Benefits & Advantages of ERP For Manufacturing Industry

By Mukesh Variyani November 1, 2019 Business

Benefits of ERP for Manufacturing

The vast and complex nature of the manufacturing industry poses a lot of challenges in managing the day to day activities. It creates an inability to manage all the operations effectively and causes a sharp descent in the productivity levels. The growing competition among businesses has made it increasingly important to deliver high-quality products on time and provide satisfactory services. Your customer might anytime move to your competitor who is just a click away. Here are the key benefits of using ERP for the manufacturing industry that will help simplify your business and revamp the organization.

7 Key benefits of ERP for Manufacturing

1. Automate and optimize workflow

Growing complexities create a lot of pain-points for the manufacturers. For example, failure in accurately keeping track of inventory can create an imbalance between the purchases and the supply. With ERP for manufacturing, re-order inventory levels can be set which ensures on-time purchases with the automated purchase requisition. All the data will be available in a centralized database. There will be an end to end visibility of the processes, fostering fast and correct decision-making. The employees will be able to monitor the processes in real-time, which will help them act upon the requirements promptly and avoid any unwanted circumstances.

2. Get a boost in productivity levels


Sometimes the biggest gain in productivity will come from cleaning the cobwebs, dealing with old businesses, and clearing the desks.

- David Allen

ERP helps manufacturers manage a huge amount of data with ease over a centralized database. By having all the accurate and real-time information on fingertips, the concerned authorities can streamline the processes and strategize their operations. Effective collaboration creates transparency and eliminates all the barriers, therefore increasing overall productivity. Automation reduces the manual tedious tasks and helps employees better manage their time. The system generated reports will help you in doing data analysis to respond to the changing market conditions quicker. This will also help you eliminate the errors and forecast the coming situations to act on new opportunities.

3. No compromise in quality!


Quality is remembered long after the price is forgotten.

- Aldo Gucci

ERP for manufacturing will make your workforce follow the standard procedures and pre-defined instructions. It will also ensure the flow of accurate data with the least deviations that ensure maximum quality. Real-time visibility of processes helps improve product quality by giving an insight into what needs to be improved. Having an ERP for manufacturing ensures that everyone in your team is on the same page throughout the course right from the procurement of the raw material to the delivery of the product. ERP gives the ability to create a multi-level Bill of materials (BOM), which helps in product management and to ensure quality.

4. Make informed strategic decisions

ERP helps you get a 360-degree view of your business processes in operation. As the data is accurate and visible in real-time, manufacturers can foresee the situations and can make the right, spot-on decisions. This will help you remain aligned to your goals and ensure you are on the right track. Having all the information in a single database and a single application frees your employees from searching through various excel files for information. You can also integrate your accounts with the manufacturing module of ERP. This will not only help you manage your finances with ease but also help you make the right financial decisions.

5. Reduce your manufacturing costs

Making use of disparate systems to manage a complex business environment poses a problem to the officials. You might overlook the problems that need urgent attention. ERP for manufacturing helps efficiently manage the supplies to get resource optimization. It also ensures that you always have the right inventory levels to prevent both surplus unused stock and insufficient stock. The perk of optimizing your inventory is that it eliminates the extra costs that you would have to incur. Companies that have implemented ERP have reduced their manufacturing costs by 20% and experienced a rise in their efficiency and productivity.

6. Never let down your customers


What is happening inside a company is felt on the outside by the customer.

- Shep Hyken

The manufacturing industries have to take care of delivering the products to the customers on time. Cutting down on the late deliveries will boost your customer satisfaction levels, build your reputation and help you stay ahead of your competitors. ERP for manufacturing helps you to track your inventory in real-time, precisely plan your demand and production, get an end to end visibility in the supply chain, and effectively manage your distribution channels. All of these factors help the manufacturers feasibly manage all the information to ensure on-time deliveries.

7. Ensure data in safe hands

Manufacturing is one of the industries that are very prone to cyber threats. There might also be a risk of loss of important data due to mismanagement. Data is the powerhouse of your company and everything depends directly or indirectly on the data that moves across your enterprise. With ERP for manufacturing, you have a system that will not only help you manage the assimilation and flow of data but also ensure that it is secure. It provides an automated backup process so that you never lose any vital information. Storing data in a single database ensures that no matter how vast or complex your business is, all information can be accessed only through a single door!


With the help of ERP software for your manufacturing company, you can monitor and control your expenses, have live inventory tracking, ensure the right production planning and execution, and have an end to end visibility in the processes. It will help you not only provide the right customer service but also ensure that you never have to compromise on the quality. Now you won't have to be unsure while taking strategic decisions because ERP Software will help you take sure-shot decisions at the drop of a hat!


Mukesh Variyani

MD, Finbyz Tech Pvt Ltd

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