Manufacturing is changing at a rapid pace, and much of it is due to ERP systems and software. ERP has evolved to the demanding needs of manufacturers for better automation, visibility, and collaboration. Modern manufacturers have embraced these new systems to better connect their machines, processes, and employees. They have a real handle on what is happening out on the shop floor, even when there’s multiple locations. They can make decisions faster, and wiser, due to insights into their business performance.
5 Ways Modern Manufacturers Use ERP
Find out the 5 ways modern manufacturers have done differently to become more efficient and profitable in their business:
- They embrace cloud ERP systems.
We’ve said it before, cloud computing is the future – and the future is now! Cloud ERP services allow flexibility in delivering IT, faster computing, and the ability to work from anywhere. No longer do businesses have to ‘wait until they get back into the office’. Cloud ERP allows for more business to happen in real-time, providing competitive advantages to companies. In fact, a recent study showed that there’s an 8% increase in profitability due to Cloud ERP (The Economic and Strategic Benefits of Cloud Computing, Computer Electronics, February 2014).
- They connect the shop floor to the top floor.
Collecting data about the shop floor is important, but only if it’s utilized to make business decisions to make the business more efficient, effective and profitable. Management can find out what processes they can automate, where they can cut waste, and streamline the business into a lean manufacturing machine!
- They use their data to make more informed business decisions.
From measuring production throughout and shop schedule planning to support for demand management and forecasting, linking shop floor improvement to financial results is no longer a trend but a smart business strategy. Manufacturers who use this strategy are getting more value from their data and becoming more responsive and agile.
- They focus on continual improvement.
A 2014 LNS Research survey found that 78 percent of companies exist in a state of quality management disconnect. Continual improvement is not only about reducing inefficiency, it’s about driving quality while reducing costs. Modern manufacturers constantly look for ways to improve processes that accomplish both goals.
- They embrace change.
Change is inevitable. It’s evolution. We’re built for change as human beings, so why not embrace it? Modern manufacturers aren’t afraid of moving old, manual processes to an automated best practice with an integrated and unified system. Considering that only 24% of manufacturers using ERP software report a high level of automation and 6% are using multiple systems, modern manufacturers stand to have a huge advantage over their competition when they embrace their new ERP systems.
Considering becoming a Modern Manufacturer?
We have good news – no matter how antiquated your current ERP system is, we can take your processes and automate them in a new ERP software. Contact us for a free initial needs analysis of your current system and requirements to get started on a better, more modern ERP system.
Parts of this article were first published on CIO.com.