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ERP system is a necessity for every manufacturing industry to maintain consistent quality control. ERP software for the manufacturing industry streamlines the operation process and improves efficiency. It centralizes all the business processes into a single system. Manufacturing companies can easily track the standard of raw materials, and production process with an ERP system.

Challenges in Manufacturing Industries

Manufacturing industries nowadays face challenges significantly in adopting new technology and maintaining productivity and profitability. Here, you will explore how ERP software for the manufacturing industry can help to mitigate these critical issues faced during this time.

• Shortage of labor: Finding the right people at the right time is pivotal for every manufacturing business. Allocation of human resources to business processes needs careful decision-making and it should be done on proper time.
• Inefficient production planning: Manufacturing industries often face challenges for wastage of resources or lower production levels than expected due to poor production planning.
• Poor inventory management: Manual inventory management needs more time and it suffers from human error. Lack of centralized ERP software solutions often leads to loss of sales, stockouts, or incorrect orders.
• Unavailability of real-time data: Manufacturing industries face difficulties in tracking production due to a lack of real-time data. It creates communication gaps and significant errors in processing data.
• Higher procurement cost: The unavailability of automated procurement software negatively impacts the cash flow of businesses. Often, it ends up with a higher operational cost.
• Lack of demand sales forecasting: Manufacturing industries face a significant challenge that causes customer dissatisfaction and lack of demand forecasting. Unpredicted sales result in lower sales volume, and inability to timely delivery of product.

What is ERP for Manufacturing Industry?

ERP for manufacturing is like a centralized process that manages every aspect from production to payroll. ERP ensures coordination with real-time data processing. It confirms greater operational efficiency. It acts as a centralized hub in the manufacturing industry where one can track all the processes of a business organization. It caters as a one-window solution to industry-specific needs such as,

• Resource scheduling
• Quality Control
• Production Planning
• Supply chain management

Key Features of ERP Solutions for Manufacturing Industries

1. Automation: ERP system automate the routine business process and reduces the manual effort given by employees. Inbuilt artificial intelligence and machine learning technologies in manufacturing ERP software enable the automation function which needs less human interaction.
2. Integration: TheERP system connects with all business systems and shares real-time data. So, it helps in better decision-making by reducing errors.
3. Order processing: TheERP system manages the workflow by taking orders from customers, generating billing, delivery, and updating payment receipts.  It makes the easily accessible to different departments and processes the order more efficiently.
4. Accounting: ERP has a bundle of accounting tools such as cash flow, general ledger, accounts receivable and payable, and invoicing system.  The data of accounting tools is further used in analytics and reporting.
5. Human Resource Management: The ERP software for manufacturing industry offers solutions for employee database management, payroll processing, and recruitment management. HR process is merged with the ERP software to process HR planning and financial budgeting efficiently.
6. CRM: Synchronization with CRM or customer relationship management tool tracks customer interaction data and helps in lead generation easily.

FAQ

What is the benefit of ERP systems?

ERP software can offer real-time information, improved customer satisfaction, cost reduction, and integration of entire business processes of manufacturing units.

What should an ERP solution consider?

ERP solutions should be aligned with business needs. It should be reliable, scalable, and compatible with business processes. Moreover, it should be easy to use and compatible with all system requirements.

How long does it take to implement?

The timeframe for implementing an ERP solution in manufacturing industries varies based on the complexity. Usually, it takes 2 to 6 months to implement.