Published on: January 14, 2020
Manufacturers are looking to expand their digital portfolios this year, with manufacturing ERP systems likely to take the lead in new software acquisition. According to Deloitte, 67.9% of manufacturers expressed optimism about the immediate future. Although that number is down, realignment around core business sectors and the use of software to save costs and improve production keeps the overall outlook for manufacturing positive.
Flexible manufacturing ERP software can help companies meet the growing and changing demands of the new decade. Markets are tighter, with tariffs and trade wars on everyone’s minds. Revising forecasts and aligning business models in core markets is one way companies are combating the uncertainty. Another is adding technology such as ERP systems to their businesses to help them collect, manage, and use the data that drives decision-making so they can contain costs and improve margins.
Manufacturing ERP Meets Common Challenges
Manufacturers face many challenges. An Industry Week report lists the top five manufacturing challenges as:
- Market volatility
- Materials costs
- Price reduction pressures
- Labor costs
- Transportation/logistics costs
Manufacturing ERP can help your company meet all of the challenges on this list.
- Market volatility: Although ERP software can’t quell instability, it can help you manage your forecasts with up-to-the-minute data. Real-time data provides the insight you need to react swiftly to the natural volatility in the global markets.
- Materials costs: Through the data in the ERP system, you can track and monitor materials costs more tightly and look at which suppliers provide the best products at the lowest costs.
- Price reduction pressures: With lower-cost supplies, you may be able to offer reduced prices to your best customers or use lower prices as leverage for reorders.
- Labor costs: Manufacturing ERP and additional modules can be used to schedule workers around projects and ensure there’s little idle time on the plant floor.
- Transportation/logistics costs: Use the order information in the ERP system to batch ship items and shop around for the lowest rates to transport goods.
These are just a few ideas of how manufacturing ERP can be used to address common challenges. A flexible approach to ERP implementation includes utilizing an ERP system, such as Acumatica or similar products, with modules added to enhance the base system. Companies that may face higher labor costs, for example, may choose to add an HRMS product to their base EPR system to provide workers with more self-serve modules and attractive benefits in a competitive labor market. Others may find that job scheduling, mobile sales force management, or marketing modules enhance their productivity.
Companies such as Acumatica are making their packages flexible so their software, and many third-party applications, can be linked to the central ERP to create just the system you need. It’s a customer-friendly approach that’s transforming the industry and the use of ERP in manufacturing.
Acumatica, for example, offers third-party companies easy access to their programs so other companies can create products that integrate easily with their software. The Acumatica Marketplace gives you some idea of how many third-party applications are available, but if there’s a specific need you have in mind, please call us. We are authorized Acumatica resellers and can help you find exactly what you need to solve business challenges.
If you’d like to discuss manufacturing ERP, we’d be happy to speak with you. Mindover Software assists in selecting, implementing, and learning the ins and outs of your new system. For more information, please contact us or call 512-990-3994.