With economic uncertainty, inflationary pressures, and high energy prices looming in the background, manufacturers must take opportunities to enhance their financial efficiency and boost their bottom line through their manufacturing processes.
One way to accomplish this is by ensuring full visibility across the organisation by using an ERP system, empowering manufacturers to make well-informed decisions and effectively manage risks.
Lack of visibility can make it difficult for decision-makers to identify patterns, pinpoint inefficiencies, and allocate resources effectively. This can lead to financial uncertainty, which hampers strategic planning, adherence to budget and risk management.
An Enterprise Resource Planning (ERP) system can help you gain visibility across your manufacturing processes and other processes, enabling you to easily identify bottlenecks, cut down on costs, effectively prioritise tasks and support strategic planning.
How an ERP system provides visibility into manufacturing processes
An ERP system provides visibility by automating many manufacturing processes and provides valuable insights thanks to a central database that brings together information from different departments including finance, manufacturing, sales, inventory and supply chain.
A modern ERP system operates in real-time, providing complete visibility across your entire manufacturing business, from finance to operations, manufacturing and inventory. It also provides valuable insights if you have multiple companies, whether local or global as well as real-time information from multiple sites and locations.
Access to real-time data throughout the organisation allows you to make informed decisions not only in finance but also in areas like stock levels, purchasing and customer orders. This level of visibility leads to improved efficiency.
6 ways ERP positively impacts your bottom line
- Optimise procurement processes.
In addition to providing real-time data and analytics, an ERP system offers the convenience of automating repetitive tasks such as purchase orders and invoices. This not only reduces manual input errors but also eliminates delays caused by paperwork processing. Moreover, the system provides complete transparency into supplier performance through comprehensive reporting tools that track delivery times, quality control issues, lead time management and more. With this level of visibility, it becomes effortless to identify underperforming suppliers and take the necessary corrective measures before they impact the bottom line.
- Workflow automation.
With an ERP system, you can effortlessly create workflow notifications and events. Notifications allow you to send alerts (e.g., via email) based on specific criteria, ensuring visibility into issues, whilst workflow events handle more complex rules like signature approvals, making sure that processes run seamlessly within the system. For instance, you can set up a structured approval process for expenses, where different spending thresholds require different levels of approval.
- Improved production management.
Inventory management is vital for the success of your business, and an ERP system can help you streamline your operations. By reducing overages and improving production and delivery schedules, you can make smarter inventory decisions based on accurate data and efficient processes. No longer will you have to rely on guesswork when it comes to volume. Take control of your inventory and make informed decisions that will positively impact your bottom line.
- Quality control.
Defective materials not only cause delays in product delivery and negatively impact sales, but they also pose a threat to your brand reputation. By utilising ERP software to manage your supply chain, you can effectively assess and record your preferred suppliers and supply chain carriers, while also easily documenting any quality or service issues that may arise.
- Shipping optimisation
Customers need to receive their products quickly. Dealing with a manual tracking process can be time-consuming, labour-intensive, slow, and frustrating, especially when it comes to lost, stolen, damaged, or returned items, as well as late deliveries. With ERP software, you’ll not only have the assistance you need to determine the best shipping options available, but the process will also become more automated, saving you valuable time and money.
- Better cash-flow
The way a manufacturing company handles its invoicing can have a big impact on cash flow. Manual processes not only have a higher chance of errors, but they also make the order-to-cash cycle longer. By using an automated process, you can significantly decrease day sales outstanding (DSO). This not only improves your cash flow but also reduces the number of people needed to process invoices freeing them up for other tasks.
Sage X3 – ERP for optimising and automating manufacturing processes
Investing in an ERP system like Sage X3 Manufacturing, enables you to see every aspect of your manufacturing operation – from procurement and scheduling to shop floor management, inventory control, sales optimisation, and financial management. Sage X3 Manufacturing also offers valuable insights into quality and costs, fostering strategic collaboration and enhancing operational efficiency. Moreover, it comes with out-of-the-box capabilities that empower your business.
An ERP system, like Sage X3 helps to streamline manufacturing processes. By improving your core business functions and enhancing collaboration, you’ll be able to scale your business, boost customer relations, increase efficiency, and ultimately, make a significant impact on your bottom line.
Download our Sage X3 Manufacturing product guide to find out all you need to know about Sage X3 Manufacturing and how it can help you protect your bottom line and automate manufacturing processes.