Manufacturing is becoming smarter and more efficient than ever before. Is your organization keeping up?

Enterprise resource planning (ERP) software can help you automate your workflows, improve supply chain visibility, and facilitate company-wide communication. Whether you’ve had an ERP system in place for years, or you’re just now considering one, it’s important to know what manufacturing ERP automation looks like.

While this software delivers a host of benefits within the manufacturing realm, we’re focusing on the specific ways it can make your company more efficient. Read on to learn about the role of ERP in manufacturing industries and how it can supercharge your productivity.

6 Ways ERP Software Improves Manufacturing Efficiency

1. Gain Real-Time Data Visibility​

Quick decision-making is the backbone of efficiency. When executives have access to the information they need when they need it, they can use that data to make informed decisions. 

C-suite leaders aren’t the only ones who can glean insights from reporting and analytics capabilities. Customized ERP dashboards can provide every user in every department with easy access to the data they need. 

This means department leaders can stay abreast of compliance issues, traceability concerns, and more. In addition, customer service reps can pull up a client’s history in a matter of seconds, enabling them to offer a more customized level of service.

Another example is sales and marketing. These departments can leverage real-time data to access account histories across the purchasing funnel. 

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2. Improve Production Scheduling

With effective production scheduling, manufacturers can ensure that all incoming materials are used in a timely manner. 

Companies can use ERP platforms to plan every aspect of their production process, including procurement, pricing, and raw material payment.

In addition, they can check staff schedules, machine usage schedules, and routine maintenance activities to ensure all resources are in place to maximize production. 

3. Optimize Inventory Management

The inventory management functionality within ERP systems allows manufacturers to maintain a well-stocked warehouse without excess or shortages.

Manufacturing ERP software provides real-time visibility into work orders as they come in. Users can access this data to manage inventory requirements and make sure the right resources are in place at the right time to meet those needs.

These accurate insights can minimize outages and reduce overstocks since employees know precisely which materials to source, even if that means relying on multiple suppliers to meet those demands.

benefits of erp in manufacturing industry

4. Enable Global Supply Chain Management

For global manufacturers, it can be a challenge to manage supply chain operations across multiple locations, time zones, and currencies. Handling these nuances manually can be a logistical nightmare and leaves too much room for human error.

Using a manufacturing ERP system, teams can automate these logistical supply chain management processes and free up employees to proactively address other supply chain issues.

5. Standardize Workflows

When everyone follows standardized workflows, collaboration and coordination between departments improves.

This is especially important when it comes to safety checks, compliance monitoring, and quality control. By standardizing these workflows with an ERP solution, manufacturers can ensure a single source of truth. This keeps production standards high and mitigates internal conflicts.

6. Improve Profitability

Manufacturers need the ability to track the performance and profitability of each and every job. These insights can be difficult to glean without a single source of truth.

Most manufacturing ERP systems include business intelligence functionality that tracks progress at a granular level. This enables users to clearly see which jobs and clients are the most profitable, so they can focus their efforts.

Learn More About the Role of ERP in Manufacturing Industries

The vital role of ERP in manufacturing industries cannot be overstated, and the benefits above are only the tip of the iceberg.

Want to learn more about how a successful ERP implementation can help your company streamline operations? Contact our ERP consultants below and let’s discuss.

About the author

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Panorama Consulting Group is an independent, niche consulting firm specializing in business transformation and ERP system implementations for mid- to large-sized private- and public-sector organizations worldwide. One-hundred percent technology agnostic and independent of vendor affiliation, Panorama offers a phased, top-down strategic alignment approach and a bottom-up tactical approach, enabling each client to achieve its unique business transformation objectives by transforming its people, processes, technology, and data.

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