11 Common Problems In the Manufacturing Industry That ERP Solves

Enterprise Resource Planning (ERP) system in the manufacturing sector has transformed many organizations from their core. This intense growth has only been possible due to ERP’s capacity to unlock better opportunities and efficiency in solving manufacturing issues.

Earlier, this solution was limited to back-office operations for larger companies. But now, organizations of all sizes can operate under the shadow of the best ERP for manufacturing industry.

If you are in the manufacturing business and have never used an ERP system, it’s time to give it a try. Below are some common problems that ERP solves without hassle.

Common Problems in the Manufacturing Industry Solved by ERP

If your manufacturing business does not use an ERP system, it can encounter several operational challenges. Here are the problems of manufacturing businesses that ERP software can fix:

1. Integration of Operations and Locations

If your manufacturing company has multiple units and systems across different locations, it can lead to poor information flow, lack of coordination, and data silos. As a result, implementing basic procedures will become difficult.

Solution

By integrating different processes, like planning, HR, finance, supply chain, inventory, procurement, and sales, ERP software solves major manufacturing problems.

In addition, it collects data from various business verticals, departments, and locations so you can have a full visibility of your business. Lastly, the ERP system makes it easy to implement policies, guidelines, and rules to streamline the workflow.

2. Proper Inventory Control

Your manufacturing business needs optimal inventory levels to keep production going. But without having complete visibility to inventory, it cannot be done. Also, if your company has inventory at multiple locations, you can face overstocking and stockout situations, which will directly impact your cost and production.

Solution

An ERP system can help you generate a wider inventory management report so you can maintain optimal inventory levels. In case of overstocking and stockout, you can take immediate action to boost profitability.

3. Data Collection Errors

The growth of your business is directly linked to the speed at which you collect and study data. So, if you have a manual approach, it will only be time-consuming and result in expensive delays.

Solution

ERP systems for manufacturing can easily solve data collection errors by recording information automatically. Whether your business has multiple departments or numerous applications, everything will be presented to you in a single location. You can also get rid of data fragments and silos.

4. Low Employee Productivity

Your inefficient and unproductive employees can have a negative impact on the functioning of your organization. It happens when they focus on back reconciliations, regulations, and follow-up approvals rather than focusing on main tasks.

Solution

With ERP’s easy and quick reporting feature, employees can save a great amount of time. How? Well, employees can cut down the processing time by sending approvals through email. The alerts and notification systems can further improve coordination and productivity among teams.

The time employees save with the help of digitalization and automation can be used to build better relationships with customers for business growth.

5. Optimum Resource Utilization

It is not possible for manufacturing companies to utilize optimum resources for reducing production costs without an integrated system. Also, relying on manual paperwork is of no help as it leads to loss of information and duplicity.

Solution

With an ERP system, you can record necessary information related to the company’s machinery, equipment, plant, and more.

What’s more? The system also sends regular alerts for inspection, servicing, and maintenance work. This way, you can ensure that all your machinery is functioning well and yielding maximum results.

6. Incorrect Reporting

Lack of access to real-time information shows that at a given time, you don’t have updated information on your finance or inventory situation. Outmoded data handling methods are of no use because they cause delayed reports, which can impact your business negatively.

Solution

With its accurate reporting feature, ERP is able to enhance data visibility. This helps business owners get the right amounts of raw materials and eliminate over-production or under-production situations.

7. Poor Planning and Scheduling

Detailed planning of every element of the facility is the prime responsibility of manufacturing business owners. Why? Because planning helps with properly aligning production schedules and deliveries. However, it cannot be done without access to accurate inventory data.

Solution

With the help of a responsive ERP system, you can get updated data. This data can be used to allocate correct resources like employees and raw materials to start production on time.

In addition, the ERP system assists with correctly planning workflows. It can also help you rightly schedule the batches so you can meet market demands and utilize materials.

8. Changing Consumer Demands

Without having information related to consumer demands and market trends, your manufacturing company might not be able to succeed. It can cause abrupt raw material procurement, which can result in overproduction and lengthy inventory turnaround.

Solution

Reliable ERP systems help you record and store information. Likewise, it assists you in studying relevant customer data and provides insights into their behavior so you can create an effective production plan.

With this two-way communication, you can make changes as per your customer’s requirements and offer them enhanced services.

9. Reducing Costs

One effective way to increase your profits in the manufacturing sector is by reducing production costs. But controlling costs is not easy, especially when you don’t have a proper system. Why? Because then you don’t have the exact information of the cost incurred on managing inventory, labor, and raw materials.

Solution

By having the best ERP for large business, you can standardize almost all the processes, like supply chain, management, and procurement. This leads to lowering the cost of operation while allowing you to generate helpful reports.

Not only do reports help you keep a lid on your expenses but they also let you analyze the expense pattern. As a manager, you can keep an eye on expenses to check if they are as per estimates or exceeding them.

10. Supply Chain and Timely Delivery

A slight delay in the supply chain, like an increase in production cost, delayed shipments, or pause in production can affect the entire business. This delay can occur due to multiple factors, which are often not in your control.

Solution

One way you can control the delays is by installing powerful ERP solutions. The system ensures correct product delivery at the right place and at the correct price. You can also control the quality and quantity of product through your ERP system.

In addition, you can set standards and practices for price negotiation, long-term supply contracts, optimal inventory maintenance, and workflow to manage warehouses.

11. Low Production Quality

As a manufacturing company, you need to focus on producing quality products. For this, you can establish some basic quality standards. However, maintaining a great standard of quality is time-consuming and daunting. So, what’s the solution? ERP!

Solution

ERP system comes with inbuilt tools for quality control, mainly when you procure raw materials. It can track and access materials while monitoring product quality. Lastly, it ensures that the finished product’s quality is good and it is delivered on time.

Conclusion

Powerful ERP software can streamline your business processes. It helps implement effective procedures and policies to overcome common manufacturing issues.

To get the best ERP services, you must only choose the best organization, like Protonshub Technologies. Our company can assist you with the low cost manufacturing ERP software. You can explain your requirements to our seasoned experts and they will deliver the best results.

Don’t want anymore. Reach out to us today to find the best solution for your company.