Not all manufacturing companies currently use ERP; this could be for a number of different reasons such as expenses related to purchase and implementation, they think- keyword think– they are not a large enough operation to have ERP, or maybe the company has been successful without it for years so why should they change a good thing? those are all topics to be discusssed in other blogs; point being, there are many out there who are not using ERP in their manufacturing company for different reasons, but the thing is, ERP for manufacturing companies has proven time and time again that it can provide massive benefits!So if you are not using ERP- what are you using?
An Aberdeen report stated the following of manufacturing companies when asked what they use instead of ERP:
- Spreadsheets: 66%
- Accounting applications: 54%
- Multiple disparate applications: 46%
- Legacy applications: 43%
- Home grown: 41%
- Desktop applications: 38%
From a performance standpoint, it is possible to operate business without ERP using the above methods, but if you want to be operating at your highest level of productivity. Each of the above replacements has its own flaws such as data errors, disorganization, data loss, ineffciencies, redundant dats entry, etc. Long story short, ERP for manufacturing companies is worth the time and money it takes to implement.
Benefits of ERP for manufacturing companies include:
- Improved inventory accuracy
- Faster month-close completions
- Meeting internal manufacturing schedules
- Shipping more orders complete and on-time
- Reduction in inventory levels (on average, by 11%)
and much more…