June 6, 2017, 1:39 pm

5 Reasons ERP is Essential for Manufacturers Trying to Scale

by: The Financial Blogger    Category: Business
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One of the most commonly misunderstood features of growth is just how much support and infrastructure it takes to nurture and sustain. Growth is not its own energy source. And once you’ve managed to achieve it, it won’t continue and accelerate unless conditions are just right. That means whatever your situation was before the growth initiated, it needs to change now that your output is on the rise.

Obviously you will need to think about purchasing new machinery, adding new staff, or moving to a larger or newer facility. But you will also need to think about the way you manage operations, forecast orders, cultivate clients, and ensure consistency.

Many manufacturers turn to ERP to handle the data challenges faced by all modern enterprises. What they are pleased to discover is that ERP is an asset at all times, and truly invaluable during times of growth. Here are five reasons it is essential for manufacturers before, during, and after a period of scaling up:

Simplify Data Management

If data management is a challenge now, it does not get any easier once your enterprise has grown. Not only is your output higher, but you are likely relying on more data-driven processes. As a result, even modest growth can multiply the volume of data you currently deal with. ERP makes it easy to funnel all of this new data directly into a system that gives it instant form and function. You don’t need to worry about your administrators or IT managers getting overwhelmed. You also don’t need to worry about valuable data being lost or wasted.

Integrate New Vendors and Distributors

As you grow you will be forming important partnerships with businesses throughout your supply chain. But integrating those distributors and vendors into your workflows is not small feat. The best ERP for manufacturing will make creating and sustaining these partnerships a seamless process. You no longer need to worry about losing an opportunity simply because of administrative hurdles.

Alleviate the IT Burden

Manufacturing ERP should ideally be housed in the cloud for a number of reasons. One of the most significant is that cloud ERP takes away much of the burden of maintenance, monitoring, and security that currently falls to your IT team. If and when you grow, you don’t need to worry about your in-house IT team becoming overwhelmed. You also don’t need to hire more staff. Your technology is already equipped to scale to meet your exact needs and wants.

Eliminate Conflicts and Confusions

Growth brings with it both excitement and uncertainty. It also changes things more broadly and more deeply than anyone expects. When your manufacturing enterprise is undergoing a major period of transformation, you want everyone to work with the same information and insights without fail and without friction. Quality manufacturing ERP creates a common platform through which real-time information flows seamlessly. When everyone needs to be on the same page, ERP makes it easy.

Manage Costs and Seize Opportunities

When you’re adopting new approaches or gaining ground in new markets, it is easy for costs to spiral out of control. It is just as easy to be so focused on the day-to-day that you lose sight of strategic opportunities or vulnerabilities. ERP is an asset during these times because it allows you to see the forest through the trees. Stress and excitement can’t get in the way of your better judgment when you can easily and instantly generate reports and analytics.

Having ERP is a real asset. But not having ERP may be an even greater risk. Make sure your growth survives the short term and carries into the long term by putting the right tools in place today.

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