ERP for the Manufacturing Industry

On how ERP for the manufacturing industry can help - Workplace efficiency and effectiveness is a core component of any manufacturing company. The ability to maintain strong production rates, ensure raw materials are at the right place at the right time, and fulfill orders on time is paramount. With so many moving parts and so many processes working at the same time, maintaining this type of workplace efficiency can be difficult at best.

This is where Enterprise Resource Planning (ERP) software can help. While ERP is a valuable tool for any industry, it’s an absolute game-changer for companies in the manufacturing industry. An ERP system helps manufacturers merge their core business processes into a single, centralized software platform known as ERP for manufacturing. An ERP system allows companies to deliver optimal performance by automating and managing core business processes more efficiently.

There are a number of great benefits of ERP for the manufacturing industry have to offer, including:

Improved Supply Chain Management: ERP systems are very effective at helping streamline many supply chain processes and providing clear communication between various departments, including transportation and warehousing.
Increased Visibility: ERP platforms also allow various departments to access the real-time data they need to make both day-to-day and long-term decisions for the company.

Reduced Redundancy: Conducting an ERP industry analysis prior to implementing your ERP software can increase its effectiveness and reduce the need for multiple systems.
Improved Collaboration: When implemented correctly, ERP systems can significantly improve workplace communication and boost collaboration between teams and departments.

Reduced Costs: ERP implementation can provide excellent ROI. From improved efficiencies to reduced redundancies, ERP can help your company save money and improve performance.

What Is ERP and How Does It Work?

ERP software systems coordinate the flow of data between a company’s business processes by combining and integrating these processes into a centralized database software for manufacturing. The implementation of an ERP system instantly eliminates the need for manufacturers to maintain separate systems for various processes.

For example, rather than having accounting software to take care of the company’s finances and a separate logistics software platform for supply chain management, an ERP system merges these processes into one convenient platform. This step allows for greater visibility and provides a single source of truth throughout the company.

How effective is enterprise resource planning software? When implemented correctly and optimized to meet the unique needs of your business, ERP software can be extremely effective, especially in the manufacturing industry.

Any ERP system consists of various modules (often referred to as features) that represent core functions within your business, such as accounting and sales. While each feature has its own set of capabilities, its data automatically integrates with other features within your business. For instance, a manufacturing ERP has a separate module for both accounting and sales processes, but key information, such as budgetary data, is shared between modules.

Manufacturing ERP Features

As mentioned above, ERP systems consist of a number of features that correspond to various business functions within the company. Some of the most popular ERP manufacturing modules include:

• Supply Chain Management
• Inventory Control
• Equipment Performance Tracking
• Accounting
• Payroll
• Workforce Scheduling
• CRM
• Sales
• Marketing
• Purchasing
• Quality Control
• HR

Rather than using a standalone software platform for each of these processes, an ERP combines all manufacturing requirements into one system. Even better, your company can select the specific manufacturing ERP features it wants to utilize and create custom modules.

When determining what features to include in your company’s ERP system, it’s important to closely assess all your business processes. This step not only ensures the optimization of your ERP system, but it also gives you a better vision as to how your manufacturing process fits within the ERP platform.  

Best ERP for the Manufacturing Industry

ERP solutions are especially beneficial in the manufacturing industry. However, it’s important to understand that not all manufacturing software platforms are the same. It’s vital that you find an ERP platform that can handle the complexities of the manufacturing industry and that offers the features your company needs, including inventory management, financials, CRM, and production.

With several top manufacturing software companies out there, it can be hard to determine which platform is right for you. Here are a few steps you can take to determine which of the best ERP for the manufacturing industry platforms is right for your company:

• Audit Current Platforms: Start by conducting an audit of the current platforms you want to merge into one ERP system. This will ensure you select an ERP system that meets your company’s needs.
• Assess Team Capabilities: You also need to assess the technical capabilities of your in-house team to ensure the efficient management of your ERP platform. Alternatively, you can outsource ERP management services.
• Calculate Management Costs: Before investing in an ERP system, be sure you fully understand all the costs involved in implementing and managing this software.

One of the best cloud ERP for the manufacturing industry platforms is NetSuite. Its customizable platform is just as effective for small manufacturers as it is for Fortune 500 companies.

ERP for Custom Manufacturing

One of the greatest benefits of implementing an ERP manufacturing software system is the level of customization it offers. After all, no two manufacturing companies are alike, and each business requires its own features and capabilities. For example, a food manufacturing company is likely to have different ERP requirements than an auto manufacturer.

Depending on your company, you may be able to handle this type of customization in-house. However, many manufacturers outsource this customization to a company that specializes in ERP for custom manufacturing solutions, such as goVirtualOffice. We work directly with manufacturers from a variety of industries to build custom ERP solutions.

We start by assessing the various types of manufacturing software your company is currently using.

With this assessment, we can help your company identify specific ERP features that promote the optimal performance of your EPR system. If the standard features are not enough, our experienced developers can build highly complex, custom applications designed specifically to meet the unique needs of your company. We build these applications directly on the NetSuite platform to streamline the integration process and improve performance.

Additionally, our teams can oversee the ERP software download process and assist with the data integration by building the point-to-point integrations that work best for your company. We also provide ongoing support and maintenance services as well as conduct frequent quality control checkups on your ERP system.

Manufacturing Software Systems

Manufacturing software systems can help business owners improve workplace efficiencies and make their processes more effective. There are a few things you can do to optimize your ERP’s performance, including:

• Conduct Regular Quality Checkups: It’s crucial to conduct frequent quality checkups of your entire ERP system. This step ensures that everything is operating at peak performance and that data is integrating correctly.
• Assess Company Needs Frequently: No matter what type of manufacturing company you manage, its ERP needs may change significantly over time. For example, is your inventory management software for the manufacturing industry feature still meeting the company's needs? If not, it may be time to build a custom inventory control feature.
• Provide Employee Training: To make the most of your ERP system, it’s crucial that all key players are trained to understand and utilize all relevant ERP features.
• Keep Up With Upgrades: Like all software programs, ERP systems require regular updates. While some of these updates are automatic, it’s critical that you regularly check to make sure that your ERP system is fully updated.
• Partner With ERP Experts: The best way to optimize your ERP system is to partner with a professional ERP for the manufacturing industry service company. These experts can assess your current ERP offerings and recommend customized solutions.

Manufacturing Accounting Software

Naturally, managing your company’s finances is a core business process that is essential to success. Ensuring that key players have the right information at the right time is a critical component of the decision-making process for manufacturers. A simple manufacturing accounting software platform can allow for this type of high-level collaboration between various departments. This is especially important when merging this software with your ERP for manufacturing platform.

Merging your financial data with your ERP system offers greater visibility by giving all departments instant access to the real-time financial information they need. For instance, the marketing team can review real-time budgetary data having to constantly request this information from the finance department. 

This level of transparency gives department heads, executives, board members, and other employees the financial insights necessary to make sound business decisions. It also provides a universal source of truth that is crucial for business success.  

The best accounting software platform has all the capabilities your company needs, including cash flow management, A/P and A/R management, financial reporting, risk assessments, financial planning, tax management, fixed asset management, and more. When choosing the right accounting software for your company, make sure it offers all the features and capabilities your manufacturing company needs.

Want to learn more about how an ERP system can improve workplace efficiencies? Contact our team at goVirtualOffice today.

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