6 Benefits of ERP for Manufacturing Industry

erp for manufacturing industry

The manufacturing industry is highly dynamic and competitive in nature which makes it imperative for such businesses to have an integrated solution that can enhance efficiency, diminish costs, increase sales and profitability but most importantly, enable the organization to make accurate, informed and strategic decisions. An enterprise resource planning system such as ERP for manufacturing industry might be the answer to all these requirements.

6 Benefits of ERP for manufacturing industry are: –

  1. Automates and Streamlines Business Processes with greater Adaptability
  2. Respond to Market Conditions Quicker
  3. Strategic Decision Making
  4. Reduce Costs
  5. Enhance Customer Satisfaction

ERP for manufacturing industry integrates all aspects of business (resources, operations, monitoring, reporting, sales, accounting and finance, etc.) and empowers businesses to function smoothly by maintaining a single database.

In the last few years, an increasing number of businesses have opted for ERP solutions. According to an ERP Software Market Report published by Allied Market Research report, the global market is expected to garner $ 41.69 billion by 2020.

In case, you are sitting on the fence about availing ERP system, listed below are 6 benefits of the solution that may help you understand why every manufacturing business must opt for it:

Automates and Streamlines Business Processes with greater Adaptability

A complete ERP solution streamlines business processes and drives automation for manufacturing organizations. By streamlining the processes, all data is available in a centralized location with complete visibility in all functionalities – development, designing, inventory, procurement, production, finance, sales, delivery and more.

Furthermore, any personnel can monitor the production status in real time, without any dependence on an individual or team. For instance, the designing team can monitor the progress of the production and update the purchasing and finance departments about requirements of additional raw materials.

This brings in efficiency in the system, improves productivity and helps companies maintain their customer commitments. By automating the processes with ERP for manufacturing industry, the company also reduces its dependence on manual processes. This not only accelerates the production process but minimizes errors and improves profitability significantly.


Respond to Market Conditions Quicker

ERP for manufacturing industry provide real time data analysis helps businesses estimate, plan, adjust and respond to changing market requirements better. Decision makers refer to system generated reports on regular intervals to understand the varied market demands and capitalize on customers purchasing trends. Detailed insights give managers a 360 degree view helping them to reduce forecasting errors and capitalize on new opportunities if available.

Strategic Decision Making

A comprehensive ERP solution for manufacturing improves the decision-making ability of an organization. It provides thorough insights and visibility into every department and business process helping the company to make informed, spot-on, and faster business decisions. Access to key performance metrics such as overall sales, sales margin etc. helps manufacturing companies remain aligned to their goals and take necessary internal decisions if the need be. The complete visibility of internal processes and departments with ERP for manufacturing industry also helps the management to optimize the day to day operations.

Reduce Costs

A robust ERP software helps manufacturing organizations to reduce the overall operational cost as manual, time – consuming processes are replaced by automated, streamlined processes with real time business information. Additionally, by increasing worker productivity, the ERP for manufacturing industry minimizes labour expenses, and enhanced precision and lower error rates curtails the losses. Ability to track inventory accurately and integrate it efficiently with production planning eliminates excess inventory and warehousing costs. And lastly, improved organization visibility helps the management make savings wherever possible.

Enhance Customer Satisfaction

Accurate production planning, enhanced control over inventory, streamlined process scheduling, and coordination of distribution channels enable manufacturers to improve on-time delivery of products, a critical performance metric. Delivering products on time is critical to maintaining customer satisfaction. ERP solutions for manufacturing organizations offer data in real-time so decision makers can get a realistic view of inventory levels at any time.

While the benefits of an enterprise resource planning systems for manufacturing businesses are plenty, simply deploying any software will not help you achieve your organization goals. You must partner with an experienced ERP solution provider such as Embee to arrive at the right software for your business.

As one of the most significant partners of SAP, Embee is strategically positioned to provide you with the very best of ERP solution, the way you need it. Resolve all these & explore newer possibilities to grow your enterprise. Scale new heights of success with Embee’s enterprise resource planning (ERP) solution, based on world’s #1 ERP software – SAP Business One.

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