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Tech Insights 5 min read

Why manufacturing ERP software has become the solution of choice for small businesses ?

Nowadays, companies in the manufacturing sector must consider all means to stay the course and remain competitive. ERP (and more specifically, manufactur-ing ERP) software is a great way to do so.

To begin, an ERP system is an invaluable tool for tracking the entire production cycle as well as costs, from the delivery of raw materials to after-sales support. Its integration will result in increased productivity and better cost control, among oth-er things.

However, it should be noted that there are several types of ERP software on the market. Some companies have more specific needs. This is precisely the case for companies in the manufacturing sector, which is why such companies choose to invest specifically in manufacturing ERP technology.

Standard ERP vs manufacturing ERP for small business

What is ERP software?

Enterprise Resource Planning (ERP) is an integrated management software package for companies that facilitates and tracks all facets of the production pro-cess. Its main objective is to centralize business operations across all depart-ments of a company: accounting, supply chain, workshops, warehouses, delivery, etc.

All activities and actions taken throughout the organizational structure can be tracked at any time, and performance reports, accounts receivable and delivera-bles, for example, can be created in real time. Need information concerning hu-man resources, inventory status or problems with certain equipment? An ERP system can help. ERP software also enables you to create projections for the company based on real data that is constantly updated.

What is manufacturing ERP software?

Manufacturing ERP software, on the other hand, addresses more specific needs that a company in the manufacturing sector may have. For example, manufactur-ing ERP software will be able to provide management information on the materials used to manufacture your products. It will also be possible to obtain, in some cas-es, information on manufacturing costs and manufacturing lead time. Further-more, this kind of software is designed to integrate an inventory system for your products. In addition, it is able to provide a lot of other pertinent information and promote process optimization, all of which contributes to the "manufacturing" as-pect of your business.

Why small businesses need manufacturing ERP

Manufacturing ERP software is part of a global innovation process that has been taking place in the manufacturing industry. It is becoming increasingly easy to uni-fy data, which enables companies to improve their productivity and remain com-petitive on the market.

Furthermore, the manufacturing sector must meet more and more of its custom-ers' specific demands. Industry standards are constantly rising; some customers have extremely specific needs, etc. As a result, companies must invest in efficient technology solutions in order to precisely track every aspect of production. This is one of the advantages of a manufacturing ERP system: it can be adapted to the specific needs of the buyer and can be adjusted over time.

ERP software can have a real impact on your manufacturing business, discover the advantages: here

Manufacturers are also beginning to see an increase in demand for custom prod-ucts. To meet such demands, manufacturing companies are using new forms of technology, such as computer numerical control (CNC) machines and plasma cut-ters. Manufacturing ERP software not only allows for more real-time information capture and better workflow design, but it can also be developed with special in-terfaces to enable computer-aided processes for manufacturing, welding, and metalworking - another advantage of using ERP software specific to the manufac-turing sector.

For a manufacturing company, digital transformation is an opportunity to evaluate its processes and to optimize its production. It is a good way to position a compa-ny for domestic as well as international market success. This is what people are referring to when they talk about Industry 4.0 – an "emerging" interconnected in-dustry that allows for informed decisions to either improve an aspect or the entire-ty of a company, or simply to implement predictive analytics through the acquisi-tion of essential data that accurately reflect the reality of the situation. Innovation is inextricably linked to profitability and performance.

By investing in a manufacturing ERP system as a small business, you will be able to identify any hindrance to production capabilities – be it a technical or organiza-tional issue – in order to maximize production time and costs, which greatly con-tributes to the speed at which a return on investment can be expected. It provides a golden opportunity for any manufacturing company to leverage the right data and get the most out of it.

Manufacturing ERP software can help with the challenges faced by small manufacturers

The success of a manufacturing company depends on carrying out a multitude of complex and diverse operations, from the transformation of a material to its deliv-ery to the customer. Between these two stages, there is a ton of information, de-cision-making and protocols that can quickly get out of hand. That's where a manufacturing ERP system comes in, enabling you to efficiently manage your entire end-to-end logistics operations, in real time, and to make projections for the months and even years to come.

There is no shortage of problems faced by small manufacturers. By adopting an industry 4.0 model, many of the problems inherent to the manufacturing sector can be ironed out, if not solved entirely, including better inventory management to avoid excess inventory – the notorious panic buying - or overstocking. Considera-ble savings and productivity gains can also be achieved by identifying the numer-ous periods of idle time throughout a processing chain and by maximizing the val-ue of employees. An ERP system simplifies the sales-order process, with the possibility of real-time tracking at all times. In short, you spend more time selling than ordering or managing product shipments.

A manufacturing ERP system will quickly pay for itself with all the manufacturing costs it saves by facilitating everyone's work and improving order management, energy efficiency and quality control at every stage. As a result, the company be-comes more competitive with its employees having more data in hand to develop strategic action plans.

Dynamics 365 Business Central can help your manufacturing business!

Manufacturing ERP for small business: A must-have asset

Integrating a manufacturing ERP system can prove to be quite challenging if the company is ill-prepared and does not know where to focus its efforts. To facilitate the process, Gestisoft offers support services to any company wishing to imple-ment an ERP system. Never forget that any emerging company, no matter how small, can quickly gain momentum and conquer markets that were once reserved for only the big players. All it takes is choosing the right manufacturing technology while placing a great deal of importance on communication. It is no longer possi-ble to compete in a data-driven world while operating with only Excel files, where-as the domestic and international competition has instant access to real-time data that can be quickly analyzed and shared.

Please contact us for more information on how an ERP system can benefit your manufacturing company and lead its digital transformation.

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June 08, 2022 by Frédéric Charest VP of Marketing

Data-driven Growth Marketer with a Passion for SEO - Driving Results through Analytics and Optimization