Enterprise Resource Planning or ERP refers to the software and systems that are used for the objective of directing all the core supply chain, manufacturing, services, financial and other important functions of an organization. ERP Software is used to automate and simplify individual processes over an organization or a business. The various aspects covered under ERP are accounting and procurement, project management, customer relationship management, risk management, compliance and supply chain operations. ERPs connect every aspect of a company. It allows better performance and project management that helps plan, budget, predict and accurately report on an organization’s financial health and processes.
ERP software system has changed the face of manufacturing industries and provided great solutions to its complicated functioning. Here are the top 5 common issues solved by ERP software systems:
An ERP system saves a company’s valuable time and energy spent on pulling all the fragmented data together from different spreadsheets, accounting sources and sales orders to discover the company’s overall monetary position. A company can put up a number of separate applications for each of its functioning, however ERP software system will always be their one source of all the data. By a proper implementation of ERP system an organization can save a lot of time by avoiding dual entry of same data and easy data search from any department.
Ensuring the right quantities of the correct inventory to meet the demands of consumers is an important aspect for an organisation. It’s important to have optimum balance in the stock and not have too much or too less of it. Lead time should be factored in while considering the replenishment of inventories as it will be a problem if they wait till the stock is over. ERP software system provides the manufacturers a transparent and easy to manage inventory management application and an accountability of its contents for enhanced production planning. As per the customer’s sales order the shortages in inventory can be tracked immediately. In case of scarcity it will automatically indicate the manufacturing team to re produce the products or put them out of stock. Its functions also involves item inventory status reporting and monitoring of product use.
Manufacturing industries face challenges in manually tracing inventory and fill all the data in excel sheets. The problem which arises here is producing accurate entries in complex manual entry spreadsheets to keep track of raw material lot numbers used in multiple finished goods and shipped to numerous customers. ERP software system comes at a rescue to this problem by providing the ease for lot tracking for both forward and backward information. A lot traceability feature gives added advantage of quality control and quality assurance.
MATERIAL REQUIREMENT PLANNING (MRP)
A critical portion of an integrated ERP is Material Requirement Planning or MRP addresses the issues generated during resource management. ERP system helps in efficient utilization of the manufacturing capacity, components, material resources, and parts by employing sales forecasting methodologies and historical production data. A proper MRP can reduce the cash flow and increase the profitability. Calculation of best production schedule using sales forecast, bill of materials, open orders, inventory status, and master production schedule.
LAWS AND REGULATIONS COMPLIANCE
With the expansion of a business, manufacturers provide products and solutions to various geographical areas. Manufacturers are bound to regulation from the Food and Drug Administration, the Environmental Protection Agency, and various other regulatory organizations. The regulatory guidelines are intended to protect the consumers and the environment from potential hazards and, it’s violation severely damage a company’s reputation. ERP software system aids organizations avoid expensive compliance delays by automation and standardization of optimum practices as well as maintaining an audit trail that gives an up to date and immediate compliance data. Automation of Quality Control (QC) and manufacturing makes sure that the goods are compliant to regulatory norms and enhances customer satisfaction.
ERP systems are designed to easily integrate into any manufacturing organization provides a robust Enterprise Resource Planning System with modules available for Materials Management, Production Planning & Control, Finance & Accounts, HR & Payroll, etc. PC SOFT provides the best and seamless ERP systems adapted by major manufacturing industries across India.