Best ERP for Furniture Manufacturing Industry in India
Automate work orders, anticipate demand, create production schedules, and improve bottom line with an ERP for furniture manufacturing.
Over the past decade, India has witnessed a remarkable surge in furniture manufacturing. The growing demand for furniture renovations & home decor, rising disposable incomes, and the entry of e-commerce giants, have contributed to robust growth and business opportunities.
The furniture industry in India is highly-competitive and complex as the changes in market trends and consumer behaviour keep reshaping various aspects of manufacturing from design, and colour to material. According to a news report published in Business Today, the Indian furniture industry is expected to grow at a CAGR of 14% and reach $34 Billion by 2028.
What is ERP For Furniture Industry?
Furniture ERP (Enterprise Resource Planning) is a specialized software that provides a comprehensive overview of the furniture production process, stock of inventory, current spendings, production performance, and customer behavior. It provides multiple sets of modules that help furniture manufacturers reduce costs, maximize profit margins and capture new opportunities.
Many popular Indian furniture manufacturers deploy ERP software to manage all aspects of their business, monitor performance, and take corrective measures. It is an ultimate solution that lets businesses streamline their activities, drive growth, and stay ahead of their competitors.
Why Your Furniture Manufacturing Business Needs Sage ERP Software?
Reduce complexities in the supply chain operations, adapt to changing market dynamics, and achieve a sustainable growth with the industry-tailored Sage X3 furniture manufacturing ERP. Gain accuracy in inventory tracking, fulfil orders more quickly, manage customer interactions, and deliver exceptional customer experience with this industry-first solution.
- Automate product lifecycle from order placement to fulfilment
- Optimize production schedules and track production costs
- Identify cost-drivers and gain cost-saving opportunities
- Sophisticated workflow management and multi-stage process optimization
- Unified reporting and analytics with personalized charts, reports & dashboards
What are the Major Challenges Faced by the Furniture Industry?
Balancing Inventory Investment
This challenge for the furniture industry deals with keeping inventory levels to a minimum level while still offering high-level customer service and assuring the perfect mix of products.
In today’s competitive world, it is very difficult to balance inventory investment with customer service targets from the primary perspective.
Handle Customer Relationships
The level of service offered to your customers makes all the difference in developing strong relationships and returning customers to a greater extent for staff. With the constantly changing customer demands and increasing customization, it has become essential to keep track of sales-related data along with internal and external business relationships.
Raw Material Lead Times
Customer service center rates and to get over procurement costs it is very important to have stringent management of raw material lead times. It has become very crucial to track the sale purchase in lead times against the basic supply delivery performance while making trustworthy suppliers of particular raw materials as per the certifications.
Low Production Effectiveness
Many companies, especially small ones located in remote regions, still rely on outdated manufacturing practices. As a result, they recruit a large workforce that increases their salary expenses and also shoots up the possibility of human-induced errors.
They also hesitate to purchase advanced machines and business management solutions, compromising productivity and effectiveness.
Lack of Reporting and Information Systems
Furniture manufacturing companies that don’t implement ERP systems lack a coherent method of communicating business-critical data with verified stakeholders, resulting in information silos.
Also, different departments fail to collaborate on mission-critical tasks, bringing down the company’s overall efficiency and productivity.
High Wastage of Resources
Furniture companies procure high-quality raw materials from multiple vendors spread across various geographical regions. Without dedicated furniture ERP software, furniture manufacturers cannot set a benchmark for procuring the exact quantity of raw materials. Consequently:
- They may purchase more raw materials than required and lose money.
- They will fall short of manufacturing enough products and risk losing customer loyalty.
Unpacking the Key Capabilities of ERP for Furniture Manufacturing
Fetch data for different warehouses from a centralized database system via your mobile or any other system. This way, the warehouse management system will give a clear vision to manage the overall warehouse inventory as well as operational processes. The ERP software for furniture manufacturing helps increase the process efficiency while streamlining inventory as well as other order fulfillment functions in your furniture business.
The furniture manufacturing industry needs sourcing of quantities of different materials and requires collaborating with different suppliers as well. The business management software will help your business assist more effectively while avoiding any administrative work by cracking the relations and orders through a centralized application system.
To fetch the best prices, various furniture companies import products from different countries and this is something, and ERP software for furniture manufacturing along with supply chain management will be helpful. The supply chain management software has the biggest ability to operate different warehouses in different locations which apparently eliminates the need to check every location on various spreadsheets.
Easily manage inventory in real-time with a limitless number of products and that too efficiently. The feature of furniture manufacturing ERP software offers precise and time management reports as well as alerts in order to notify out-of-stock, low-stock, and excess stock. Also, make easy searches in inventory using different product titles or even their descriptions with the inventory management software.
Now purchase orders can be easily automated reducing overall efforts as well as the expense of the operation system with procurement software. The real ERP system assists manufacturers and executives to monitor vendor performance to a greater extent.
Product catalog information is a strong connection between customers’ brands and the products that are being sold. The ERP application for furniture manufacturing will allow businesses to make home furnishing shops available on their websites. You can also link your website with the latest items from the plants and the ERP software saves a huge amount of money per month.
Key Benefits of Furniture Manufacturing ERP Software
Improvise Sales & Demand Management
Sage X3 ERP software offers employees easy mobile access to real-time data anywhere and anytime. It can help manage complicated prices including volume discounts promotions and right pricing and much more.
The software can minimize paperwork while automating order processing in furniture and other industries as well. It can effectively manipulate the return and exchange of items with complete visibility and tracking till the transaction completes.
Optimize Supply Chain Efficiency
Sage X3 furniture ERP helps purchase more strategically with data-driven forecasts connected with the seasonality types and history. Businesses achieve visibility to streamline and optimize inventory.
The ERP software for furniture manufacturing helps leverage the latest forecasting and planning that can closely match demand-supply. You can easily manage your returns as well as exchange supplies more efficiently.
Manage Production and Delivery
Produce precise specifications for customized products with the product configurator feature. You can also manage design changes and their cost respectively with change control and can lower the bottlenecks while keeping up with the seasonal demand through advanced planning software.
Another benefit of ERP software is that it helps track shop floor operations while getting true transparency in work in progress in real-time. This helps optimize labor to a greater extent. This results in optimized laborers.
Strategic Financial Management
The furniture industry manufacturing ERP helps streamline payables receivables revenue as well as cash flow through different languages as well as currencies. It also helps simplify compliance with global and local financial regulations including IFRS, GAAP, and IAS.
It also helps make quick and better decisions by analyzing what-if situations of process financial data. This way you can improve visibility into total expense in order to identify saving opportunities if there are any in the furniture and other sectors.
Effective Resource Planning
Consider the following case. You get an order to construct a piece of furniture that requires various constituent materials, including sheets of metals, wooden bark, and fabric. So, you place orders with multiple vendors located in different regions to get raw materials.
Unfortunately, you will face difficulties if you lack unified management software to deal with numerous vendors simultaneously. On the contrary, ERP in the furniture industry will help you place orders instantly, generate quotes, and track the precise location of transport vehicles on the roads. In short, effective resource planning is the most critical application of a furniture ERP.
Useful Business Insights
A furniture ERP software keeps a tab on different activities inside the company, from manufacturing and finance to inventory and supply chain. It collects, stores, and shares business-critical information with the relevant stakeholders. This enables each department to work together as a cohesive unit. The ERP software furniture also has dashboards that provide relevant summaries and essential data to the upper management, thereby helping them make better decisions.
Low Production Cost
ERP for furniture manufacturing allows better utilization of your resources and optimizing production material at every stage. It provides crucial information at your fingertips to develop efficient production and marketing strategies that pave the way for your success. With regular inventory planning and management, you can reduce storage costs and cut down inventory costs.
With Sage X3 ERP software for furniture manufacturing you can automate your business processes which will apparently lead to high-tech accuracy and decreased waste. Also, optimize money flow naturally. Customers can constantly track the product quality and can react to the identified problems in a fast manner with the furniture manufacturing ERP software.
Robust Quality Control
Automate manual & error-prone processes and standardize workflows to uphold accuracy & consistency, and conform to modern quality standards. Evaluate your progress through Key Performance Indicators (KPIs) and Statistical Process Control (SPC). Provides robust quality control mechanisms at every point of the production process straight from the procurement of raw materials.
ERP for furniture industry acts as the bedrock for your company’s success. It facilitates stringent quality control, adherence to industry certifications & ISO standards, and quick identification of bugs & quality issues, thereby helping you with improved credibility in the marketplace and building a loyal customer base.
Finding the Perfect Furniture Manufacturing Software
1.Production Planning
A good ERP for furniture manufacturing should provide you a way to optimize and schedule your production process. It should enable real-time tracking of the production process, and managing multi-stage processes.
2.Material Management
Your ERP application should allow efficiently tracking and managing different materials and keeping a complex record with their attributes and specifications. In today’s modern business scenario, batch and lot tracking are must.
3.End-to-End Quality Compliance
As today’s consumers are becoming increasingly aware about the product quality standards, your furniture ERP software should offer various checkpoints throughout the production process. Real-time recording of non-conformance will help you detect and fix issues even before your customers encounter them, thereby improving the market readiness.
4.Project & Cost Management
Managing your project costs is not easy. Identify new cost-saving opportunities, find cost drivers, and optimize various processes across different departments to control costs and improve profit margins. A good furniture ERP software should provide you detailed insights into the company’s cost structure and compare actual costs to planned budgets.
5.Extensive Customization Abilities
Your furniture manufacturing ERP should support diverse customization options and support efficient handling of custom orders and specifications. Moreover, as your business grows in size, your furniture ERP should offer the flexibility to handle increasing data needs.
Explore more about Furniture Industry
FAQs of Furniture Industry
What is ERP in Furniture Industry ?
ERP in furniture industry is a tailored software that provides industry-specific capabilities to meet the unique needs of the furniture manufacturing industry. It provides a set of comprehensive modules that aid various business processes, and empower decision-makers with superior analytical tools for faster & accurate decision-making.
Which software is best for Furniture Manufacturing businesses?
Sage 300 ERP helps the furniture industry to give a quick response to any situation & product recalls. The package options provided to the customer are best as per their requirement. This furniture ERP is helpful to maintain the list of all unused used raw materials, how many products are developed and sold, the details of customers and vendors, the total amount expended an earned, etc. it’s beneficial to improve the profit by cutting unnecessary expended and also by getting the new opportunity. The modules inventory management software small business which helps to store all the data of the items and the Sales or Purchase module which stores all the in and out of business.
What are the benefits of Furniture ERP Software?
- As time changes new functionality gets added to the business, the same way Sage ERP Solutions are easily scalable. Because of this, you can add new functionality, processes, departments, and more to the ERP very easily.
- You can have several reports in ERP which give you the list of all the transactions in your business.
- You can take better business decisions with the ERP on the go from any device, any place and any time.
- The ERP for furniture manufacturing helps you to lower the cost and increase the profits as when all your processes are streamlined, you can identify the leakages happening in the system. ERP also helps you to improve procurement, inventory, demand forecasting, etc., essentially improving the entire supply chain and making it more responsive.
What are the Features of ERP for Furniture industry?
- Excellently manages the sales events such as entering customer details, creating sales quotations, orders, shipments, etc.
- Complete procurement procedure from selecting vendor, generating order, receiving goods, to clearing off due, payment, etc.
- Spontaneously updates furniture inventory status after each transaction
- Efficaciously meets the ever-changing customer needs through Bills of Material
- Professionally plan your production and purchase orders considering supply, forecast, and demands within the well-defined time frame
- Providing real-time shop floor tracking that facilitates you to recognize the time left for the order to complete
- Proper backward and forward scheduling allows strategic planning for releasing the orders to the store floors
- Multiple UOM alternatives to aid inventory of wooden logs, fabric, plastic, etc. in requisite units of measurement
- Allows re-designing without disturbing original BOMs and facilitates associating drawings and notes with the BOMs
- Single-click transfer of Sales orders to work orders
How do I choose the best ERP for my Furniture Manufacturing business?
Start by creating a list of your business goals before picking a suitable manufacturing ERP. Also, identify your most critical furniture manufacturing processes and the challenges & weaknesses you want to solve by implementing a furniture ERP.
Then it would be best if you search for vendors that provide the features you want at the most affordable price. You should:
- Start by researching what your competitors are using
- Confirm whether your competitors are satisfied with their existing furniture ERP software
- Conduct a market reputation check of the selected ERP vendor.
An example of a market-leading furniture ERP solution is Sage X3. It has all the features you require to get ahead in the competition and deliver the best services to your customers.
What are the application of ERP in the Cabinet Manufacturing Industry?
The cabinet manufacturing industry is a small yet highly competitive industry. It requires a combination of smart business strategies and technical expertise to grow in this field. Here is how ERP software for cabinet shops will help you:
- The furniture manufacturing software will keep inventory costs low and eliminate waste.
- ERP software for cabinet shops can perform numerous cabinet manufacturing production strategies — including make-to-order, make-to-stock, configure-to-order, and assemble-to-order. It makes use of both pull and push production control mechanisms to execute the cabinet manufacturing output.
- ERP software for cabinet shops uses the Gantt chart to schedule and reschedule jobs. It has a scheduling engine and a unified resource model that optimizes scheduling across the company.
- It uses numerous inventory dimensions — catch-weight calculations, multiple units of measure, and packaging codes.
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