Enterprise Resource Planning (ERP) software is an integrated suite of applications designed to help businesses manage their various business functions. These functions include:
- Finance
- Human Resources
- Sales
- Manufacturing
A wide range of ERPs for the manufacturing industry are specifically designed for various business sizes. This adaptability arises from the distinct requirements inherent in manufacturing operations. In order to accommodate these diverse needs, ERP systems employ customizable models that can seamlessly integrate with their core software, offering advanced manufacturing functionality.
Selecting the right ERP solution for the manufacturing industry is crucial to aligning with your organization’s dynamics. Sage X3 manufacturing industry ERP can optimize processes, enhance operational efficiency, and ultimately contribute to improved customer service.
Cloud ERP Selection Criteria for the Manufacturing Industry
The manufacturing industry needs a tailored solution that, when properly implemented, will help them keep up with rapid industry changes and increasing demands. The manufacturing industry needs to consider the following ERP selection criteria:
1. Software Set Up for Your Production Type
Depending on your company’s production type, you may need specialized functions to map processes. Ensure you carefully analyze your ERP choices to include all the necessary features for your business strategies. Common ERP features the manufacturing industry needs to include:
- Bill of Materials or Consignment Stock
- Inventory Management & Planning
- Purchasing & Supply Chain Management
- Production Management
- Production Reporting & Analytics
2. Software That Accommodates Detailed/Advanced Planning
Highly efficient production control is required for the increasing complexity of order networks, rush orders, and a growing number of variants. To reduce make-ready times, avoid delivery bottlenecks, and make the most of personnel and machines, specialized software is needed.
An integrated APS module (Advanced Planning & Scheduling) is essential in the ERP selection process. This module automatically adjusts order sequences considering real-time data from every department.
3. Software That Can Handle Your Logistics Requirements
You must consider the logistic requirements of your distribution company when selecting an ERP system. An ERP system that integrates all aspects of the supply chain and reflects just-in-time concepts can meet customer demands for uncompromising customer orientation, quick lead times, and on-time delivery.
4. Software That Manages the Full Product Life Cycle
Product Lifecycle Management (PLM) should be integrated with your ERP software to get the best results for both systems. This integration allows you to plan your resources based on the best data available to manage your time and resources better. Some other benefits of PLM-ERP integrations include:
- Increased alignment of departments
- Improved product quality
- Faster data syncing
- Improved decision-making
5. Software That Transforms Your Data Into Usable Insights
Actionable insights give companies a significant competitive advantage, and business intelligence integrations should be a top priority for manufacturing companies looking for effective ERP software solutions. These tools should be able to filter, evaluate and process your collected data.
Look for an ERP system that offers:
- State-of-the-art dashboards
- Custom reports
- User-friendly interfaces
6. Software That Grows With You
To make a future-oriented ERP selection, the software must easily scale and adapt to your company’s growth. Multisite ERP systems can communicate in multiple languages and calculate in different currencies. They also allow for the consolidation of group accounting. All sites have access to centrally managed information, including master data, inventory, orders, and production schedules, in real-time.
7. The Software Makes Your Production Mobile
Mobile apps allow for the management of ERP processes across almost all business units. Manufacturing companies can also use mobile apps to manage their purchasing, warehouse, and sales processes. This allows them to have a consistent mobile strategy. ERP for manufacturing should support innovative shop floor applications and industrial scanner solutions.
Steps for Selecting an ERP for Manufacturing Processes
Sifting through the numerous ERP options can be daunting but worthwhile when considering the money and time saved by having the right software from the get-go. Here is our quick 10-step guide to choosing the best manufacturing ERP software for your company:
STEP 1: Identify Issues or Business Requirements of Cloud ERP For Manufacturers
To kickstart the implementation of a new manufacturing ERP system, the first crucial step is to thoroughly identify issues and business requirements within your production process. Analyze the current state of production planning, inventory control, and traceability of raw materials to finished goods. ERP systems help automate various manufacturing processes, providing a comprehensive software solution to customize and streamline every aspect of your manufacturing business. Make informed decisions as a key decision-maker by considering ERP functionality tailored for the manufacturing industry, integrating Industry 4.0 technologies for improved efficiency.
STEP 2: Secure Stakeholder and Executive Management Support for Cloud ERP
Gaining support from stakeholders and executive management is pivotal when transitioning to a new cloud ERP system. Highlight the benefits of the ERP platform, emphasizing how it can revolutionize production processes, project management, and overall shop floor control. Showcase how cloud ERP provides real-time visibility into materials, components, and shop floor management, aligning with best practices in the industry. Emphasize the importance of support from decision-makers to ensure successful implementation and integration across the organization.
STEP 3: Future-Proof with Resilient ERP and Inventory Management
To future-proof your manufacturing operations, prioritize resilient ERP solutions that go beyond the initial system requirements. Focus on ERP systems designed to streamline and integrate various manufacturing processes, ensuring adaptability to industry advancements. Pay special attention to robust inventory management features that allow you to monitor and analyze inventory in real time. A new manufacturing ERP system should be capable of accommodating disruptions, providing a nervous system for your manufacturing business that can evolve with Industry 4.0 technologies.
STEP 4: Cloud-Based ERP Mobility for Optimized Visibility
Optimize visibility throughout the manufacturing process by embracing Cloud-Based ERP mobility. Implementing an ERP system that supports shop floor management and work order control through mobile apps enhances accessibility and flexibility. This aspect is particularly beneficial for small and medium-sized enterprises, allowing them to monitor and manage manufacturing equipment, work orders, and project management on the go. Consider ERP solutions that leverage integrated software solutions and best practices for seamless reporting and analytics, ensuring real-time insights and informed decision-making.
STEP 5: Improved Customer Service with User-Friendly MRP Systems
Improve customer service by incorporating user-friendly MRP systems into your manufacturing processes. Look for new manufacturing ERP systems that excel in work order management, quality control, and project management. Prioritize ERP functionality that not only streamlines core business processes but also provides a user-friendly interface for efficient reporting and analytics. This ensures improved customer service through quicker response times, accurate order fulfillment, and overall operational excellence.
STEP 6: Ask about Cloud ERP for manufacturing Costs
When considering a shift to cloud ERP, inquire about the costs associated with implementation and ongoing usage. Understand the financial management aspects of implementing a new ERP system, including customization, software development, and maintenance. Assess the ability to customize the ERP system for manufacturing based on your unique requirements. Be transparent about the ERP system’s ability to monitor and control costs throughout the system’s lifecycle, ensuring that the investment aligns with your budget and provides long-term value.
STEP 7: Verify The Training And Support Options From Vendors
Ensure a smooth transition to the new manufacturing ERP system by verifying the training and support options offered by vendors. Confirm that vendors provide comprehensive training programs to empower your team to utilize the ERP system effectively. Assess the level of support available for troubleshooting, updates, and system improvements. Look for ERP solutions that prioritize ongoing communication and assistance, turning the vendor into a reliable partner in your manufacturing journey.
STEP 8: Choose A Supplier That Is A Partner And Not Just A Software Vendor
The final step in selecting a new manufacturing ERP system is choosing a supplier that acts as a true partner, going beyond the role of a mere software vendor. Evaluate the supplier’s commitment to aligning the ERP system with your manufacturing goals. Seek a partner who understands various manufacturing processes and industry-specific challenges. Opt for a supplier with a proven track record of offering integrated software solutions, best practices, and continuous support. This collaborative relationship ensures successful implementation, sustained efficiency, and long-term success in manufacturing excellence.
Manufacturing ERP solutions play a vital role in maintaining a competitive edge. With extensive experience in discrete and process manufacturing, Panni specializes in streamlining business processes. Explore our SAGE X3 ERP solutions, a comprehensive software system providing manufacturing solutions throughout and managing materials and components efficiently across many industries through several modules. Contact us to select the ERP for your manufacturing processes.
