Manufacturing today is no small undertaking. With rising costs of labor and materials, evolving technology, and more informed consumers than ever, manufacturers are walking a tightrope of managing expectations, overhead, a global customer base, and countless other pitfalls.
For all of these challenges, cloud-based ERP systems provide solutions. It ultimately comes down to data management – exactly what ERP software is designed to do. Done right, ERP can track so many different areas of your manufacturing company – it can practically revolutionize the way you do business.
How?
Different areas of manufacturing stand to benefit from different features of ERP, so let’s dig in!
Benefits of Cloud-Based ERP
Inventory and Supply Chain
Knowing exactly what you need, what you have, and how it gets to you is invaluable. Accuracy in inventory is a major way to reduce costs, avoiding unnecessary orders or wasted material. Being able to see every step of your supply chain at a glance also means predicting delays and immediately identifying where hangups might be occurring.
Capacity
One of the most powerful benefits of ERP software is the ability to coordinate data. If you can have all of your machines, lines, inventory, payroll, etc. in a central place (with detailed reporting), you have a top-down view of your total capacity at all times.
Overall Efficiency
Like the supply chain monitoring mentioned above, ERP systems allow you to see every little detail of your operation. Whether it’s tracking employee hours or amount of scrap produced, the number of rush orders or common customer complaints – you can collate ALL of that information with ERP. You’ll be able to see when and where problems are happening, and tackle them with an informed strategy.
Engineering
With cloud-based ERP, every bit of information related to a particular build or product can be maintained in a central place. Everything from materials lists to regulations, product codes to diagrams – it can all have a “home” in an ERP system. That means no bulky binders, no lost documents, no mismatched versions, etc. Any updates will carry across so everyone is referring to the same documentation. This kind of standardization improves quality and efficiency, and keeps everyone on the same page – even in different facilities.
Monitor Trends
As you continue to use ERP year over year, you’ll be able to capture data on a larger scale. As you form your budgets, business goals, etc., you’ll be able to identify trends and areas to improve upon. You may be looking for a particularly profitable segment of your customer base or where you’re generating the most waste. If you’re tracking everything with your ERP, that “big picture” data is available at a glance.
One Version of “The Truth”
When all of your information is in the cloud, everyone is looking at the same thing. That means there are no discrepancies, no competing versions of reports, or anything of the sort. All of your data becomes a “living document” updated in real time. This helps keep everyone in your organization on the same page, and ensures accurate reports across departments. Any time you access your data or run metrics, you’ll be using the most up-to-date information.
Data-Driven Decisions
When you have access to accurate, current data, you’re empowered to make important decisions. When data can be compared to other metrics, customized into charts or reports, and/or manipulated in a variety of ways, your whole company is stronger for it. For large, joint decisions, everyone will have the same information – which reduces confusion. If people are making unreasonable suggestions, you can make your case with facts. The numbers don’t lie!
These are just a few (broad) benefits ERP can provide in the manufacturing sector. Every business will have its own needs and operations, and will stand to benefit from an ERP solution in a unique way. The point is that you can prevent things from falling through the cracks, increase accountability, and get a bird’s eye view of the company as a whole.
We’d love to help you identify the ways a cloud-based ERP system could benefit your business. Simply contact us, and we’ll get started on finding the best solution for you and your company.
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