3 ways ERP
can streamline
manufacturing
for small
and midsize
businesses
Manufacturing sector
Article
The list of reasons why small and midsize manufacturers
might choose not to implement an enterprise resource
planning (ERP) application is long and includes
explanations such as a lack of IT resources, the belief
that ERP is only for larger companies, and confidence
that the organization has gotten this far without ERP
so it can move well into the future without making the
investment. The trouble is, organizations that have not
yet moved to ERP and don’t have any plans to do so in the
future could find themselves missing out on capabilities
that can help streamline the business and increase sales
and profits.
1 2 3
ERP Helps Optimize Inventories
A major bene t of implementing ERP is the
control it provides over manufacturing
inventories. From materials required to
manufacture a product to the end product
itself, a good ERP application provides
capabilities such as bills of materials, material
tracking, and inventory management, each of
which is a factor that a smaller manufacturer
is probably managing by manual entry in
a spreadsheet. Manual entry is prone to
duplication and mistakes; introducing an ERP
application can help reduce those duplications
and inventory errors and automate inventory
requirements so that materials always arrive
just as they’re needed rather than taking up
space in a warehouse.
ERP Helps Manufacturers Anticipate
Customer Demand
Another bene t of implementing ERP is that
it can be used to collect and report data that
point to trends in customer demand. When
data are tracked manually and only historically,
it’s di cult to tell what levels of inventory
are necessary from one season to the next.
Sure, the business can make an educated
guess based on the previous data, but those
historical data don’t account for current
changes in the market.
Such a guess also doesn’t account for
deviations in customer history. For example,
if one of your top clients goes out of business
and you’re working on strictly historical data,
the result might be costly manufacturing
overruns, but a manufacturing ERP application
can alert you to signi cant changes in
customer demand, both historically and in
real-time, making it easier to more accurately
anticipate future demand.
ERP Helps Automate Processes
If a process is de nable and repeatable, then
it should probably be automated. Many small
and midsize manufacturing organizations
are lled with small tasks that are both
de nable and repeatable, yet a human being is
responsible for ensuring that those processes
are complete. Unless there’s a major reason
why a person must perform these processes
manually, they should be automated. A
manufacturing ERP application can help your
organization discover and automate the tasks
that don’t require human interaction. The
hours saved through automation can then be
reinvested into the organization for projects
that have more value, such as innovation.
In the past, ERP software was a capability
to be relegated to small and midsize
manufacturers’ wish lists, but it’s no longer
a wish list item. To stay competitive, these
smaller manufacturers need to invest in ERP
to optimize inventories, anticipate customer
demands, and automate processes, because
it’s only with these capabilities that a
manufacturer can streamline processes and
stay competitive.
At Columbus, we help our customers digitally transform their businesses
and improve the value realization of their business application investments.
We mitigate the inherent risks associated with implementing, upgrading
and replacing legacy ERP systems. We lead our customers with best-practice
consulting services we have refi ned over thousands of engagements. We take
care of our customers and aspire to keep them for life.
To learn more about how Columbus
can help you get the most out of your
Microsoft solution, contact your local
Columbus o ce.
www.columbusglobal.com
3 ways ERP can streamline manufacturing for small and midsize businesses
The list of reasons why small and midsize manufacturers might choose not to implement an enterprise resource planning (ERP) application is long and includes explanations such as a lack of IT resources, the belief that ERP is only for larger companies, and confidence that the organization has gotten this far without ERP so it can move well into the future without making the investment. The trouble is, organizations that have not yet moved to ERP and don’t have any plans to do so in the future could find themselves missing out on capabilities that can help streamline the business and increase sales and profits.
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