As the manufacturing industry continues to pick up steam in the first quarter of the new financial year, many manufacturers are paying heed to technology that they previously were reluctant to invest in. One main area where manufacturers are seeing great ROI potential is ERP systems for manufacturing processes.
A robust process manufacturing ERP solution can transform the way a manufacturing business functions. It helps streamline processes, improves throughput time and minimises errors, thereby solving several challenges, and providing innumerable benefits to manufacturers. An ERP software caters to areas of the business from materials and inventory to production operations and sales and accounting.
By using an ERP system for manufacturing, a manufacturer can meet diverse objectives such as cost reduction, accelerated growth, and improved competitive advantage. Most importantly, a process manufacturing ERP solution acts as “knowledge hub” by offering accurate, real-time information crucial to the manufacturing industry.
Here are the different areas of information an ERP system for manufacturing provides:
Changes in demand
An ERP system enables you to monitor inventory in stock, work in progress and orders delivered. Thus, you are informed about the demand for different product categories at all times and can avoid blocking funds in undesirable inventory. Furthermore, you can capitalise on your customers’ purchase trends and upsell related products.
Receivables and payables
By using a process manufacturing ERP system, you gain access to an integrated view of all your receivables, payables, and sales through a single system. Additionally, the ERP software automates the process of taking customer orders and fulfilling them so that every function of the manufacturing business relies on a single database, enabling you to make accurate decisions quickly.
An ERP solution enables executives of one department to view relevant data belonging to another department at any given time. This promotes interdepartmental collaboration and faster decision-making. Moreover, an ERP solution gives managers access to key performance metrics such as average sales margin, sales per date, and orders per date. This increases cross-sell and upsell opportunities.
Sales performance and customer satisfaction metrics
With an ERP system for manufacturing processes, you can control inventory and ensure the exact number of products are in the right location at the right time to smoothen sales processes. The process manufacturing ERP solution helps collate sales data, customer data, and inventory data together to ensure that you do not run out of stock before the next shipment arrives. An ERP solution enables customers to retrieve the status of their order, creating an improved customer experience.
The process-wide visibility that an ERP system provides can without a doubt be rated as the biggest advantage of a process manufacturing ERP solution. Invest in an ERP-based manufacturing software that will offer you all the above information to increase productivity and profitability.