What do Coca-Cola drinks, Skull Candy headphones, Rothy’s shoes, uni-ball pens and Harry’s shaving supplies all have in common? The companies behind these products all rely on ERP software for the development, manufacturing, distribution and sales of their popular consumer products.
These companies are by no means alone in their use of enterprise resource planning software (ERP) as a primary consumer products solution on the backend. All large consumer products firms and a growing number of smaller consumer products businesses use ERP to drive their operations.
ERP is end-to-end backend software that serves as the digital foundation for a business. It encompasses modules that handle the full scope of financials, manufacturing, logistics, customer care, sales and marketing, human resources and project management, among others. ERP consumer products solutions provide a common foundation for an entire business and enable real-time data visibility and management that cuts across departmental silos.
Consumer Products Solutions Start with ERP
There are many reasons why ERP is so widely used among successful consumer products firms. Some of the main advantages of ERP for businesses looking for consumer products solutions include data centrality, analytics, robust financial management, manufacturing prowess, supply chain sophistication, automation and connectivity with essentially all third-party systems and online marketplaces.
Data Centrality. Data is paramount for consumer products businesses. The utility of consumer and operational data requires centrality, however; data locked away in silos cannot be easily used or correlated. ERP consumer products solutions bring together all of a company’s data by housing it in a single backend system that’s accessible and updated in real-time.
Analytics and Artificial Intelligence. Rapidly adjusting to new market dynamics and consumer behaviors demands consumer product solutions that help interpret data at all levels of a company. ERP plugs into the data stored within the system and helps management and employees at consumer products firms make sense of the data with customizable business intelligence dashboards, automated analytics, and connectivity that enables businesses to flow data directly into an integrated AI engine or separate engines such as ChatGPT.
Financial Management Across Markets. Consumer products businesses often work in multiple markets and currencies, which demands financial management software that is sophisticated enough to handle complex financial scenarios and automate currency conversion. Among consumer products solutions for financial management, ERP stands at the top for its robust financial controls that have been deepened over decades as the choice for large multinationals.
Manufacturing and Distribution. At the core of ERP is manufacturing prowess and operational capabilities that can handle any sales volume or SKU count. ERP was first developed for manufacturing and material resource planning, and it enables consumer products firms to efficiently manage materials sourcing, manufacturing, warehousing, and logistics end-to-end.
Supply Chain Management. Better managing supply chains is a top priority for consumer product businesses today given global uncertainty, regulatory changes, and market volatility. ERP consumer products solutions enable businesses to see supply chain resources in real time, automate reorders, compare and define supplier relationships. and pivot quickly when market dynamics change or a supply chain partner has a disruption.
Multichannel Connectivity. The number of touch points demanded by consumers has increased. Consumer products firms now use various online marketplaces and direct-to-consumer sales channels in addition to online and brick-and-mortar retailers. This increase in sales channels requires consumer products solutions that can easily connect with multiple systems and work with data in various formats. Modern, cloud-based ERP solutions come with deep integration and connectivity for connecting a consumer product firm’s backend with the other systems necessary for this multichannel approach.
Automation and Standardization. Automated processes and standardization are critical for driving consumer products efficiency. With an ERP solution in place, a consumer products firm can automate processes company-wide since all data and software are connected within the same system. From manufacturing automation to sales and financial automation, ERP empowers standardization and the elimination of manual procedures across much of a business.
So while the products might be different, the backend that helps create and sell them is the same. Among consumer products solutions, ERP is the starting point and the standard.
Learn More about ERP as a Consumer Products Solution
Access to ERP is broadening, making this consumer products solution now accessible even to startups and smaller consumer products firms. Whereas ERP once was reserved for Fortune 500 companies on account of cost and complexity, newer, cloud-based ERP solutions such as SAP S/4HANA Cloud Public Edition and SAP Business ByDesign allow even smaller consumer product firms to put these systems in place.
We’ve been helping smaller firms with consumer products solutions for more than 30 years as an SAP Gold Partner. If you would like more information about how ERP can help, contact one of our experienced consultants at (801) 642-0123 or by writing us at info@nbs-us.com
