3 Ways to Increase Business Profitability with ERP Software
An ERP is known as the integrated customized software with common database across organization which provides a single repository for any data requirement and improves communication process between different departments as they all are integrated on a same platform. But ERP can contribute in many ways to enhance the productivity & profitability if used in efficient way. Following are the areas if understood well and ERP software for manufacturing industry in India applies its application usage correctly will benefit any business segment i.e. small, medium or big.
- Enhance Just in Time Delivery or DIFOT (Delivery in full and on time): These metrics are very critical for any manufacturing industry as it impacts the internal as well as external channels. If raw material is not made available on time with required quantity, it will impact the production cycle. With the help of ERP, you can ensure neither to under produce nor over produce. Correct information availability in the system helps to know the right quantity of items to pick from the warehouse and then pack for further delivery. This further helps in avoiding the rework costs and scrap output.
Providing right time delivery enhances the customer satisfaction and creates a long-term relationship with them, which increases your credibility in market.
- Increased employee’s productivity and customer satisfaction: It is said that correct information produce status & reports which are more reliable and factual. An ERP provides an access to such information system which is not only work in a real-time environment but also carries the information which is much more reliable than any other data source. It helps in eliminating the data errors and reconciliation differences as reports produced by system are automated, no manual intervention involved.
Availability of the correct status of the inventory and customer purchase order helps the employees to cater customer request in much effective way. For example, if any customer wants to buy a product which is not available at that point of time, then an employee can help them to know by when it will http://www.noetic-labs.com/Erp-software-for-manufacturing-industry.htmlbe available by seeing the inventory status. This enables the employees to be more productive & efficient and increase customer satisfaction as well.
- Identification of problems & errors and waste elimination i.e. achieve quality levels: An ERP system not only captures the data but also help to derive the other parameters such as productivity and quality index, which in turn helps to identify the material issues and process gaps that result in rework & scrap. An ERP helps you to control these issues with the help of corrective measures taken on the basis of available information. It also helps to improve or re-engineer the internal processes.
ERP consistently and quickly communicates the information across the different functions of the organization. It helps to forecast the future orders i.e. what quantity need to be produced, further it helps the warehouse to maintain the right quantity of raw material available and dispatch the correct items to the customer's location. Also, helps to generate the correct bills or invoices.
Thus, ERP helps to identify the areas where the problem can occur with the real-time information in hand, which remove these errors on time with process improvements and ensure nothing should be wasted, hence results in cost saving and increased productivity.
Custom software development services in India offers the various cost effective solutions for ERP implementation. ERP is a revolution in the manufacturing industry and it is benefitting every area & aspect of their business operations and hence increasing the profitability.