3 Benefits of ERP Technology for Manufacturers

3 Benefits of ERP Technology for Manufacturers

Enterprise Resource Planning (ERP) systems are business management platforms that businesses, manufacturers, and distributors use to collect, store, manage, and communicate data across all functions of the enterprise. By integrating information from all areas of a business (including product planning, development, HR, manufacturing processes, sales and marketing and more) into one complete enterprise system, ERP systems allow data to be shared across departments in real-time in order to streamline processes and automate common tasks.

As manufacturers are typically looking to streamline the manufacturing process, an ideal software solution would help automate their business processes, paperwork and data collection so they can focus on making the actual product. Manufacturers use software so they can invest more in the people who are making the product. The software takes the complexity of knowing when to order materials, forecasting demand and managing raw materials off the employees, allowing them to focus more on process management.

As more and more companies invest in ERP software, manufacturers are catching up and realizing why these systems are becoming the next best thing.

Benefits of Manufacturing ERP

Strategic planning

ERP software can pick out the areas where improvements are needed and necessary. As a result, it can enhance the overall effectiveness and efficiency of the organization, especially when it comes to time management. Once the problems have been detected, it’s easier to monitor whether the changes that will be made will be effective or not. It also reduces costs and risks because it streamlines different business processes, which in turn reduces the operational and management costs. Whereas, improved data integrity and financial control reduce overall business risks.

In other words, integrating a powerful ERP solution helps reduce a business’s labor and operating costs. With it, businesses can better manage their time and entrepreneurial resources, eventually saving their money and seeing maximum ROI. It also allows them to consolidate their financial reporting and other costs (like administration).

Operational efficiency

Regardless of where you create, fabricate, and deliver products, the need for integrated operations is always intrinsic to the manufacturing sector. Today’s global interest in making something in one country, then selling that product everywhere else in real-time is only growing. In the past, this beehive of coordination required enormous amounts of intellectual, operational, and financial ‘sweat’ just to ensure that raw materials always arrived at the right places at the right time. However, with today’s ERP systems, this flurry of headaches are mitigated, and in some cases, eliminated entirely; since ERP platforms allow everyone in the production chain, whether big or small, to talk and interact with each other as necessary across a common digital playing field.

A successful and competent ERP solution uses an integrated centralized database that supports all core processes of a business. This leads to the effortless integration of silo departments and processes within the entire organization. Having seamless integration within an organization allows for greater sharing of ideas, coherent decision-making and improves customer experiences. It also helps with informed (and better) decision making.

Increased productivity

In the same way that ERP systems offer enhanced operational values strategically, in tactical terms, enterprise productivity also experiences similar advances. A considerable number of businesses experience remarkable enhancements in their efficiency and overall productivity with investments on ERP solutions. They can help eliminate repetition in business processes and tedious manual tasks, as well as improving efforts following the implementation of an ERP software – which saves employees valuable time. This, plus so much more, allows them to focus better on other areas of business operations or processes that need improvement.

In the past, core production steps had to be integrated and managed manually, usually involving paper-based scheduling processes that were as prone to error. Today, however, a complete ERP system allows all of those processes, and more, to interoperate in parallel, thereby allowing the constellation of moving parts to be seen and responded to in real-time.


Looking for more? Download our ERP buyers guide for free and compare the top-24 products available on the market with full page vendor profiles. The guide includes four key capabilities to look for in an ERP solution, plus five questions to ask yourself and five questions to ask the software provider before purchasing. It’s the perfect resource for anyone looking to find right ERP for their business/organization.

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Elizabeth Quirk

Liz is a leading enterprise technology writer covering Enterprise Resource Planning (ERP), Business Process Management (BPM) and Talent Management Suites (TMS) at Solutions Review. She writes to bridge the gap between consumer and technical expert to help readers understand what they're looking for. Liz attended Massachusetts College of Liberal Arts, where she obtained her Bachelor of Arts Degree in English and Communications. You can reach her at equirk@solutionsreview.com
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