ERP for Manufacturing Improves Your Ability to Manage Change

A study from the Aberdeen Group of 81 discrete manufacturers points to the many benefits of ERP for manufacturing. Among those benefits include swifter and more agile reaction to change and an improved ability to manage growth.

The study, which is available as a whitepaper download from IWI Consulting, offers interesting insights into the impact an ERP system makes on a manufacturing business as a whole, but especially in the areas of change and growth—both of which are critical for a company’s success.

Reacting to Change: Success Comes to the Swiftest

Among the manufacturers who participated in the Aberdeen Group study, Leaders demonstrated an ability to react the fastest to changes.

ERP for manufacturing improves visibility across the supply chain, offering manufacturers the ability to react quickly to problems. You cannot react to what you can’t see. Visibility sheds light on situations that require prompt action.

For example, successful manufacturers using ERP systems can program the system to send automated notices when a machine is down. Such an event can then trigger a decision to shift production to another area of the factory floor or to another facility. Without visibility, the decision is delayed, causing lost production time and a possible delay in order fulfillment.

Leaders responding to the survey were 2.6 times more likely than Followers to receive such automatic notifications. These little improvements can lead to much faster adjustments in schedules, productivity, and shipments that provide manufacturers with ERP systems a strong competitive edge.

Strong with a Team Approach

Another way in which manufacturers benefit from ERP systems is internal collaboration. Collaboration among teams using an ERP system is enhanced, thanks to the ability to view and share data in real-time. Such information is invaluable to respond to changes and plan for the future.

When teams have the right information, they can manage growth proactively. Predicting orders, for example, can help people negotiate for better rates on supplies and raw materials. Without sales history and order data, they are working in the dark. With such information, they can use the ERP system to better predict demand shifts and respond accordingly. An informed approach to growth can lead to higher profits and better margins thanks to data and information.

Tailoring ERP to Growth

Lastly, Leaders—as identified in the survey—are much more likely to scale their ERP systems to enhance and facilitate growth. Recognizing the potential in their systems, they scale them up to accommodate their growing organization.  Changing regulations, new markets, and more do not slow them down. They adjust operations and scale because they can predict growth more easily.

ERP for Manufacturers: A Smart Move

Visibility, efficiency, scalability, and growth all appear to be enhanced by using ERP systems in manufacturing. If you’ve hesitated about making the plunge into ERP, download a copy of the whitepaper today and see for yourself how smart manufacturers are using technology and data to improve operations.

Back in the golden days of manufacturing, the smarter manufacturers walked the shop floors continually to see what was going on. That was their way of gathering data to enhance efficiency and respond proactively to changes. Today, you can address the same challenges from your desk with an ERP system. It’s your eyes and ears on the shop floor.

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ERP systems such as Sage EM (formerly known as Sage X3) and Sage 300cloud (formerly known as Sage 300) for discrete manufacturers can make a big impact on decision-making potential.

IWI Consulting provides you with expert insights and resources such as the free whitepaper from Aberdeen Group so that you can enhance your business decision-making capabilities.

IWI Consulting Group helps Canadian businesses and nonprofits find ERP solutions to fit their needs. We work with you to find the best data solutions for your company that can help boost productivity and profitability. Learn more on our website or call us at 1-866-916-3851.