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ERP for Metal Fabrication Industry

ERP for Metal Fabrication Industry
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During construction / manufacturing, there are many processes involved which are value add-on and are essential to the whole project. One of the major supplementary area is metal fabrication – which is the process of building or shaping metal structures by cutting, bending and assembling. Metal Fabrication, even though it is a supplementary process, like other construction companies, metal fabrication industry too involves a lot of complex processes right from sourcing of inventory, quality checks on the raw material, safety standards, production, testing and distribution.

ERP for Metal Fabrication Industry

Different fabrication shops have different processes like casting, chipping, extrusion, forging, welding, etc., but what do they lack is automated business management system in place. As business grows its handling cost also increases. Hence, it becomes important that the management manages the business effectively to get more benefits from it. Until recently, companies were using excel sheets, tally, etc. to manage their business but what they need is a more robust and smart applications like Sage 300, ERP for Metal Fabrication Industry which manages all your critical systems along with your ancillary processes seamlessly from one platform itself. Sage 300 ERP Solution is a highly scalable and robust solution that has an ability to manage all critical business functions in any kind of business.

In sage 300 ERP for metal fabrication industry, we have many modules like Purchase Orders, Inventory Control, Order Entry, Account receivable and Account Payable where you can store all information of your vendors, customers, their purchases and sales. In I/C Module you can keep all the information of your product, raw materials, their on hand quantity, quantity commits along with the specification for cutting, blending and quality checks if needed. There is a transaction screen called as BOM – Bill of Material which is very helpful in Metal Fabrication Industry for keeping a track of all the finished goods and its component items (raw materials), with which you can easily maintain the raw materials and its final product and keep track of the payments and auto invoicing, if need be.

Along with bringing all processes on a single platform, ERP for Metal Fabrication also helps in generating reports which will be helpful to the management in forecasting about sales and also improving productivity.


Challenges for the Metal Fabrication Industry

1. Numerous levels of the forging process and the associated costs.

2. Tracking and tracing the exact location and cost of raw materials and finished goods.

3. Managing multiple subcontracting functions.

4. Cutting down the manufacturing cost.

5. Controlling job work and its associated costs.

6. Handling activity-based costs.

7. Controlling the raw material price as it depends on exchange rates and foreign currency.

8. Estimating sales orders for a particular period.

9. Controlling the supply and demand of materials.


How Will Sage X3 Help You Solve The Challenges Mentioned Above?

1. Manage Multiple levels of Bill Of Materials (BOM)

The Bills of Materials (BOM) section is edited/modified during transactions and ensures that no third party can change it later. You can define multiple BOMs for a single item. Therefore, you can specify:

  • Costs related to by-products.
  • Burden, labor, and associated costs.
  • Estimated costs of each product.
  • Checks which material goes into finished goods.

2. Work Order Dashboard

The production manager has to answer the following three questions frequently:

  • What is the Production delivery status?
  • What is the work order status and the ways to accelerate the delivery?
  • What is the time taken by the work order to finish the work?

3. Material Requirements Planning (MRP)

  • Check available stocks.
  • Forecast the demand, sales, and requirements of raw materials.
  • Generate planned orders for purchase and production indents.

4. Calculate Hours on the Job

The most significant factor that distinguishes a profitable from a non-profitable job is the time spent finishing that job. Metal fabrication ERP software for calculates the time taken by your employees to complete a job. Sage X3 ERP’s shop floor data collection system calculates the time spent and the entire cost of the project. Moreover, it also calculates specific hourly rates for each employee.

5. Inventory Control and Management

Sage X3 metal fabrication ERP software provides a real-time picture of the inventory in your business. You will be able to see what materials are available in the stock, the right location in the warehouse, and what materials have already been used. Thousands of metal fabrication companies depend on the resource planning feature of this ERP system to help them account for scrap and offcuts. It also helps save money on inventory by reducing waste and maximizing the use of materials already available in the inventory.

6. Batch Traceability

One of the key features of the Sage X3 Manufacturing ERP system is batch traceability. It plays a significant role for metal fabricators working in regulated industries, including Oil & Gas, Aerospace, and Defense. You can track materials from the supplier till they reach the final customer with the help of this software.


Benefits Of Sage X3 ERP Software For The Metal Fabrication Industry

With the ascending challenges in the sector and growing demands, the only option we have is to convert these challenges into opportunities and see optimum outputs in the chemical business.

1. Eliminates redundant processes that enhance your speed to market.

2. Meet customer demands by managing the manufacturing and distribution process, such as noting down design-to-order requests that may evolve during the production process.

3. Share accurate quotes with your customers.

4. Enhance equipment efficiency by grouping jobs based on nesting or tooling requirements instead of the order in which they were received.

5. Optimize inventory in real-time to make sure you don’t have excess stock.

6. ERP for metal fabricators provides the business agility you need by providing visibility of operational data to each business department.

7. Reduce supply chain disruption in your business by understanding how lead times and material availability impact your production schedule.

8. Ensure complete traceability across production, supply chain, and distribution and provide advanced regulatory compliance and quality control to customers.

9. Automate resource planning and shop floor activities in your business, allowing employees to focus on meaningful tasks and take up high-risk responsibilities.


Features Of Metal Fabrication Manufacturing ERP Software

1. Flexible Quoting : Calculate project cost based on labor requirements, material needs, and other overheads using ERP. If you need to update those costs from job-to-job, you may do that according to evolving workforce demands and material costs.

2. Workload Scheduling : Sage X3 metal fabrication ERP can help you to plan production based on equipment capacity and raw material availability. Thus it can adapt according to your schedule if any parameter changes.

3. Material Resource Planning : Reduce costs and minimize waste by calculating exact material requirements and end-consumer applications using ERP. You can integrate this information with machine workload capacity planning and workforce availability to run manufacturing operations seamlessly.

4. CAD Integration : You can produce BOMs, accurate quotes, and more based on CAD drawings created by your customer or you with your Sage X3 ERP solution. CAD integration is an essential part of Sage X3 ERP as it reflects any changes made during production in your material requirements and instructions.

5. Bill Of Material : Sage X3 ERP’s built-in BOM software enables you to specify assemblies, subassemblies, and materials for metal products to external and internal stakeholders.

To know more about how can Sage Software Solutions help your company to grow,  write to us at for a free consultation.

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