In today’s fiercely competitive business environment, manufacturing companies face many challenges in effectively managing their supply chain. Supply chain management (SCM) is about managing materials and involves the procurement, movement, and storage of raw materials, work-in-progress, and finished goods.
Efficient management of supply chains helps manufacturing companies reduce costs, improve efficiencies, and ensure products are manufactured and delivered on time.
However, the ramifications of Covid-19 placed great strains on supply chains, especially for manufacturing units, requiring them to manage their supply chains with more finesse. The advent of advanced technologies, especially Manufacturing ERP Software, provides manufacturers great power to streamline operations and optimize supply chains.
Redaq on to learn how ERP software can help manufacturing companies with effective supply chain management.
Global Visibility
ERP acts as a one-stop shop, providing manufacturers with a consolidated view of their supply chain and allowing them to make informed purchasing and procurement decisions. Managers and executives can gain greater oversight into each part of the supply chain and quickly identify issues with their supply chain. Moreover, the insights ERP provides help manufacturers rapidly solve supply chain problems.
In addition, the ERP system provides manufacturers with information about where their inventory and work-in-progress jobs are located, allowing them to respond to customers about their orders quickly.
Inventory Management
Manufacturers can use the ERP system as a comprehensive inventory tracking system to control and manage their inventory and product stock. It allows them to better organize and categorize their inventory, manage detailed warehouse data, and record all product movements.
Furthermore, supply chain managers better understand what inventory is on hand, what items are low or out of stock, what products have been shipped out, and where the inventory is located.
Vendor Performance
The best way to measure your vendors’ qualitative and quantitative performance is by using ERP systems. Monitoring the vendors’ performance will help you make better, more informed business decisions and improve performance within the current market.
Moreover, the ERP system facilitates vendor comparison based on quality services, price, delivery dates, and many other factors. It will enable you to pick the right vendor for the job, leading to seamless supply chain management.
Effective Procurement
An ERP software explicitly designed for manufacturing units to effectively manage procurement and supply of goods and resources, which is particularly vital for custom manufacturing.
Purchasing in a custom manufacturing environment can be complex. Unlike in standardized manufacturing environments, you don’t need raw materials and parts consistently or straightforwardly when working in a custom manufacturing environment.
Coupled with the need to procure raw materials with long lead times that need to be often ordered before designing and engineering a product, purchasing in a custom manufacturing environment can be mind-boggling. In such a case, the purchasing department is often held accountable for delays and issues, leading to unnecessary conflict.
You can solve all these problems by implementing a cutting-edge ERP system designed for the manufacturing industry. The system can handle manufacturing and warehouse resources, manage transportation and execution processes, automate multiple manual tasks like communicating with vendors, and keep track of communications.
Moreover, ERP can integrate the purchasing department with the rest of the shop, making it easier for purchasers to know when to order what and how many quantities.
Real-Time Reporting
Manually creating reports is a labor-intensive task and, thus, always runs the risk of loss or inaccurate reporting. It further leads to poor decision-making because of out-of-date or inaccurate information.
Manufacturers using real-time data and reporting features of ERP software can access relevant, real-time data about the company’s and supply chain’s performance. It allows managers and decision-makers to track inventory movement seamlessly and make better, data-driven decisions to improve operational efficiency.
Concluding Words
Supply chain management is a crucial business function for all organizations, and manufacturing companies are no exception. However, supply chain management often presents unique challenges to manufacturing companies, especially the units operating in custom manufacturing environments.
Technologically advanced ERP for Manufacturing units is integral to managing and streamlining supply chains. By leveraging the cutting-edge ERP platform, manufacturers can respond quickly to market fluctuations concerning supply chains. Moreover, ERPs offer managers and decision-makers a holistic view of all business operations to make informed decisions about improving supply chain management.
Eresource Infotech Pvt Ltd is leading ERP Software Company In India. We offers ERP Software for Construction, Manufacturing, Process Manufacturing, Transportation, Trading and Distribution Industries.
