Enterprise resource planning systems allow you more control over your business.
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Before elaborating on its benefits for the manufacturing industry, let's take a step back and look at what is ERP in the first place? ERP (enterprise resource planning software) is an automation system employed to digitalise day-to-day operations. These operations include finance, human resources, manufacturing, services, supply chain, etc. With these core business processes being taken care of by an ERP system, industrialists can focus on generating higher profits for their respective industries.
ERP Software In Manufacturing?
So, in general, for the manufacturing industry, ERP solutions are used to increase efficiency, improve customer relationship management, supply chain management, raw materials procurement and more.
5 Benefits of ERP Software In The Manufacturing Industry
1. Increasing productivity
With centralised database support, ERP systems streamline your core business processes helping those in your organisation to conduct their tasks more efficiently. In a modern ERP system, communication is prompt between employees for better collaboration in current and future projects.
What is ERP, if not the flexibility it provides in the manufacturing industry and in every industry, providing accurate information for real-time decision-making. The data is obtained as the ERP system has access to every department's processes helping to make not only accurate but also quick decisions. An all-in-one ERP solution is formed as an ERP system serves as an all-in-one platform with streamlined processes, all with one database
2. Customer Relationship Management
In the manufacturing industry, one maintains healthy customer relations by remembering customer history and sales trends and ensuring customers' stock demands. As we mentioned previously, ERP systems allow quick, accurate decisions that help customer relations. However, you know that ERP systems can produce their own Customer Relationship Management (CRM) module without manufacturers investing in a separate CRM solution.
ERP modules specifically for CRM help sales managers track vital customer leads and quick on-hand customer information such as logistics, costs, quotes etc. With an ERP system managing your CRM, your dashboard is also customisable to your client's needs and employees.
3. Bringing Manufacturers to the IoT age
IoT (Internet of Things) is the era where every device you use seems to be connected to the Internet, and that's where advanced manufacturers come in. ERP solutions in the manufacturing industry help incorporate IoT technology or, more specifically, Industrial Internet of Things (IIoT).
When manufacturers equip their devices with IoT, they can monitor their client's product usage, which helps detect vital patterns that can be integrated into future projects.
4. Data Security
Every industry has confidential data, which constantly faces the risk of exposure thanks to unreliable systems. Well, with an enterprise resource planning system, you can guarantee your data is secured, leading to secure infrastructure as well. Thanks to its customizability, managers and executives can also restrict which information is available to which department. Every data you enter into an ERP system is secure and coded.
5. Cost Savings
A modern ERP software system helps reduce costs in the manufacturing industry thanks to, once again, streamlined processes. With workers' productivity on the rise, the ERP system helps reduce labour expenses and increase production while reducing common errors. An ERP system allows management to view an organization more visibly, aiding them in cutting whatever corners necessary to help the business operations run more smoothly.
If you're a Malaysian manufacturer looking for an ERP system, visit KDS Consulting for our small business management software that connects and streamlines your business processes. Thanks to SAP Business One, business functions are more intelligent and streamlined.