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Investing in manufacturing cloud ERP may feel like a stretch for your company, but there is an old saying that you must spend money to make money. This is quite true when it comes to manufacturing technology. Cloud ERP can help your company cut costs in several ways, both on the shop floor and beyond.
Improving Efficiency on the Shop Floor
When it comes to increasing profits, manufacturers know they can either increase the volume of orders moving through the shop floor, increase the profit per item, or improve efficiencies to enhance the overall profitability of their operation. Adding manufacturing cloud ERP to your company can help you achieve one or more of these tasks.
First, when using manufacturing cloud ERP, you can improve job scheduling to accommodate higher order volume. This also shortens any downtime with equipment. Job scheduling modules improve your ability to assess output and throughput and attain greater efficiencies on the shop floor.
Assessing the financial data from manufacturing orders can help you proactively address the profit per item. Once you view the job costs, you can either source new suppliers to decrease the cost of raw materials or compare the cost of the finished goods and assess the marketplace receptivity to increasing the price for the final goods. With the data provided by cloud ERP, you will have accurate and timely information at the ready so you can make better decisions around costs and pricing.
Improving Quality Management
Next, manufacturing cloud ERP can also help your company improve its quality assessment process. Data from each production batch can be reviewed and any items deviating from the established quality rubric can be assessed to find out where the process broke down. The data and visibility derived from cloud ERP systems can be used to improve the overall quality assurance process. Faults can be traced back to suppliers or missteps in the process and be corrected quickly. This continuous cycle of quality improvements reassures customers of your commitment to excellence and helps build a reputation that can lead to better brand recognition and more sales.
Manufacturing cloud ERP cuts costs by identifying problematic suppliers and removing their goods from the workflow. Faulty raw materials can cause delays, cost overruns, and added time to jobs that lead to leaked profits. By reducing poor quality, you also eliminate unnecessary expenses.
The Key: Data for Greater Efficiencies
Manufacturing cloud ERP improves efficiencies across the entire organization. Data shared among teams can improve quality, increase production efficiencies, and reduce cost overruns. ERP systems excel at collecting and disseminating data from all points in the company, ensuring greater transparency. With this information, manufacturers can take steps to reduce costs.
Some excellent examples of how manufacturers have used ERP to improve efficiencies include:
American Sign: a sign manufacturer which required custom tweaks to their ERP system to accommodate their highly customized manufacturing product.
Twang: a seasonings and ingredient manufacturer which needed cloud ERP to enable their manufacturing capabilities to grow.
As the old saying goes, sometimes companies must invest in things such as technology to yield great savings. With the right cloud ERP system in place, tweaked to ensure it meets the unique needs of a manufacturing company, you will be able to reduce costs or increase sales, the formula for success.
By Mindover Software – Acumatica Gold Certified Partner
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