7 Ways ERP Software Solves Biggest Manufacturing Problems
Sage Software Solutions Pvt Ltd
A powerful suite of Business Management Software including ERP CRM and Payroll Solutions.
Over recent years we have experienced a lot of innovations in the business field. These innovations opened up new ways for the manufacturing industry to be more productive, sustainable, energy-efficient and environmentally friendly. Technology has made organisations operate more flexibly. 75% of small businesses use ERP software to manage businesses.
Manufacturing industries have progressed significantly due to profound changes in supply chain operations and more innovative methods. Earlier it was a challenge for business owners to manage the manufacturing industry. The advent of novel technologies has altered the ways industries are operated. Manufacturing processes are simplified because of the application of advanced technologies.
Some examples of manufacturing industries are pharma, distillery, chemical, and many more.
?Overview of ERP Software?
Enterprise resource planning ERP software is an intelligent solution to manage your business efficiently without any bottlenecks. ERP system is necessary for the manufacturing sector to balance the departments. It unifies all the departments under a centralized system. This harmony enables all the users to access data without any hassle. ERP software has multiple benefits to render to the manufacturing industry. From planning to source raw materials till the customer receives the product at his doorstep, ERP software functions in depth to ease all the manufacturing industry problems.
Data is significant for the manufacturing industries. ERP software enables easy sharing of data across departments. Every day enormous amounts of data are generated in the manufacturing industry. An ERP system organises the data and stores it in silos. Any authorised user can access the data whenever necessary. Plus, especially in the cloud ERP system, it provides robust security to store data safely.
ERP systems can be commonly divided into three types – On-premise ERP systems, cloud ERP systems and hybrid ERP systems.
On-premise ERP systems– In this type, the ERP software is in-house servers in the office location. The hardware is maintained by the IT experts working in the office.
Cloud ERP system –?An ERP vendor provides accessibility based on the subscribed payment. Even remote workers can access cloud ERP software by using any device with an internet connection.
Hybrid ERP system?– In this type, an on-premise and a cloud ERP system are used. Its also known as a two-tier ERP system.
?Challenges of the Manufacturing Industry
The manufacturing industry faces a lot of challenges every day. Modern technologies are the best to tackle these challenges and bring a balance between humans and machines to achieve maximum productivity.
Let’s look at some of the challenges faced in manufacturing industries.
Inability to acquire accurate demand forecasting
Demand forecasting is a significant aspect of any enterprise. An organisation needs to analyse the market and consumer demands. There is new technology to provide forecasts on consumer and market demand. Companies must focus on getting the right tools to assist them in forecasting future demand. If not, the company will have reduced sales and the customers will be reduced, significantly impacting the business growth.
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Managing Inventory
Inventory management is the greatest challenge of the business. Small manufacturing businesses conduct inventory operations manually, which is time-consuming. Manually, it is a tedious task to check if there is overflowing stock or less stock. Automation is the key to combat all these challenges.
Wastage of resources
This issue arises due to poor planning and inaccurate formula management. Resources should be used cautiously. Implementing ERP software will help in the careful usage of resources, reducing wastage and unwanted expenses. It will eventually help accelerate business growth.
Follow up with sales leads
Each sales lead strategy has to be specifically addressed. Most of the time, industries need to follow up with their prospects. Instead, use a different approach to follow with your prospective customers.
Failing to comply with updated regulations
Many industries need help to keep up with the updated regulations by the government and the regulatory boards. An ERP system will automatically notify the executive whenever compliance has to be updated.
Change Management
The manufacturing industry finds it very tedious to adapt to changes in the enterprise. New technologies are launched for the efficient management of the business. So industries must be ready to adapt to these changes to operate the business efficiently. Proper planning and implementation of the right strategies can help adopt enterprise changes.
Lack of Skilled Labour
Efficient workers are essential to adapt to any industrial changes. With skilled labourers, managing and balancing the entire business will be easier. Highly talented labourers will quickly identify the problems and takes measures to fix them.
Maintenance of Industrial Equipment
If any industrial equipment stops functioning, it will block the manufacturing process. So it is vital to service and do maintenance work to the equipment every time whenever it has to be done. It will continue the workflow without affecting the production process.