The manufacturing industry has been slowly rising in the United Stated Gross Domestic Product (GDP) and shows no signs of stopping. As manufacturing is expected to pick up and become more prominent, many manufacturers are beginning to pay attention to areas which they had not been before. One area that requires vital attention and a major renovation is manufacturing investment in modern Enterprise Resource Planning (ERP) software. ERP systems have always helped manufacturers manage growth and reduce costs, streamlining their processes to gain a competitive advantage.
ERP software integrates different areas and departments of a business into a single unified database. The writers at EconoTimes, an online newspaper focusing on everything from business to science, provide the top five reasons why manufacturing firms need a revamped ERP system.
Streamlining and Automation
As manufacturing processes change and evolve with the growth of the company, it is important to have an ERP system that automates all the business processes and provides accurate real-time information. Having an ERP system allows for updated data so there is no confusion from department to department. Manufacturing ERP is responsible for increasing efficiency and productivity. A fully integrated ERP system also helps to completely remove redundancy in data entered into the financial books of the company and improves planning, production and sales strategies. Within the many benefits ERP has to offer, for manufacturing, an ERP system allows the business to drive revenues and increase profits.
Trimming the Cost
As a single centralized source of information, ERP software can significantly reduce the costs involved, especially cloud-based ERP. With a cloud-based ERP system, the operating expenses may increase but the initial capital investment decreases. All the infrastructure for the cloud-based ERP, from the servers to the security applications, is paid for by the ERP vendor, making it a lot less pricey for the business. Cloud-based ERP systems also offer per-user subscription option which allows the manufacturing business to scale up or down when/as required. Furthermore, cloud-based ERP systems are a lot easier to implement and take less time for an end-to-end implementation compared to traditional ERP systems (which are expensive and time consuming).
Although cloud-based ERP systems are extremely flexible, most manufacturing companies are using them in combination with traditional ERP systems – creating a hybrid model. This trend is predicted to continue for a decade. Cloud-based ERP vendors invest in easily configurable code, which makes it easier for companies to customize and build on the existing code. Frequent updates and security solutions come along with cloud-based ERP systems as well as combining reduction costs with an increase in benefits. Because of this, cloud-based ERP systems are becoming a powerful alternative to traditional (or on-prem) ERP systems.
As with all businesses, manufacturers cannot afford to let the competition move ahead. Most companies are quickly adopting manufacturing ERP systems, especially to the cloud. The surge in the popularity of cloud-based ERP systems has seen manufacturing companies across the world rushing to switch, and the competition is definitely driving manufacturing companies to reconsider their business strategy and plan to adapt to modern ERP systems. Since every enterprise in the industry is different, it is impossible for a standard ERP system to cater to all the needs of the enterprise. In order for a business or enterprise in the manufacturing industry to be successful, they have to learn how to adapt. Manufacturing companies have been impacted by the rising tide of technology, and the faster they get comfortable with adapting to changes, the better off they will be in surviving in the market.
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