ERP for Manufacturing

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The surest foundation of a Manufacturing concern is quality. After that, and a long way after, comes cost
– Andrew Carnegie

A manufacturing concern deals with the creation of products which deals with processing, preparation of goods at every stage. It deals with the conversion of raw material to the ultimate finished goods that comes in the hands of consumers. Manufacturing industry is in itself a vast one that has many sub categories.

From decades manufacturing industry is operating on a manual system which includes hard copies of invoices, maintaining records of inventory, recording and clearing orders from suppliers and much more. But as the organization are expanding and diversifying day by day, it has become very difficult to main everything in a manual way. Here comes the need for a solution such as ERP Software that records and maintains each and everything in a systematic manner.

Here’s everything you need to know about ERP for manufacturing industry.

Why It Is Required?

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Continuous Learning is the minimum requirement for success in any field
– Brian Tracy

Every business aims to grow and improve and it makes it essential to simplify and follow the methods that can save time. Manual recording of each and everything is a very tedious and time-consuming task. So in order to record everything automatically in a systematic manner software is required that works on real-time basis and everybody have access to it. An effective management of all the manufacturing processes helps to get a competitive edge in the business environment. Key reasons requirement of ERP in manufacturing are:

  • Efficient production planning

  • Keep track of work order in progress

  • Allows efficient inventory management

  • Ensures workstation and workforce optimization

  • Fix liability for each quality checks

Types of ERP in Manufacturing

In the manufacturing industry, there are different types of sub-sectors such as Engineering, Chemicals, and Retail etc. Thus the classification of ERP is also required on certain basis. Below are the kinds of ERP for manufacturing:

Discrete Manufacturing

ERP for Discrete Manufacturing

This type of manufacturing companies includes all those organizations that assemble the different products to create a finished product such as in electronics, automotive or in material sectors. ERP for this type of manufacturing deals in managing records of demand patterns, serialized production, suppliers information and order tracking etc.

Process Manufacturing

ERP for Process Manufacturing

Companies that come under the category of process manufacturing are the ones that put together formulas or different components to make a final product such as chemical, food and beverage sector. ERP modules for manufacturing in this is helpful to record complex recipes and formulas, quality management, waste management, life span of the products.

Mixed Manufacturing

ERP for Mixed Manufacturing

This type of ERP software for manufacturing records both types of processes for the companies that deal both in discrete as well as in process manufacturing.

Benefits of ERP for Manufacturing

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Continuous improvement is better than delayed perfection – Mark Twain

Implementation of ERP Software is the answer to many problems related to management in the manufacturing industry. The industry in today’s business environment is very dynamic and innovating rapidly. For being at the same pace as the changing market, latest technology is a must as ERP Software has various benefits, some of them are as follows

Reduction of Costs

Reduction of Costs

Controlling cost is one of the priorities of every business entity. Management of every small detail in an automated way saves a lot of time of workforce allowing them to focus more on strategic decisions in business, thus resulting in the reduction of costs.

Real-time information

Real-time information

ERP for manufacturing helps in providing real-time information on inventory, production in process, workstation utilization, etc. This allows management to increase efficiency by optimizing resource utilization.

Flexibility and competitive edge

Flexibility and competitive edge

ERP for manufacturing is generally customizable and provides flexibility to every type of manufacturing sector as per their own specific needs. It also helps in gaining an edge over its competitors.

Benefits of ERP for Manufacturing

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“Time is needed to convert all ideas and added values into tangible products that benefit the world. - Sunday Adelaja

The major key benefits of ERP system in the manufacturing industry are as follows:

  • Reduces operating costs

  • Standardize the business processes

  • Supply chain management

  • Aligns with business strategic goals

  • Maintains the quality of product

  • Improves the efficiency

Conclusion

ERP for Manufacturing provides end to end solution to every kind of industry by increasing the efficiency of the business and helping in its growth in the market. But given the complexity of operations, ERP plays an important role in the manufacturing industry by keeping track of orders and delivery dates, production planning and scheduling, optimizing delivery time, and management of waste and other activities related to manufacturing. Doing everything by manual makes it very difficult in the growing dynamic environment and brings a vast possibility of errors and failures. It centralizes and integrates all the operations and departments in a standardize way. It also helps in facing major challenges faces by manufacturers. Management and security of data becomes advantageous in longer run to achieve the objective of organizations and increasing profits and productivity.

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“Almost all quality improvements come via simplification of design, manufacturing, layout, processes, and procedures - Tom Peters

Other Modules of ERP

Account

Accounting is the language of Business - Warren Buffet.

Account

Accounts module delivers insight into the key account needs of your organization and lets you manage the organizational expenses by delivering valuable insights. It allows you to automate financial and accounting activities such as Sales Invoice, Purchase Invoice and Payment Entries. You can also manage your assets with automated depreciation entries at selected period.

  • Multi company accounting with possibility to get combined accounting reports.

  • Automated payment reminders for your receivables.

  • Easy Integration with CRM.

  • Multi-currency accounting for export/import and hedging.

  • Manage term loans with scheduled automated ECS accounting entries.

  • Detail analytical reports on sales, purchase, gross profit.

CRM

If you are not taking care of your customer, your competitors will. - Bob Hooey

CRM

The CRM Module of ERP solutions allows you to optimally manage your relationship with the customers by providing you a broader range of functionalities that are specially designed to improve your customer service. Say no to searching multiple platforms like mails to accounting software to get 360 degree view of customer, you can get conversations, orders, invoices, deliveries and payment details all on single page.

Features:

  • Manage full conversion cycle from Lead ->Inquiry ->customer management.

  • Never forget to do follow-up calls on time through system reminders.

  • Time line feature like Facebook for each customer/lead allows you to view all mail/phone conversations on single page.

  • Make delegation and monitoring of tasks task more efficient through system generated escalation mails.

Inventory

Inventory is money sitting around in another form. - Rhonda Adams

Inventory

Stock Inventory management is heart of any ERP. Here you can not only check the current stock levels with valuation, but you can also see projected quantity of stock based on purchase orders, sales orders and production orders in hand. The versatility of this ERP makes stock management module highly suitable for all forms of businesses.


  • Manage exact location storage space though Tree structure of warehouse.

  • Possibility of Serial No/Batchwise inventory management.

  • Generate product bundles selling multiple items together.

  • Create multiple price lists for each item, including multi-currency price list.

  • Allow seasonal discounts or offer special pricing to loyal customers through Pricing rules based on customer, Customer Group, Territory or Season.

  • Strong quality control based on predefined inspection criteria to be filled in quality check before receipt of delivery of item.

Purchase

You sell on Emotion, But you justify a Purchase with Logic. - Joseph Sugarman

Purchase

Manage the purchase through workflow of material request. You can create request for quotation and send it in mail to multiple suppliers with the click of a button. Ensuring multiple quotation are received for the requirement and choosing the best quote for purchase order, you can improve efficiency of your purchase department. In fact, this can improve your bottom line by bringing down your cost of goods.

  • Manage your sourcing activities by comparing quotes of multiple suppliers.

  • Send request for quotation to multiple suppliers on click of a button.

  • Item-wise or supplier-wise purchase price analytics.

  • Rate suppliers based on various factors from delivery time to quality of product.

  • Maintain buffer stock with automatic purchase requisition if available quantity in warehouse is below defined level.

Manufacturing

This is where the real work gets done.

Manufacturing

The Manufacturing part of the ERP has been designed to serve businesses in diverse industry backgrounds. The versatility of the software allows SMEs to manage their manufacturing activities with minimal data entries. The system is capable of managing cost of manufactured goods based on raw materials consumed and operational cost based on manufacturing activity time.

  • Manage workstations and standardize operations to be performed with benchmark timing.

  • Allows Multiple Bill of Materials(BOM) for single item with variation in manufacturing formula.

  • Manage not only inventory but also operational cost and workstation availability through BoM.

  • Production planning tool for scheduling manufacturing activities along with sub-assemblies.

  • Production analysis for each batch against the benchmark for getting possible areas of improvement.

Human Resource

You don't build a business. You build People and then people build the business. - Zig Ziglar

Human Resource

Human resource is most important for but ignored part of most of SMEs. The reduction in time wasted in non-core activities and goal-oriented approach increases the productivity of employees. Automation of attendance, payroll and expense claim allows better tracking and reduced redundancies.

  • Manage Employee attendance.

  • Automated Payroll Processing.

  • Leave/holiday management.

  • Expense claim management.

  • Job openings and applicants.

  • Professional Appraisal system.

  • Training and feedback.

Support

Delivery Excellence for creating magical customer experience.

Support

Poor customer service and support costs companies billions of dollars each year. According to Customer Engagement Index by almost half of consumers will stop buying from a company and move to a competitor within one day of having poor customer service. Best brands are known for their best in class service and support. ERP helps you create a system for tracking and resolving customer issues. You can also manage guarantee/warrantee of your products.

  • Ticketing system for issue recording, where tickets can be automatically created through customer email.

  • Possibility of assigning issues to relevant person for resolution.

  • Automated email/sms to customer on resolution of issue.

  • Manage invoicing for maintenance/repair service for items out of warrantee or AMC.

  • Take customer feedback against service to maintain quality standards.

Exim

The Foreign Trade Should be Fair Rather than Free. - Lyn Nofziger

exim

Given the complex nature of export import business we designed special module, which will allow you to manage your requirements more effectively. As you must deal with many regulations the accuracy of the documents is most important for the organization. There are also local lows providing special benefits to exports like Duty drawback, MEIS, etc which require special accounting treatment. Import / Export finance is also has multi-currency nature and many times it come with fixed repayment date.

  • Generate all export documents like Draft BL, Shipping Invoice, Customer Invoice, Packing List, etc on single click.

  • Manage export/import finance with maturity date.

  • Letter of credit facility with drawn amount, conditions and maturity.

  • Manage forward booking in system and check your hedging ratio.

  • Calculate Duty drawback, MEIS and IGST on exports and make accounting entries for these receivables.

  • Manage calculations of Export and Import against Advance Authorization license.

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