Manufacturing ERP software helps companies address complex manufacturing problems whilst driving productivity and operational efficiency.
Enterprise Resource Planning (ERP)
Enterprise Resource Planning (ERP) is a business management tool that works a centralized hub bringing together key business operations. It integrates various business facets like finance, production and planning, manufacturing, sales, and marketing on a single platform. ERP software consists of multiple modules namely, accounting, distribution, finance, inventory control, marketing, material purchasing, product planning, and sales.
ERP is the most preferred software in the manufacturing industry, which demands promptness and precision. A recent study showed that ERP software replaces 15% accounting-based software and 20% non-ERP systems. As per the global ERP trend, the ERP software market is expected to reap $47 billion in revenue from 2017 to 2022 at a CAGR of 7%.
Another research commissioned by Sage in Europe and North America shows that mid-market companies with enhanced data accessibility, mobility, quality, usability and intelligence can expect a net gain of 35% more in incremental revenue year-over-year.
Benefits of Manufacturing ERP Software:
The manufacturing industry in India is growing exponentially since the launch of ‘Make in India’ initiative. India is expected to become the 5th largest manufacturing country globally by 2020. Premium smartphone makers, polymer manufacturers and commercial vehicle manufacturers from all around the world have been investing heavily in India for production and distribution.
In addition to that, the government initiatives like National Policy on Electronics (NPE), Foreign Direct Investment (FDI), Phased Manufacturing Program (PMP), etc. has envisaged a wealth creation plan of approximately US$ 500 billion by the end of the year 2025. Considering these facts and figures, the need to have robust manufacturing software like ERP is inevitable. To solidify the above statement, listed below are benefits of manufacturing ERP software, you cannot ignore:
- Order-wise planning and scheduling
- Production planning
- Reduced inventory shortages
- Prompt delivery information
- Enhanced manufacturing speed
- Minimal human intervention
- Control on processes
- Gain intuitive business insights
- Faster response time to market
- Maximum profitability
- Scalability and customizability
Manufacturing ERP Software Features:
ERP software serves as a platform to help it stay agile and grow faster. Listed below are some core features of manufacturing ERP software:
- Financial Management: It is nearly impossible for managers to spare time for individual transaction views. ERP software is power-packed with this core functionality, which allows general ledger, cash and bank management, accounts payable and receivable, cost and analytical accounting, expenditures, and fixed asset management.
- Production/Process Management: Manufacturing companies usually have multiple production processes. This feature simplifies operations through product configurator, order and variants, BoM, formulas and recipes, and production cost accounting.
- Purchasing: With manufacturing ERP software, it becomes easier to handle supplier and product category management, pricing discounts and purchases planning.
- Inventory Management: Gain full control over stock movements, import tracking, inventory and physical counting, inter-site transfers, and order releases. Also, manage multiple locations and units of measure along with access to product data.
- Reporting and Business Analytics: User-defined dashboards allow team-members to customize and control the data they view and work with. Other functionalities like audit trail from cumulative to detail, configurable inquiries and a library of several reports enhance the decision-making process.
- Sales Management: Traditional sales process that involved mapping huge figures into spreadsheets and calling for a daily meeting to discuss the progress is no more viable. Manufacturing ERP software makes it easier for sales teams to manage quotes and commissions, track open and closed orders, initiate customer refunds, and pull-out inventory details whenever required.
- Customer Service: Contact management, call-centre support, warranty/ service orders management and solutions knowledge base expands company’s potential of providing customer satisfaction.
Unfortunately, there are companies that still use freeware and legacy tools to manage their operations. The perks of manufacturing ERP software will help you focus better on driving sales, increasing your network and utilizing the resource to their optimum level. With modern-day trends and market movements, no manufacturing business can afford using spreadsheets and manual processes to scale their business.