What is ERP? – What are some of the benefits of an ERP system?
At its core, ERP (or Enterprise Resource Planning) enables companies to put all of its necessary functions into one single system that allows the employees of a company to access a range of potential benefits, such as improved shared dashboards that enable all employees within a company to use the same familiar system, or the ability to gain access to information quickly – due to the fact that everything is accessible within the same place. This is all made possible within a business through the use of a shared system – the ERP system.
Does your manufacturing company need ERP?
Enterprise Resource Planning software is an absolute must if you want to grow and improve. There are many excuses for getting it, but the reasons go beyond that. Also, there are more specific software solutions made for manufacturing companies like manufacturing resources planning which is an advanced version of material requirements planning.
Let’s look at some reasons why your manufacturing company needs ERP software.
- Full visibility
- Excellent customer service
- Centralize data
- Grow your business
- Better analysis
You no longer have to ask colleagues or go to the store to get the job done. You’ll see everything – from where it’s located, who’s working on it, how long it takes, whether you have inventory and how much it takes to produce it. You can see all of this in ERP and make the necessary changes in terms of time, warehouse or cost. From first order to shipment, you’ll see everything that makes life easier for everyone involved.
Excellent customer service
There is no better way to make your customers happy than to tell them where their order is, when it is done, and what the exact costs are. You can also help you anticipate future inventory or working time issues and make the necessary changes to ensure a smooth flow.
For example, ERP software does not have separate systems for production, accounting, and shipping. All your data, orders and financial data are combined in one system. This means that you no longer have to duplicate data entries, use multiple software packages to obtain information, and pay for multiple systems. This centralization saves not only costs but also time and resources.
Grow your business
ERP software helps your manufacturing company grow faster and more efficiently than you can without it. It allows you to grow up rather than grow out of it. If you can use its features, the sky is the limit.
Centralization of data and full transparency also ensure better analysis. With this information, you can better manage and streamline business processes to shorten order times, improve customer experience, and identify what needs to be addressed more in-house.
Why is ERP beneficial for manufacturing businesses?
As we mentioned earlier, one of the main benefits of ERP systems is the ability to automate business systems and processes, so the business potential for manufacturing firms is huge in this sense. With ERP systems, firms can set up their systems in a way that enables them to swiftly schedule production planning and materials ordering ahead of time, and in direct relation to customer demand.
Often these systems are very easy-to-use, and these tasks can be achieved within a couple of clicks. Manufacturers can also take advantage of super quick calculations for product costs and lead times, thereby enabling them to save further time.
Remember the benefit we spoke about earlier in relation to a shared system? Well, with a manufacturing ERP system, firms can also seamlessly track their sales process from start to finish (or more specifically, from the initial quotation stage, through to invoicing, and finally, to the delivery stage).
Perhaps the key takeaway from here is that ERP systems can provide companies with greater control over their business processes, information, finances, and general operations. More control = more efficiency, more efficiency = saving precious time and resources, saving precious time and resources = saving your business money. It’s just like the old saying goes: ‘Time is money’, and in today’s continually faster-moving world, this statement couldn’t be more relevant.