An ERP for production management (Enterprise Resource Planning) is software designed to manage the complex and interconnected activities of the production process.
Its main function is to help manufacturers manage business processes more efficiently and quickly by facilitating and fostering collaboration with internal teams, suppliers, warehouses, customers and branches.
Its greatest advantage is to enable a holistic view of operations-such as supply chain management, labor planning, and order management-while at the same time providing detailed information on materials, processing times, and production costs.
No less important is the degree of configuration and integration. Indeed, a manufacturing ERP system can be configured to meet manufacturers’ needs and can integrate manufacturing-specific functions and technologies and systems.
This will make it possible, for example, to manage warehouse and inventory, optimize supply chain and distribution modules, and comply with regulations within sectors (such as medical device management modules or pharmaceutical manufacturing regulations).
What are the 9 advantages of an ERP for production management
The greater the degree to which an ERP can be configured to fit the needs of the business, the better its benefits will be understood.
For example, an ERP protects cash flow, optimizes operations, predicts which decisions will advance business goals, efficiently manages inventory, creates greater supply chain visibility, and improves customer experiences, driving sales.
Here is a detailed look at each of the manufacturing ERP benefits:
1. Protect your cash flow
This tool allows you to manage inventory and keep track of accounts receivable. In this way, you avoid tying up capital in storage costs and losing visibility into customer payments. With timely follow-up, you can ensure that money is not held up in billing.
2. Optimize your production operations
With its comprehensive view, you can efficiently manage all your team’s resources, processes, relationships, and goals. Integration helps you identify problems and challenges before they become critical, preventing slowdowns. Also, with its holistic view, you can detect trends and downturns, implementing timely solutions.
3. Predict intelligent decision making
To achieve better production performance, intelligent decision making is critical. For example, using a manufacturing ERP, it is possible to predict market needs and recognize any factors that might affect post-production sales volume. This ensures a balance between productivity and profit. In addition, it is possible to forecast expenses versus revenues to avoid financial disadvantages.
4. Easily manage your inventory
This software helps you define your procurement needs and create automated processes to meet them. In addition, you can monitor the location of your inventory in real time, maintaining a database of suppliers to facilitate reordering through purchase history.
5. Get real-time visibility into your supply chain
Plus, you can connect all your internal teams, branches, warehouses and suppliers, simplifying the process and ensuring that materials arrive at the right time, without unnecessary storage costs.
6. Optimize and save on warehouse costs
If you want to manage a warehouse efficiently, try not to waste your time with disorganized processes. Use an ERP to automate processes such as printing labels and barcodes, managing inventory and ordering supplies, and optimize your time with its advanced features.
7. Create winning customer experiences
Creating successful experiences helps you sell more. An ERP allows you to unify your sales touch points by providing exceptional experiences, regardless of how customers interact with your brand. In addition, an ERP helps you identify the customers most likely to switch and allows you to use rock-bottom pricing, without compromising your profit margins, but providing them with a useful experience.
8. Creating efficiencies through automations
You can automate report generation, receive alerts on production and distribution process control, and assign resources and tasks. By unifying essential operating systems, you can identify tasks that can be automated, creating efficiencies in business collaboration.
9. Close sales and improve customer confidence
ERP is a kind of a glue between sales and production teams: for example, your sales team can check the availability of items in the warehouse in real time, avoiding promises of unfeasible deliveries. As a result, the order can be handled directly through your ERP, including providing the shipping label and communicating smoothly with the courier to ensure on-time delivery.
What is the best ERP to manage production?
According to a recent ranking published by Forbes, Microsoft Dynamics 365 Business Central was recognized as the best affordable and comprehensive solution for midsize businesses, ranking first among ERPs.
We at Velika, as official resellers of Microsoft Dynamics 365 Business Central, not only share this assessment, but also offer customized and verticalized solutions for different industries. If you are looking for an ERP tailored to your business, contact us!
How much does an ERP for Production Management cost?
The cost of an ERP for production management, such as Microsoft Dynamics 365 Business Central, depends on several factors: number of users, functionality needed, mode of deployment (cloud or on-premise) and level of customization required.
Every company has different needs, which is why we offer tailored solutions to optimize production processes without unnecessary costs. Contact us for a personalized consultation: together we will find the best solution for your business reality.
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