If you’re wondering “How can ERP benefit the manufacturing industry?” then you’re not alone. With the popularity of Enterprise Resource Planning software in sectors from healthcare to retail, it’s easy to forget its clear benefits for manufacturing. So, in this piece, we’ll look at the utility of ERP systems, their benefits to the manufacturing space and how it’s going to evolve in the next few years.
Intro to ERP Systems
An ERP system is a central platform for better management of resources like finances, human resources, inventory, supply chain, manufacturing processes, customer relationship management (CRM) and more. It’s used to save money and time on repetitive tasks, improve efficiencies and boost productivity department wide. So, let’s dive into the benefits that are specific to manufacturing.
Benefits of ERP for the manufacturing industry
Cutting costs
Reducing manufacturing costs while keeping a healthy, effective supply chain is one of the simplest ways to double the profits. Manufacturing companies must embrace automation in operations and management to reduce manufacturing costs and increase efficiency. An ERP is a fast way to do this.
Streamlined operations
When you don’t have antiquated, manual processes bogging you down, then you’re getting tasks done faster - and that’s great for manufacturing companies. Quicker processes with fewer steps mean that you’re able to increase capacity and do more of the same task per day.
Better inventory management
From MRO to equipment spares, ERP can act as a centralised resource for inventory tracking, data analysis and replenishment strategy. And, a cloud-based system like Odoo can be accessed from anywhere, anytime; giving you more oversight on your inventory in near real-time.
Improved production
Improved production is due to effective management of inventory across multiple locations, accurate demand forecasting and master production scheduling. This can bring cost savings across the entire production cycle and speed up delivery - even within a multi-site operation as ERP systems are easy to configure and simple to scale.
Real-time data analytics
As mentioned before, since many ERP systems like Odoo are cloud-based, you can access your modules from anywhere - running reports and getting an eye on your operations from home or abroad. Plus, when everything is synced up, you get a clearer view of your production, finance and other departments without any missing data sources. All this enables management to take the right actions at the right time, increasing data-driving decision-making as a culture.
Linking functions
Effective communication and collaboration are the cornerstones of successful manufacturing endeavours. Odoo ERP's integrated communication tools, such as instant messaging and shared calendars, break down silos and facilitate seamless interactions between teams. This fosters cross-functional collaboration, ensuring everyone is on the same page and working towards common goals.
ERP for manufacturing in the future
As the adoption of cloud-based ERP systems grows, it’s easy to see how the integration of IoT and Industry 4.0 technologies like big data analytics, cloud computing, robotics, augmented reality, virtual reality, and additive manufacturing could layer on top to increase utility, oversight, and scope. Plus, with AI and machine learning becoming more commonplace, expect predictive analytics and forecasting to level up in kind. Lastly, all these connected tools call for enhanced cybersecurity measures for data and intellectual property protection. So, it’s likely you’ll see more integrated security suites and default zero-trust architecture take over.
If you think your organisation is ripe for ERP implementation, talk to our helpful team of experts. We’ll support you to properly scope your manufacturing operation for ERP rollout and configure every module to your exact requirements.
How can ERP benefit the manufacturing industry?