While manufacturing continues to grow as an industry, the rate of development is currently less than expected some parts of the world. That sluggish progress, mostly in developing areas, creates a chilling effect on the overall economy.
International association the Organization for Economic Cooperation and Development said some unique factors have dropped projected rates of increase for 2014 relative to the same metrics from the previous year, according to the Associated Press. These events included the U.S. federal government shutdown in late 2013 and severe winter weather. While the good news is that manufacturing isn't suffering from a general economic downturn in developed areas like the U.S. and Europe, deficiencies in other areas may influence overall fiscal health.
Manufacturing businesses are one of the highest users of enterprise resource planning software, with Aberdeen Group reporting that 72 percent of such companies have some form of a management platform in place. The slow manufacturing economy may spur decision making at organizations that have deficient or outdated ERP systems in place.
Locating opportunities and creating time and cost efficiencies during a down period can help improve a company's bottom line and carry those savings and best practices into more prosperous economic climates.
Consider a single, flexible solution
Businesses that currently use management software are often using too much of it. Aberdeen reported that the average company surveyed in its study had 1.9 separate ERP systems in place. This may be because of deficiencies in a single system in dealing with specific business functions and handling particular, unique concepts related to a market segment or individual operation
The use of component-based ERP, like the Microsoft Dynamics modules that work with the base Dynamics NAV program, can alleviate the need for multiple systems to be used by a single business. Instead of having to seek out more than one complete system because of specific features, add-ons can be used to increase functionality in areas where companies need them most.
Whether warehouse operations, factory production or financial concerns need special attention, resources can be directed toward the appropriate area without increasing overall spend on less important areas of the system. Once the ERP software is up and running, the benefits it creates will continue as economic conditions change.
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.