An ERP system used in manufacturing enterprises is designed to improve production, meet regulations, and track inventory, supply chain, and key performance indicators to provide customers with faster delivery and superior customer experience.
A person in front of the screen, like a Business Owner, CFO, or CIO searching ERP for Manufacturing is completely overwhelmed by the search results Googles throws. It only adds fuel to the confusion, and frustration of these decision-makers as they made out their way through complex decision-making processes.
We came across 10 commonly asked questions about ERP for Manufacturing Industry and we would like to simplify this task by answering them for you.
1. Will this solution suit my business processes/requirements? ERP companies are aware that when it comes to ERP software there isn’t one size that fits all. Different manufacturing businesses have unique business requirements and thus ERP software providers have come up with the best possible solution for your business. SAP has 39 out-of-the- box processes which can easily accommodate your business requirements. In case there is any shortcoming, SAP Partners have developed add-ons that bridge these gaps easily while giving you the functionality you are looking for. It's good to have end users during the demo call so that they understand what they can expect from the system and simultaneously highlight shortcomings if any which can help SAP partners work on the add-on.
2. How much does ERP software cost? That’s one question that haunts most decision-makers. Generally, Software providers like SAP charge based on the number of users which means you pay for the number of users you need to operate your software. There is a base fee and on top of it, you are charged for the number of licenses you opt for.
3. Should I go for modern ERP software even though QuickBooks or Legacy Systems suffice my business needs now? We start a business in which we want to flourish and achieve bigger milestones, don’t we? We don’t start a business with a myopic vision that I am happy if I can achieve a certain revenue threshold. Businesses strive harder and harder to grow and outnumber their competition. Markets are getting more complex day by day and that demands automating your routine business processes and improving employee productivity and profit margins. For efficient and effective decision making you need to have a clear 360 view of your business, which an ERP system is designed to deliver. Legacy systems or third-party accounting software like QuickBooks can certainly help you to sail through a like but not through a sea or ocean.
4. Which ERP should I choose for my manufacturing business? Investments in any ERP software are huge, so make the decision right the first time. Considering only the cost and functionalities meeting your current business needs. Rather consider the solution's scalability and your future expansion plans which would need a holistic ERP system. SAP is the leading choice for most small, medium, and large enterprises when it comes to their primary ERP. 85% of SAP customers are small & medium scaled businesses. Indeed, SAP can be the perfect ERP solution your business needs.
5. Which ERP options do I have for my manufacturing business? There are plenty of ERP options available in the market today. Major providers include SAP Oracle, Microsoft, Sage, Infor, JD Edwards, etc. Although you have so many options it is always a good idea to evaluate multiple ERP providers to get a better understanding of their offerings.
6. Which are the common modules in a manufacturing ERP? The most common modules or modules you should look for in your next ERP are as follows: Production Planning & Operations Management, Inventory Management, Supply Chain Management, Sales & Customer Relationship Management, Human Resources, Supplier Relationship Management, and Procurement.
7. Should I go for Cloud or on-premise ERP for my manufacturing business? There is no right or wrong answer to this. When choosing a cloud or on-premise ERP solution think of different parameters like cost, security, customization, scalability, and implementation. One thing is for sure, in the case of a cloud ERP it seems to be a recurring cost, but it considerably makes your life hassle-free. Think of security, may it be a public or private cloud, solution providers have improved the security considerably. Else, if you choose the on-premise route, you will have to spend on your server security. Customization is one area where you mind find some shortcomings on the cloud side as there is little or no room for solution customizations. But Partners and Solutions providers have developed customized and industry- specific add-ons which ultimately bridge the gap.
8. How will ERP impact my manufacturing business? If done right, an ERP can have a very positive impact on your manufacturing business as below: Enhanced visibility into processes: ERP creates a centralized, accessible "single source of truth" for all processes. Better Cross-departmental Collaboration: With increased visibility across functions and processes, communication barriers are broken down. Silos in processes can result in redundant work, inefficiencies, and missed opportunities for collaboration between different groups and functions Better Efficiency: Data collection will become easier, and employees will become more comfortable with the increased visibility of ERP, thus streamlining processes, identifying cross-functional efficiencies, and boosting productivity over time. Better Productivity: ERP software can not only track products, and inventory movements within the warehouse or production floor but also simultaneously track employee productivity.
Conclusion SAP Cloud ERP is the top choice for your Manufacturing business. It’s a complete solution that includes all the tools you need to manage production planning, operations, sales, inventory, and purchasing. The system is easy to use and integrates seamlessly with other applications on any device or mobile phone network so there are no limits on where you can access it from.
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