If you own a manufacturing business and don’t use an ERP system, you may face many operational challenges every day.
In this article, we take a look at the problems of manufacturing businesses that ERP software can solve:
Data collection error
How quickly your manufacturing business grows often depends on how quickly you can access data.
When you decide to enter data manually, it can hold you back from your competition. Manual data entry is prone to human error and time consuming. This leads to inaccuracies and delays that can cost your business dearly.
ERP software automatically captures data and gives you instant access to it. Also, regardless of the number of applications you use to manage your manufacturing unit, there will always be a single source of information with an ERP system.
You no longer need to spend your energy and valuable time collecting piecemeal data. This system helps you to have a comprehensive view of your production process as well as other business operations, including finances, inventory levels, sales forecasting, etc. at any time. When you have all the critical information, it empowers you to improve the overall health of your business.
False reports in manufacturing companies & ERP solutions
Lack of real-time information is another important problem that can be solved by deploying ERP software. Detailed system reporting capabilities improve data visibility. This information allows manufacturers to make pre-calculated forecasts to accurately procure raw materials, reduce production problems, shorten inventory turns, and more. Proper use of this information can help businesses make more accurate, data-driven decisions and improve revenue and profitability.
When you use old methods to manage data, you may experience delays in receiving reports and queries. Long queues can create bottlenecks that can even stop your business.
Low production quality
Production of quality products is always the main priority of manufacturing companies. Therefore, manufacturers must follow certain quality standards. Among other challenges, maintaining standard quality in each production piece is a time-consuming and complex process.
An ERP system is embedded with quality control tools. This can assist your quality control process in tracking and evaluating incoming raw materials. This system also helps you monitor product quality at various stages of the production process to provide quality products to the end user.
Lack of planning
Every aspect of your manufacturing facility requires efficient planning. When you manage them carefully, it allows you to align your production schedules with your deliveries. This requires accurate inventory data and sales forecasting as a tool for efficient planning. You can also prepare plans for store operations and make sure you have staff, equipment and raw materials ready to start production.
Lack of workflow planning is a common problem in manufacturing units, which is why you need an ERP. This system provides all the data you need to ensure that all batches are efficiently planned to meet market needs and that raw materials are used optimally so that production runs without stoppages or shortages.
Increasing costs with decreasing profit margins
The increase in production cost is one of the most pressing problems of manufacturers and if not controlled, it can change the overall sustainability of the business. ERP systems for the manufacturing industry are the best tools for managing and keeping under control the cost of raw materials, work in progress, or finished goods.
This system allows you to access critical information about material reorder levels, resources used, management and overhead costs. In this way, you can fully utilize all your resources and reduce inventory accumulation, thereby minimizing administrative and operational costs.
Customer need & expectation changes
Lack of real-time information about changing market demands is another major manufacturing problem that an ERP can solve.
This system enables the storage of critical information and the use of data for the benefit of your business. Without it, you may experience incorrect purchasing of raw materials, leading to over- or under-production, longer inventory turns, and lost revenue for your business.
With the customer relationship module in ERP, you can analyze critical customer data and gain insight into their purchasing behavior. This will help you plan production according to your needs. The system also supports two-way communication, where your customers can track the status of their order and share their feedback with you. While it allows you to make production changes according to customer wishes and provide them improved service.
We at Ilia have created the ability to support this software with maximum reliability. We do this by the technical team within the company and also providing a valid license in the name of your organization from Focus Company. Plus by institutionalizing the technical knowledge of this software in our company.
