Manufacturers can use real-time ERP data to manage planning strategically. Source: Shutterstock

Manufacturers can use real-time ERP data to manage planning strategically. Source: Shutterstock

3 reasons why all manufacturers need an ERP system

ONE of the worst nightmares an enterprise can have is when one end of the business does not tally with the other.

This is why businesses invest heavily in business management platforms that synchronizes all data across departments in real-time.

The manufacturing sector is a suiting operational business that can really benefit from a sound enterprise resource planning (ERP) system.

Not only can an ERP system help manufacturers collect and store data but also manage and communicate its different functions.

Hence, properly integrating data information from all areas of a business to streamline processes and automate common tasks.

Here are how ERP technology can benefit manufacturers.

#1 | Strategic planning

Many expect changes to a manufacturing process to be time-consuming as there are several layers of operations that are involved.

Though, with an ERP system, manufacturers can easily monitor and forecast if changes will be effective or not.

So, costs and risks of changes can reduce significantly as each change will have a higher success rate.

Manufacturers can take advantage of real-time data that an ERP system provides to calculate and manage planning strategically.

#2 | Operational efficiency

Traditionally, making sure that resources that are necessary are all ready takes a lot of coordination between management and operations.

Similar to strategic planning, speeding up operations is a task that many expect to take time.

ERP enables a centralized database that communicates the availability and needs of each department to fulfill their output.

Integration of the entire organization’s data helps manufacturers make more coherent decision-making as well as deliver better customer experience.

#3 | Increased productivity

The manufacturing process involves a lot of repetition. That is the essence of a factory’s workflow.

Instead of spending valuable man hours on tedious tasks, ERP can automate them.

Previously, the production process connects manually through paper-based schedules. That which also makes the process more prone to errors.

So, with ERP, the moving parts of a manufacturing process gain far more visibility as it reflects real-time. In the case of an emergency, responsible parties can take actions immediately.

ERP can brilliantly streamline the manufacturing processes and help automate the manufacturing workflow, the paperwork, as well as data collection.

This means to say that the system is able to understand the intricacies of knowing when to order and manage raw materials as well as forecast and fulfill order demands.

Besides, it will also be assessing and allocating workload for employees to ensure productivity is optimized.