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7 Ways ERP Software Solves Biggest Manufacturing Problems

Table of Contents
Manufacturing Problems
Reading Time: 5 minutes

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.

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.

Also Read: What are the Primary Business Benefits of an ERP System?

How does ERP Software help in solving Manufacturing problems?

ERP software is a boon to combat all manufacturing challenges. ERP systems are designed to solve the problems of an entire organisation. It is a huge technological advancement in the business field.

Inventory management– ERP system can automatically check the inventory levels and notifies if the stocks are high or low.

Supply chain management– ERP system helps access data in real-time with any device. End-to-end transparency in the entire supply chain process. Reduced wastage and lower unnecessary expenses.

Operational efficiency – ERP software in-depth examines data and optimises it. Due to this, bottlenecks can be reduced, operational costs can be reduced, and productivity will increase.

Financial management– Accurate records of all the accounting details are recorded. Forecasts and reports help in making strategic decisions beneficial for the company.

Quality control – It is an integral part of the manufacturing process. ERP software help in making high-quality goods when the formula or the method is already set in the database.

Customer satisfaction– Customers are significant to your business. Improve customer engagement by providing them access to the supply chain process. Like, as providing them access to view shipment detail, the location of the product or manufacturing progress.

Expert labourers – It is important to give ample training to the labourers to interact with the ERP system. Only then will the software be productive. Efficiently skilled labourers will help in gearing up the growth of the business.

To conclude, ERP software is the greatest invention helping businesses to grow and stay ahead of the game. Modern ERP systems are game changers. Cloud ERP system is loaded with many industry-specific features. Plus, when opting for an ERP system, customization is available. Covid 19 pandemic made us realise the importance of efficiently implementing an ERP system to work from the comforts of home.

ERP systems are extensive. New technologies can be plugged in to make maximum use of the software. Modern ERP systems also embrace third-party plugins. This is a massive benefit because new technology is launched in the market. All the relevant technology for the business must be implemented to improve business efficiency.

The business owner has to gather insights and research multiple ERP systems available in the market. Each business is different, and the good thing is that the ERP systems are now customisable based on industry requirements. Cloud ERP system is a cost-effective solution for many businesses on a budget. Plus, cloud ERP systems are always up-to-date and use advanced technology.

Also read : 12 Steps To Choosing The Right ERP Software

Sage X3

Sage X3 is an efficient solution to manage day-to-day business seamlessly. It performs all the core business operations like financial management, distribution, From front to back office work, supply chain management and project management. It streamlines all business functions and removes all blockage. It has an interactive and fully functional interface. It is entirely user-friendly and mobile-friendly software. Multiple businesses have benefitted by deploying Sage X3 for their business. They have experienced a complete improvement in their organisation. Implement Sage X3 and improve the operational efficiency of your organisation.

Sage X3

Sage Software Solutions is a leading IT company with an array of advanced ERP Software solutions. Our proprietary products — Sage X3 and Sage 300 will help you cut your operational expenses, improve business productivity, increase operational efficiency, forge robust customer relationships, and strengthen association with vendors, suppliers, and distributors. So, if you are looking to reinforce your business fundamentals and emerge as an industry leader, then please schedule a call with one of our sales representatives.

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