3 Reasons ERP is Important for the Manufacturing Industry

people walking through manufacturing building

Among the most important pillars of the manufacturing industry are manageable growth and business agility, which are difficult to acquire without enterprise resource planning (ERP). This is why it is no surprise that 47% of ERP users are manufacturing companies, according to G2 (a leading tech marketplace), rendering manufacturers the primary user of ERP software.

Manufacturing ERP can ensure that different operations run efficiently from production to payroll, especially with the increasing number of operations a facility carries out every day and the constant industrial and technological advancements.

ERP software can aid in almost any operation in the facility and can be optimized to handle manifold at once, to the point some factories have fully integrated ERP for all their processes and have even implemented the same modules for all units in what is called the Big Bang approach.

The following are 3 reasons why the integration of automation through ERP systems is essential for the manufacturing industry, from factories to supply chains.

1- Centralization

ERP centralizes all departments of a manufacturing company from finance, inventory, and HR to distribution, sales, and customer service. This saves the manufacturer a massive amount of time and resources, as there is no need to separately monitor each sector. All departments coordinate through one system and the data they generate can be monitored at once, in real-time.

2- Inventory Efficiency

ERP systems deployed in a factory tend to drastically increase efficiency, not only because of the centralization services they offer but also due to other services, of which the most important is inventory management. Through inventory management, a factory can regulate the inventory so as to ensure there is not too much or too little product. Too much product inventory means a potential loss of profits, while too little means the risk of frustrated customers. An ERP system can automatically track and reorder inventory based on historical data and intelligent automated predictions.

3- Improved Decision Making

ERP systems allow manufacturers to gain complete data on all aspects of business operations, which in turn translates into improved decision-making. For instance, data about sales, customers, profits, losses, stocks, finances, and others, is helpful for stakeholders to come up with more accurate estimates and effective forecasts, eventually provoking quicker and smarter decisions by the management.

To sum up, ERP software has become one of the solid investments of any manufacturing company. EDM’s partnerships with SAP, Microsoft, and Odoo in addition to its own-developed solutions ensure that your ERP options are wide and your personalization preferences are comprehensive. To find out more about which ERP solutions suit your organization best, do not hesitate to contact our experts.

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