwide, and the global ERP market is projected to reach $86.3 billion by 2027.
Advantages of ERP
The impact of ERP on different industries is tangible, considering its many advantages. Here are some of the key benefits it offers:
1. Automated Processes: One of the significant benefits of an ERP system is that it automates tedious processes so businesses can save time and resources. This includes the elimination of manual data entry and tracking, streamlining the ordering process, and stocking materials.
2. Improved Visibility: ERP systems provide real-time visibility into operations with relevant information at a glance. For instance, businesses have a clear overview of production performance, inventory levels, customer orders, and delivery schedules. This visibility helps managers identify potential bottlenecks early and take prompt action before they become an issue.
3. Cost Reduction: ERPs reduce the costs associated with manual processes and data entry. This is because all the information is stored in one place, reducing redundancies and eliminating unnecessary tasks. Moreover, ERP systems offer scalability features that can help businesses quickly adjust to changes in their production capacity.
4. Improved Decision Making: ERPs enable managers to make more informed decisions based on accurate and up-to-date data. By taking a comprehensive view of all aspects of their operations, they can identify potential opportunities for improvement and areas where they lag behind competitors.
How ERP Software for Manufacturing Improves Productivity
In the manufacturing industry, ERP solutions are used to manage and coordinate production systems. This includes tasks such as inventory management, scheduling, quality control, and cost estimation.
Companies can leverage their resources more effectively by having all these capabilities in one system and integrating them with other departments — like finance or HR — while ensuring all areas work harmoniously.
Moreover, some of these solutions offer predictive analytics capabilities that can be used to anticipate customer demand or usage patterns to adjust manufacturing processes accordingly. This helps businesses ensure higher levels of accuracy when it comes to meeting customer requirements.
Consider Sage Intacct and Oracle Netsuite, two popular ERP systems for manufacturing companies. Both provide automation and analytics capabilities, enabling businesses to improve efficiency in their operations.
For instance, Sage Intacct’s Order-to-Cash Automation feature streamlines the process of ordering, shipping, invoicing, and receiving customer payments. With this tool enabled, companies can easily track sales performance in real-time and make informed decisions more quickly.
Oracle NetSuite, meanwhile, offers a supply chain planning module that helps manage inventory levels with greater accuracy while providing visibility into production processes. This enables manufacturers to stay ahead of customer demands while optimizing costs and reducing waste.
Alternative Solutions with Manufacturing ERP Functions
ERP systems are often reserved for larger enterprises that can afford the implementation costs. But not all manufacturing businesses are the same, and some ERP features may be excessive and would drive up unnecessary costs.
Many companies in the manufacturing industry have been sold on enterprise resource planning (ERP) systems like Microsoft Dynamics GP, Oracle NetSuite, and Sage 300, but these systems can be overkill for small to mid-sized businesses. They often come with a high price tag and require a significant amount of customization, which can lead to longer implementation times and higher costs. For these businesses, alternative solutions are available. QuickBooks Online Advanced is one such underrated solution. Although primarily marketed as accounting software, recent updates have elevated it to accommodate several ERP manufacturing process capabilities, including inventory tracking, advanced reporting and analysis, and customer relationship management (through integrations).
Large enterprises can also benefit from QuickBooks Online Advanced’s customizable project management functions, such as project tracking and budgeting, task scheduling, time tracking, and resource utilization monitoring.
These features enable companies to accurately monitor, forecast and optimize their resources for maximum efficiency. They also provide a unified platform where data from various departments can be easily accessed and integrated.
Migrate Your Manufacturing Data With the Help of Experts
Whether your manufacturing business is small or large, ERP implementation can be a daunting task. If you’re considering introducing a solution with ERP capabilities to your organization, it’s crucial to work with experts who are knowledgeable in the field and understand the specific needs of your business.
These professionals will help you through the entire process — from analyzing current processes, developing a plan for migration, data cleaning and validation, training users on how to use the new system properly, and providing technical support during every step of adoption.
SaaS Direct has a team of data migration specialists who are experienced in helping businesses migrate their data from legacy systems to modern ERP solutions. With our track record of over 1500+ accounting data conversions delivered and 25 years of cumulative ERP and accounting data migration experience, we are highly capable of ensuring your implementation process is seamless and that any potential issues are addressed before going live with the software. Talk to us about your ERP implementation needs.