Business management is not always easy. These days, it's especially hard for the manufacturing industry. Fortunately, solutions exist to help companies manage their business more effectively and efficiently. Manufacturing ERP software has the advantage of providing a centralized solution that unifies all operations.
What is an ERP software?
We should first begin by defining what exactly an ERP system is and how such software can assist with the manufacturing process.
ERP Software: a Very Brief Summary
The three letters E-R-P stand for Enterprise Resource Planning. It goes without saying that this type of business solution is designed to help companies (and manufacturing companies) plan and manage their daily activities. In other words, it is a centralized software system uses a unified database to integrate all core business process such as supply chain management, production, quality management, inventory levels management, resource planning, etc.
Why Should Your Company Invest in an ERP for Manufacturing?
There are several reasons why manufacturing companies, large organization and small business alike, choose to implement an ERP software to manage their daily operations.
- Simplify all the tasks related to business management.
- Boost efficiency and productivity in the manufacturing process.
- Improve data security.
- All this with the purpose of achieving a competitive advantage.
Stages in the Manufacturing Process that Can Be Improved with an ERP Software
An manufacturing ERP provides insights and internal controls to help better manage day-to-day business activities. Let's take a closer look at how an ERP system can improve the various stages of the production process.
Order and Sales Management
A manufacturing ERP software helps companies to efficiently manage its orders and sales. By using a common database, the software enables company leaders to track sales performance closely and to rapidly adapt where necessary. The features of a manufacturing ERP software also provide the ability to facilitate inventory management in real time and to accommodate new orders accordingly.
Making the proper selections at the right time is fundamental to good sales and marketing operations. Business Central's marketing tool delivers an accurate and current overview of your contact information, allowing you to service prospective clients more effectively and boost customer satisfaction.
If you use Microsoft Dynamics 365 Sales for customer engagement, you can experience seamless integration in the lead-to-cash process by using Business Central for backend tasks such as order processing, inventory management, and financial management.
Customer Relationship Management
Another benefit of using an ERP for manufacturing is improved customer service and customer relations. Commonly referred to as CRM (Customer Relationship Management), some systems are specifically designed to serve this purpose. An ERP software is an all-in-one solution combining all the functionalities into a single computer system, there is no need for additional software packages. Microsoft Dynamics Business Central provides a relationship management feature that your manufacturing company can use to help manage and support your sales efforts.
Thanks to complete access to all the different data throughout the manufacturing process, customer service is more personalized, customer response time is faster, and information is always up to date. This ensures that customer needs are met. You get access to comprehensive and accurate information with these capabilities, allowing you to focus your interactions on desired customer/contact groups.
To manage all operations related to the manufacturing industry, a company must be well organized. From the supply chain to product delivery, through manufacturing operation and assembly, tasks must be well coordinated to ensure maximum operational efficiency. By improving communication between the various manufacturing stages, a centralized manufacturing ERP system greatly assists companies in this area.
Here are some ways in which an ERP software benefits operations management:
- Better product quality control
- Operations automation
- Elimination of unnecessarily repetitive tasks (which reduces working time)
- Regular manufacturing asset upkeep and maintenance
- Improved work efficiency and overall productivity
As a manufacturer, when it comes to efficient project management, a manufacturing ERP system is your biggest ally. By bridging the gap between the various stages of the production process, it is easier for managers to keep a close eye on the entire project management life cycle in real time. Centralizing all relevant data enables fact-based decision-making. This reduces the risk of error and saves both time and money for the manufacturing organization.
You may do standard project management actions in Business Central, such as setting a work and scheduling a resource, as well as supplying the information required to manage budgets and monitor progress. Time sheets can be used to track machine and personnel hours on the project.
However, the greatest benefit of better project management is undoubtedly improved communication across all departments. By ensuring that all collaborating teams are on the same page, the work inevitably becomes more productive.
Finance and Accounting Management
When dealing with finances, most manufacturing companies use computer software to assist them. However, not all software can provide a complete picture of the situation with actionable business intelligence data. With a centralized enterprise resource planning solution, financial forecasting is constantly adjusted to reflect the realities of the shop floor and becomes more accurate as a result. losses and production costs in general are reduced. An ERP software helps manage budgeting and therefore contributes to greater overall productivity for the manufacturing business.
Here's a video from Microsoft presenting an overview of the Finance functionalities of Business Central
As your company expands, your e-commerce, logistics, and inventory may get more sophisticated. It may not feel as straightforward to record inventory and raw material as it did even a year ago, so you'll need to put in place processes and systems that are up to the task.
While it is still feasible to maintain a high sales volume, if you don't have the stock your consumers are searching for, your profitability will deteriorate incredibly quickly. Customers frequently won't wait for backorders or items with long shipping delays; instead, they will seek to your rivals to fulfil their demands.
This is where inventory management comes in. Because, with the proper internal and production controls, you can ensure that you are controlling operating expenses while still satisfying the needs of your consumers.
Choose Microsoft Dynamics 365 Business Central as your Manufacturing ERP Solution
Choosing the best ERP system for your business requires a thorough analysis of your needs. Different solutions exist and it is important to choose the one that will best reflect the reality of your industry. For small and medium-sized companies looking to invest in an ERP system in order to optimize their manufacturing processes, Microsoft Dynamics 365 Business Central has proven to be one of the most effective solutions for managing and coordinating all business operations.
This enterprise resource planning solution streamlines the entire manufacturing process in order to deliver better results. To assist in the ERP implementation process, from choosing the best licensing option to meet your needs through looking for specific add-on solutions, hiring a consulting partner is strongly recommended. As much as 60% of ERP implementation project fail. Don't become a statistic !
Our experts at Gestisoft have the knowledge and experience to guide you through your company's all-important digital transformation. We will ensure that you get the most out of your ERP solution and reap its daily rewards.
Contact us now to learn more about how Business Central can change your day to day!