Achieve manufacturing excellence with six essential value propositions in manufacturing ERP.

Today, Enterprise Resource Planning (ERP) software is a widely recognised tool in the business world. While some may be experts in ERP, others may only have a basic understanding of its accounting, planning, and reporting functions. This article is tailored for those looking to explore key value propositions in manufacturing ERP, showcasing how they can significantly boost profitability in operations.

Understanding these key advantages will provide you with the insights needed to evaluate your business performance and determine if investing in manufacturing ERP solutions is the right move for your company.

Find out how manufacturing ERP solutions can solve 6 key manufacturing value propositions below:

1. Accounts receivable

Utilising manufacturing ERP enables manufacturers to streamline their billing process with a range of efficient tools:

  • Automatically generating invoices upon shipment.
  • Sending electronic invoices and receipts.
  • Staying informed with ageing reports and alerts.
  • Matching invoices and processing payments seamlessly.
  • Easily resending invoices and invoice copies during collection efforts.
  • Accessing customer and payment history for enhanced decision-making.

2. Inventory control

One of the key benefits of manufacturing ERP solutions is its ability to improve inventory control, leading to substantial cost savings and empowering manufacturers to:

  • Anticipate the necessary raw materials by carefully analysing the Bill of Materials (BOM) and sales orders.
  • Only reorder raw materials when they are truly needed.
  • Produce finished goods based on previous demand and current sales orders.
  • Immediately document finished goods upon production.
  • Promptly remove finished goods from inventory once they are shipped.
  • Identify any slow-moving or excess inventory items.


Here are some ways manufacturing ERP can help streamline your quoting process:

  • Utilise past quotes to kickstart new projects and compare options.
  • Take charge of pricing with tools for optimisation and control.
  • Build accurate BoM for precise and efficient quoting.
  • Stay informed on current raw material costs for better expense management.
  • Keep tabs on machine and labour costs to make well-informed decisions.
  • Rely on data-driven production rates and costs to boost efficiency and profitability.

4. Costs

Manufacturing ERP accurately calculates standard costs by analysing:

  • Current use of raw materials.
  • Current labour consumption.
  • Current machine efficiency.
  • Actual production efficiency.
  • Current scrap rates.

Standard costs are determined based on a range of factors, such as materials, production rates, and labour usage.

5. Inventory valuation

Explore the benefits of incorporating manufacturing ERP solutions for precise inventory assessment:

  • Automatically record inventory purchases (in-flows).
  • Promptly update raw materials quantities as they are used in production (consumption).
  • Maintain accurate tracking of finished goods quantity and value (conversion).
  • Monitor and manage scrapped or spoiled raw materials (waste).

6. Scheduling

Manufacturing ERP boosts efficiency by:

  • Automatically scheduling production tasks in just minutes, considering all factors like orders, materials, machine availability, and labour.
  • Quickly adjusting schedules in real-time to handle unexpected events.
  • Minimising downtime for machines and workers.
  • Enabling expedited tasks with minimal disruption to regular operations.
  • Optimising the use of specific tools and equipment based on predictive analytics.

These are some of the key value propositions that could benefit you. Feel free to download our guide on Eight essential value propositions in manufacturing ERP for more detailed information and additional value propositions.

We offer a range of guides that provide more insight into Sage X3. Here are three that might resonate with you:

ERP Business Case Template

Reimagining Manufacturing Guide

Sage X3 Manufacturing Guide

If you would like to discuss your project with us, please contact our team or book a tailored Sage X3 demo

2024-04-02T10:36:00+00:00April 2, 2024|Blog|
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