Considering how dynamic and competitive the manufacturing industry is, it is imperative for manufacturers to integrate solutions like Enterprise Resource Planning (ERP). ERP gives a company an integrated real-time view of its core business processes such as production, order processing, and inventory management, tied together by ERP applications software and a common database. For manufacturers, ERP systems track business resources, such as cash, raw materials, and production capacity, and the status of commitments made by the business, such as customer orders and purchase orders. ERP facilitates information flow between all business functions inside the organisation and manages connections to outside stakeholders.

ERP Systems for Manufacturing

Here are five productivity and profitability-boosting benefits a manufacturing company can expect from the right ERP solution:

Better control and coordination

The bigger a business grows, the more complex it becomes. Keeping track of all the different departments and functions becomes more difficult. But once the appropriate ERP system is in place, it provides a regularly updated picture of the core business processes and how they are interacting. This improves efficiency, with more effective supply chain management. When departments are coordinated, people are working efficiently together. The right ERP system also automates processes, making it possible to auto-generate production orders when sales orders are received.

Reduced operating costs

A manufacturing company, with its different functions and sets of information in silos, is at risk of wasting money on duplicated and unnecessary tasks. But when the whole business is in sync, it can reduce administrative and operational costs, including staff, support, infrastructure, and applications. All the accurate, real-time information is visible in one place. You know which deliveries are with which suppliers. It is also much simpler to avoid costly disruptions and delays.

Better planning and decision-making

With always-accurate data visible in real time, an ERP system gives managers the tools to make accurate estimates and create useful forecasts. Having superior business performance and financial information, plus a clear, up-to-the-minute overview, empowers management to make smart, agile decisions based on incisive strategic insights. This provides an edge against competitors who are working with days-old data, assembled from different sources.

Scalability and flexibility

Modern ERP software systems are robust, flexible, and adaptable. ERP systems enable business growth and make growth changes easier to handle. When the business is ready for a growth spurt, your ERP system easily accommodates extra resources and functions without the need to buy a new solution.

Happier customers

When your operations are running smoothly and efficiently, you can reduce costs and provide better customer service. Nowadays, customers want to know when an order has left the factory, when it has reached the local delivery depot and when it is due to be delivered. Coordinated IT systems, with applications that talk to each other and integrate, enable you to provide a consistent and positive customer experience.

Microsoft Dynamics 365 for Finance and Operations is the first step towards intelligent manufacturing. Dynamics 365 for Finance and Operations is Microsoft’s ERP system built on Microsoft Azure cloud services. It unifies financials and business operations across finance, manufacturing, supply chain, warehouse, stock and transportation management with an intelligent and intuitive user interface for running modern global enterprises.

In particular, the ability to connect Dynamics 365 for Finance and Operations with Dynamics 365 for Field Service and Microsoft Azure IoT services, empowers manufacturers to deliver a service-led intelligent manufacturing model.