Warning Signs Your Manufacturing Business Needs An ERP System

 

Today the world economy is changing constantly and the business world is shifting from paper documents to virtual databases and if you are not prepared to welcome new technology in your business then your business future is non-existent.

 

 

Your salesforce is doing a great job to bring up business. But you are having problems with completing the demand. Production holds are increasing and quality of product is decreasing, Not meeting delivery schedules on time and it results with unhappy customers.

 

These are some common warning signs that your manufacturing business needs an ERP software to manage all operations.

 

You Can not access data easily and quickly

 

Do you know what inventory is with you ? Do you know what the material cost for specific customer orders ? What are open orders in your hand ? Do you know about gross margin at the year end ?

 

It is necessary to access all the business data to operate your business effectively. A Manufacturing ERP can give you all the data in real-time. Getting reports about data manually which slows the decision making process and reduces overall productivity.

Your System Doesn’t work well with others - Internally or Externally ?

In a business all departments are interrelated with each other. I.e Warehouse staff need details about inventory. Accounting department needs data about sales orders from the Sales team. The Purchasing department needs inventory data in their database before purchasing anything from vendors.

Multiple systems for each department for multiple departments create disaster. It may create errors while transferring data to one department to another department. It is time consuming work to enter data manually by staff which results in a slower down company process and it becomes unproductive.

ERP system integrates with all other business functions within a single database which gives complete details about all other functions of business. Each and every information is accessible to all departments, errors are reduced, Saving in time due to automation so staff can work for other productive work which results in an increase in productivity and business runs smoothly. 

In addition to that, the ERP system can directly connect with both customers as well as suppliers. A direct connection with suppliers streamlines the inventory of business and it results in just-in-time manufacturing. A direct connection of customers automates the sales order process which improves delivery time.

Your inventory counts are never accurate

If your inventory counts are not accurate then it affects negatively in a business. Excess of inventory needs a storage space which can be damaged or expired. Shortage of inventory can halt your manufacturing lines, Increase your shipping cost, Delayed in customer deliveries which results in decline in satisfaction of customers. 

Manual inventory reports slower down the decision making process and overall productivity of business. If you need to operate your business effectively, Instance access to business data is important to make business decisions.

Manufacturing ERP helps you with improving visibility and management of Inventory on hand, Increasing accuracy and reducing overhead costs so Inventory Management in Manufacturing business is an inevitable part to enhance your business. This can be done by proper Material Requirement Planning (MRP) and a Bill of Materials (BoM).

Constant production scheduling problems

 

The efficiency and surveillance of your manufacturing business depends on capacity to make products and deliver them on time. It might be possible that you may fail to meet the customer’s requirements when you have no idea about raw material for orders, availability of machines and workers are available for the manufacturing process Or you do not have a proper schedule for production.

 

In order to avoid this problem, the ERP system is fully integrated with Master Production Planning which offers an actual planning function that helps to achieve actual supply, Forecast business needs, accurate delivery to customers and proper production planning.

 

 In the case of Less Security

 

It is necessary to secure financial and business documents in traditional business so in order to keep documents is risky and keeping them safe is a little bit tricky. ERP system allows to keep documents safe and the employee account is with specific access rights so other users can not see those important documents.

 

Manufacturing business has to manage different processes i.e Inventory Management, Procurement, Design Process, Quality Control, Order Management etc. In order to manage all those departments it requires a system or tool. If your business has an ERP system, the Manufacturing department can perform effectively and highly productively. An ERP system enhance your business processes like;

●      It Improves Communication Internally and Externally

●      Easy to handle Accounting

●      Better control over Production Planning

●      Streamline and Automation In Business Process

●      Maximize Cash Flow of Business

●      Improve Business Efficiency and Productivity

●      Easy to Manage Inventory Level

●      Flexibility To Manage Business Processes

 

In this blog we had already discussed the benefit of ERP in manufacturing business. Odoo offers you many advanced features like Kanban Planning, Bills Of Material (BoM), Production Calendar, Routing Facility, By Products, Master Production Scheduler, MRP II Scheduler, Backward Scheduling, Job Order, Repairs etc

 

In Simple words Enterprise Resource Planning (ERP) system in a manufacturing business will help to scale the business, Increased efficiency and productivity which results in better ROI of business. If any warning signs are found in your manufacturing business then it’s time to consider an ERP system for business.