6 Challenges Manufacturers Can Solve With an ERP System
You might need an ERP system if you are currently wasting time with manual data entry or you see inaccuracies in reporting because they are not happening in real time. Take a look at the common challenges and concerns manufacturers without an ERP system face.
Manual Data Entry
Manual data entry takes time and can be inaccurate, subject to human error. Forums even exist for mitigating keystroke error. These errors and time delays can be costly for businesses that have not automated their manufacturing and distribution processes.
Reports and Queries
Businesses need accurate reports in real-time. Those companies without a single system are still using disjointed or outdated modules to receive reports and queries. You may be spending hours of time unnecessarily validating reports and verifying data from multiple platforms.
Quality Issues and Concerns
Inaccurate bill of material, routing definitions and detailed production instructions contribute to reworking and scrapping of materials. Having an integrated system can prevent having to scrap material and production time. Further re-working can affect other scheduled operations or projects. Reducing rework and scrapping will mean more time devoted to on-time fulfillment and shipping of your product.
Inaccuracies in Scheduling
Spreadsheet scheduling will mean someone is going to spend a large portion of time reconciling employee schedules with what is happening on the shop floor. An integrated scheduling application is crucial for maximizing time spent working and properly utilizing resources.
Lack of Updated Material Plans
Without visibility into sales forecasting, buyers will have a difficult time knowing what to purchase and when. Keep current production levels and production requirements on-hand instead of using a disjointed, non-integrated system. This can help reduce stockpiling extra materials and instead keep the correct amounts on hand. At the same time, this will allow you to avoid shortages by always having up to date inventory of raw materials and components.
No Way to Manage Growth
Typically, as a company grows more data is produced. Older systems may not be equipped to handle the uptick in information or users accessing this data. If your system is bogged down, then productivity of every employee is affected.
An integrated ERP system can make a world of difference in managing your customer satisfaction. It can also improve overall rates of communication within your customer service departments.