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An ERP system manages business information by integrating data across functional groups within an organization. Modern manufacturing ERP systems offer numerous benefits because linking your organization increases efficiency and quality, lowers costs, and provides greater organizational flexibility and decision support. Who benefits from ERP? Let’s look at how various departments can tap into the potential of ERP.
In today’s modern manufacturing industry, many companies employ two systems to ensure their business and production processes run effectively – a Client Relationship Management (CRM) system and an Enterprise Resource Planning (ERP) system. Often, these two systems run separately, but there are many benefits of integrating CRM and ERP.
It is a common misconception in manufacturing that Kanban methodology is at odds with ERP. After all, Kanban is a ‘pull’ system that pulls inventory through production as it is needed. In contrast, traditional ERP is a PUSH system that pushes inventory into a warehouse for stock. But, today’s modern ERP solutions are far more nimble and work in harmony with lean manufacturing principles like Kanban to reduce inventory, generate real-time data, and streamline processes.
ERP is an acronym for Enterprise Resource Planning. It is a methodology for effectively running a business and is comprised of multiple essential processes within a company. Today, ERP is commonly associated with software programs, but Enterprise Resource Planning is broader than software and actually pre-dates today’s modern ERP systems. At their core, ERP practices are about managing a company’s human and capital resources.
The goal of every Enterprise Resource Planning (ERP) selection project is to identify the ERP solution that best suits the company’s needs, gives the company a competitive advantage, and provides the level of flexibility to support changes in strategy and growth. With today’s modern ERP solutions it is now possible to achieve ERP tailored to fit your needs.
More and more, we see acronyms replacing industry terminology. In manufacturing, acronyms like ERP or MRP are part of everyday conversation. What are ERP and MRP? Director of Manufacturing ERP Services, Pat Welsh, defines ERP and MRP, and explains how they are critical to successful manufacturing.
Functionality tops the list as the most important factor in selecting an ERP system, followed by ease of use. Cost of ownership plays a large roll in the selection process, as well as how easily the solution can be implemented. Manufacturers are also looking for solutions that off integration across their enterprises. Finally, time to value finishes up our wish list of what manufacturers are looking for in an ERP solution.
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