Useful Manufacturing ERP Modules Your ERP Software Should Have

Overview

Running a manufacturing business entails rigorous multi-tasking. It requires consistent execution of activities like managing production, controlling inventory, maintaining quality, staying compliant, handling sales, filing taxes, overseeing supply chain, and last but not least, keeping the customers satisfied. At the center of all this action, ERP needs to be the digital twin of reality. All organizational activities have to be entered into the system and the resulting data should reflect a real-time overview of the company’s operations.

The real-time nature of manufacturing ERP?stems from its unified database. All the information entered by every business department is stored in the same set of records, while also affecting appropriate changes in the corresponding data fields. The continuous nature of these data updates proves to be critical for effective decision-making. But how are these independent departments unified into one business unit on an ERP system? Well, the answer lies in modules.

The modular design of ERP

Manufacturing ERP?is a collection of separate but inter-dependent modules. Without it, manufacturers would have to install disparate systems for each of their key business functions. However, an ERP software for manufacturing industry?integrates all the key business activities like production planning, procurement, inventory, manufacturing, quality & compliance, finance, sales & marketing, etc. into one system. The modular design lets each function maintain its individuality of processes while also sharing critical business data to ensure collaboration.??

ERP vendors allow their clients to purchase only the modules relevant to their business model, processes and key challenges. This saves both cost and time for the client at the moment of ERP implementation. Going forward in time, the accumulation of additional features in the future is possible without disturbing the existing foundation. There is no need to implement a new ERP system for new requirements, as long as the business selects an established ERP supplier with a large range of modules.

Essential ERP modules

Every manufacturing industry has its unique workflows and processes. The?manufacturing ERP?software needs to streamline and optimize every manufacturing activity to achieve productivity, efficiency and profitability. Therefore,?ERP modules for manufacturing industry are designed on the basis of industry test cases to ensure maximum acceptability and adaptability for the stakeholders/end-users. Listed below are the most important modules in an ERP software:

• Production Planning – Production planning must happen before commencing production. Demand plays an important role in production planning and this ERP module can optimize resources by considering various sources of demand and supply. It plans batches as well as the material required in them using the advanced capabilities of modules like MPS (Master Production Schedule) and MRP (Material Requirement Planning). It considers your company calendar, planning period, PAB, ATP, etc. for controlling inventories, improving equipment output, increasing factory throughput, and eventually avoiding delivery delays.

• ?Procurement – This module regulates the procurement process of goods from inventory requests to inventory receipts.?By maintaining a list of authorized vendors, the procurement module can ensure a consistent supply of high-quality raw materials for production. This module can also link individual suppliers to specific products, suggest preferred vendor based on various criteria, (quality, lead time etc.) maintain terms and discounts, alert when the vendor’s certification is nearing expiry, attest the quality of good received, manage returns and do so much more. All this activity helps the manufacturer maintain supplier relations and execute blanket agreements. And when the material comes in, it tracks that specific buy order to instantly update the inventory levels. Doing all this electronically and automatically, it eliminates the manual labor required to perform these processes.

• ?Inventory Management – Inventory carrying cost is a huge liability on a manufacturing company’s balance sheet. The inventory management module?cuts down on this cost by automating data collection, tracking plus grouping inventory, associating features & values and generating reports on excess inventory, shortages, dead stock and inventory turnover. It also tracks various warehouse transactions across multiple locations/plants/warehouses, right where they are happening through the help of handheld/mobile devices and syncs them in the ERP in real-time. ERP systems draw on a variety of data sources to help companies better understand the performance history of various SKUs and make informed ordering decisions, without ending up with excess stock.

• ?Laboratory and Formulation Management –?R&D is an important activity for manufacturers to develop new products. The formulation module fosters innovation by enabling manufacturers to conduct research on multiple formulae at once while cutting down on error-prone manual calculations and allowing access to accurate and useful information. With a single click on the ERP system, decision makers can send the formula directly into production. The module can also separate product cost from packaging bills-of-material (BOMs) to help manufacturers ascertain the manufacturing and packaging costs separately.

• ?Batch Processing – This module is a prominent one as it simplifies the complex job of batch processing. Right from creating batches, issuing tickets, releasing material, dynamically sizing batches, part closing them to release what has been produced to even full closing them, ERP helps in every step. The process manufacturers can relish the ability of ERP to define different types of batches to accommodate different types of operations like mixing, filling and assembling. Beyond supporting the complete production process, it allows yield analysis, labor calculation, batch QC, identifies critical materials, tracks WIPs and does practically everything to streamline the production.

• ?Quality Management – Quality is achieved not just by meeting but exceeding customer expectations. The quality management module in ERP is used to set up, manage, and track the manufacturer’s quality control plan. By standardizing the manufacturing process within the organization, the quality control module ensures consistent product quality.?It sets up quality checks at every step of the production route, allows defining tests, their permissible values in form of numeric, alphanumeric and pass/fail format, drawing samples, performing double testing, etc. to help manufacturers monitor the output of each process. It improves customer service, accelerates workflows, enhances brand perception and helps manufacturers adhere to compliance regulations.

• ?Compliance management –?The primary task of the compliance management module is to meet ever-increasing compliance requirements from regulatory bodies and government departments. By raising alerts for potential compliance issues and generating reports, ERP can curtail any possible losses. With end-to-end traceability, ERP can ensure microscopic control over the manufacturing process to track material flow keep you ready for recalls at all times. ERP also provides secure audit trails to reduce errors, fraudulent activities, and unauthorized system access. ERPs are designed to meet the industry-specific compliances like GHS, FDA, cGMP, OSHA, GFSA, SARA, HAZMAT, NC/CAPA label generation and such ERP.

• Sales & Order Management –?The order management module handles everything from order entry to delivery dates and status tracking to credit limit checking. With the help of this module, ERP signals the operations department to schedule the job work and purchase the components/materials needed to fulfill the order. This module efficiently records customer details, terms, taxes, discounts, contracts details for each order from the customer. This data is used by the ERP system to issue alerts when consumer demand changes or declines. As a result, it gives manufacturers the ability to plan or halt production in order to meet client demands.

• ?Financial Management – With this module, ERP can manage customer payment schedules, track revenues and manage credits across all verticals for better record-keeping. The financial management module can automate tasks related to billing, vendor payments, cash management and account reconciliation, helping the accounting department close the books on time and comply with current revenue recognition standards. It can furnish the data to prepare key documents including P&L statements and board reports needed by the financial planning and analysis department.

• ?Customer Relationship Management (CRM) – All client and prospect data are kept in this module. This includes the customer's?purchase history and?company's past communications with that particular client (such as the time and date of calls and emails). The CRM module enhances customer service by enabling employees to?immediately access all the data they want when engaging with a customer. It contributes to business development by tracking communication with prospects and suggesting which customers should be targeted for certain promotions or cross-sell opportunities.

• Reports & Analytics – Most ERPs have a dedicated dashboard to display mission critical business information in the form of infographics. It enables decision-makers to draw meaningful conclusions for betterment of the business in an effective manner. ERP gathers data from all over the enterprise and presents it in the form that can be used for analysis. It is an innovative tool?to evaluate and account huge volumes of transactional data.?Managers can export data in excel format, without losing the consistency and accuracy. Gaining full insight over all the retained data ensures definite customer satisfaction with considerably reduced costs.

?Over and above these manufacturing ERP modules, industry-specific ERPs offer customized modules for various industries and their micro-verticals. ERP also offers integration for many additional functionalities that the client needs to implement. Therefore, it is important for the manufacturers to select a vendor that has a wide gamut of available modules that suit the needs of their business. BatchMaster ERP?is a modular solution tailor-made for process manufacturing industries. If you are looking for a next-gen ERP solution, click here.