Seemly, each business company needs an ERP for manufacturing or Enterprise Resource Planning. This is software or the integrated application system to make the business runs properly and more efficient. It supports their business by putting many functional parts into one division. It means you will control them such in one database through the planning concept. It covers the human resource, marketing, sales, purchasing, finance, manufacturing, logistics, operations, and the new product developments.
The software for manufacturing companies, of course, it gives you lots of benefits. Below, you will learn lots about the ERP software in which it helps you to perceive it. So, you are going to surer to implement the application.
- The History and the Characteristics of the ERP for Manufacturing
- The Benefits from Implementation of the ERP for Manufacturing
The History and the Characteristics of the ERP for Manufacturing
ERP for manufacturing system is the development of the Material Requirement Planning II (MRP II). Meanwhile, it becomes from the evaluation result of the Material Requirement. The MRP II is the modular system that usually handles inventory, invoice, company accounting, logistic, manufacturing process, and shipping. It implies the ERP system also control several business activities. Yeah, it is such as sales, production, supply management, distribution, quality management, and the human resource. Absolutely, the American business companies have used it since the 1990s. Nowadays, it becomes the most sophisticated information technology in the 21st century.
That is the history of the ERP application where each person or company should know it.
On the other hands, you need to understand the characteristic of the system. It includes:
1. The software with a client-server field design both in desktop-base or traditional and the web base.
2. Integrates your mayor business process.
3. Process all company transactions.
4. It uses an enterprise database scale to store the data.
5. Permit the user to access their data in real time.
As your information, the ESP for manufacturing uses “Cloud Computing” technology. It is the interflow of the computer technology utilization in a network with Cloud internet-based development. The function is to run the application of program via computers connecting with the same time yet not all computers use the cloud computing.
Apparently, the Cloud Computing gives an advantage toward with budget because:
1. It avoids the upfront fee for all computing infrastructure such as the hardware and the data server.
2. It pushes the IT support cost. All of the infrastructure and hardware necessaries are in the Cloud.
3. It eliminates the upfront cost for the licensed software application.
Truthfully, not all ERP for manufacturing uses this technology. Therefore, you must be conscientious to choose the ERP software.
Below, 5 benefits of the ERP with Cloud Computing technology:
1. Offer the integration system for the manufacturing. So that, the decision process and taking are more effective and efficient.
2. Integrate all functional areas: Accounting, Finance, Inventory, Sales, Purchase, and the Human Resource.
3. Help the company to launch the management supply chain implementation. The function is to keep the stock according to the sales (just-in-time).
4. It helps the management to manage the operation. It is able to answer the question of what should we do better?
5. The people of the company can access the ERP software through their PC computer, tablet, even the smartphone. However, they can do it during there is a Web Browser. The software solves the main problem of the different language and currency.
The Benefits from Implementation of the ERP for Manufacturing
Before the ERP for manufacturing software comes, the companies or organizations generally use the separate database system. The system surely gives the current difficulty toward the management and often emerges the incompatibility. At this time, you can enjoy the benefits of ERP in manufacturing industry or business.
This article discusses many benefits from the ERP above but below the other benefits from this software:
1. Business Integration and better Data Accuracy
The ERP system consists of several modules where the sub-module represents the certain business component. It automatically renews the payment and stock in real time or when the transaction takes place. The data quite insert one time when the transaction happen. Surely, this way eliminates the necessity of entry data more than one time. Alongside that, it minimalizes the data mistype and duplication. In addition, the centered database structure gives the better security and administration to prevent the loss of the vital data.
2. Planning and Information System Management
The ERP for manufacturing has the supporting tools such as the simulation and planning tools. It to take the good decision and helps the management implementing several resources. The mean it implements the materials, human resources, machines, or the work equipment. In the report, the ERP system results from the standard report where the management often needs it and need to access it every time.
3. Efficiency and Productivity Improvement
Besides providing the better planning, the application also improves the efficiency to the routine daily activity. It increases the orders, distribution, sales realization, supplier performance, quality management, and the cash management. Obvious, the system can make the sale to the case cycle and the payment to the supplier shorter.
4. Standardization Procedure Formation
The ERP for manufacturing system based on the best international practical process which makes the job more structured. It implies the job will not rely on the individually or the current workers. Online accounting software is one of the ERP systems to bolster the company’s performance in terms of making financial statements.
5. Improve the customer service by providing one source to billing and the relationship tracking.
6. Improve the compliance with the financial system regulatory standards and reducing risks.
7. Automate the operational business process initiation. It is such as the lead-to-cash, procure-to-pay, order-to-fulfillment, and so on.
At this moment, there are many products of ERP for manufacturing in the market. You should be smart to get the rightest product for your business. On the other sides, you need to prepare a large budget to get the application Nonetheless, you keep calm down because the high cost will not last long. Although the payment may take much money, you will be able to restore your financial condition fast. Surely, you will get it from the income of the sales. By the way, this business playing system not only matches for the large business but also the small business. So, whatever your business is, use ERP system to manage your company.