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Why Manufacturers Need ERP Software

Over the last 50 years we have certainly seen the manufacturing industry go through an evolution. This evolution has presented challenges for manufacturers such as reducing costs, increasing efficiency, and keeping up with customer demands.

As customers today still demand high quality products but at a faster rate, many manufacturers have made the move to a companywide ERP software to help with increasing productivity, improving efficiency, enabling growth, adopting digital technologies, and moving to the cloud.

ERP (Enterprise Resource Planning) is a type of software that allows businesses to manage all core functionalities in an integrated manner.

We have highlighted some challenges that manufacturers face below, and how investing and implementing an ERP Solution can help solve problems and decrease challenges within a company.

  • Managing Customer Demands

Manufacturing Companies these days need to provide customers with quick, accurate and an error free service. Businesses face problems such as order inaccuracies, delays, and increased complaints when customer demands are not met.

  • Accurate Sales Forecasting

Accurate Sales forecasting allows businesses to see what is required, when and how much, and whether you have sufficient resources to meet customer needs. Problems such as panning oversights, lack of resource and insufficient levels of materials can occur when you do not have accurate sales forecasting.

  • Minimising Stock/Maximising Profit

Whether its too much stock or not enough stock, both can cause significant problems for a manufacturing company. For example, over stocked warehouse, stock waste and delayed orders. Accuracy in forecasting and proper sales projections allows you to hold the correct amount of stock needed to meet customer demands with as little waste as possible.

  • Reducing and Managing Costs

Reducing and managing costs is critical for any manufacturing business. Achieving this operational efficiency provides a massive boost to the overall profitability and stability of the business. Problems that can occur when you don’t achieve this are, increased expenses, higher cost of materials meaning lower profit margins and increased sales cost.

  • Inaccuracies in Planning and Scheduling

Having a well-defined, efficient planning and accurate scheduling process is key to any manufacturing business. Problems that can arise when you have inaccuracies are data errors, manual preparations of work schedules and order delays.

  • Growth Limitations due to Legacy

Business growth is essential for the long-term existence of a company. Legacy inflexibility not only hinders growth but means you need to bolt on additional solutions to cover the missing functionality. Problems that company’s face is an inability to grow, not able to adapt to new systems and cannot attract new generations due to old technology.

  • Siloed Data

Many organisations, no matter their size, may run their operations from multiple sites/locations either in the UK or internationally. Additionally, those same businesses may have multiple software solutions across the organisation which don’t integrate or consolidate information. Having multiple software solutions across an organisation can cause problems such as slower order processes, interrupted workflow and delays and a risk of data errors.

  • Reporting Accuracy

Understanding how your business is performing at any given moment means you can react faster and predict customer trends. Problems that occur with multiple sources of data that is not viewed through one access point are, increased manual data entry, time consuming processes and reporting and a slower reaction time to making decisions.

  • Being Industry 4.0 Ready

Industry 4.0 is the fourth industrial revolution and is the ongoing improvement and development of manufacturing and industrial practices. The challenges companies face when they aren’t Industry 4.0 ready is being less competitive, decreased efficiency and lack of cost optimisation.

Acuity Solutions and Sage X3 are ideally matched to help manufacturing businesses to overcome these challenges and help future proof your business. Get in touch today and discuss your challenges with one of our experts and find out how Sage X3 is the perfect solution.

These are just some of the problems manufacturing companies face. If you would like to read more about the challenges and how an ERP solution can help, then download our free 11-page by clicking the button below.

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Our ebook 'Why Manufacturers need ERP Software' discusses 9 challenges faced by manufacturers and how ERP can help.

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