Why it is worth implementing ERP in a manufacturing company – Piotr Podgórni

Find out about the top 10 reasons why you should implement an ERP system in a manufacturing company. Find out how the system can help you, your company and employees.

Running a manufacturing company is not an easy job. You not only have to supervise the proper production process, but also to take care of the level of stocks, meeting deadlines, warehousing, sales, distribution, financial issues and many, many more.

ERP system in a manufacturing company – business management does not have to be complicated

But managing manufacturing enterprise doesn’t have to be so complicated. ERP systems, some of which are tailored to the requirements of manufacturing companies, face these difficulties. Of course, implementing a management system is associated with a financial outlay and introducing changes to the management culture.

So – is it worth implementing an ERP system in a manufacturing company? The answer is simple: of course it is! Launching such a system in a company gives a number of improvements and savings, both financial and non-financial (e.g. saving time, resources).

Discover the top 10 advantages of an ERP system in a manufacturing company

1. Improvement of logistics processes

• Supply chain management and integration
• Product lifecycle management
• Balancing supply and demand
• Entering orders
• Supply inventory
• Shipping and picking
• Human resources and payroll management

2. Optimized manufacturing proces

• Detailed planning of the proces
• Bom
• Routes
• Creation of production cells
• Facilitated maintenance of production structures
• Increase in the efficiency of the manufacture process
• Easily identify delays and overloaded / low-load resources
• Reduction of production bottlenecks
• Automating the manufacture proces
• Managing production data

3. Reducing costs

• Ability to calculate the exact total cost of the product
• Calculation of the actual manufacture costs
• Cost controll
• Reduction of IT costs
• Reduction of operational and administrative costs

4. Optimal use of resources

• Monitoring of resource consumption – energy, time, materials, etc.
• Reduce resource consumption
• Registration of deviations

5. Inventory control

• Improving inventory visibility,
• Increase inventory accuracy
• Reduction of minimum stocks

6. Automated data management

• Centralized data – easy access to the current version (e.g. technology)
• Simple technology update (BOM versions, drawings)
• Better analysis
• automatic data collection
• advanced planning and scheduling
• determining the level of access to data

7. Better customer service

• Delivering products on time
• Automatic calculation of the fastest possible production / delivery date
• Quality management

8. Support in making the best business

• Access to current data
• Facilitate making quick and correct business decisions
• Full visibility of processes in the enterprise
• Translating data into concrete information through analytical dimensions
• Access to forecasts (e.g. demand)

9. Efficient financial management

1. Financial management and cost controlling;
2. Conducting multidimensional analyzes by goods / groups / customers (industries, location, structure) of distribution channels, etc;
3. Support for multiple companies and automated creation of consolidated reports
4. Managing cash flow;
5. Mechanisms supporting the control of receivables and liabilities
6. Automatically generated reminders and interest notes (debt collection);
7. Managing fixed assets

10. Development and growth of the company

1. Easy change of production model
2. Easy online entry of new locations
3. The ability to change the business model without costly new systems

ERP system in a manufacturing company – simple and accessible business

Thanks to the ERP system, managing a business becomes simple and accessible. A properly selected system not only stores information about the company’s operations. It also allows for integration with external software, Business Intelligence (BI), portals and websites, machine park (Internet of things – IoT), etc. All this is available thanks to the API technology used in the system. It is important that the system that you choose for your manufacturing company is designed with this area of the economy in mind. Choose a system that supports BOMs, routes, or production structures.

Author

Piotr Podgórni – Head of Implementation in IT Vision. Solution architect, PM, consultant & trainer. A lot of international projects. Experienced in ERP, DMS, WMS, integration. Knowledge of business areas: accountancy, logistics, warehouse management, manufacturing, controlling, professional services.
Specialization: Microsoft Dynamics NAV/BC, Rambase, Oracle NetSuite.