Any business organization is driven by the ulterior motive of increased productivity & revenue generation to sustain in a competitive market. In spite of being equipped with sufficient financial resources, inefficiency in accessing adequate information on time, expose the management to certain risks & challenges. An integrated management information system consolidates entire resources available within a firm like planning, inventory, sales, marketing, and finance to human resource department. The integration of various segments within an organization leverages efficiency leading to increase in productivity & revenue.
Lets discuss some of the most dominant factors for implementation of ERP ie enterprise resource planning in a manufacturing unit of our country.
Streamlining processes: With increase in production the operation in a unit tends to become all the more complex. An integrated data management system provided by ERP enables effortless assimilation of data in production & supply chain unit. Procedures & processes instead of slowing down the performance & productivity, leverages efficiency bringing in a rise in output capacity. Instant identification & necessary changes is incorporated in design, plant & machinery, logistics in case some discrepancy is notified. Optimum efficiency is multiplied.
Cost Mitigations: Increased worker productivity minimizes overtime & labor related issues in terms of payroll. ERP being a source of accurate data information system reduces administrative & operative costs. A real time data based demand planning, raw materials stocking, finished goods inventory can be tracked reducing the cost of holding inventory ensuring a smooth operation.
Competition: An ERP system in place requires a good deal of investment on the part of the firm however the increase in productivity it brings about, far outweighs the cost of not investing in ERP.
Flexibility: Modern ERP systems are robust, flexible & can be configured. They are unique in design & can be customized to take into account the mission & vision of the organization. Some ERP design allows production data to be shared among all important stakeholders, both internal & external namely suppliers & distributor to ensure a crease free operation from start to finish.
Timely delivery: Logistics in all probability is the most important bridge in the entire system of production. It bridges the gap between the producer & the end consumer. Data based demand planning as stated earlier holds the key to accurate inventory which in turn eases out the logistics segment. Scheduling of production is efficiently streamlined helping in on time delivery to end consumer. In a competitive market, failing in logistics will eventually result in losing one’s’ loyal consumer.
Enhancement in product quality: ERP system integrates the entire supply chain. Any irrelevancy in any part of the process is identified effortlessly & corrective measures can be taken. This tops the significance of ERP in manufacturing unit. Instant corrective measures push up the scale of competency in market automatically. Product quality due to leveraged efficiency is enhanced.
Increased visibility: With ERP system in place all segments of the organization is on the same page aligned completely with the process. All executives/managers can access accurate, consistent real time data relevant for their segment as well as that of other segments. Improved visibility leads to better co ordination & execution of a project.
Noetic systems Foundation set up by some of the best minds in IT, provides finest integrated solution to manufacturing, logistics, retail, FMCG industries. Their customized software aligned according to the vision of your organization will help you achieve your goals in terms of productivity, employee & customer satisfaction. For more information please log on to : Noetic Systems