From mismanagement of resources to lack of tracking of inventories, the manufacturing industry faces a lot of problems in the everyday business scenarios. But, application of ERP solution in manufacturing industries can help track of such problems in advance, and later help resolve the problems, too.
In this post, we explore some of such challenges. List of top ERP Software for Manufacturing listed here.
5 Manufacturing Challenges for ERP Solutions.
Though item lots, pallets, racks, sections, bins, and warehouses may help create detailed records of inventories, they still need to be tracked for referential purposes. Of course, tools and procedures like the ledgers, notices, and shipment or counting labels are the traditional methods, and antiquated in some cases, ways of tracking the inventories.
Modern ERP solution for manufacturing industry provides critical automation in this regard, and can help provide comprehensive visibility and control in tracking the movement of inventories from one place to another.
Lack of Planning
Today, organizations have to be on their toes with respect to creating plans of action. Such plans have to not just be pin-pointedly detailed, but also have to be generic and flexible to account for the last minute changes, if any.
Such plans may not always be manually possible, considering the ever-changing market, ever-increasing customer’s expectations, and at times volatile product and process portfolios. ERP software can help you forecast demands based on the shipments, commitments, production and procurement plans.
The material requirement planning (MRP) and master production scheduling (MPS) functionalities of modern ERP solutions tend to address manufacturing challenges and helps you create exhaustive plans of action.
Resistance to Change
This is perhaps the biggest of all challenges in the manufacturing industry. When your employees fail to acknowledge change and fail to adapt to it, you can run into serious trouble. Of course, the change is inevitable, but you can make sure that the transition happens smoothly, and that the employees stay active, willing, and motivated during the process.
One of the most important roles in this respect is that of the implementation consultant. When an ERP solution for manufacturing industry is implemented, the ERP implementation consultant has to connect to the employees’ core needs and expectations from the ERP Software.
The consultant has to show the employees how the product can bring benefits to them. And, only when the employees see the light in the ERP application (and how it reduces their efforts, yet not compromise on the quality) that the employees can willingly start contributing towards your mutual growth goals.
The module-specific tools and utilities in an ERP software bring some useful inclination for you. The human resource or production-centric modules cater to the task-based operations in a typical process-manufacturing environment. You can use such modules to see if the best suitable person gets to the job they were supposed to do. Or, use the module-based utilities to track their time and activities, and help them evaluate the quality of the material even during production.
Issues in Handling Volumes of Transactions
Often manufacturing businesses that grow at a rapid pace, and multiply in both value and volume in a very short span of the time find it difficult to accommodate to the pace. It also may happen that the existing systems and procedures may be incapable of handling huge volumes of businesses. That may be because you are either technologically, statistically, financially, or resource-wise incapable of handling the data. But, with the implementation of an ERP software application, you can handle even higher volumes of tricky data, and see the results.
Insufficient Planning and Analysis
Business isn’t all about numbers. In fact, it is not about data either. It is about what you do with it. The bottom line that separates a leader from the followers in a business is that the leader leverages on its data, and utilizes it to bring forth key information, which can help them retain their competitive advantage.
Conversely, in the absence of sufficient data, the same business leader’s decisions may render ineffective and questionable. If the data is inadequate or does not produce information in time, the data is useless for your business. But, it may not always be possible for you to dig into piles (or even terabytes) of data to draw meaningful information.
ERP solutions in a manufacturing industry can help bring such information to the surface. ERP system are loaded with pre-defined, custom-design reporting utilities that you can use to dig up key information for you. You can even import data from, or export data to, external sources for a later use.
Amongst the chief purposes of an ERP solution in manufacturing industries, saving cost, efforts, and time tops the list. And, then there are the other, important purposes of checking and maintaining quality; ensuring a balance between the shipments, production, and procurement plans; and creating, maintaining, and capitalizing on the histories of records so that adverse events can be predicted and dealt with well in advance.
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