Why your manufacturing business needs ERP
February 21, 2021
Why your manufacturing business needs ERP
As the economy is constantly on the move and the clients' demands are continuously evolving, it has become very difficult to keep up with the challenging nature of the business. Therefore, you may notice that most businesses are abandoning paperwork and always trying to adopt the latest technological innovation to stand out in the market. On the other hand, any company that sticks to the old ways is actually dooming itself to failure and bankruptcy
In such a delicate situation, ERP software comes out to be the key to a new era of business. With its multiple modules and specific and detailed functionalities, ERP can give your business a quantum leap with the least effort needed.
Enterprise Resource Planning (ERP) software helps the manufacturers to manage their costs, and stock levels successfully. As well as it helps to increase the number of satisfied customers and to book a remarkable place in the competitive market.
It is very difficult to run a manufacturing company cost-effectively, especially when it is expanding. So, the smart choice to avoid the risk and help you run your business most safely and efficiently would be to use ERP software.
ERP for Your Business
If you feel overwhelmed doing your monthly financials, if your sales work upon prediction rather than reliable figures if your manufacturing business has difficulty keeping up with its volume of orders making customers' satisfaction fluctuates, if you find yourself in need of manually checking the inventory in your warehouse every time, if this really sounds like your business, then it is time to consider an ERP system.
Enterprise Resource Planning makes all your departments and business processes work in coordination. It goes far deeper than your business strategy and takes you into the fundamentals of day-to-day operations management.
ERP and Manufacturing
As the manufacturing industry is growing bigger and bigger every year, the accompanying responsibilities increase as well causing a working pressure that one person or a small team can not handle. In such a situation, manufacturers need resourceful software like Enterprise Resource Planning (ERP) which is designed to facilitate all the manufacturing procedures and relieving from all unnecessary burdens thus, reducing your expenses and making the industry flourish in a short time.
Before discussing the main signs that your manufacturing business needs saving by ERP, let's take a look at the challenges that a manufacturing industry faces.
1. Working Cost
2. Traceability and regularity
3. Development of production
4. Consideration of the environment
5. Efficient processes
6. Quality of the product
7. Shortage of product
Key Signs that your manufacturing business needs an ERP
· Production problems
The efficiency of the manufacturing business depends on the ability to make products useful and deliver them on time. Your company may fail to meet customer needs if you're not well aware of the raw materials, machines, and workers available for the manufacturing process, or if you don't set a suitable production schedule.
Therefore, implementing ERP solves these problems; as ERP systems include integrated master production planning (MPS). It provides an important planning function that helps to forecast the orders, and deliver them on time as well as setting timely production plans. As a result, this enhances the rate of your business and makes your customers happier.
So, again if your manufacturing company shows these signs, it's highly recommended to utilize Master Production Planning at your workplace.
Ø Inability to respond to market fluctuations
Ø Having repetitive shortages and scheduling mistakes.
Ø Inability to provide efficient cost controls and precise forecasts of material needs and delivery dates etc.
Lack of Control over Inventory
Having monitoring problems over your Inventory negatively affects your manufacturing process. Surplus stock takes more storage space and can be damaged or outdated. On the other hand, an extremely small inventory can stop production lines, generate shipping over costs, and delay the delivery to customers, leading to customer dissatisfaction.
So, to have proper control over your inventory, you require Manufacturing ERP. Without the need to leave your desk or wait for manual reports, with ERP you can know the status of inventory accurately reducing unnecessary costs. This can be done through the effective Materials Requirement Planning (MRP) and the Bill of materials (BoM).
Nowadays the less manual your work is the better. Manual working has many disadvantages for your business as it slows the decision-making process and lowers the company's overall productivity. If you need to operate your business effectively, Instant access to business data is important for obtaining valuable insight. Only a manufacturing ERP can provide you with overall visibility over every aspect of your operation on time.
If you notice any obstacles in Tracking
ERP system now streamlines serial and lot tracking and traceability, rapid product recall process, suspect product quarantine, and extensive audit trails.
Delay in the delivery of a product
ERP masters the calculations of time needed for the sudden manufacturing of products. Therefore, when planning and predicting the manufacturing and shipment of products using Odoo ERP, delivery of products and services will be just on time without any delay.
Failure of orders Fulfilment
For better monitoring of the manufacturing processes, like inventory, supply chain, and external market demand, Odoo ERP- with the central database it provides, boosts connectivity by enabling us to reach the required data from different sources.
If the costs are higher than expected
Again, when relying on paper and manual work, the cost of managing the work processes will be relatively high. Using the Odoo ERP system, you can reduce administrative and operational costs with real-time information. It allows manufacturers to do operations with more informed steps and less need for a workforce.
Fail to improve the business results
If you find difficulty in growing and scaling your businesses, then Odoo ERP is what you need. You can increase profits in business, ROI (Return on Investment), with the help of ERP Solution.
In the case of Less Security
Financial documents in traditional business management are always vulnerable to damage and securing them is a difficult task. However, when using the Odoo ERP system, no need to worry about your documents' safety. Odoo ERP system allows you to keep documents safe, and employee accounts can be assigned only to processes suited to their roles to avoid leaks or misuse of information.
A manufacturing business includes managing a variety of processes, like Inventory Management, Design Process, Procurement, Quality Control, Order Management Processes, etc. And to cover all these equally integral aspects, your business is in the necessity of a challenging tool. If your business has ERP, the Manufacturing department can perform its actions in an effective and highly productive manner. An ERP enhances your business processes like;
1. Improves communication
2. Make accounting easier
3. Better production control
4. Automation of Business
5. Maximize cash flow
6. Improve your business efficiency and competitive nature
7. Efficiently manage the inventory levels
All in all, ERP is a must for manufacturing business and Odoo ERP, in particular, offers you many advanced features such as by-products, Master production scheduler, routing facilities, MRP II scheduler, Kanban planning, single BOM for multiple product variants, production calendar, backward scheduling, job order, repair, etc.
If you consider implementing Odoo ERP software for your manufacturing business, we – Boraq Group _ can happily do it for you. Boraq Group has long years of experience in all Odoo ERP modules such as CRM, Manufacturing, Accounting and Purchase, Sales, Warehouse Management, E-commerce, and Website. Our highly skilled teams of developers and consultants will provide you with all that business needs. You can contact us at firstname.lastname@example.org.
What are you waiting for? Go for it.
Keywords: Manufacturing, Boraq Group, Odoo ERP, by-products, Master production scheduler, routing facilities, MRP II scheduler, Kanban planning, single BOM for multiple product variants, production calendar, backward scheduling, job order, repair Accounting, and Purchase, Sales, Warehouse Management, E-commerce, and Website,