How ERP Supports Labor Management

Manufacturing is in a labor shortage crisis. Nearly 76% of manufacturing leaders in the U.S. consider attracting and retaining a quality workforce to be their number one challenge, and Deloitte Insights anticipates that there will be a 2.1 million worker shortage in the U.S. by 2030. For manufacturers to succeed, they need to manage their labor smarter within this highly competitive hiring environment. In this blog, we will discuss three strategies for optimizing labor management with an ERP.

Forecast for Hiring Needs

Many manufacturers are in a tough position: they need to hire more workers. The U.S. Bureau of Labor & Statistics estimates that there are approximately 750,000 unfilled jobs in the manufacturing sector and that number may only increase in the future. When it comes to hiring, it is critical to accurately understand what skilled workers you need now and which workers you will likely need in the future. An ERP can offer real-time data across your organization, allowing you to see the precise labor needs required for different types of jobs. You can then use forecasting to estimate your labor needs for upcoming months or years based on your anticipated job predictions. To gain peace of mind and plan out your hiring needs, work with an ERP expert like Datix. With 25 years’ experience, we simplify systems so that it becomes easy to plan ahead. Learn how Datix will work with you through every step of your ERP journey, from conception to the implementation and beyond.

Do More with Less

An ERP allows you to optimize your labor allocation. With real-time data at your fingertips, it becomes simple to see the bottlenecks in your production line and analyze employee performance. These insights allow you to streamline business processes to decrease unnecessary downtime and enforce quota expectations. Frequently, manufacturers misallocate their labor so that their skilled workers are spending their time on the wrong tasks, instead of focusing on high priority work. This may mean training, transferring, or hiring workers with specific skillsets so that you have the staff necessary to complete critical tasks. With the right people in the right seats, you can schedule your human resources effectively today and as your business takes on more business. In addition, you can use your newly accessible data to set up meaningful KPIs to track your progress as a growing company. If you want to gain confidence in your labor management, look to an ERP expert like Datix. Our consultants focus on understanding your competitive advantage and exact business processes so we can offer you the best possible solution to grow your business. Discover how to transform your organization.

Automate for Faster Results

Many manufacturers want to automate parts of their business processes, and for good reason. Automation decreases the workload on employees and can potentially replace parts of your human workforce. While shifting to a fully automated system is a sensitive topic for workers, there are numerous ways to automate your setup with an ERP that will be popular with both leadership and your staff because they eliminate tedious, repetitive tasks. After setting up your ERP, tracking happens throughout your organization happens automatically. Your ERP will record item movement and the time spent on tasks and jobs so that nothing is missing from the production log. This takes the burden off employees to constantly input every single task they work on throughout the day, which is bound to include errors or “forgotten” time. Automated data transfers in general are simple with an ERP, allowing everyone to be on the same page and move faster through tasks and jobs. For instance, you can automate production, orders, schedules, quality control and distribution, among other things. If you need help setting up these features, look to a one-stop shop like Datix. We know how to implement ERP’s to meet the exact needs of our clients, instead of offering them features that don’t make sense with their business processes. 25 years of experience supporting manufacturers with ERP solutions gives our team has the expertise to solve even the most difficult software issues. Learn more about working with Datix.

Wrap Up

To overcome labor challenges, manufacturers need to take advantage ERP solutions with the help of a trusted partner. By simplifying your systems, you can achieve your goals to increase profits no matter what the market is doing.

Read more about how to Drive Change at Your Organization with an ERP

About Datix

With over two decades in the industry, Datix is the ERP consultant of choice for manufacturers and distributors. We believe in “being the best with the best” and look for partners who match our commitment to solving real issues and doing what it takes. Our in-depth analysis of our clients and their business needs allows us to maximize their software investments to the fullest.

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