Introduction
Why is ERP software for manufacturing becoming such a priority for so many businesses?
Have you noticed how the recent major changes and disruptions in manufacturing and supply chain operations have overwhelmed even the best-run companies?
As businesses deal with increasing partner networks for supplies and materials, they become more exposed and less agile. Legacy systems struggle to keep up with rising customer expectations for speed and customisation, and recent global disruptions have only worsened things.
To not just survive but thrive in the ever-evolving business landscape, manufacturers are turning to solutions that unify, connect, and streamline their operations. This gives them the visibility they need to manage everything effectively and share data across the business on a single, shared platform.
ERP Software for Manufacturing Industry
The most significant benefits of a manufacturing ERP are achieved when companies choose solutions customized to their unique requirements. ERP systems typically help protect cash flow, optimize operations, and forecast decisions that support company goals. They also aid in efficiently managing inventory, improving supply chain visibility and warehouse efficiency, enhancing customer experiences, and closing high-quality sales.
Real-time Transparency
Manufacturing ERP systems provide transparency in material usage by automatically updating inventory levels whenever components are used in production. This proactive approach prevents unexpected costs and supports informed procurement decisions.
Demand Prediction
Using historical data and analytics, ERP solutions aid in demand forecasting, allowing manufacturers to anticipate market trends, align production schedules, and proactively meet customer needs.
Capacity Planning Optimisation
ERP solutions for manufacturing help develop precise capacity planning by analysing production data, lead times, and necessary resources.
Effective Cost Management
These solutions allow for live monitoring of job expenses and product consumption, enabling accurate cost calculations and identification of improvement areas. This capability helps identify high ROI products and adjust pricing strategies accordingly.
Real-time Collaboration
ERP solutions improve communication and collaboration across departments by providing access to a shared pool of real-time data, fostering a more cohesive and synchronised approach to manufacturing operations.
Optimised Quality Control
ERP systems seamlessly integrate quality control by documenting non-conformance data and setting inspection checkpoints at various production stages. Real-time data analysis helps identify trends and prevent potential quality issues in advance.
Adherence to Regulatory Standards
ERP systems include features that help ensure compliance with regulatory requirements, crucial in industries with strict standards. This helps protect the company from legal issues and maintain compliance.
What are the top ERP solutions for manufacturing?
Forbes recently evaluated leading ERP solutions tailored for the manufacturing sector. The research assessed cost, features, specialisations, ease of use, customer service quality, and more. Here are the ERP solutions for manufacturing that made the list:
- Microsoft Dynamics 365 Business Central
- SAP Business One Professional
- SYSPRO
- QT9
- Epicor Prophet 21 ERP
- Oracle NetSuite One World
- Acumatica
Microsoft Dynamics 365 Finance, Dynamics 365 Supply Chain Management and Dynamics 365 Project Operations emerge as reliable and robust ERP solutions tailored for enterprise-level businesses, effectively addressing distinct manufacturing needs.
Dynamics 365 Supply Chain Management helps manufacturers optimise supply chain operations, enhance inventory management, and refine production planning by providing real-time visibility for informed decision-making.
It also assists in monitoring asset performance, scheduling maintenance, and maximising asset utilisation. Dynamics 365 Finance focuses on financial management, simplifying accounting processes, managing finances, and ensuring compliance while seamlessly integrating with other Dynamics 365 solutions for a comprehensive financial overview.
Meanwhile, Dynamics 365 Project Operations is designed for project-based manufacturing, supporting the entire project lifecycle with tools for planning, resource management, and project accounting.
Role of Dynamics 365 Business Central in Manufacturing
A key benefit of Business Central for manufacturing is its integrated approach, allowing businesses to seamlessly combine their manufacturing module with other critical functions such as inventory and supply chain management, accounting, sales, and customer service. Business Central provides several features to help manufacturers effectively manage their operations, including:
- Configuring and maintaining production bills of materials (BOM), routing specifications, and capacity management.
- Creating and executing production orders.
- Forecasting demand for finished products and components.
- Offering three methods for sales order planning, master production planning, and material requirements planning:
- Initiating production orders directly from sales orders, known as sales order planning in Business Central.
- Using order planning to generate production orders for various demands, such as sales, production, and service, on a single BOM level.
- c. Utilising the planning worksheet to create a comprehensive regenerative or net change plan based on all available demand and supply data.
- Providing seamless subcontracting integration.
- Enhancing capacity control and workshop scheduling features.
Conclusion
Cloud technology is shaping the future of manufacturing, emphasising the importance of speed, accuracy, efficiency, and real-time global transparency. A cloud-based ERP with an advanced database is vital for connecting and streamlining your entire operation, providing the competitive edge necessary to excel in the manufacturing industry.
