If you work for a large company and are in the manufacturing industry, it is critical that you use the most advanced software out there for all your business needs. Manufacturing is a very complicated, complex field, and you can’t leave the details of your work to anything but the most advanced resources.
This is why you should invest in enterprise resource planning for manufacturing companies. ERP software, such as OpenBom, will help you take care of all of your business’ needs from finance to human resources to project management and more. In the sections below, we will describe what ERP software is, and explain why it should be indispensable for your business.
What is ERP software?
Enterprise resource planning software is a type of software that companies use in managing all of their standard business activities. This includes, but is not limited to the following:
- Accounting
- Project management
- Procurement
- Supply chain management
- Risk management
If you really want to get the best that ERP software systems have to offer, you can also invest in enterprise performance management. This type of software will help you with planning and analyzing your company’s financials for maximum benefit. Indeed, ERP software is advancing all the time, so you should look out for what’s new.
The real value in enterprise resource planning systems lies in the fact that it is a single comprehensive system in which all of a company’s data is centrally located. This means that information can be shared, used for common projects, and clarified when necessary. It also means that people do not have to worry about duplication of efforts, or of numbers failing to align across departments. ERP software is so popular, in fact, that 33% of manufacturing businesses of all sizes are using it. And this number is growing.
How do ERP systems work?
ERP systems work by integrating a company’s data either within a common network on site, or in a cloud. In an industry like manufacturing, it is critical to keep the various components of the business on the same page with one another.
When you use an ERP system for your company, you will have the benefit of working with a transparent system that allows you to track every aspect of the production process, as well as logistics, and even your financial management information. Workflows can be shared, which makes remote collaboration much easier. Experts estimate that ERP software saves manufacturing companies an average of 22% on operations costs.
The basics of ERPs
Let’s now take a look at the fundamentals of ERPs to see how they function on a basic level. In breaking the components apart, we will illustrate just how superior these integrated systems are to other kinds of software.
Schemas
The way that ERPs are constructed is around the idea of individual schema, or a defined data structure. What this means in physical terms is that there is a common database where customer relationship management and other company information is stored. In addition to this database, any given ERP software is customized for particular companies with the language, definitions, and predefined user experiences particular to that company. In using this common language across departments, the software system is able to create common workflows that can be shared by diverse groups across a company. You can think of it as a vehicle through which information and projects are shared.
Breakdown of business processes
Let’s now take a closer look at the various functions that a given ERP software solution can fulfill for a manufacturing company.
- Supply chain tracking. This is the heart of any manufacturing company. Without a super accurate means of tracking supply chain management dynamics, manufacturing companies cannot stay afloat. ERP software creates a mechanism to store and track production data and outstanding orders, and even perform demand analysis.
- Orders and fulfillment tracking. Similarly, orders need to be stored with complete accuracy. Any mistakes can cause reputational damage to a company. ERP software includes information on invoicing, payments, tracking, reporting, validation, and, when applicable, dropshipping.
- Inventory tracking. With ERP software, you will be able to track inventory, inventory management automation, wave management, shipping integration, and more.
- Finance. Your finance business functions will be integrated into the system, as well. This includes accounting software functions, tax management, financial reporting, and general ledger.
- Marketing. Your marketing cannot effectively stand alone without integration into the whole. With ERP software, your client communications, workflow management, forecasting, and project analysis will all be connected to the larger system.
Conclusion
Manufacturing companies have enough challenges to meet in simply trying to keep pace with the competition. If you work in this industry, it is imperative that you invest in an enterprise resource planning ERP solution for all your core business processes. With it, you will be able to maintain a transparent, accurate, and integrated record of all your important company data. Your workflows can be available to any relevant team members in any location, and you will be able to avoid the risk of duplication that can cause serious errors in your numbers. It is an essential part of any manufacturing operation in the current environment. So if you haven’t done so yet, head out and find yourself an ERP vendor today.
Frequently Asked Questions
My company is only a mid-sized one. Does ERP software make sense for me?
Yes, there are different levels of ERP software that are scalable to different sized companies. You can choose ERP solutions that work for your company.
My company has locations in different time zones. Can I be confident that all my employees will receive information on time?
Yes, as long as you customize your software to include information about offices in different locations, the system will update team members in a timely manner regardless of their location.
If my company changes or adds products to our product line, will it disrupt the system?
No, if you add products to your product line, you simply need to add the new information and the dates in which the new items were added or existing ones altered. The system will incorporate all the information into the whole, and its analytics will reflect the changes accurately.
Can some ERP functions be kept confidential?
Yes. You can set your ERP modules, individual files, and even an entire enterprise resource planning system to varying privacy settings to allow only designated users access to any parts of the system that you wish.
