6 Reasons Your Manufacturing Company Needs A New ERP
Small businesses and startups may not need an ERP system to run their operations immediately, but a manufacturing company can benefit from ERP in many ways. With the evolving demands of clients, Enterprise Resource Planning software can help your company maintain a proper workflow so you can meet customers’ demands. Here are six reasons you should consider using a new ERP.
- Centralize data
One of the major benefits of ERP to a manufacturing company is that you can manage the many different business processes of your company from one interface. Most manufacturers have separate systems for manufacturing, accounting, shipping, financials, human resources, and more.
When businesses manage their various functions separately, they are likely to encounter challenges such as data errors, duplication of functions or records, lack of communication, etc. An ERP solution integrates all your work processes into one overall system to ensure efficiency.
- Real-time project tracking
Many manufacturers struggle with the consequences of inaccurate inventory tracking such as higher expenses, insufficient storage space due to excess inventory, and low productivity due to insufficient inventory, among several others. An ERP system makes it possible for managers to see everything, monitor the progress of projects, and plan accordingly in the case of any discrepancy. Because the system provides reliable analytical reports from real-time data, errors and delays can be identified much faster.
- More money saved
Cost reduction is always a key driver for the adoption of a new ERP solution. When you embrace a new ERP tool, you get real-time data related to the company’s daily operations, thus reducing administrative and operational costs. For instance, uniting the systems of the different functions of your company will help your staff use their time more efficiently since they can now easily retrieve information from the central database, which may increase output. It also helps in making critical decisions about the most effective way to utilize workforce, inventory, and equipment towards minimizing surplus during projects, thereby leading to significant savings.
- Improved productivity
Without a great ERP system, tasks will likely become hard to accomplish in a good time. Tasks like generating reports, monitoring inventory levels, and timesheet tracking can seem to take almost forever for your staff to accomplish; investing in the right ERP solution can help eliminate the redundant tasks, simplify workflows and accelerate response time, all of which will ultimately lead to improved productivity.
- Superior customer service
By having all your business information in one central database, you and your team will be able to see your clients more holistically and also understand their needs. With this understanding, you can formulate a sales strategy for improved lead generation. Furthermore, the real-time tracking that an ERP solution brings will also make it easier to tell your clients where their order is in the process when it will be done and what the cost will be.
- Better features
Another reason to opt for a new ERP is that they come with the latest technologies that cater to the needs of your business. Examples of such technologies are machine learning, artificial intelligence, data analytics, and the Internet of Things (IoT). Old ERP solutions lack these features, and upgrading them isn’t an easy task either. Simply put, ERP systems are designed to offer flexibility, adaptability, and scalability for growth.
Conclusion
If you are struggling to simplify the processes of your manufacturing company or to boost productivity or to minimize costs and maximize profits, a new ERP system can help you do just that.
