What is Manufacturing ERP Software?
Manufacturing ERP is a comprehensive enterprise resource planning software, which helps manufacturing firms prevail in the competitive market. Manufacturing firms need to deal with many strategic issues to make their mark in the dynamically changing business environment. And, manufacturing ERP software helps them achieve perfection in terms of their operations. With a good manufacturing ERP software, you can strengthen your production plan, manage your finances and transform the supply chain process.
Who Uses Manufacturing ERP Software?
Manufacturing firms are now adopting advanced strategies, such as just-in-time and other quality improvement programs to compete globally. Top manufacturing ERP systems are designed to address their strategic challenges and achieve quality at every stage.
Manufacturing firms need to address several key strategic issues if they want to compete in this dynamically changing business environment successfully. A common strategy used by firms for achieving this goal is just-in-time, lean production and other quality improvement programs.
With the focus on low-volume and high-quality production, manufacturing firms need to have a clear picture of the demand in the near future. Top manufacturing ERP software can help them with analysing customer demand, by keeping the seasonal and cyclical factors in mind. Accordingly, they can maintain the stock of raw materials and start production as soon as a customer puts an order.
Why You Should Use Manufacturing ERP Software?
Manufacturing ERP software helps organizations regulate their entire production lifecycle. The software comes with a suite of software modules to enhance integration between different functional areas within your enterprise. By using the top manufacturing ERP software, you can benefit from automated planning, scheduling and fulfilment. This ERP software also helps with big data intelligence for faster decision making. Analytic reports further help manufacturing managers reduce forecasting errors and hop on new marketing opportunities quickly. Administrative costs associated with the manufacturing process can also be automated with manufacturing ERP software.
Furthermore, the cumbersome inventory tracking process becomes easier with a manufacturing ERP software. The ‘production planning’ module provides real-time inventory reports to eliminate any chance of excess stock. Consequently, you can enjoy improved inventory visibility and reduced warehousing cost.
Modules in Manufacturing ERP Software
ERP software for manufacturing firms helps manage different departments and functions from a centralized platform. You can bring efficiency to all major processes with the help of these essential manufacturing ERP modules:
- Human Resource Management: The human resource management module of a manufacturing ERP software helps firms handle their employees smartly. This module of the ERP system allows time & attendance tracking, performance reviews and managing employee information with just a few clicks. The payroll sub-module further assists in creating payment receipts and managing salaries. Travel expense and reimbursements claims of employees can also be managed with top manufacturing ERP.
- Inventory Management: Using the inventory module, you can track the stock of parts and assemblies required to ensure hassle-free manufacturing of products. Also, you can figure out the current location of products in your organization and ensure that they are available in the right quantity at the right time. This way, you can prevent material wastage and ensure optimum stock utilization.
- Sales & Marketing Management: Typical sales processes like enquiry handling & analysis can be performed easily with the sales module of manufacturing ERP India. All types of sales transactions can be managed with this module. It also helps with lead generation and nurturing through email campaigns and SMS to ensure the continuous flow of revenue.
- Purchase Management: Through the purchase management module of manufacturing ERP software, you can manage the procurement of raw materials. It also provides functionalities for supplier/ vendor listing and preparing purchase orders. Using this module, you can also track purchase items and update the stock whenever it reaches the minimum level. Purchase module can be integrated with the inventory module to ensure complete stock management.
- Finance & Accounting: The finance & accounting module of top manufacturing ERP software helps you stay right in terms of all transactions. From expenditure to balance sheet, budgeting and bank statements, all can be taken care with this module. Financial reporting is further made easy, as all insights can be readily available with just a few clicks.
- Customer Relationship Management: The CRM module further helps in enhancing sales performance. You can maintain customer contact details and establish a healthy relationship with customers using this module. This module can be further integrated with the sales module to tap on new sales opportunities.
- Production Planning & Management: The production module is widely adopted by manufacturing firms to perform material scheduling and raw material usage efficiently. This module also helps with production forecasting and reporting. It integrates with the Bill of Material feature to ensure that the raw material usage is as per the requirement. Moreover, you can have a 360-degree view of the production process to ensure that quality standards are met unfailingly.
- Supply Chain Management: Using the supply chain module, you can manage the flow of raw materials, parts and component from the manufacturer to consumer effortlessly. You can perform demand & supply management efficiently with accurate shipping and transportation tracking. Not to forget sales returns, which can be managed through a centralized platform using this software.
Features in Manufacturing ERP Software
To be successful in the manufacturing field, you need to execute processes smoothly and achieve optimum quality. An ERP software can help you at every stage with these essential features:
- Materials Requirement Planning: This feature helps in managing different manufacturing processes, including production planning, scheduling, and stock management. Using the manufacturing ERP cloud, you can have a stronger inventory control from the time of procurement of raw materials to the delivery of final products. Also, you can track inventory and maintain the minimum level of raw materials and the final product in your stock.
- Bill of Materials (BOM): The Bill of Materials feature assists in creating a list of assemblies, sub-assemblies, raw materials, parts and components required to build a product. By referring to the list of materials and their desired quantity, manufacturers can ensure that there is no shortage or wastage of parts. With the help of a well-defined BOM, manufacturing firms can plan the purchase of raw materials and maintain accurate records.
- Product Life-Cycle Management (PLM): Product life cycle refers to the sequence of activities through which a product undergoes from the time of production to delivery. Using this feature, you can manage and monitor your product lifecycle from the engineering stage to production and distribution. Consequently, you can deliver the desired product quality at every stage.
- Quality Management: To ensure outstanding product quality, you need to set certain standards throughout the manufacturing process. And, a manufacturing ERP cloud can assist you in tracking if the quality standards are met at every stage of production. If the product quality is not met at any stage, the managers are alerted about it. They can take immediate steps to resolve quality issues.
- Mobile Compatibility: Most manufacturing ERP solutions in the market offer mobile compatibility to help manufacturers perform work order receipts, part location transfers and track shipment using mobile devices. Also, mobile compatible manufacturing ERP software ensures remote access to information about everything needed to stay ahead of the competition.
Benefits of ERP in Manufacturing Industry
Not all ERP systems for manufacturing firms are created equal. While some of them focus on inventory management, others offer more in terms of supply chain management and CRM. However, you can rest assured that the ERP solution you choose will provide these benefits.
- Automated Processes with Greater Adaptability: Manufacturing ERP cloud makes data available at a central location, helping different departments work in a collaborative manner. From procurement to production, designing, development, inventory and delivery, every process can be executed with team effort. Further, there will be a reduced dependency on manual processes, bringing efficiency into the system. Backed by technology, your employees will be able to minimize manual errors and achieve higher productivity.
- Quicker Response to Market Conditions: Manufacturing ERP software provides real-time insights, helping businesses plan and respond to changing market conditions quickly. Data analysis and reports can help them capitalize on customer demands with a 360-degree view of varied market demands. Also, the software can help with forecasting the demand, so that you can adjust to changing market conditions quickly.
- Strategic Decision Making: An all-in-one manufacturing ERP software improves the decision-making ability of an organization significantly. With a thorough insight into the market scenario and the efficiency of different processes, manufacturing managers can take spot-on decisions. They can take steps to improve their sales margin and stay aligned to their goals. Not just external factors like competition and market trends, but internal processes can also be optimized with manufacturing ERP cloud. Day-to-day operations can be performed in a planned way with quick insights available at every stage.
- Reduced Costs: With a centralized platform to access real-time information, administrative tasks become quite easier. Manufacturers can perform day-to-day operations without any delay or disruption to achieve desired goals at reduced costs. Additionally, the inventory tracking facility ensures that there is no wastage of raw materials at any stage of production.
- Enhanced Customer Satisfaction: With streamlined process scheduling and the control on inventory at every stage, you can bring efficiency to the production process. Achieving key performance metrics will be easier for your team along with delivering the products on time. And, the product delivery on time ultimately results in higher customer satisfaction. Benefits of using ERP systems for your manufacturing business are plenty. All you need to do is invest in the right system that helps you achieve your organizational goals.
Q. What is the difference between On-Premise and Cloud-based ERP?
A. In the traditional on-premise model, you will get software licenses on per user and per company basis. However, manufacturing ERP cloud is a subscription-based model where you pay monthly, quarterly or annually depending upon the number of users.
Q. Can I migrate our old or historical data to the new system?
A. Most vendors provide the facility to move your existing data to the new manufacturing ERP software. You can easily migrate data like customer details, chart of accounts, and inventory info to the new software.
Q. Are there any hidden costs?
A. At the time of making the manufacturing ERP software selection, you need to check for additional customization fees. In some cases, data migration and implementation costs might be charged annually. Also, you should ask for the annual maintenance cost and any cost to be incurred as the number of users increases.
Q. Will it integrate easily with any other third-party software?
A. Integration of your manufacturing ERP software with other third-party solutions depends on the compatibility factor. Before buying a manufacturing ERP software, check if its compatible with your existing solutions.
Q. When is the right time to get a manufacturing ERP software?
A. Has your working capital increased? Are you struggling with redundant production procedures? Are your customers complaining frequently about the product quality? Are you unable to deliver on time? If yes, then you are likely to lose your competitive advantage! So, invest in a manufacturing ERP software early on, and handle your global needs unfailingly.
These days, manufacturing firms have plenty of solutions to choose from. However, they need to choose, compare and select the one which provides unique advantages. After considering these factors, you will surely get a manufacturing ERP software which is perfect for your business needs.
- Your Business Need: Start by making a list of your requirements, depending upon the necessity of your different departments. Then, make a list of manufacturing ERP software that will fulfil all your requirements. Based on the modules and features, make the final selection for the best manufacturing ERP software.
- Cost of Ownership: The choice of a manufacturing ERP software depends on the size of your team and the processes that demand automation. Accordingly, you can search for the manufacturing ERP software with all essential features. And the one which fits into your budget and provides all essential features is a good option. Plus, check for the total cost of ownership for the ERP software you get. If you need to pay the annual maintenance cost, or do you need to pay additionally as the number of users increases. Be clear about all hidden software costs before making the final selection.
- Integration: Nowadays, production managers use a variety of solutions to organize their manufacturing activities, such as attendance tracking system, accounting solutions, business intelligence and reporting tools. To ensure smooth workflow, you need to invest in a manufacturing ERP software, which integrates freely with all other existing tools and systems in your organization.
- Support: Look for those manufacturing ERP vendors who can help you use the software features wisely. Whether you are facing difficulty in creating invoices or tracking everyday processes, a quick call with your software vendor can help you get quick solutions. Along with quick implementation, most manufacturing ERP software vendors also provide training modules to help your employee pick up easily.
- Demo & Trials: Trial sessions of the manufacturing ERP software can make everything easier for you. You can learn about the functions of the software and finalize the most suitable one. Look for those vendors who allow you to use the software on your own and analyse the simplicity of features and ease of use. Learning about a manufacturing ERP software from a vendor is not enough until you get to try it on your own. At the time of demo, you can also have a clear picture of the amount of customization required.
List of Best Sellers
- Brainpower ERP
- Technology Mindz ERP
- Frappe ERPNext
- Shubham Manufacturing Unit
- Zeta ERP
- aSoft Bias-ERP
- Suchan T.FAT ERP
- Syscon Cronus Enterprise – ERP
- Swastin Cloud ERP-Manufacturing
- Brique Cloud based ERP