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ERP for Rubber Industry : Unlocking Efficiency and Productivity

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erp for rubber industry
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ERP software is an advanced business management software used by businesses to improve the performance of the business and to have a competitive advantage. In this blog, learn more about its benefits, features and the need for ERP for the rubber industry.

What is ERP for Rubber industry?

Enterprise resource planning software for the rubber industry has a multitude of benefits to offer. It is an industry-specific system that is designed to cater to all requirements of the rubber industry. It takes care of the functions like compounding, and thermoforming to injection molding and extrusion. In addition, it ensures the quality of the product, ensures on-time delivery, order accuracy, BOM, quality and pricing.

ERP is all-in-one software to manage the manufacturing process, suppliers, customers and it has integrated inventory support. Let’s learn more about the rubber industry and its challenges.

Overview of the rubber industry in India

As you know, India is a major player producing all types of rubber products whether it is small or large for exporting and also for domestic use. It is a major producer of natural rubber. And globally, India is about to take second place, for being the largest producer of rubber goods. Rubber is largely produced in southern parts of India such as Kerala, Tamilnadu and Karnataka, but its production is based in North East India. Both natural and synthetic leather is produced for many industries in the country.

Indian Rubber sector is extremely diverse, encompassing varied segments such as runner plantations, rubber processing, rubber product manufacturing, and rubber exports. As far as processing is concerned, the country has a sturdy infrastructure and factory units that have the capability to convert raw rubber into various forms including sheets, latex and crepe rubber. But the rubber manufacturing industry is under constant pressure to plan for cost management, reduce the wastage of materials at the time of production, and quickly respond to rapid changes in product development and other challenges.

The rubber business can benefit majorly from an ERP for rubber manufacturing industry which will help in maintaining costs by streamlining processes and tracking stocks with the best inventory management system.

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Challenges of the Rubber industry

The rubber business is impacted by many challenges such as fluctuating rubber prices, changes in customer demand, climatic conditions, inventory shortage etc. Listed are some of the major challenges faced by rubber product manufacturers.

1. Rising input costs

Inflation is the major reason that is leading to high input costs. It is impacting the maintenance of rubber estates and the production of high-quality rubber. And they are facing severe issues regarding the inability to control costs during the production process, Shortage of skilled laborer’s, and the high price of fertilizers and plant protection chemicals which is forcing them to sell rubber at non-competitive prices.

2. Subservient quality of rubber sheets

Rubber sheets manufactured with manually-operated rubber rollers fail to cut. So no manufacturer wants to use these inferior-quality rubber sheets. They prefer using RSS-3 quality sheets for producing tyres, hoses etc.

3. High manufacturing costs

In the rubber-producing industry, the rubber manufacturing process and costs are pretty high due to the costs incurred in tapping and production of rubber sheets. So the revenue earned by the real estate owners and rubber manufacturers is low.

4. Scarcity of skilled labourers

It is difficult to find trained tappers and rubber machinery operators for affordable rates. Plus, the laborer’s are reluctant to manually enter the smokehouse to load and remove sheets fearing that they will be exposed to harmful fumes.

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Benefits of the Rubber Manufacturing ERP

ERP for rubber manufacturing has unimaginable benefits which ease the operational functions, reduce costs, enhance productivity and increase profit.

1. Streamlined operations

An ERP for rubber industry is capable of integrating various functions such as production management, inventory management, sales and finance. It has features such as real-time data sharing and automates all the tasks which leads to improved efficiency and decreased errors.

2. Quality control

ERP for rubber industry has advanced quality managing functions that help in maintaining the highest quality at each stage to ensure compliance and consumer satisfaction. This supply chain management software unifies all manufacturing technologies and quality functions to document and track materials and stages throughout the product lifecycle.

3. Efficient Production control

ERP has an enhanced PLM software module which helps rubber manufacturing to establish complete control and clear visibility of the project by providing estimation, to plan, schedule, execute costing, and logistic details. It helps in robust engineering workflows and assists in designing products, manage multi-level BOM, and accurately helps with pricing and scheduling.

4. Minimizes errors

Rubber manufacturing ERP helps to track design phase calculation and customer requirement information which helps in avoiding errors and unnecessary expenses.

5. Advanced inventory management

ERP system helps rubber manufacturers to monitor and optimise the stock levels, raw materials availability, and stock movements. This helps in reducing inventory carrying costs and assures timely production.

6. Precise pricing

Automation, visibility and BOM features help in deciding the pricing which will be easy for the creation of proper quotations for customers. This will help to avoid selling rubber goods for non-competitive rates.

7. Sales and customer relationship management

ERP system for rubber manufacturing enables the sales team to access real-time information that helps to manage orders and track sales performance. This results in better customer service, seamless order processing, better management and improved customer satisfaction.

8. Scalability and integration

ERP’s integration with AI and IoT technology is a game-changer for the industry. It collects all the data in real-time and helps it to utilise for the whole business process. This will help in gaining a competitive edge and avoids costly mistakes.

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Key features of ERP for Rubber business

  • Bills and accounting for all types of customers can be managed easily.
  • The sales and purchase modules can minimise the paper and file work.
  • Costs can be lowered and managed throughout the business with the help of diverse modules and transparency of functions.
  • Real-time visibility of inventory to review stock levels.
  • Enhanced production planning and scheduling.


Rubber ERP software for the industry can enhance the performance of your business in multiple ways. It can streamline business operations, strengthen financial management, reduce costs, manage raw materials and boost the efficiency and profitability of the business. Additionally, it helps in staying strong in this competitive market.

Sage ERP Solutions is an efficient business intelligence software for rubber industries that delivers fully integrated features that can be customized to your requirements for efficient and optimized business performance. It helps the business in keeping ahead of the race, establish cost control and monitor all business functions to achieve growth and success.CTA - Take your business to the next level with Sage X3

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