The manufacturing sector has transformed significantly in recent years, driven largely by increased tech adoption. Even the government is encouraging manufacturers to adapt to a digital-first world, with a recent pledge of $1 billion to promote advanced manufacturing across the country.

Enterprise Resource Planning (ERP) software, in particular, is helping to modernise manufacturing processes thanks to its ability to automate various business processes, including inventory management, production planning, supply chain oversight, customer relationship management and more.

How ERP is advancing manufacturing operations

The manufacturing industry has been a key beneficiary of ERP solutions, enabling manufacturers to streamline their operations, reduce costs and enhance productivity. One key influence is ERP’s ability to integrate various business functions into one cohesive ‘source of truth’. This means manufacturers can easily track and manage their resources, production processes and supply chain activities from a single platform.

ERP solutions automate much of a manufacturing operation’s day-to-day processes, freeing up staff to focus on higher-value activities. For example, the right platform can automate inventory management, ordering and tracking, while also making light work of production scheduling and providing real-time updates on production status. ERP can also automate invoicing, payment processing and financial reporting to eliminate manual errors and improve financial accuracy.

Enterprise-level benefits of ERP in manufacturing

Integrating the right ERP system into your manufacturing operation can assist with a variety of tasks, including:

• Everyday business operations: Accounting, procurement, project management, sales, supply chains and multi-entity management.
• Complex business processes: Inventory management, manufacturing, production planning and MRP, logistics, risk management, payroll, human capital management and warehouse management.

One of the primary benefits of ERP is increased efficiency. ERP solutions automate processes and subsequently reduce the amount of time and resources spent on manual tasks. This leads to faster turnaround times and improved resource utilisation, with greater operational efficiency across the board.

Manufacturers also get the benefit of real-time data insights to help them make more informed decisions on where resources are allocated and capacity planning. This data-driven approach can optimise production processes and minimise waste, while also giving manufacturers greater visibility into their supply chain activities – so they can quickly respond to changes in demand.

ERP solutions also enhance collaboration between departments. With easy access to a centralised platform, employees spread throughout the enterprise can work together more cohesively, which ultimately leads to better decision-making and improved business outcomes.

Which ERP solution is right for you?

Choosing the most appropriate ERP platform for your needs is critical. With so many competing solutions on the market, it’s important to realise that not all of them are suitable for manufacturers. From niche technologies right through to the market leaders like NetSuite, Microsoft Dynamics, Oracle and Wiise, you must consider the features and functionality you want from the software, as well as the level of support required during and post-integration.

Here are some of the reasons why manufacturers are choosing established ERP software:

• Centralised and reliable data source: ERP consolidates disparate systems and spreadsheets, offering a comprehensive view of your enterprise’s operations. This enables real-time reporting and minimises data-entry duplication.
• Enhanced visibility of end-to-end processes: With a solution like NetSuite, you get a complete view of the manufacturing process. This guarantees better control, as well as more accurate forecasting and planning by management.
• Improved inventory management: You can define minimum stock levels and reorder points, leading to better control and visibility over inventory levels and valuations, while minimising stock outages.
• Streamlined procurement process: The procurement process becomes more efficient thanks to inventory-control improvements, ensuring stock arrives in time for seasonal surges. With NetSuite, you can create pre-defined Delegations of Authority to ensure purchase orders are generated for the right items, quantities and quoting agreed rates.
• Accurate planning, budgeting and forecasting: Access to high-quality inventory, sales and procurement data means you can plan ahead with greater accuracy. Budgeting and forecasting have become more precise, and management reports now paint an accurate picture of the enterprise.

Cloud-based ERP is providing manufacturers with a comprehensive set of tools to manage their day-to-day operations. Whether you are looking to optimise your business processes with enhanced production scheduling, inventory management or streamlined supply chains, ERP will ensure your production processes are supercharged so you can quickly respond to changes in real-time.