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How Improved Bill of Materials and Routing Benefits Manufacturers

When managing a Manufacturing business, whether at one site or multiple sites, it is vitally important to accurately plan and coordinate activities. That way, you can fulfil customer orders on time while properly managing and accounting for overall production costs. Coordinating activities across the entire business in real-time involves customer management, sales orders, inventory, purchasing, accounting, and financial reporting.

To succeed in coordinating manufacturing activities, it is optimal to have one software program that can cover the full range of business processes—simplifying and improving every step, from ordering materials to customer delivery. The software has to stay on top of bills of materials (BoMs) and routing, two of the most important elements of the manufacturing process. A modern enterprise resource planning system (ERP) such as Acumatica’s Manufacturing Edition enables you to do just this. You can improve BoM and routing, which results in a range of business benefits.

Improve Supply Chain Management

At the center of every manufacturing business is the need to deliver the right materials to the correct location at the time promised. The ability of a manufacturing business to more effectively and accurately manage BoMs is therefore vital to this process. Acumatica’s Manufacturing Edition offers this capability. The software can improve inventory management and automate the ordering process for new materials based on inventory levels, sales orders, and predicted sales. By automating the process, you can respond to demand while optimizing inventory and resources.

Track and Control Costs

By tracking the costs of materials and labor, you can compare estimated, planned, and standard production costs to actual production costs. Since there are often different routes for the same product, having accurate cost information can ensure the production floor remains productive by having the flexibility to shift routes as needed. This flexibility leads to reduced costs and better rates of on-time delivery.

Increase Accuracy in Production Planning

Using Acumatica’s Manufacturing Edition allows you to view BoMs and route information in real-time. This, in turn, allows for early identification of any supply or operational issues. You can address any resulting potential problem areas. Once issues are identified, engineers can design new BoMs and route scenarios to improve workflows and established processes.

Improve Customer Relations

With Acumatica’s Manufacturing Edition, companies can provide customers with real-time information about order statuses by providing the right capable to promise (CTP) data. This lets customers know when to expect delivery of the finished product. The software also reduces or eliminates the risk of delay in delivery by ensuring production materials are on hand when a customer places an order and automates the process from start to finish.

Acumatica Manufacturing Edition adapts as the business grows. As manufacturing companies improve BoM and routing, shop floor capacity and productivity improves, as does cost management. Customer demands can be met on a more accurately and timely basis. Warehouse management and materials requirement planning are improved, so companies can scale and grow the business.

To learn more about how Acumatica Manufacturing Edition can help you manage a manufacturing company, contact us for a demo and free consultation. 

The post How Improved Bill of Materials and Routing Benefits Manufacturers appeared first on Advanced Solutions and Consulting.



This post first appeared on Acumatica ERP Implementation - Advanced Solutions And Consulting -, please read the originial post: here

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How Improved Bill of Materials and Routing Benefits Manufacturers

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