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Manufacturing companies face these and numerous problems in day to day operations.
Some problems may vary slightly from industry to industry, but there are some common
challenges faced by manufacturing companies across verticals & industries. In this blog, we
are going to discuss how manufacturing companies can leverage ERP Software to improve
internal processes and overcome common manufacturing problems for achieving
continuous improvement in business.
• Lot of time spent in manual data preparation, along with the possibility of human errors
• Delay in recording information, since no mechanism to record/capture data instantly
• Records are never up-to-date, accurate, discrepancy in data across departments
• Creating reports is very time-consuming because of the need to reconcile & validate
data
• ERP software gathers data across all business processes in digital formats.
• ERP provides mobile apps & features to incorporate real-time updates.
• ERP ensures, up-to-date & consistent information is available across the organization.
• ERP stores data in a central location and provides easy access anytime from anywhere
This ensures that the right information is available to the right people at the right time to
make the right decisions.
Manufacturing companies have complete visibility into all processes and the entire
business. Manufacturers can now implement companywide policies, define standard works
flow, describe rules & guidelines for almost every activity in the organization.
ERP enables defining and implement standard inventory management practices and
processes across the company. You can define lead time, reorder points, safety stock, and
set up alerts & notifications for approvals & authorizations, for inventory purchase. You
will have real-time, accurate knowledge of inventory & items in stock across an
organization. ERP Software also provides a variety of inventory management reports to
understand trends and take corrective measures to ensure that manufacturers can
maintain optimum inventory, reduce inventory-related costs, and improve profits.
ERP also provides reports such as Capacity Utilization Report, Overall Equipment Efficiency
reports, Machine Downtime reports. All these provide insights on whether the utilization is
up to the mark or not and take corrective measures.
• ERP reduces paperwork & manual work by digitizing & automating routine tasks
• ERP provides alerts, notifications to improve communication & coordination
• ERP provides e-Approvals via email that speeds up the process & reduces cycle time
• ERP makes Reporting Easy & Fast, saving a significant amount of time of Employees
ERP saves significant time & efforts of employees. They can use this time fruitfully to
focus on improving supplier relations, identify cost-saving alternatives, improving
customer service, and so on.
Moreover, ERP provides real-time, in-depth reports for various costs incurred by the
company. With ERP you can generate reports such as Cost of Production, Cost of
Overheads, Departmental Expenses, Cost of Materials, Work in Progress (WIP), etc.
This helps to keep a close watch on the expenses and analyze the trends/pattern of
expenses. Managers can verify whether expenses are according to estimates or exceed the
estimations and accordingly take steps for corrective measures.
Summary
ERP software helps streamline and automate business processes. It integrates operations
and helps to implement effective policies and procedures to achieve Financial & Business
discipline. All this helps overcome problems faced by manufacturing companies. ERP helps
to achieve operational excellence and gain a competitive edge.