Over the previous two years, the Covid pandemic created numerous supply chain and logistics problems for businesses across all industries, but along with the aftermath of Brexit, it has formed the perfect storm.
Add to this the microchip shortage, which is creating huge problems with unfulfilled demand and is likely to continue well into the remainder of 2022 and beyond. These challenges have been the catalyst for the acceleration and adoption of digital supply chain solutions, such as Enterprise Resource Planning (ERP). ERP software helps to build more resilience into supply chains by producing integrated real-time views of core business processes; helping manufacturers to make decisions on accurate and timely data.
For example, with real-time information for core business processes, manufacturers can spot problems before they become major issues and plan strategically for supply chain and resourcing issues. They can monitor and ultimately guarantee consistent quality and keep costs under control by confronting inefficiencies in what are increasingly complex supply chains. That’s why many manufacturers are investing not just in ERP software, but an ERP designed specifically for the manufacturing industry to cater for complex supply chain needs.
What is ERP in manufacturing?
ERP is a type of software that manages business activities such as accounting, procurement, project management, compliance and supply chain operations. ERP systems tie together multiple business processes and enable the flow of data between them. By collecting an organisation’s shared transactional data from multiple sources, ERP systems can help reduce and potentially eliminate data duplication and provide data integrity with a single source of truth.
For manufacturers, ERP systems track business resources, such as cash, raw materials, and production capacity; and the status of commitments made by the business, such as customer orders and purchase orders. Manufacturing ERP systems can include modules for many different business processes, such as:
- Accounting and financial management
- Inventory and manufacturing management
- Capacity planning, production planning and control
- Customer Relationship Management (CRM) and customer service
How does ERP improve supply chain visibility for manufacturers?
Supply chain problems are exacerbated when manufacturers are unable to accurately forecast sales and stock levels. To remedy this situation, transparency and visibility of the supply chain and understanding of any gaps are critical – and this is where ERP systems come into their own.
A manufacturing ERP system ensures that manufacturers have visibility across their whole business by combining all systems and processes into one. By integrating purchasing, inventory, finance, sales, and production, to name a few, ERP provides the opportunity for increased efficiency, responsiveness, and productivity. This in turn helps manufacturers to provide a better customer experience, fulfil as many orders as possible and mitigate supply chain risks.
Sage X3 – ERP for manufacturing
Investing in an ERP solution such as Sage X3 Manufacturing helps you to manage your entire manufacturing operation – from procurement and scheduling to shop floor, inventory, sales and financials. Sage X3 Manufacturing also provides insight on quality and costs to promote strategic collaboration and improved operational efficiency and provides out-of-the-box capabilities such as:
- Make-to-order or project manufacture by batch or process
- Discrete manufacturing
- Technical data setup
- Replenishment and planning rules
- Master Production Schedule (MPS) and Materials Requirements Planning (MRP)
- Work plan and manufacturing analysis
- Interactive capacity planning
- A variety of material tracking methods
- Cost accounting
The inclusion of modules such as MRP and MPS in Sage X3 Manufacturing enables manufacturers to order materials/products to arrive in a timely fashion and in the correct quantities, rather than keeping large inventories, thereby improving cash flow.
Realise the ERP advantage through manufacturing ERP experts
When it comes to implementing Sage X3 Manufacturing, it’s beneficial to work with a dedicated team of experts with years of experience in implementing ERP solutions, specifically for manufacturers. Entering a partnership for your ERP journey helps to ensure your project is delivered within realistic and agreed budgets and timescales, and that you can continue to receive support long after your implementation is complete.
With the inherent benefits of ERP for manufacturing, now is the time to look ahead and ensure that your company is fit to be a profitable business in 2022 and beyond. Whatever happens in the future of supply chains, ERP can support manufacturers of all sizes to weather most storms.
Download our Sage X3 Manufacturing product guide to find out all you need to know about Sage X3 Manufacturing and its key capabilities.