What is ERP Software for Printing Industry?
Best ERP Software for Printing Industry is a highly adaptable solution and a solid operational backbone for the printing and packaging industry, that encompasses all the features tailored to the specific needs of the industry, such as process automation, order management, job estimation, production scheduling, quality assessment, and resource optimization.
ERP software is a handy tool that offers a variety of advantages over legacy systems and spreadsheets. It provides cutting-edge technology that helps your business improve production volume, reduce downtimes, benefit from faster order lookups, and achieve strategic business objectives and visions. The software can be deployed in a variety of ways, such as on-premise, on the vendor’s cloud servers, or in a hybrid manner.
Overview of the Printing Industry in India
The Indian printing industry was estimated to be 250 Billion Indian Rupees in size in 2022. It is expected to reach 279 billion Indian rupees by 2025, with a CAGR of 3%. The industry primarily comprises printing businesses operated by small and mid-sized proprietary owners throughout the country.
The growth of the printing sector is attributed to various factors such as rising literacy rates, urbanization, rapidly progressing trade, advertising, and commerce, increasing popularity of the e-commerce industry, and growth in the circulation of various regional newspapers throughout the country. Many Indian brands have realized the need for visually appealing and attractive printing and packaging to differentiate their products from rivals, build trust, and appeal to the customer to make the purchase decision.
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Challenges Faced by the Printing Industry
- Digital Disruptions
In today’s age of the Internet and technology, information is rapidly distributed electronically. Businesses increasingly favor electronic communication, data transfer, and online advertisements over letters, printed materials, and paper ads. As a result, the printing and packaging industry has seen a significant drop in demand.
- Cash Flow Management Challenges
A high-volume business like printing often faces different cash flow challenges, such as higher amounts of accounts receivable and accounts payable. The amount of money flowing out of the business for different operational costs such as rentals, papers, inks, and printing plates outweighs the revenue coming in from customers.
- Uncollectible Accounts Receivable
Printing businesses often have to extend credit to their customers, who are typically underfunded individuals and small businesses. It needs to take appropriate measures such as regular credit checks, collective collection efforts, and legal actions that are often time-consuming and expensive in nature.
- Higher Capital Spending and Cost of Fixed Assets
Many businesses operating in the printing packaging industry are small and medium-sized enterprises (MSMEs). To effectively face the growing competition, they need to keep their printing equipment up-to-date with the latest technologies. However, these MSMEs are not well capitalized for higher capital spending. They often run out of profits during the seasonal drop in demand and economic slowdowns.
- Debt & Solvency
To keep updated with the latest printing and technological innovations, the printing company has to make a significant investment in new equipment and capital assets. However, such large capital expenditures can increase the chances of underutilization due to lower demands and a large amount of debt. Higher debt can impact its relationship with suppliers.
- Supply Chain Issues
The printing industry is often affected by supply chain issues. Shortages of raw materials, spiraling fuel costs, and the availability of ink can cause delays in supply. Businesses need to perform strategic planning to ensure an ongoing supply of raw materials at a competitive price to reduce the number of shortages, delayed deliveries, and poor customer experiences.
Benefits of ERP Software for Printing Industry
- Ease of Managing Inventory
Print ERP builds a centralized system of information management that provides accurate inventory data for stock management, dynamic order confirmation, and stock-based updates. ERP for the printing and packaging industry provides a separate module Inventory Management System that facilitates instant communication between different business departments and avoids situations of under-stocking and over-stocking.
- Precise Financial Reports
ERP for the printing industry provides a comprehensive picture of the company’s financial health and assists with various functions such as financial planning, budgeting, forecasting, tax management, and decision-making. It provides precise financial reports and an all-around view of financial data with higher transparency and precision. ERP for the printing and packaging industries eliminates human errors, erroneous data, inaccuracies, and inconsistencies.
- Process Automation
The best ERP software in India streamlines various business processes such as invoice generation, inventory tracking, print management, and order management, which help employees eliminate manual work and focus on business-critical tasks. Ultimately, the business benefits from increased productivity, lower costs, reduced errors, enhanced customer service, and increased brand loyalty.
- Actionable Insights into Business Operations
Printing ERP software integrates various aspects of the printing and packaging business and comes with various powerful tools for production planning and production scheduling that provide actionable insights into key business operations. Decision-makers will be in a better position to accurately identify market trends and areas responsible for hampering productivity, inefficiencies, and strained business growth.
- Effective Sales Management
Print ERP is a handy tool that provides an intuitive user interface and plays an active role in the company’s marketing success. It enables businesses to build effective sales strategies, optimize pricing strategies and marketing campaigns, become customer-savvy, align with changing market trends, and grab new business opportunities. With printing business solutions, your business will be in a better position to take advantage of new market opportunities and peak sales periods. It can also frame customized pricing based on customer loyalty, customer segment, and purchase history.
- Collaboration with External Stakeholders
The robust planning and management functionalities in ERP modules facilitate effective collaboration with external stakeholders, such as vendors of raw materials. Printing and packaging ERP builds a comprehensive database of various vendors, including their contact details, payment terms, and shipping information. It minimizes human interventions and automates routine vendor invoice activities using Accounts Payable Automation, which ultimately boosts vendor-business relations.
- Significant Cost Savings
Cost reduction can be a great challenge for any business. Printing businesses are not an exception. The ERP implementation facilitates modern technologies and functionalities that reduce operational and administrative costs without sacrificing business performance. For example, the Procurement Management System provides an automated system that tracks real-time market prices and generates cost-effective purchase orders based on early payment discounts. With printing and packaging ERP, the business can achieve end-to-end financial control in various aspects such as asset management, sales, payroll, and taxation.
- Streamlined Supply Chain
Printing and packaging ERP has built-in seamless and comprehensive supply chain management tools that facilitate order scheduling, real-time reporting, and collaboration. Printing and packaging ERP software also reduces supplier risks and makes the supply chain process simple, scalable, and efficient. With a seamless supply chain process, the organization benefits from lower costs, optimum resource utilization, timely order fulfillment, and higher customer satisfaction.
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Conclusion
The printing business is a high-volume business with higher capital spending and tight profit margins. Printing and packaging ERP helps it deal with various challenges, such as spiraling costs of raw materials, soaring input costs, cash flow challenges, and procurement and delivery issues. It includes a specific set of modules that automate the workflow, provide insights into business operations, and help decision-makers mitigate different challenges.
Sage X3 is a high-end ERP that provides a holistic view of your business operations and empowers it with the flexibility and agility to meet today’s printing business needs. It comes with an integrated order management and multi-channel management system that brings efficiency into your everyday operations with accuracy and assists it with data-driven production planning, material ordering, costing, and revenue tracking. Your business benefits from process optimization, reduced manual work, real-time analytical reports, and powerful dashboards and positions itself for long-term and sustainable growth.
