With consumer demand for increased production colliding with an industry-wide talent shortage, it seems the most obvious answer is to improve manufacturing efficiency. You can miss out on true efficiency if you don’t have the backing of a system that knows what is going on in your business.
Manufacturing ERP software solutions for inventory control, real-time reporting, and material requirements planning can help streamline manufacturing processes and increase productivity.
Manufacturing ERP rose to prominence in the 80s and 90s, when the focus at the time was on basic automation and transitioning from material requirements planning (MRP) to enterprise resource planning (ERP). In short, the goal was to use systems to identify different criteria to know how much product to buy and when it should be bought.
Over time, needs and expectations of manufacturing ERP software have advanced and increased. What used to be a primary focus on inventory has evolved into forecasting, reporting, and off-site reporting. Today’s goal is that ERP systems for manufacturing should able to automate almost all of the individual processes within the greater manufacturing lifecycle.
Over the course of the pandemic, there has been a noticeable transition in the manufacturing world: there is a greater need for automation and artificial intelligence in the fulfillment process, with tracking from the shop floor to different work centers and shop locations.
Many manufacturers were considered essential workers throughout the pandemic, meaning their jobs were secure because there was need and demand for their output. And when shutdowns came to an end, manufacturers with capital available for investment have been choosing to take more risks than ever before by investing in new technology — including cloud ERP solutions for manufacturing.
The thought process behind this is that, unlike many other businesses, demand for manufactured goods is stable throughout disaster. This indicates that manufacturers must maintain efficient and effective in order to stay relevant and compete with other manufacturers.
Despite the advanced technology available through manufacturing ERP software, many manufacturers still rely on a paper trail to track the shop-floor process. When this is the case, manufacturers are unable to rapidly determine in real-time where goods are in the process, when goods will be delivered, or how long the process will take from beginning to end.
Inventory management, serialization, lock control, knowing where your bins are, where your materials are, how quickly you can get them, where they are, what was already used, what’s going on, is there a miscount — all of this is vital to having a full business. So, yes, manufacturers build things, but all the other parts of the business must be in place as well.
ERP alone does not create efficiency. It takes time and effort to make your manufacturing ERP software work for you.
The cost of shipping can be inconsistent. Customers might see a flat rate, but businesses know that the shipping cost is variable. Sometimes manufacturers ship something out and have no idea of the cost until the moment it’s sent. Knowing the cost of shipping upfront is extremely important for many manufacturing companies.
Manufacturers utilize CPQ tools to generate accurate quotes for products. Implementing a Configure, Price, Quote solution solves problems for organizations because standardization up front helps with standardization on the back end. The simplification and clarification of offerings through CPQ tools eases processes to fulfill orders efficiently and effectively.
Standardization is not a simple task, and it is almost never a fast one. Discernment must be practiced in this process, as a single build can require thousands of options. Once you begin the process of implementing CPQ, it is easy to get distracted by the problems that need to be solved, because one problem exposes another. This process can truly destroy the ability of an organization to be efficient if there is not a project roadmap. Remember, technology can only help you as much as you allow it to help you.
If you’re looking at ERP for manufacturing, it’s easy to get sold on a vision. This is one of the many reasons it is important be thorough in the process. And if you think you need help increasing efficiency, that is what we are here for. We want to help you select and implement the best manufacturing ERP software for your business. Contact ERP Advisors Group today to set up a free consultation.