The inception of the enterprise resource planning system can be attributed to the fact that manufacturing industries were rife with resource planning, tracking, and management problems. Several manufacturing industries breathed a sigh of relief with ERPs, as their resource tracking, planning, and administration became streamlined. Today ERPs have become necessary for enterprises, with 53% of decision-makers considering them an essential investment.
Looking for ERP Software? Check out SoftwareSuggest’s list of the best ERP software solutions.
Before ERPs became mainstream, firms had a tough time with vast volumes of goods coming in and going out. Keeping track of all materials stored, utilized, packed, and shipped has always been challenging for manufacturers. Moreover, distribution and planning also need to be taken care of to prevent wastage or stock misplacement.
Modern ERPs have come a long way. In addition to dealing with the above problems, today’s ERPs help streamline multiple processes like finance management, procurement, distribution, marketing, and HR management solution. But how do ERPs solve such critical manufacturing problems with such finesse?
Let’s find out!
5 Manufacturing Challenges for ERP Solutions
Traditionally, manufacturers stuck to ledgers, shipment labels, lists, or Excel sheets to note down their inventories. However, sharing, accessing, and frequently updating them was a problem. Thus raw materials or finished stock could easily be misplaced without the authorities knowing the same for days.
With ERPs, organizations could easily access and update their database, making inventory tracking much simpler. With a manufacturing ERP solution, you can gain 360-degree visibility and control over all stocks and their movements. The integrated database provides real-time data and reports, ensuring that each unit is tracked from start to finish.
Proper planning of resources is essential for manufactures. Amid changing demands in the market and varying customer trends, manufacturers have a tough time procuring and maintaining the right stocks.
ERPs help businesses plan by forecasting demand and providing timely alerts. This helps minimize slowdowns and quickly adjust to changing trends through proper planning. Most ERPs, therefore, contain dedicated modules for planning material requirements, production planning, and scheduling, assisting manufacturers in reducing losses and extra expenditures.
3. Resistance to Change
This is perhaps the biggest of all challenges in the manufacturing industry. When your employees fail to acknowledge change and fail to adapt to it, you can run into serious trouble. Of course, the change is inevitable, but you can make sure that the transition happens smoothly, and that the employees stay active, willing, and motivated during the process.
One of the most important roles in this respect is that of the implementation consultant. When an ERP solution for the manufacturing industry is implemented, the ERP implementation consultant has to connect to the employees’ core needs and expectations from the ERP Software.
Manufacturers often have to deal with a high volume of transactions daily. Whether it’s procuring goods from vendors, creating purchase orders, managing unit production, or delivering to distributors, the sheer magnitude of daily transactions can be overwhelming for manufacturers. However, using a specialized ERP for the manufacturing industry, such organizations can drastically improve their handling of payments, invoices, and other transactions. Moreover, large amounts of data can be entered, processed, and tabulated to create detailed transaction reports, ensuring that everything is accounted for.
Analyzing market trends and resource utilization can help to manufacture business-to-business stay ahead of the competition. Through graphs, reports, and dashboards, managers can track every aspect of manufacturing and receive notifications when problems arise. This helps them streamline processes, point out irregularities, and get them sorted before they become bothersome.
Foreseeing roadblocks ahead beforehand allows managers to make the necessary stock or production amendments in time and offers greater control over the manufacturing process.
ERPs for process manufacturing have aided manufacturing processes immensely over the years and have simplified them greatly. By acknowledging and addressing manufacturing industries’ core problems, ERPs have become an essential part of several processes directly or indirectly associated with manufacturing, such as production, purchasing, shipping, logistics, and finances. Therefore, ERPs have become indispensable for manufacturing industries globally and will become more and more important to them as time progresses.