In this day and age, all businesses, including those in the manufacturing industry, have made it a point to keep up with technological advances to implement new initiatives to improve company workflow and streamline operations, such as an ERP system.
Enterprise Resource Planning (ERP) systems have gained a lot of traction in recent years in the manufacturing industry as ERPs help businesses integrate and streamline the processes of interdependent departments. Still not convinced that you should implement ERPs for your businesses? Read on to find out why it is vital for businesses in the manufacturing industry to implement ERPs.
1. Integrates Your Supply Chain
One of the most important processes to build a successful manufacturing business is to keep an organised and efficient supply chain, which can be easily achieved with the use of ERP software. One of the perks of using a reliable ERP like the Microsoft Dynamics 365 Business Central is that you will never have to worry about the inflow and outflow of materials from your facility.
An ERP like the Microsoft Dynamics 365 Business Central is more than equipped to handle a global supply chain as it is packed with functions in multiple languages and currencies.
2. Improves Production Scheduling
Other than streamlining your supply chain, ERPs help to improve the scheduling and fulfilment of production within the company and increases the manufacturing speed and accuracy. By enabling companies to share the manufacturing processes and events, operators can have a real-time view of the manufacturing runs and better management of resources.
If your company uses serial genealogy functionality (i.e. the tracking of any item with a serial number or barcode), you can also trace the location and constituent components of completed goods to build complex products at scale. Likewise, you can track lot genealogy back to raw materials.
3. Improves Customer Experience
Planners can generate sales forecasts and understand the factors responsible for enhanced sales, based on past transactions. Better inventory level optimisation reduces out-of-stock or excess inventory situations, allowing manufacturing companies to meet their customers’ demand.
As operations and processes become automated in your company, your staff is freed up to focus more on customer service and giving customers a pleasant experience. Besides, ERPs can also help gather customer information and enquiries through portals, which helps your staff serve their customers better by anticipating their problems. With customer satisfaction comes customer retention and eventually, a higher rate of returning customers.
4. Improve Financial Operation Processes
Financial operation processes can be made more efficient by using multiple modules within the ERP software to manage the order-to-cash process for suppliers and procure-to-pay for consumers. This way, your staff will be able to have a clear overview of the company’s finances at a glance. Suppliers will be paid promptly and consumers will also be able to enjoy services before making full payment.
5. Manage Staff and Other Processes
While automation of processes and workflow are important, it is not as important as employee satisfaction and retention of quality staff. Make use of ERP software to ensure fair allocation of work through scheduling functions, tracking of annual leaves and punctuality when it comes to payment of salary.
Bring Your Business to Greater Heights with ERPs
Have we convinced you that ERPs are essential for businesses in the manufacturing industry? If so, get yourself started by visiting our website to find out more about Microsoft Dynamics 365 Business Central, or contact us today to discuss further.