The manufacturing industry is complex, highly progressive, and competitive in nature. These factors make it essential for manufacturers to have integrated technology solutions that increase operational efficiency, reduce costs and, most importantly, empower the organization to make informed and strategic decisions. For many manufacturers, an Enterprise Resource Planning (ERP) solution is their key to achieving those requirements.
An ERP system integrates all aspects of your business, including, operations, resources, reporting, sales, accounting & finance, etc. This enables businesses to have seamless operations through a single database. Today, most manufacturers understand the benefits of an ERP for the manufacturing industry.
Below we’ve outlined the top 5 benefits and why manufacturing ERP systems are so critical.
1. Manufacturing ERP Systems Aid in Strategic Decision Making
Exhaustive manufacturing ERP systems enhance the decision-making ability of a company through insights and visibility into every department and business process. This helps the company’s leaders make faster and more informed business decisions. Transparency to KPIs such as sales metrics, helps the organization analyze if they are on-track with their goals or if an internal discussion needs to take place. Solutions like Microsoft Dynamics 365 for Finance & Operations and Power BI, which integrate seamlessly together, can create visually appealing graphs, charts and dashboards so users can go from data to proactive insights within minutes.
2. Automates & Streamlines Business Processes
With an end-to-end ERP solution, business processes will be streamlined, driving automation for manufacturers. By streamlining the processes, the data from all departments is available in a centralized location with complete visibility into all the functionalities. Any personnel can monitor the data in real time, without the independence of an individual or team. By automating processes, organizations also reduce dependence on manual entries or processes. This not only accelerates production, but also minimizes error and improves profitability.
3. Reduce CostsA complete ERP for the manufacturing industry helps to reduce the overall operational cost for manufacturing companies by replacing manual processes with streamlined processes and real-time information. The ability to track inventory accurately and incorporate it with production planning eliminates excess warehousing costs. Operational costs across the different business landscapes will be reduced through financial process automation, and budget planning & control. Overall, where there is improved organizational visibility and automation, the management team can see where savings are possible.
4. Better Respond to Market Conditions
With modern ERP systems, real-time data analytics helps manufacturers better estimate, plan, adjust and respond to the ever-changing market requirements. Detailed insights give management teams a 360-degree view, helping them to reduce forecasting errors and capitalize on new opportunities when they become available.
5. Improve Customer Satisfaction
Accurate control over inventory, streamlined processes, coordination between different departments and production stages, and enhanced production planning enables manufacturers to deliver with high quality on time. Delivering products on time is vital to maintain customer satisfaction. With Dynamics 365 for F&O, you can improve product quality by identifying and resolving issues before they occur through real-time insights and predictive intelligence.
Is your Manufacturing ERP System giving you what you need?
While there are many benefits of an ERP for the manufacturing industry, simply deploying any ERP software will not help you achieve your organizational goals. In fact, in some situations deploying the wrong solution might send you the opposite way. Partnering with an experienced ERP solution provider is a necessary step to take full advantage of these benefits and transform the way you do manufacturing.
Contact us if you’d like to talk more about your manufacturing needs and how a modern ERP solution will help you meet your goals.
Author: Doug Bulla, VP of Business Development
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