How Does ERP Reduce Manufacturing Costs?

ERP Manufacturing Costs

Cut Costs with ERP 

If you’re running your manufacturing business without ERP, chances are, your reason for going without the software is the cost. The licensing, project and maintenance fees of ERP can certainly be overwhelming, but not nearly as impressive as the savings you could enjoy. The software delivers unprecedented visibility and efficiency to optimize manufacturing performance and cut costs. Check out some of the savings manufacturers achieve when they implement ERP. 

10 Ways to Save Money with ERP 

  1. With deeper visibility into the supply chain, users can easily access end-to-end information, gaining new insights into what is happening downstream and upstream from their own jobs. This improves production planning and allows workers to instantly detect roadblocks, cut down on expedited shipping and take proactive measures to avoid issues.  
  2. Instead of manually entering data, information is instantly updated throughout your solution. From financial reports to production scheduling, everything is kept in one place, so you can avoid costly errors. 
  3. ERP transforms inventory management. Users have real-time insight into stock levels and accurate forecasting and order tracking. This will help your organization avoid expensive overstocking or disastrous stockouts.  
  4. With robust quality control, you can find defects in early inspections rather than late in the production process or once the product has shipped. You can also measure where rejects and rework most often occur. As a result, you can avoid costly delays and cut down on returned orders.  
  5. ERP provides extensive audit traceability and supports compliance for multiple countries and industry regulations, including the FDA, IFRS, TS, AS, ISO and more. That means your company won’t be hit with hefty fines, even as regulations become more stringent.  
  6. The software supports lean manufacturing by offering lean metrics and Kanban functionality. With less waste, scrap, rework and excess inventory, your business can slash costs.  
  7. If your ERP includes integrated MES and/or IoT functionality, you can obtain a real-time view of factory conditions and equipment performance. This will help you schedule predictive maintenance, avoid production roadblocks and maintain efficiency. 
  8. Financial management tools will give your accounting team a granular view of expenses to detect hidden costs, maintain budgets and discover new opportunities.  
  9. ERP will help you order materials at the right time, from the right supplier and at the right price. MRP uses lead times and vendor price breaks to determine the optimal time and price to order specific parts. Additionally, tracking features and historical data will ensure you select the most reliable suppliers.  
  10. ERP software has become increasingly user friendly. With personalized dashboards, intuitive reporting and automated processes, your employees will work more efficiently and make smarter decisions.  

Wrap Up 

Every manufacturer wants to ensure their hard-earned dollars aren’t going to waste. An ERP is a wise investment that will ruthlessly cut costs. This is especially the case for those who implement Epicor. A Forrester study found that Epicor ERP delivered 264% ROI as well as $4.4 million in inventory benefits and $1.7 million in production management benefits to the composite manufacturer. Epicor is proven to give you more bang for your buck. 

At Datix, our certified experts will help you maximize the value of your investment. An Epicor Gold Partner, we specialize in delivering scalable ERP solutions aligned with each client’s precise business needs. Our consultants leverage their first-hand manufacturing experience to execute software projects from start to finish. 

Stop missing out on major manufacturing savings and improvements. Reach out to Datix to learn how Epicor ERP can elevate your manufacturing performance!  


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