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The best Manufacturing ERP software for your business

Align your resources and manpower to excel in manufacturing using ERP software.

Challenges in the Manufacturing industry

The manufacturing industry is reeling under significant pressure from all sides. Some of them are listed below:

  • Manufacturers are struggling to find sincere vendors to procure raw materials. 
  • They are dealing with manual processes that are laden with human errors and take substantial time to manufacture finished products.
  • Managers don’t have real-time knowledge about the customer’s needs, wants, desires, and ambitions and don’t understand current market realities.
  • It’s challenging to find efficient suppliers and distributors who can provide the finished products to the end-consumer within the specified time.
  • Unavailability of intelligent systems to conduct quality, safety, and efficacy checks and find out non-conforming products.
  • Achieving compliance in an era where governments worldwide are levying enormous penalties on companies that don’t adhere to regulations and norms. 
  • No cloud-based software for dealing with product recalls that lead to a dip in customer satisfaction score.
  • The absence of formula management software makes it difficult to maintain raw material potency and measure the exact quantities of ingredients required in a solution.
  • Lack of customer relationship management software doesn’t allow forming evergreen relations with clients.
  • The absence of inventory management software is a bane for companies of all sizes as it doesn’t allow getting real-time updates about what is happening on the shop floor. 

Features of Manufacturing ERP software

You will begin seeing a drastic change in the way you conduct business after implementing a manufacturing ERP software. It’s because of the following features:

  1. Bill of Materials (BOM): Bill of Materials is crucial for manufacturers as it provides a well-structured format for tracking materials used, cost incurred, waste factors, assemblies, sub-assemblies, mixes, and formulations required, and other factors that help produce the final product. It would be best if you had a BOM irrespective of whether you have a small portfolio of products or you use only a handful of components to manufacture products. BOM provides a recipe for manufacturing products repeatedly. New employees can use it as a blueprint to learn about the flow of manufacturing operations, which helps the company to scale rapidly. BOMs also play a significant role in process improvement as they provide details regarding new methods and ways of doing things to each business stakeholder across different departments.

  2. Warehouse management: Manufacturing ERP software will record the movement of inventory, reduce unused inventory and carrying costs, identify non-conforming products, automate picking, packing, and order staging, track product expirations, and manage shelf life. The ERP system for the manufacturing industry will help you to scale quickly as per the market demands and automate high-volume transactions. It will also minimize shipping errors, set replenishment alerts, and provide real-time status of the shop floor on smartphones.

  3. Master Production Scheduling (MPS): MPS features the manufacturing ERP software allowing anticipating bottlenecks and maximizing shop floor capacity. You can schedule machines, sort tasks according to their priority, reduce inventory carrying costs, predict downstream effects, and forecast inventory demand. Manufacturing ERP systems also help increase turn times with capacity planning and maintain minimum needed inventory at all times.

  4. Material Requirements Planning (MRP): MRP uses the information from MPS and other ERP modules to create reports and orders, run scenarios, and quantity requirements. You can see all the supply and demand information on the screen, such as minimum required stock levels, raw materials that need to be purchased, finished products that need to be manufactured, and sales orders that need to be fulfilled. You can also re-calculate your inventory requirements, lower procurement costs, and identify potential late orders before they occur.

  5. Monitor shop floor machinery: ERP systems for manufacturing will enable you to monitor the shop floor in real-time and allow you to run a more profitable shop floor. Machine operators can send real-time reports, such as quantity produced, operation status, and products that don’t conform to the set parameters, from their workstations. You can also split a particular task into small parts and assign them to multiple workers to complete it on time. Managers can track employee efficiency through a user-friendly dashboard and send alerts, instructions, and notifications instantly.

  6. Formula management: Manufacturing ERP systems bring down the variability quotient by managing specific parameters such as temperature, pH, expiry date, moisture content, pressure, and many more. The variability process starts with buying raw materials that are examined against a predefined set of tolerances. Those that pass are accepted while the rest are rejected. Finally, the manufacturing ERP software assigns batch numbers to the raw materials that have been accepted and tracks them across the entire manufacturing lifecycle.

The background of the Manufacturing sector in India.

The manufacturing sector is one of the fastest developing sectors in India. Since the launch of the “Make in India” campaign, India is on its way to becoming the next global manufacturing hub. The government plans to create 100 million jobs in this sector by 2022. India has become an attractive destination for investments. In March 2020, the cumulative FDI in India’s manufacturing sector reached USD 89.4 billion and shows no signs of stopping.

Statistics reveal that the Indian furniture manufacturing industry will grow at a CAGR of 12.91% from 2016-2023. The housing and commercial construction sectors have been doing excellently well. Data shows that the Home Decor sector is growing at 25%-30% YoY and the home furnishings and the textile sector by 40% annually.

On the other hand, the pharmaceutical manufacturing industry is also booming. In 1969, this sector controlled only 5% of the market share, but today it holds about 85% of the global pharmaceutical industry. McKinsey reports that the Indian pharmaceutical industry will enlarge to USD 55 billion by 2020.  The growth in the manufacturing sector is a boon for the small and medium businesses that have been struggling to access capital, recruit a technically capable workforce, gather innovation capabilities, and gain the ability to market their products internationally. 

Future of the Indian Manufacturing industry.

The manufacturing industry is growing by leaps and bounds. People are becoming conscious of the environment and are adopting eco-friendly ways of doing things. This, along with the introduction of the Industrial Revolution (IR) 4.0 technologies, such as artificial intelligence, machine learning, and data analytics, is creating ripples in the manufacturing industry. Manufacturers are trying to find efficient ways to cope with consumer demands and provide top-notch products within the set deadlines.

Here is an example that will show you how the manufacturing industry, especially automobiles, will shape in the next few years.

The rise of electric vehicles

There is a growing awareness for purchasing electric vehicles (EVs) as they don’t release CO2 in the atmosphere, thereby decreasing greenhouse gas emissions and protecting the ozone layer. Various governments worldwide have already reduced the taxes to promote the sales of EVs. According to IHS Markit, the global sales of electric vehicles and battery electric vehicles will touch 2.5 million in 2020. Further, the sales are going to increase by 70% in 2021. If you are an automobile manufacturer, this is the right time for you to invest in building a massive manufacturing setup and gain significant benefits.

Manufacturing ERP software for businesses

manufacturing erp

The manufacturing industry is booming. With an increase in disposable income, people are looking for a diverse range of products. But do you have the necessary resources and expertise to quench their thirst? Manufacturing ERP software will align your resources, streamline core manufacturing functions, and automate manual processes to speed up business activities. Unlike generic ERP systems, Enterprise Resource Planning software for manufacturing is customized to provide you with solutions central to your manufacturing activities. It has added functionalities for manufacturing-specific needs and integrates varied business processes such as finance & accounting, sales & marketing, and production with manufacturing. The Manufacturing ERP system also provides a comprehensive view of the whole manufacturing chain, from procuring raw materials and monitoring the inventory to delivering finished goods. Simply put, your business will gain complete visibility into the manufacturing process. You can automate processes, reduce operational expenses, increase profitability, and get a complete picture of the changing customer preferences and market trends. The best part is that you can get critical information on a single platform accessible to only authorized business stakeholders.

Why do you need a Manufacturing ERP software?

Manufacturing ERP software helps improve production planning, reduce labor costs, and maximize plant efficiency. It integrates disparate systems in the manufacturing industry like financial software, operations management, and customer-facing solutions that provide a comprehensive understanding of the business, improve customer satisfaction scores, and decrease costly errors. Manufacturing ERP systems also provide greater visibility into manufacturing operations by collecting business insights such as batch costs, profitability, and customer data that help make better decisions.

Manufacturing ERP software allows automating and standardizing business processes. It also enables you to make customer service efficient by replying to product compliance issues, and product recalls instantly. ERP integrates with smartphones allowing you to follow potential clients actively and conducting eCommerce activities conveniently. The best part is that manufacturing ERP collects information from disparate sources scattered across various business branches and provides access to all business stakeholders. This feature removes communication barriers and allows the free flow of critical data from one department to another.

An ERP system for manufacturing will bring new technologies to legacy business management suites. This helps in accessing critical business data from a centralized platform that ensures transparency, reduces complexity and helps to get a comprehensive picture of the entire manufacturing chain. Enterprise resource planning software also has cognitive and predictive tools that reveal hidden insights regarding customer buying trends and changing market conditions. All of these data points together help managers brainstorm effective strategies and make better decisions. 

Cloud ERP systems for manufacturing companies provides business insights that create better economies of scale. It also segments customers based on geographical, demographical, psychographic, and behavioral parameters that reveal insights about the customer’s past purchasing pattern and what products they are highly likely to purchase in the future. You can make accurate forecasts and find new sales opportunities to increase profits. The best part is that your manufacturing ERP software also has CRM capabilities that help form robust and long-lasting customer relationships. 

Companies make substantial losses because of their inability to track inventory in real-time. They deal with insufficient inventory space, higher warehouse rents, and higher shipment loading times. Enterprise resource planning (ERP) for manufacturing provides real-time data to managers and shop floor workers that helps arrange products systematically in the warehouse. Manufacturing ERP software also provides analytical reports that allow identifying errors and delays in the inventory process and accelerates the process of rectifying the mistakes. The best part is that the manufacturing industry ERP software has a supply chain management feature that allows real-time tracking of the finished product — the exact location of the finished product in the supply chain, how long it will take for the end consumer to receive the product, and the final product cost. 

Benefits of ERP for Manufacturing Firms

An ERP system for manufacturing provides significant benefits to companies looking to enhance their productivity, decrease operational expenses, increase their workforces’ potential, find new customers and retain the existing ones. Manufacturing software will automate all business functions, integrate various departments, and provide real-time reports to help you make strategic and calculated decisions. 

Let’s dig deep to find the benefits of ERP software and how they can help you transform into a market leader.

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