5 Challenges Manufacturers Can Solve with an ERP System
The manufacturing industry is changing day by day with much technological advancement not only in the field but also following excellence by improving and atomizing backend operations which act as a backbone for their internal and external processes. In the manufacturing industry, challenges are not limited to the work at the field but also to the daily office operations like managing inventory, scheduling of tasks, manual data management, and inaccurate reporting as they can't be managed in real-time environment.
An ERP software is the solution which every industry is getting implemented to have an effective and efficient way of working, where everything is managed in a real-time environment and hence improves the overall work functionality. ERP software for manufacturing industry in India helps in achieving business excellence via improvising operational and internal process activities. No system is perfect, same is applicable on ERP as well but it plays an integral role by providing support and solving problems faced in daily operational transactions.
Let’s see the challenges which we can overcome with the use of ERP software:
- Data grows as your company grows: As your business grows, the connected process transactions also increase. Managing such substantial data on papers or on legacy computer drives could be difficult. You may need historical data for creating projections. It would be very difficult to extract and also not possible to manage and present the data in proper format. With ERP, you don’t need to worry about this.
- Difficult to manage and control the inventory system: Without proper projections of sales, it would be difficult for any manufacturing business to manage the inventory i.e. what and when to buy. An ERP helps you to provide the updated status of the inventory i.e. warehouse availability, what is being ordered, and which are in transition state etc. This helps to maintain the proper stock for the production and reconcile for future requirements if any. This also helps to avoid wastage of raw material by maintaining proper stock report.
- Inaccurate scheduling with manual intervention: Managing the data manually, will allow you to spend employees time in many non-productive tasks such as collecting and reconciling the data manually, which is prone to human error. An ERP, by custom software development services, helps you to optimize the time in scheduling activities and hence utilize the resources in much better way.
- Inaccurate reports: With the manual entry of data, which is prone to human error, daily transactions may produce inaccurate reports which will further impact all the activities down the line, hence it can impact the business and production badly such as an incorrect bill, wrong inventory reports, wrong projections and productions. This will lead to reworking, extra cost and is a waste of man, material and resources. An integrated ERP system helps you to cater all these concerns without much stress as this provide a real-time information about all processes with accurate data.
- Integration of data from multiple sites: No industry is limited to one single site or location. Just imagine how you will manage the daily business operation transactions across multiple sites to get the sales figures and revenue report. It's not possible manually. An ERP allows you to cater this requirement as it is a single source of a repository, so addition and extraction of data is possible from one source only. No multiple repositories are required.
An ERP can make a lot of differences not only to your business but also lead to customer satisfaction. It improves the communication process across different functions and with your customers' as well.