ERP systems are the mainstay for a large number of small and medium-sized companies. They provide a method for full integration of all the company’s core business processes in an up-to-date and real-time system.
As a manufacturing company grows, processes become more complicated. Financial expenditures increase, payroll gets longer, project management becomes more complex and supply chain management is a monumental task. ERP systems like SAP Business One provide solutions to these problems and more. Here are five ways that ERP systems benefit manufacturing companies:
1. Quality Management System
Quality control is essential to any manufacturing process. ERP systems help to maintain quality control by allowing managers to place inspection systems, checklist modules and quality control measures through a single system.
In a large manufacturing plant, a single streamlined system is essential. It allows every worker and machine on the line to react instantly to new changes and rules — an important dynamic in a fast-paced production facility.
2. Supply Chain Management
Manufacturing companies know that maintaining a balance between suppliers and shipment is a delicate task. Raw materials that are perishable must arrive on time and under the right conditions to prevent inventory loss. Excess supply can lead to storage problems and more.
Businesses must regulate these processes to ensure a streamlined supply chain to deliver the right goods to the right customers. ERP systems benefit companies by preventing supply bottlenecks, automating workflow, increasing customer retention and overall improving supply chain flexibility.
3. Warehouse Management
Storing raw materials and finished products is important, but it’s not just enough to store goods in any way. ERP systems help companies perfect their product storage systems to maximize efficiency and ability to locate products after storage. They help maintain a real-time catalog of merchandise and information about each.
Such a system can help management assess how quickly products should be moved, when and which products will expire, and the most efficient way to store them. Warehouse storage isn’t as straightforward as one might assume. Amazon, perhaps the biggest warehouse company in the world, demonstrates that a randomized storage system works best for their business model.
4. Product Configuration
Manufacturing companies producing products must be comparable to competitors to stay afloat. Product configuration modules help companies keep track of order management, price quoting, price management, ordering, manufacturing and distribution to help them stay relevant in the market. Product configuration is an important part of ERP systems and has a multitude of benefits, such as helping reduce time to market, decreasing inventory levels, increasing productivity and decreasing transaction costs, among many others.
5. Advanced Planning
Customer needs can ebb and flow throughout the year. Staying ahead of the curve and anticipating the customers’ demand and providing them with the product when they need it is what advanced planning is all about. ERP allows a company to create production schedules, plan materials and capacity, take advantage of resources, and link up with suppliers and the warehouse all in one system.
The benefits of a single system for all these management operations is proven. Studies show that companies that implement ERP systems do end up achieving operational improvements. This amounts to operational cost savings, increased efficiency and a thriving company.
MTC Systems helps companies implement SAP Business One and prepare it for rapid growth. For more information on MTC, contact us today.