5 Reasons Why Manufacturing Companies Need a Reliable ERP Solution

According to data by HG Insights, in 2024, 1.4 million companies are expected to spend $183 billion on ERP software. Is yours one of them? If the answer is not yet—should it be? Let’s explore how finding the right enterprise software development company can benefit today’s manufacturing businesses. 

What is Enterprise Resource Planning (ERP)?

Enterprise resource planning (ERP) is basically a software system that helps organizations manage, organize, and even automate their core business processes. ERP is made up of different modules or suites, each one built to accommodate different departments, from finance and operations to HR and beyond. All these are connected through the wider ERP system.

Having one centralized system that holds all the organization’s data gives employees across the board a consistent frame of reference for business information. Whether it’s a cashier checking for prices or a CEO looking at their business’s profitability, ERP software guarantees that everyone accesses the same data.

Manufacturing ERP software provide essential support in all areas of operations, from day-to-day tasks to important business strategies. Think of it this way: if your manufacturing company is a well-oiled machine, then ERP is the main engine. It enables every part to function smoothly and in tandem with all the other pieces.

What are the benefits of ERP systems for manufacturing?

Simplifying and optimizing are key factors in identifying the best ERP for manufacturing. From simplifying processes, tracking production and demand, and coordinating between production scheduling and execution to payroll—everything can be managed efficiently through the system.

Here are five key reasons why an efficient ERP system is a must-have for any manufacturing company:

1. Centralized data. Many refer to ERP systems as the company’s “single source of truth.” It’s what anyone in the organization refers to when they need to verify business information—whether that’s stats on quality assurance, manufacturing costs, or pricing. The data lets teams know whether their operations are doing well or if any issues need to be addressed. A manufacturing ERP software solution guarantees that everyone’s information is aligned at all times.

2. Optimized manufacturing processes. An ERP system will allow different departments to follow the same processes, reducing redundant work, inefficiencies, and human error. Groups will be able to coordinate and collaborate with open communication lines. And as more data is collected, processes will continue to be streamlined as the business expands.

3. Increased productivity. Efficiency, smooth communication, and streamlined processes are achieved by limiting time spent on menial tasks, correcting errors, and coordinating with multiple stakeholders. With ERPs automating many small jobs, teams will have more time and capacity to think of the big picture.

4. Cost reduction. Intelligent solutions handling common manufacturing concerns reduce overall operational costs over time.

5. More intelligent data and analytics. ERP systems have the ability to improve data processing and provide an analysis based on your company’s historical data. This allows for more effective decision-making across all aspects of manufacturing: machines, quality assurance, procurement, supply chain, HR, finance, and more.

How do I know it’s time to find an ERP?

If you’re wondering whether an ERP system will benefit your company, check out some of these common manufacturing issues. If these sound like familiar concerns, they may easily be addressed by finding the right ERP systems for manufacturing:

• Employees spend too much time on manual, repetitive tasks. Maybe updating a vast inventory is taking too long or employees across different departments are inputting duplicate data sets. Tasks like these can now be left to automation.

• Members don’t have consistent visibility on company data. If some people in the organization receive updates while others don’t or they’re referencing outdated information, it’s difficult for the whole company to move forward together. Knowing accurate business information can help teams adjust their metrics or develop new KPIs.

• Every department operates in a silo, making collaboration a challenge. Using separate applications or processes can cause miscommunication, redundancy, errors, or even longer processes. A disorganized workflow can be fixed with a clear, centralized system.

• Business operations can’t keep up with production supply or demand. If teams can’t accommodate internal or external demands, that means it may be time to revisit the workflow to assess efficiency, productivity, and market insights.

• There are gaps in business knowledge, such as revenue, metrics, or KPIs. If the management team can’t answer all the business questions, they may need the support of systems that can give them visibility across all manufacturing operations.

What are my organization’s ERP options?

Today’s ERP systems look very different from what they were 10 years ago, and there’s a good chance they’ll only continue to evolve. At present, there are three types of ERP systems for manufacturing are  available:

• Cloud ERP is an ERP deployed on the cloud. It’s accessible, reliable, and highly scalable. It operates on a third-party, remote server and can be accessed virtually anywhere.

• On-Premises ERP is run on-location on a company’s servers.

• Hybrid ERP uses a mix of both, usually with an on-premises ERP at the main office and cloud-based ERP systems at smaller locations.

• Custom ERP solutions are tailor-made for your business to meet unique or niche needs not covered by commercial, off-the-shelf ERP solutions.

What if I need a custom ERP solution?

Many manufacturing concerns can be addressed by intelligent ERP solutions. With advancements in technology and AI, companies can expect more personalized, efficient, and reliable software to help them run their businesses. To find the right software for your company, it’s best to consult with an expert who can offer solutions tailor-made for your business concerns.  

If you’re looking for the best ERP for manufacturing, consider partnering with Taazaa. Our custom software development team makes building and integrating an ERP system stress-free for companies of all sizes.  

Grow your manufacturing company, exceed your business goals, and maximize profit with a custom manufacturing ERP software solution from Taazaa.