Unveiling the crucial roles of an ERP solution

  • 14/12/2023

As complexity levels rise and efficiency becomes a deciding factor, the role of an ERP system as a treasury of data is essential to improve processes, optimize resources, and ensure that your company remains adaptable and competitive.For advanced manufacturing companies, an ERP system serves a multifaceted role within, addressing a spectrum of critical functions. In the following, you can read about five of the most important roles of an ERP system:

1. Resource structuring and planning

An ERP system is instrumental in organizing resources, be it capital, human resources, inventory, or just about anything else. This empowers manufacturers to plan comprehensively, managing every step from initial production to final billing. ERP ensures accurate production planning and allows all your business entities to work effectively on the same project.

2. Cross-functional integration

ERP systems span multiple facets of the manufacturing process, connecting sales, engineering, and warehouse personnel. The system is a facilitator of seamless communication across departments. For example, it can play a pivotal role in maintaining precise inventory levels visible to all stakeholders, highlighting shortages and surpluses, and enabling effective stock control.

3. Production control

ERP acts as an overarching management tool. This proves particularly critical for manufacturing companies, in need of accurate configuration of machine capacity and labor resources. The system also handles diverse manufacturing scenarios, from mass production to customized, one-off items. ERP systems are crucial for adapting to changes, such as shifting to new materials or creating product variants.

One of the biggest challenges while developing a vision for digital change is: Ensuring that business leaders understand the possibilities
Gartner: 2023 CIO Agenda Insights for the Manufacturing Industry

4. Process guidance

ERP systems propose a sequence of actions during various stages of production, including procurement. They guide decision-making and ensure that resources are utilized effectively and that you meet your deadlines. They also perform calculations of production costs, machine utilization, and resource allocation.

5. Industry-specific customization

ERP systems can be customized with modules and apps to align with specific manufacturing processes. They can also integrate with other systems like CRM (Customer Relationship Management), PLM (Product Lifecycle Management), or Manufacturing Execution Systems (MES). Integrating these systems is a complex orchestration process, where different systems communicate at specific points, working together in symbiosis, improving your business.

Are you considering a new ERP solution for your manufacturing company?

If so, get the information you need be able to make the right decision. Get access to this whitepaper.

Subscribe to our newsletter