This is How Manufacturing Plants can Increase Profits with an ERP Solution

May 15, 2018
Ahmed Zakria
Focus Softnet Focus Softnet

Manufacturing units are usually marred with problems such as lack of internal integration, improper inventory management and leakages that tend to become massive wastage holes. The lack of flexibility in operations, absence of planning and misaligned workflows result in customer dissatisfaction, which in turn, leads to loss of business. However, with a manufacturing ERP that takes care of resource and requirement planning, these obstacles can be effectively avoided.

ERP systems have witnessed unprecedented increase in usage across the globe since the last couple of decades. Earlier restricted to a few specific industries, ERP systems are now implemented in nearly every industry with vertical specific solutions. The manufacturing industry was not left behind in the ERP surge as top ERP companies have come up with customized versions of business applications fine-tuned for manufacturing establishments.

Transparency and operational control

ERP systems bring transparency in all stages of manufacturing and provide better control to the owners and managers. With ERP solutions, users would gain more insights and total visibility into every department and process. Apart from enabling them to take informed and timely decisions, it would also empower the users to control the workflows on every level and ensure that their organizations remain aligned to their goals.

Cost reductions and resource utilization

ERP solutions replace manual and time-consuming processes with automated and streamlined processes, reducing operations costs while also providing users with real time information and data as to how much of their resources are being utilized. ERPs have powerful planning capabilities for finite and infinite production. The tools also provide accurate inventory tracking so that businesses can integrate it efficiently with production planning . This helps greatly in storage of inventory items and reduces warehousing costs. Thus, with an adept ERP, business owners and managers can substantially reduce costs, plug wastages and put their resources to optimum utilization.

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Customer satisfaction with on-time deliveries

Timely delivery of products is considered one of the key metrics in manufacturing. Quite often, the major cause behind customer dissatisfaction is delays in delivery. The delays are caused by several factors which –in the absence of an ERP- are beyond the control of the management and are brought to notice when it’s too late to make course correction. However, with an ERP, manufacturing units are able to prepare accurate production plans, have total control over inventory and can streamline process scheduling. This helps them to co-ordinate better with the distribution channels, resulting in on-time delivery of products.

The fact should also be taken into consideration that while ERP can solve all major problems for any manufacturing unit, merely deploying it won’t help. Business owners and managers should partner with an experienced and accredited provider of ERP solutions to choose the right solution and customize it to suit their organizational needs. Only then would the ERP be able to handle and eliminate business challenges for a manufacturing establishment.

(Focus Softnet is a trusted provider of Cloud based ERP solutions with an experience of over 30 years. It has successfully implemented tax-compliant business solutions in 18 countries across the globe. If you are unsure which solution would suit your business needs, you can always opt for a free consultation with our experts. Just click here, fill your details and we would connect with you.)

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