Understand and apply the advantages of manufacturing ERP

///, Inventory Management/Understand and apply the advantages of manufacturing ERP

Because enterprise resource planning systems cover such a wide range of operations – nearly all of most manufacturing and warehousing businesses' needs – it can be difficult to pinpoint and pick out specific benefits. The advantages include specific components for the production line and storage operations, such as systems for barcode data collection, as well as item tracking and increased financial and operational visibility.

Manufacturing Business Technology recently profiled some of the most advantageous pieces of ERP for companies in this market, pointing out that one of the biggest benefits is how all of these components function together. ERP provides an end-to-end inventory management solution that, depending on the depth of insight desired, starts with the raw materials used in the production process. Items can be tracked as they come off the production line and are bundled and stored inside the warehouse.

Managing stock and having instant insight into availability doesn't only create greater efficiencies in production, it also enables better customer service. Purchasers can be appraised of available items as well as timetables for future production, allowing them to make informed decisions that benefit manufacturers. When the ability to track sales orders is incorporated into an ERP system, complete visibility into product creation and distribution is realized.

Modular systems target efficiency
For manufacturers, using a component-based ERP system like Microsoft Dynamics NAV allows for unparalleled customization. Companies can select not only the features they want for their systems but choose between different modules of varying complexity and cost. In this way, money budgeted for ERP is put to better use by being applied to specific concerns instead of a monolithic, all-in-one system that is relatively inflexible.

When multiple locations for production and storage are added to the mix of concerns for a business, the value of flexible ERP becomes even more noticeable. Research from Aberdeen Group shows that interoperability and information sharing are among the biggest concerns for manufacturers. Modular ERP allows companies that have multiple locations to focus on these issues, and businesses that operate out of a single area to dedicate less resources to such efforts.

In general, modular ERP provides an advantage because it breaks up the big package of offerings carried in traditional systems into more easily applied components that companies can pick and choose, creating the most effective possible system.

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.