The manufacturing industry is growing rapidly now. These industries are a big part of any country’s progress. However, running a manufacturing industry is not an easy task. There are a lot of things to manage and look after.
Think of this: when you are running such a big industry, you are torn between multiple things at a time. You have to be answerable for a lot of questions, like:
- What happens when inventory runs out of space?
- Have the new raw materials you ordered still not arrived?
- How about the statistics from last month?
- Who is keeping track of the finances?
- How will you track how much progress your business has made?
- Are you gonna sit around and perform calculations?
- Do you have time to manage all the spreadsheets?
Let’s say you hire someone to do all this for you! But will it still not take the same amount of time? Whoever you are hiring is still a human being; they will take time to do their work. But in such a fast-paced company, do you have time to wait?
Then what can you do? I have all the answers for you. Keep on reading.
How ERP Fits The Factory Flow
In a manufacturing company, things move at a very fast pace. You are constantly dealing with new problems and need fast solutions. You need plans and schedules. Everything needs to happen in a flow.
The payments with buyers and suppliers need to be cleared on time. If there is a delay in payment, there will be more delays in shipments. You hav eot make sure there is a proper function between multiple departments. How are you wondering?
Let’s break it all down into one scenario: You are running a big manufacturing company. You deal with hundreds of customers daily, and you know that as soon as a customer comes on board, you need to send them the pay order before they change their mind.
So you need order, you need steps, and you need everyone to act fast. The finance department needs to know that the client has agreed to be on board, so they can send them the payment order quickly. As soon as the payment gets cleared, the log needs to be sent to the shipping department so they can load the material and get to work. But there is a problem!
If you try to manage all this manually, the work slows down, and your work becomes more prone to errors. Then what is the solution? ERP software for manufacturing is the solution to all your problems. It creates a smooth workflow and allows you to manage everything from one place.
Features That Matter Most In Manufacturing ERP
When selecting the right ERP software for manufacturing, you need to make sure that it includes all the features that are important for your company. Some of these features are as follows:
MRP, MPS, APS
Plan materials and machine time. For example, APS shifts a job to remove a bottleneck.
BOMs and Routings
Multi-level BOM, alternate items, setup, and run times. For example, a quick cost roll-up before you quote.
Inventory Control
Cycle counts, bins, multiple sites, safety stock, Kanban signals. For example, the buyer gets a low stock alert before a stockout.
Shop Floor Execution
Digital traveler, labor capture, scrap logging, and real-time WIP. For example, the supervisor posts output and the schedule updates.
Quality Management (QMS)
Incoming, in process, final checks, SPC, non-conformance, CAPA. Example, failed lot triggers hold and supplier alert.
Maintenance (CMMS)
Preventive jobs, spare parts, downtime codes. Result: better OEE.
Procurement
Approved vendors, lead times, blanket POs, and landed cost by item.
Finance and Costing
Standard and actual cost, variance analysis, and fast month-end close.
Analytics
Dashboards for OEE, OTIF, scrap rate, plan adherence, and margin by SKU.
Day In The Life After ERP, A Simple Story
Morning starts on one screen. The planner opens the dashboard and sees today’s sales orders, material positions, and capacity at a glance. MRP suggests the buys, APS lays out a realistic schedule. The buyer gets a single exception list, raises POs with the right vendor and the right price, and moves on.
Inbound is simple. Stores receive with barcodes, lots, and serials are traceable in seconds. On the line, operators start and finish jobs on screen. Scrap is logged as it happens. Quality checks are built into the flow, so approvals take minutes. If something fails, the system creates a non-conformance record and a CAPA task so nothing is forgotten.
By afternoon, dispatch works from clean pick lists. Available to promise dates are honest because stock and schedules are live. On time in full stays high, and customers notice. Finance does not chase numbers at the end because costs flow into one ledger as work happens.
Close the day with clarity. Managers review OEE, slow movers, and margin by product on a simple dashboard. Fewer surprises, fewer handoffs, and more improvement. The factory runs on facts, not guesswork.
ROI and KPIs manufacturers should track
ERP must pay back in cash and time. Track a small set of KPIs that tie features to money and speed.
- Inventory turns up, working capital down. MRP, safety stock, and cycle counts raise turns and keep stock accuracy above 95 percent.
- OTIF rises. Live ATP, clean schedules, and accurate pick lists push on-time delivery above 90 percent.
- OEE improves. Preventive maintenance and faster changeovers reduce downtime and lift overall equipment effectiveness.
- Scrap and rework fall. QMS with SPC, non-conformance, and CAPA cuts waste by 10 to 20 percent.
- DSO drops. When orders, shipments, and invoices match, credit limits and reminders bring cash in faster.
- Faster close. Costs post to one ledger as work happens, and the month-end finishes in three to five days.
Most plants see payback in months, not years, driven by fewer stockouts, faster billing, and lower waste.
Conclusion
After reading this blog, you can understand how important ERP software is for manufacturing companies. It allows you to not only create a proper workflow but also makes your daily workloads easier and smarter.
So Book A Free Trial Today & Give Your Business The Opportunity It Deserves.