In today’s digital world manufacturers need an Enterprise Resource Planning (ERP) System. Information traditionally captured in spreadsheets and log books now need to be organized, stored and retrieved at your fingertips. Here are 10 of the most compelling reasons to implement an ERP system.
1. Real-time information for decisions
An ERP system allows your team members the ability to access information needed to make key decisions. The more recent, accurate and relevant your data the more likely that the decision made will be the right one.
2. Improved visibility into operations and supply chain
An ERP system allows you to peer into critical areas of your operations and supply chain. This improved vision allows you to identify areas of conflict or breakdown well before it happens. Better yet, it helps you avoid these issues in the first place.
3. Industry specific best practices built in
Many ERP systems are designed to support specific industries. These specialized systems incorporate industry best practices. Your operation immediately becomes more efficient when the best practices are followed.
4. Easier period end closings
ERP systems automatically process transactions and generate audit trails. They identify problem areas so you can investigate quickly. This helps reduce the complexity of and the time spent on period end closings.
5. Increased customer satisfaction
ERP systems help keep your customers satisfied. With accurate delivery dates, job costs, and other accurate customer centric data readily available you and your customers will never have to guess on numbers.
6. Accurate managed and controlled costs
ERP systems collect, calculate and organize costs. As an organization you will instantaneously have accurate product costs and margins.
7. Better operational efficiency
An ERP system allows you to improve your operational efficiency as you reduce setups, teardowns, and unnecessary downtime by helping you to plan production more effectively.
8. Accurate records
ERP system help ensure that your records are more accurate, which will increase process accuracy across the board.
9. Balance of supply and demand
Materials Requirement Planning (MRP) is a component of ERP systems. MRP will help you manage your material supply. When supply is matched according to demand you are able to keep just the right amount of inventory. Reduced inventory means less dollars tied up and less risk to your business.
10. Reduced lead times and increased throughput
Shorter lead times are a great benefit of an ERP system. And ERP system allows you to better schedule all aspects of production. Materials won’t be sitting around waiting for jobs and jobs won’t be held up waiting for materials to arrive.