Manufacturing business of any type, size, industry, and location operates with a single goal: to increase profits. And ERP software for the manufacturing industry is a key enabler in helping it achieve that goal. In fact, an ERP goes a step ahead and also saves manufacturing businesses valuable time & money. But is it more about the timing of the ERP adoption which can actually make a world of difference when it comes to saving time & money? Let’s find out:
The most sought-after objective for any manufacturing business, be it discreet or process, happens to be increasing profitability. One way of achieving this objective is to cut down on time and money from different business activities. These resources can then be invested in other important areas that contribute to business profitability.
Enterprise resource planning (ERP) software has long established itself as a critical business management tool that can help manufacturing businesses of any type and size and operating in any industry, save resources such as time and money.
We’ve discussed this enough times in many of our website blogs, and hence it doesn’t require an in-depth discussion here. However, we will indeed discuss the significance of the timing of ERP adoption.
Do only those that adopt it early, reap the rewards? Or does the timing of ERP adoption make no difference to a business’s ability to save money and time?
Timing matters and numbers confirm it!
Given the benefits of ERP software for the manufacturing industry, the question with respect to early ERP adoption should always be why not now, instead of why now. Not only does an ERP solution enhance the early bird business’ productivity, but also creates tangible visibility transformations.
It is evident from the survey results in the image shown above that majority of early adopters experience improved business visibility and actionable insights. These tangible transformations result in better informed as well as timely decisions that help save business time and money.
When a business delays ERP adoption for later, it often becomes a bit problematic. Though it still delivers on most fronts, it can get more time-consuming as well as costly due to the increased scope of the business and the resultant increase in complexity (more resources to handle and more processes to manage).
So, when you are aware that being an early ERP adopter makes you save time on your monthly close, bring down the reporting time, save costs, and report annual revenue improvements, it would be foolhardy not to opt for an early ERP adoption.
A look at how early ERP adoption can actually help save time and money
One of the most salient features of manufacturing ERP software is that it enhances automation. What it also does is that it integrates the core business processes, and brings all the functions into one single system. This centralization of data improves information exchanges and facilitates faster workflow across the organization.
Essentially, this means that there are fewer tasks that require manual intervention, which cuts down time and money from different business activities and allows the organization to do a lot more using less time and resources. It also means that there’s a flow of accurate data across the enterprise, which allows decision-makers to make informed as well as timely business decisions, and save precious organizational time.
A business that adopts manufacturing ERP software at an early stage can reap the benefits of standardized processes, right from purchase, to inventory management, to accounting, to invoicing, to order delivery, and pretty much everything in between.
Whether it is about reviewing inventory needs and placing orders, managing the inbound and outbound inventory, releasing the invoices in a timely manner, or tracking all the customer interactions, a manufacturing ERP, by automating and standardizing all these processes, ensures that all the employees follow the same processes in a consistent manner, every single time. This consistency, in the long run, delivers huge savings on time and of course, money.
Also talking from a relatively new and young organization’s perspective, where one or two key employees hold the keys to the knowledge and resources, and hence their absence could bring the operations to a halt, early adoption of ERP can help avoid over-reliance on individuals and ensure a streamlined flow of daily operations in a timely and efficient manner.
Building brand and customer trust is again a task for such start-ups. One small mistake can prove fatal for them. By roping in an ERP, they achieve all the desired quality and compliance standards not just in their processes but in products too. Result: Improve brand value, satisfied customers, and most of all, repeat business.
All-in-all, businesses must look at the larger picture and think of all the things that can be done using the time and money gained from the elimination of manual tasks, having complete visibility over supply chains, and viewing real-time performance monitoring with a click, all thanks to an ERP!
Cloud can do more, but not a ‘one-size-fits-all’ recommendation
Cloud ERP software, or for that matter, even web-based ERP software, can help manufacturing businesses save time and costs. Due to the many benefits that such solutions offer, which again have been discussed many a time in some of our other blogs (click to read ), many businesses are now focussing on adopting cloud- and web-based ERP systems.
While that may be a good idea for some businesses, it must be remembered here that not all businesses are similar. Decision-makers must continually review their positions with respect to ERP software for the manufacturing industry and determine what their best choice could be in terms of trimming maintenance costs and buying more time for their business.
Cloud-based ERP is, without any doubt, a more affordable investment. And manufacturing businesses that choose to adopt it early, do reap the rewards early. But again, as we said, manufacturing businesses must do their homework and figure out whether their business needs a new Cloud ERP or is better off without it.
Well, it’s a no-brainer! While we know that later adoption of a manufacturing ERP software can prove to be less cost- as well as time-efficient due to the increased scope of the business and increased complexity, manufacturing businesses should go for early adoption and save valuable time and money, instead of waiting until the processes become hard to manage.