Five Trends for ERP in Manufacturing Production
The business landscape has transformed rapidly over the past several years with the evolution of digital technology, globalized partnerships and logistics, and an accelerated need for organizational agility.
Manufacturers have been early adopters in embracing change with the help of enterprise resource planning (ERP) software. Using their ERP in manufacturing has enabled them to adopt these trends, giving them a key competitive advantage in these changing times.
- More Automation
Productivity in manufacturing has steadily increased due to the growing use of machines and digital technology. Generally, the U.S. industries which have prospered in the past decade have been those where the most automation has been deployed and where the level of technology is highest. ERP software plays an important role here because it automates and optimizes important business processes and activities which were previously done by hand.
For example, promising a customer a fast turnaround but then failing to deliver risks more than just one lost sale, it risks losing a customer. Using an advanced planning and scheduling system through your ERP is an easy way to keep both your business and your customers happy.
- Increased Outsourcing and Leasing
Manufacturers constantly seek ways to increase operational efficiency by concentrating resources on primary production and marketing functions. As a part of this ongoing efficiency push, many manufacturers have outsourced non-core functions and services they previously did in-house, such as parts manufacture, maintenance, payroll services, and benefits management.
The results are cost savings, increased competitiveness, more efficiency, and an enhanced capacity to focus on core business. By outsourcing or leasing, manufacturers have been better able to focus their resources on differentiators and core competencies, allowing them to strengthen their competitive advantages.
- More Services
The more technology becomes integrated into machines and products, the more support is required. It’s crucial to get this support to keep your business running at optimal efficiency. In fact, a growing number of companies—such as IBM—sell more services related to their products than they do the products themselves. This “service trend” is growing right along with the large-scale use of computers in manufacturing, which is no accident.
The ERP software industry is a key place where this service trend is playing out, with manufacturers partnering with ERP vendors for more than just software. Vendors like Mindover Software help businesses analyze and improve, making the most of their ERP systems as well as helping them automate, digitize, mobilize and modernize their facilities, reporting and processes.
- Globalized Manufacturing
With improved technology and streamlined global logistics, supply chains have released manufacturing from the limitations of geography. Moving information, data and products from one location to another has never been easier, faster, or cheaper than it is today. The emergence of international logistics networks means manufacturers can now efficiently deliver or source raw materials and finished products to and from anywhere around the world.
Cloud ERP is a huge advantage for global companies because it makes the syncing of data so much easier. With the cloud, it does not matter how many locations you have, users can all access the same system from their web browser or mobile device. And, with Cloud ERP, you can deploy your application in multiple regions around the world with just a few clicks.
- Increased Global Partnerships
To be optimally efficient on a global scale, manufacturers have increasingly looked to partner internationally. In some cases, global partners produce components for the U.S. manufacturer’s production process, and in others cases, an international partner may make the product while the U.S. partner manages distribution, design, and other important functions. Some global partners might even offer distribution; the possible business relationships enabled globally by technology and logistics are endless.
ERP in manufacturing helps this trend by integrating key business processes into one system for better management and more efficient operations no matter where you do business, or with whom. A U.S. manufacturer with global reach and relationships simply can’t work without a good ERP system to manage and coordinate operations efficiently at multiple global locations. Each geographic location will have different requirements and local needs for compliance and many other strategic concerns.
If you’re ready to see how adding an ERP in your manufacturing business can positively impact your organization, make the call to Mindover Software today. Mindover Software provides ERP software and solutions to manufacturers of all sizes. Contact us today and let us help you find the best technology for your business’ needs.