No manufacturer has a zero-growth strategy. But homegrown or outdated technology can make a manufacturing business look like it is slumping toward a no-growth goal.
The difference between a growing manufacturing operation and a stagnant one often comes down to inadequate technology that was not built for the pace and needs of the marketplace today. Manufacturers that want to improve performance and growth should be looking at modern product manufacturing ERP solutions such as SAP S/4HANA Cloud Public Edition and SAP Business ByDesign. Optimizing operations, spotting market opportunities, taking advantage of new technologies such as artificial intelligence, and production planning in ERP systems built for today can dramatically improve the growth rate of a manufacturing business.
How You Know It Is Time for a Modern Product Manufacturing ERP
There are several questions that a manufacturer should be asking if growth has stalled or needs a little help.
- Do our operations rely on time-consuming and error-prone manual data entry or processes?
- Is there a lack of visibility in financial operations?
- Are we experiencing inventory shortages or missing supply chain deadlines?
- Are our systems disconnected and acting in silos?
- Do our systems require a lot of time and money to maintain and keep integrated?
- Are we doing production planning in ERP systems or with manual processes?
- Can we take advantage of the game-changing technologies on the market today?
The answers to these questions will give a pretty good indication if a manufacturing operation is built for growth or being held back by its current technologies. If answering these questions is uncomfortable, it is time to consider a product manufacturing ERP that can meet the growth needs of the business.
Where ERP Helps with Industrial Manufacturing Growth
ERP solutions, also known as enterprise resource planning systems, are end-to-end backend software solutions that serve as the central nerve-center for a business. They house and manage all data within a manufacturing organization, and enable automation, analytics and a real-time picture of the business for better operational and financial performance.
There are several ways that a modern product manufacturing ERP can help a manufacturing operation turbocharge growth.
Financial Management
Modern ERP assists manufacturers with improving financial management. It does this serving as a centralized platform for automating and managing financial processes such as accounts payable, accounts receivable, general ledger, financial reporting, and forecasting.
The accounting capabilities within a modern, cloud-based ERP solution help automate mundane processes and reduce errors, improve management accuracy, and provide real-time visibility into financial performance.
With a modern ERP solution, manufacturers also can identify areas of financial waste, reach sustainability goals, and become more efficient with their processes at all levels of the business.
Inventory Management
Manufacturers can precisely track inventory levels and movements across all locations with a modern product manufacturing ERP. These locations can be departments, buildings, or countries. With this complete visibility, manufacturers can better manage stock levels, and avoid supply chain stockouts.
ERP can help identify slow-moving products, and it can optimize inventory levels, maximizing free cash flow.
Supply Chain Management
Supply chains today are just too complex to manage without a modern, cloud-based ERP solution.
With a modern ERP in place, manufacturers can connect with partner systems and supply chain networks for improved coordination and visibility, improved supplier relationships, and real-time awareness of materials and product availability.
Cloud-based ERP solutions come with robust supply chain management functionality for helping manufacturers coordinate inventory management, procurement, and supplier management as an integrated whole.
With a clear view of the supply chain, manufacturing businesses can make informed decisions about when to order materials, how much to order, and from whom.
Production Management
Modern, cloud-based ERP solutions aid manufacturers with managing production more efficiently. They do this by providing tools for production planning, inventory management, shop floor management, and production costing.
With these capabilities, manufacturers can ensure that products are produced on time, within budget, with the required quality, and at the right output levels. Areas such as production planning in ERP systems are just easier when a manufacturer is using a modern solution instead of legacy technology or manual processes.
Warehouse Management
Through integration with warehouse management systems (WMS) such as SAP’s Extended Warehouse Management, manufacturers can expand inventory management beyond base inventory management features and help streamline complex warehouse operations with the help of a modern ERP solution.
Through the combined use of ERP and WMS, manufacturers can accurately track inventory levels, manage stock rotation, and improve order fulfillment. Manufacturers also can automate manual systems such as order picking and packing, which reduces labor costs and improves operational safety.
A modern, cloud-based ERP solution also brings many other benefits essential for growth, including better reporting and data analytics, heightened customer relationship management, improved organizational collaboration, end-to-end automation, and access to new technologies such as artificial intelligence as it comes to market.
Is Your Manufacturing Operation Ready for Growth?
Most manufacturers use some type of ERP today. The difference between growth and a stagnating business often comes down to whether a business is using a modern or legacy ERP solution.
If your manufacturing operation might benefit from an ERP upgrade, contact one of our experienced ERP consultants at (801) 642-0123 or by writing us at info@nbs-us.com.
