Manufacturers have always had to walk a thin line between agility, quality and profitability. That’s true more than ever today, as manufacturers feel the squeeze from higher costs, increased regulatory control and dwindling skilled labor. Implementing automation to fill some of the gaps has become a necessity. Enterprise Resource Planning (ERP) software that can address the specific needs of manufacturers is one of the best ways to combat these issues, centralizing business data and workflows in one place and eliminating the need to maintain numerous programs..
Modern manufacturing ERP software goes beyond job scheduling and accounting to deliver powerful tools that not only improve performance, but also help spot trends in both operations and the market. From managing intricate Bill of Materials to simplifying purchasing and inventory control, ERP software for manufacturers provides a centralized, comprehensive solution that allows manufacturers to save money while still delivering quality products.
We’re taking a look at manufacturing ERP software, how it can benefit your manufacturing operation and some of the key features to look for.
Manufacturing ERP software enables manufacturing companies to unify multiple business functions into one system that enhances efficiency. Today’s smart ERP platforms centralize manufacturing, inventory, purchasing, sales and financial records with real-time analytics.
Standard ERP software is an operations management platform that automates and integrates front-end and back-end business processes, such as sales and order fulfillment. Manufacturing ERP software takes that model a few steps further, incorporating activities that support effortless manufacturing operations.
Basic ERP systems include:
A comprehensive manufacturing ERP system includes all of the basic applications, but adds those that enable manufacturers to work smarter, including:
Modern manufacturing ERP systems automate and integrate these applications, eliminating the need for time-consuming, repetitive manual processes. Data is shared across the system and, what’s more, actions are triggered by connected applications. For instance, low inventory levels can automatically trigger purchase orders, and orders can be automatically linked to job scheduling, shipping and invoicing.
Manufacturing ERP software comes packed with specialized features that support the entire production cycle, from procurement and inventory management to quality control and delivery. Below are some unique functionalities that set it apart from standard ERP systems:
One of the most important features of manufacturing ERP software is the ability to manage production processes from a single platform. Modern ERP software connects manufacturing to the rest of the business, including creating jobs from sales orders, auto-generating serial and lot numbers, scheduling jobs and assigning jobs to machines, and tracking production data. Advanced solutions provide real-time control, enabling adjustments to be made swiftly when there are unexpected changes, such as equipment breakdowns or supply chain disruptions.
Bill of Materials capabilities are critical to manufacturing operations, and ERP systems designed for manufacturing should come equipped with robust BOM management tools. These allow manufacturers to create, manage and modify single- or multi-level BOMs, ensuring accurate inventory tracking and efficient production workflows. An accurate BOM helps avoid production delays, reduces waste, streamlines production and ensures the availability of necessary parts.
Manufacturing ERP software should include real-time shop floor monitoring, providing visibility into every step of production. The software captures data directly from machines and floor operations, enabling managers to more easily track progress, identify bottlenecks and keep production running smoothly.
Suppliers provide manufacturing inputs that must be monitored through regular inspections and evaluations. Manufacturing ERP software supplies the tools to optimize supplier relationships, creating an environment that supports seamless procurement and the timely availability of materials.
Manufacturing ERP inventory control applications allow manufacturers to track inventory across locations, using barcoding to quickly capture inventory data that is used throughout its lifecycle, from warehouse to production to after-market monitoring. Inventory applications give manufacturing operations real-time insight into inventory levels and can be configured to automatically initiate common inventory management tasks, such as allocate inventory or auto-reorder product when it reaches a certain level. Material purchases can be easily monitored and warehouse space optimized with built-in forecasting features.
Once implemented, manufacturing ERP software can deliver substantial benefits that go beyond the simple automation of tasks. Some of the most significant advantages include:
ERP software eliminates the need for manual data entry by providing application integrations that dynamically share data, reducing the risk of errors and improving efficiency. Greater accuracy reduces costly manufacturing downtime, allowing manufacturers to more confidently meet delivery dates. Less need for manual intervention also frees up employees to focus on tasks that better support the bottom line.
Manufacturing ERP systems provide a single source of truth for all manufacturing operations, giving employees and management real-time information about key business processes, including production, sales and inventory. This comprehensive view enables management to make informed decisions faster. With advanced reporting and analytics, manufacturers can easily identify trends, predict potential challenges and make proactive adjustments to improve performance.
Improved operational efficiency means improved customer delivery times and, in turn, customer satisfaction. Greater customer satisfaction leads to repeat customers and better brand positioning in a competitive market.
An ERP system that incorporates quality management integrates key quality functions, such as inspections and corrective actions. Manufacturing activities that affect compliance are automatically documented across applications for easy trackability and traceability, streamlining and simplifying regulatory compliance.
Selecting the right manufacturing ERP software is a critical decision that can greatly impact the efficiency and profitability of your business. The first course of action should be to examine your business needs and look for ERP systems that best support those needs. Other key factors to consider when evaluating potential solutions:
ERP software deployed via the web offers simple implementation, scalability and updating. Cloud-based platforms also offer the advantage of lower upfront costs, remote access and easier collaboration between multiple locations or departments.
On-premise manufacturing ERP solutions are still an option, and some believe they provide more control and better security. However, most cloud-based ERP providers employ sophisticated data encryption and access controls to ensure customers’ data integrity is maintained. Make sure you understand the specific ways an ERP software provider will protect your data.
Scalability is the ability to implement manufacturing ERP software features at a pace that best meets the needs of your organization. As your business grows, your ERP software should be scalable enough to accommodate increased production volumes, new product lines or expanded facilities without requiring significant upgrades.
A complex ERP system can be daunting for employees, leading to decreased adoption rates and inefficient use. Look for software that has an intuitive user interface and offers adequate training and support to ensure a smooth transition.
Ongoing vendor support is crucial for the smooth operation of ERP software. When choosing your system consider the reputation of the vendor, its customer service options, and the availability of updates and technical support.
ERP software can be a significant investment, but it’s essential to look beyond just the initial purchase price. Consider the total cost of ownership, including licensing, customization, training, maintenance and future upgrades. Choosing a solution that offers a solid return on investment (ROI) is critical for long-term success.
Investing in modern ERP software can help navigate the challenges of today’s manufacturing environment. By integrating key functions, such as production planning, inventory management and quality control, an ERP system streamlines operations and improves overall efficiency. Real-time data and analytics capabilities empower manufacturers to quickly make informed decisions, while automated processes help minimize errors and delays.
When selecting manufacturing ERP software, it's essential to consider factors such as scalability, user-friendliness and vendor support to ensure a smooth transition and long-term success. A comprehensive ERP system like QT9 ERP offers manufacturers the tools they need to remain competitive and profitable in today’s demanding manufacturing landscape.
QT9 ERP is a comprehensive system that improves manufacturing efficiency, accuracy and delivery times through integrated data and automated operations, all without breaking the bank. QT9 ERP provides more than 18 manufacturing applications, standard, as well as easy access to data and analytics to help manufacturers make the best decisions for moving forward. With QT9 ERP you get:
QT9 ERP also offers electronic batch record and device history record applications to address the needs of life sciences manufacturers. Our ERP system lets you configure processes to best meet your needs and is highly scalable, so you can implement at your own pace.
Reach out today for more information about QT9 ERP.