ERP solutions for manufacturing: How to find the right one for your organisation

Global supply chain disruption, rapid technological evolution and changing buying and selling habits have meant that manufacturers have had to deal with some rapid and radical changes over the past few years.

As a result of these challenges and in a bid to optimise operations, improve customer service, and build resilience in their supply chains, manufacturers are increasingly relying on manufacturing-specific Enterprise Resource Planning (ERP) systems to run multiple aspects of their organisation.

The right manufacturing ERP system gives your key decision-makers a holistic view of business – increasing productivity and helping accelerate compliance, integration and growth with better insight into costs and margins. Truly innovative manufacturing ERP software supports enterprise growth by automating more processes as your business expands, providing greater control over complex operations and keeping overhead costs low.

Key components of an ERP system for manufacturers

Look for a flexible ERP solution for manufacturing that includes six key components:

1. Formula and recipe management

Built-in automation for formula and recipe management helps reduce errors, increase product consistency, improve inventory management and advance production.

2. Quality control

The ability to record quality specifications for different products, at different milestones in the manufacturing process, enables you to monitor the quality of materials input and ensure that the finished product meets necessary standards.

3. Lot (batch) tracking and production traceability

Recording the identity of any lot or batch-controlled ingredient and having ‘cradle to grave’ process traceability is essential in meeting industry and government regulations for warranties and quality assurance. It also enables you to assign inventory to meet specific customer needs.

4. Regulatory compliance

Having data available for compatibility with requirements from regulatory bodies, so that data is automatically gathered and presented correctly, can reduce administrative overheads and help your organisation meet its obligations more effectively.

5. Production schedule management

Tracking and recording time-based production data is essential to improving efficiency – making it easier to prioritise resources and balance headcount across labour-intensive tasks.

6. Supply chain management

Strong visibility improves supply chain transparency and reduces environmental, performance, and process risks. Having effective scanning and bar-coding functionality helps ensure that your materials and products are properly tracked.

Manufacturers have different needs

Whilst the above components are standard for many manufacturers, every manufacturing business is unique, with different processes, tracking systems and problems. Your manufacturing business requires an ERP system tailored to your specific needs. To help you narrow your search for the right solution, please find key functionality for each of the different types of manufacturing below:

  • Light assemblers (or assembly manufacturers)

    • Bill of Materials
    • Light assembly
    • Kitting
    • Cycle counting
    • Serial/lot tracking
  • Discrete manufacturers

    • Bill of Materials
    • Component allocation
    • Work orders
    • Material requirement planning
    • Light assembly
    • Kitting
    • Routing
    • Manufacturing resource planning (MRP)
    • Cycle counting
    • Serial/lot tracking
    • Bin tracking
  • Job shop manufacturers

    • Bill of Materials (depending on the nature of the business)
    • Material requirement planning
    • Routing
    • Project accounting
    • Cycle counting
  • Make-to-order (MTO) manufacturers

    • Bill of Materials
    • Component allocation
    • Work orders
    • Material requirement planning
    • Kitting
    • Routing
    • Project accounting
    • Cycle counting
    • Bin tracking
  • Process manufacturers

    • Bill of Materials
    • Component allocation
    • Work orders
    • Material requirement planning
    • Routing
    • Manufacturing resource planning (MRP)
    • Cycle counting
    • Serial/lot tracking
    • Bin tracking

Finding the right ERP solution for manufacturing

It’s imperative to choose the right ERP system and implementation partner to guarantee the successful implementation of your manufacturing ERP system, whilst future-proofing the growth of your manufacturing operation.

We have put together a comprehensive buyer’s guide to selecting a manufacturing ERP solution that delves into 14 questions you can ask your ERP vendor/consultant to ensure you select the right ERP system with the right industry-specific functionality.

Download the Manufacturing ERP buyer’s guide today to help you identify the solution that best fits your long-term strategy to achieve manufacturing excellence.

2024-01-31T14:29:16+00:00July 12, 2023|Blog|
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