Enterprise resource planning software platforms are, on the whole, an incredible boon to businesses in the various segments of the manufacturing and production industries.
ERP helps organizations realize incredible efficiencies and cost savings as well as manage both day-to-day operations – like an inventory management system – and longer-term functions of a business. However, no program, strategy or plan is a magic bullet capable of solving any and all problems, and ERP implementation is not an exception. Companies need to focus on the unique needs of their individual operations to maximize the effectiveness of ERP programs and reap the most benefit from them.
Manufacturing.net recently pointed out a few ways that businesses can assess their ERP use, determining how to best add functionality that is relevant to their specific needs.
Look to adaptable technology
The foundation of ERP can be built up by using a more modular system that enhances flexibility and allows easy implementation of various additional components. Microsoft Dynamics NAV is one such offering that fulfills these needs, letting companies add in NAV module when a new circumstances arises or a part of the business further develops, necessitating a change in the use of ERP software.
Proper and prudent use of available data should be another concern. When using predictive components of ERP that provide forecasts relating to production and inventory management levels, companies should know that they need to have, in general, at least two years worth of information about product sales and inventory to provide basic, accurate projections.
If your company is considering using ERP for the first time or adding modules to your current implementation, be sure to consult with your provider to maximize the usefulness of these additions.
Best-in-class indicators to keep an eye on
The top ERP providers give their clients the best solutions for their unique situations, providing the most effective systems and modules to create the best processes and workflow. Some specifics to look out for, according to research from Aberdeen Group, are a projected inventory accuracy of 97 percent or above, an 18 percent reduction of overall inventory levels and 96 percent manufacturing schedule compliance.
By understanding the best ways to use ERP and what to look for in providers, companies can make better decisions and realize the best rewards.
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.