Quick Tip: ERP: What, When & Why?
What is Manufacturing ERP software?
You can think of a Manufacturing ERP system as a complete software solution designed to run and manage multiple (if not all) departments in your company. ERP software allows companies to connect their data and departments together in a way that increases productivity and decreases wasted time.
Manufacturing ERP software is designed to vertically integrate with other solutions and be customizable to meet your needs. Various departments, even throughout multiple locations, can access the same system and data which increases efficiency throughout your manufacturing company.
Good ERP software is functional, scalable (to grow along with your company), customizable (to fit your company’s needs), and it should give you visibility in all your processes.
When should I consider purchasing an ERP software for my manufacturing company?
A few factors that may help you determine if NOW is a good time to begin researching or planning for a Manufacturing ERP software in your company include:
- Growth - Small businesses can get away with using modular-based software and may not need (or cannot afford) an ERP software. On the other hand, a manufacturing company with hundreds of employees, multiple locations, and multiple departments will require a more robust system that connects all business processes together.
- Multiple processes - If your company has multiple processes and the same data has to be entered more than once by different departments, then ERP software can reduce the time needed for data entry.
- Business Process Analysis - This is something that every company should do if they are considering a Manufacturing ERP software. If an analysis of your business shows that the processes in place are running smoothly but you cannot keep up with the extra data entry from one module to another, then ERP software can help. However, perhaps your business processes need to be redesigned or restructured; in that case, the analysis should take place first. Then, you may still want to invest in ERP software.
- Budget - ERP software is an investment. If the other items on this list are met, and your budget takes into account implementation costs, user licenses, annual maintenance, and support, you are ready for Manufacturing ERP software. When your budget allows it, consider ERP and make the actual purchase when you find a software that works for you.
- Team - Having the right team who understands the importance of business process management in an ERP system and its implementation contributes to its success.
Why should I purchase Manufacturing ERP software?
With Manufacturing ERP software, you can:
- Stimulate growth
- Decrease data entry errors
- Improve productivity
- Meet business requirements
- Meet regulation and reporting requirements
- Meet quality standard requirements (ISO/AS)
- And have a competitive advantage
ERP software is not an automatic ticket to success. Ultimately, it’s up to you to make your ERP system a successful investment by researching and selecting the right software, taking the time to implement correctly, and training your employees. However, your ERP company should be a partner in this transition as inevitable issues arise. This will make all the difference in the world.