4 ways ERP systems can help manufacturers improve productivity?

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ERP for the manufacturing industry allows manufacturing companies to automatize operations and provide top-quality products.

India is witnessing a surge in demand for manufactured products due to the rise in the middle-class population’s incomes. Also, there has been a significant investment in this sector. In 2020, a year of significant challenges due to the pandemic, the manufacturing sector generated 17.4% of India’s GDP. But several factors impede its growth. Many small and medium-sized manufacturing companies still don’t have manufacturing ERP software to conduct their operations, which is why they lag behind their competitors. 

This article sheds light on how ERP for the manufacturing industry will help companies improve their productivity.

1. Manufacturing ERP software streamlines complex processes.

As your manufacturing business will become big, you will need to automatize the following critical business functions:

a. Ordering raw materials

b. Converting raw materials into finished products

c. Vendor management

d. Preparing financial documents

e. Inventory/warehouse management

f. Adhering to government rules and regulations

ERP for manufacturing software will help you make all complicated processes easy. After implementing one in your manufacturing facility, you will see your profits rising, operational costs going down, and productivity increasing at a fast pace.

Also Read: 4 trends that will dominate manufacturing in 2021

2. Manufacturing ERP software saves time and cost.

Every manufacturing business wants to save time and reduce their operational expenses. Manufacturing ERP software helps firms achieve this quickly. As described above, it automatizes functions and eliminates delays in manufacturing facilities. If you are still employing your workforce for doing trivial works such as form filling and data entries, you can significantly benefit from manufacturing ERP software. It will take up such mundane work to allow your workforce to focus on other issues that require human ingenuity.

3. ERP for manufacturing optimizes inventory and warehouse

Every manufacturing company needs a warehouse to manage inventory. If you still depend upon your workforce to manage your inventory, you are wasting their time and giving way to numerous human errors in the process. ERP for the manufacturing industry monitors the inventory levels in real-time. As soon as the raw materials go below the threshold level, it places orders with the vendor. It also checks when the desired raw material’s market rate is less than the average value so that it can stock them up at low prices. Moreover, it also manages the inventory by assigning appropriate places for finished products in the warehouse. This process significantly reduces loading time when the distributor’s trucks are waiting outside your manufacturing facility.

Also Read: How will ERP help in Maximizing the Inventory Distribution Process?

4. ERP for manufacturing manages customer demand.

The world is changing rapidly, and so is customer behavior. It calls for you to keep an eye on your customers if you want to serve them better and build robust and long-lasting customer relationships.

ERP for manufacturing software keeps an eye on the following things:

a. The needs, wants, and aspirations of the customer.

b. Expected and projected sales volume.

c. Estimated profits.

d. Competitor strategies and what they are doing to lure customers.

e. Changing government policies and how they might impact your relationship with customers.

All these data points will help you make better decisions and become market-ready.


The manufacturing industry is booming like never before. This is the right time for you to implement top-notch ERP software to take care of all your crucial business functions. It will help you expand your reach and venture into new markets quickly. ERP for the manufacturing industry is a boon as it provides rich business insights that will help you make informed decisions and achieve all your business objectives.

At Sage Software Solutions (P) Ltd., we are home to world-class ERP software and CRM software that will solidify your business tech support fundamentals and enable you to build a customer-centric organization. To know more about it, SMS SAGE to 56767. You can also write to us at sales@sagesoftware.co.in

Disclaimer: All the information, views, and opinions expressed in this blog are those of the authors and their respective web sources and in no way reflect the principles, views, or objectives of Sage Software Solutions (P) Ltd.

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