How ERP Helps Companies Improve Their Manufacturing Process

manufacturing ERP

Manufacturers will lose to competitors if they do not continuously evolve their processes and bring in more efficient practices to their workplace. They run under shorter lead times while expectations around customizations keep on increasing. Contrary to it, manufacturing is not a place where changes can easily be implemented. It’s hard to do this.

But an ERP development, especially a manufacturing ERP development, can help. With ERP, companies are able to meet the growing demands on manufacturing by improving processes through agility and efficiency. And not only this, the ERP system can help manufacturers in several other ways. In fact, an intelligently designed and developed ERP acts more like an innovation platform, not just a transaction system.

Here we are going to mention several ways companies can improve their manufacturing processes with ERP:

Removing silos with a single system of record

When implementing a cloud based ERP, manufacturers are able to link every employee, system, device, machine, customer, partner, supplier and even material to the system’s record. When this happens, customers have huge gains for manufacturing process management. Soon, the ERP becomes the transaction fiber for the whole enterprise and trading partners, not just an accounting or administrative tool.

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Take an example of food and beverage manufacturers which can use ERPs as a fiber for the whole business and bringing in the high level of traceability to several processes.

The traceability in an ERP has now become important for manufacturers from the U.S. who, according to the recent Food Safety Modernization Act, require having on the spot digital access to records and deep insights into the whole supply-chain for control, containment, and remediation in the instance of contamination.

Providing the all-round real time visibility

The modern manufacturing process is carried out connectively and, several stakeholders like suppliers and partners work in sync to make it happen. Companies, to keep tabs on what’s happening where, often struggle to maintain the high level of quality management. With an ERP system, they not only improve manufacturing processes by having the all-round visibility in real time but ensure that every part of the process is working smoothly too. Taking it a step further, ERP systems can be connected directly with suppliers and partners to have better integration.

With ERP, manufacturers are able to achieve measurable results. They get tools that keep them up with market requirements. Same tools let manufacturers make changes in the real time to get high quality results out of every production.

Introducing the best manufacturing practices

Manufacturers have to constantly improve their processes to be successful. To do this, a company requires recognizing inefficiencies and communicating across through the transmission of best practices. Thankfully, ERP is designed for the same purposes of continuously improving process and practices. With cloud based ERP and by blending advanced technologies, like IoT and machine learning, manufacturers can easily fine-tine their processes and propagate best practices across their people, partners, facilities and so on.

Simplifying Internationalization

Manufacturers engaged internationally have to deal in multiple currencies. Materials and the supply-chain handling them come from outside a company’ country borders. Modern ERP now has functions to handle international components, transactions, and more complex processes. They even provide multi-language support to avoid any miscommunication.

Finding areas of improvement

Modern ERPs generate huge data. The same data can be fed in advanced analytics for improving manufacturing processes and finding inefficiencies. With the AI learning from the past-patterns, a system can be designed that automatically indicates areas requiring improvements. There is no shortage of analytics and business intelligence integration with an ERP system. Many manufacturers across the world have already started to take the advantages of analytics and artificial intelligence.

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