The majority of organizations that have gone through an ERP implementation in past years likely saw great long-term benefits, but how can these tools help out shop floors right away? Industry professional Bob Vormittag wrote on Manufacturing Business Technology that 2013 was a big year for the technology, and there are now benefits that companies can expect to get almost instantly with adoption in the new year.
The first benefit is improved compliance compared to what organizations have likely seen in past years.
“With regulations in many industries being re-evaluated, such as the pharmaceutical, food distribution and food processing industries, organizations must ensure that all business processes are being tracked and filed appropriately,” Vormittag wrote. “ERP solutions provide organizations with enhanced record keeping capabilities, assuring that industry specific compliance regulations are being followed and documented.”
A recent white paper from Dynamic Manufacturing Group and The Aberdeen Group found that 96 percent of the best-in-class manufacturing businesses saw improvements to internal scheduling compliance by adopting ERP. These businesses had other benefits, such as 96 percent who saw on-time deliveries and 98 percent who saw improvements to inventory accuracy.
More collaboration between employees is likely a huge gain from ERP implementation, the white paper said. Sixty-eight percent of best-in-class organizations said they integrated manufacturing with ERP services, 55 percent with product design and 47 percent now give real-time collaboration across departments.
Other benefits, according to Vormittag, include:
– More and improved access to social media, mobile devices and cloud computing
– Data and documents become more traceable, allowing the organization to be more accountable
– Automation will see big changes for the better with ERP
– Customer relationships will be able to be managed more easily once ERP is intertwined with business apps
Cloud could be a huge step in right direction
IT professional Rick Blaisdell wrote on his Ricks Cloud blog that adopting a cloud-based ERP system could be the best thing an organization could do as far as staying modern and efficient. Utilizing this technology, he believes there will be increased security, improvements to return on investment, less money put up front for the software and no time spend installing a complex piece of software.
“By eliminating the costs and complexities of installing and integrating additional hardware to support the ERP, enterprises that use cloud-based solutions don’t have to hire additional technical staff to support the application on an ongoing basis,” he wrote.
Learn how to define your ERP strategy by downloading the white paper entitled “ERP in Manufacturing: Defining the ERP Strategy” from the DMS website today.