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By Zack Good • October 4, 2019

5 Reasons Why All Manufacturers Need a Modern ERP System

Smooth manufacturing operations hinge upon solid cohesion and ongoing coordination between multiple parts of a company. When those parts don’t sync, problems ensue. Those problems can range from a lack of responsiveness to major changes in the environment to process hiccups that cut into profits to strained customer relationships and ultimately a damaged reputation.

This is why an investment in modern cloud-based ERP is so important for helps manufacturers operate as a cohesive, singular unit. A modern ERP system offers unprecedented access and coordination across all parts of a manufacturing operation.

In addition to collecting and storing data, ERP support manufacturers in managing and communicating its various functions. ERP streamlines processes, automates tedious tasks, and facilitates quick decision-making to improve customer experiences. ERP also positions manufacturing firms to be responsive to the new demands of digital business.

Here are five specific ways that modern, cloud-based ERP supports the manufacturing process.

  1. Supports for Strategic Planning for Market Shifts

 

For many manufacturers, responding to changes in the marketplace is an inevitably time-consuming process which involves multiple aspects of operations. An ERP system assists with the process by helping management and manufacturing units examine and estimate the effectiveness of any process and system adaptations that might be necessary. Associated costs and risks are significantly reduced with each operational shift, which helps achieve a higher success rate.

Basically, manufacturers can leverage the real-time data and visibility a modern ERP system provides to assess and guide planning more strategically.

  1. Boosts Operational Efficiency More Quickly

 

Management and operations often need to coordinate closely to ensure all necessary resources are readily available. Like strategic planning, however, accelerating and optimizing operations is a time-consuming endeavor.

Modern cloud-based ERP solutions support communication and coordination through an always-accessible interface that all parts of a company can tap into (when given appropriate access rights, of course). By integrating the organization’s data, ERP empowers manufacturers to make better decisions and improve the customer experience.

Simply put, ERP allows the left hand to know what the right is doing and vice-versa. This type of collaboration delivers a comprehensive view of all working parts, eliminates redundancies and capitalizes on new opportunities more efficiently.

Article: Digital Transformation in Manufacturing

  1. Automates Tedious Tasks for Better Productivity

 

Manufacturing is repetitious by design. In the past, production relied on manually composed paper-based scheduling. Of course, this old system was problematic. Human error happens, which is why ERP initially grew out of the manufacturing sector’s needs.

Modern cloud-based ERP takes automation to new levels, however, by making it possible to collect and automatically act on data more easily. Enhanced automation is one of the core strengths of modern ERP.

In other words, ERP understands how and when to purchase and manage raw materials in addition to predicting and fulfilling order demands. With the ability to monitor and designate assignments for employees, ERP can deliver optimized productivity—without much need for human intervention and oversight.

  1. Delivers Mobile Connectivity for Increased Responsiveness

 

ERP’s enhanced role in manufacturing enterprises also provides important support with the various IT services available in the cloud. Cloud-based solutions enables your team to remain connected to decision-making data regardless of location, and more easily let employees plug into your system from the shop floor even when they’re not by a terminal.

ERP also delivers a fully connected system that creates real-time synergy with suppliers to develop and coordinate aggregate pricing models.

With the proliferation of digital e-business networks, this ability is particularly important. Say that someone posts a bid request for an individualized product on an online marketplace. You have seconds to respond in some cases, and cloud ERP makes it possible.

Plus, knowing that you will be able to deliver on your commitment will have a positive effect on the customer relationship as well as your performance rating.

  1. Improves Operations for an Optimized Customer Experience

 

Accurate strategic planning, increased operational efficiency, enhanced productivity and optimized responsiveness permits manufacturers to boost on-time delivery of products. This is critical for guaranteeing customer satisfaction.

Manufacturers with modern ERP solutions in place also provide better service because they have a holistic view of the customer which includes all customer history. This information allows businesses to prioritize their best customer relationships and automate discounts and special perks for long-term customers.

Customers also will respond positively to reliable order tracking and shipping notifications that are more easily possible with a modern ERP solution.

Finally, modern ERP can be customized to provide customers with a user-friendly online ordering system for easier order placement.

ERP has long been invaluable for manufacturers. The new breed of cloud-based ERP solutions is even more so.

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