KB20201014/01: ERP in the Manufacturing Industry – Role and Importance

The Role of ERP in the Manufacturing Industry

Enterprise resource planning (ERP) is a complete business tool. It integrates and streamlines the business operations of all departments of an organization. The process efficiency and product quality is increased helping manufacturers to meet their deadlines. An ERP system work as a single system and allow for real-time management of production, distribution, sales and all the operations of the organization.

In the case of manufacturing companies, the ERP system can give you information about your business at any time. It also allow for a better managerial capability to manage the product data from different aspects.

Benefits of a Manufacturing ERP System

  • Improved visibility in the business
  • A reduction in operating costs
  • Gives standardized business processes with improved compliance
  • Improves product quality
  • Process efficiency is increased
  • A balance between supply and demand is achieved
  • Increase the on-time delivery performance
  • Production bottlenecks are decreased

Importance of ERP in the Manufacturing Industry

Real-Time Information – ERP automates all business operations providing accurate, real-time information. It increase efficiency and productivity by helping users navigate complex processes, preventing data re-entry and improving functions like production order completion and delivery.

Reduce Cost – ERP gives you a single source of accurate, real-time information and reduce administrative and operations costs. Manufacturers are able to manage operations, prevent disruptions and delays, break up information transfer and help users make decisions more quickly.

Flexibility – Most modern ERP software systems are robust, flexible and configurable. It also has the ability to adapt to the ever-changing needs of your growing business.

Competition – Initially a new ERP system will require an investment, but it is an investment for the future and growth of your business. A Manufacturing company cannot afford to put off an ERP implementation while their competition invests in a new system to make their business run better.

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