Do you use a magic spreadsheet or an ERP to run your business?
It continues to amaze me how many manufacturers,
especially bespoke manufacturers, think they can still run their business using
an Excel spreadsheet. While we can all agree that Excel is an important and
powerful business tool, but running an entire manufacturing business from a
single "magic" spreadsheet won't help you go faster.
As a custom manufacturer, you should know that ERPs
are essential in today's complex manufacturing environment because they help
you manage and improve all aspects of your business: ERPs give you complete
visibility into everything of your business, help you deliver more jobs on time
and improve your manufacturing processes. Just to name a few things that ERPs
help you accomplish.
Getting the right ERP will help you stay in control of
your business by using real-time data to connect your business from
administration to production, allowing you to run your shop floor smoothly and
optimize production throughput.
Not convinced yet?
Here are the top five signs that you need an ERP ASAP.
1. You don't use real-time data to run your operations
Real-time data is probably something you hear over and
over again from ERP vendors, but it's really important. If you're running your
workshop with data that isn't accurate or up-to-date, you'll always be behind,
so to speak. It is essential to know the production processes, machines, work
centers and product lines that operate at high quality levels, which is
essential for the smooth running of the workshops and what you can only do if
you have access to high quality data in real time.
Real-time data lets you know how your plant is
actually performing and can alert you to a problem or bottleneck on your line
to resolve the issue quickly. Real-time data can also help you plan your plant
more efficiently and give you a better estimate of how long your shop will
actually be working. You'll be better equipped to provide your customer with an
accurate schedule on time, leaving you with much happier customers.
2. You constantly duplicate information
This is a big waste of time for many manufacturing
companies. Instead of keeping information in a centralized, connected system,
various spreadsheets and management systems are used to manage your business
data. This means that your staff are constantly entering the same information
into different spreadsheets and systems.
Not only does this waste time where your staff could
be performing more productive tasks, but it's also an easy way to make mistakes
creep into your data. Simple typos and human errors will inevitably occur when
entering data. By constantly re-entering the same information, you create more
chances of mistakes being made - and more chances of mistakes happening,
because simple typos can be reproduced again.
Another way this type of record keeping harms
manufacturing companies is by not having a single source of truth. If you use
multiple spreadsheets and systems to keep track of your information, which one
is accurate?
By using an ERP, you get a centralized, connected
system for all your business data and information. Not only will you avoid
wasting valuable time re-entering information into various systems, but your
entire operations will be based on the same set of accurate data.
3. Your inventory control is out of control
Inventory management is about knowing what stock you
have on hand, sitting on a shelf. However, unless your inventory management
system is integrated with the rest of your organization, an inventory
management system alone cannot effectively optimize your inventory.
An ERP integrates your inventory management with the
rest of your operations, making it easier to track inventory across your
organization. An ERP system gives your staff instant access to a centralized
inventory database, updated in real time. This lets you know exactly what you
can or cannot fill, what raw materials you actually have so hand and gives you
the certainty that what is recorded in the database really corresponds to what
is on your shelf, which makes not only a more efficient production, but accurate
financial information as well.
An ERP system can save you time and money by
eliminating the daunting task of manual inventory management processing. Say
goodbye to tedious spreadsheet updates and real-time inventory updates,
allowing you to spend less time on tedious manual entry and more time on other
activities in your business. manufacturing company.
4. Your record keeping is out of control
If you want to be profitable and competitive, your
plant must be operating at full capacity. But if you have poor record keeping
and lack control over your resources, i.e. what your business has in terms of
cash, raw materials, personnel and production capacity - you struggle to fully
utilize your capacity and maximize your production throughput.
Without an overarching system that collects data,
reports on your processes, and provides the big picture, how can you know
exactly where you stand? Your business resources are what you use to keep your
business running and you need to know where you are at all times.
One of the key aspects of ERPs is their ability to
provide complete visibility and improve record keeping. An ERP gives you a
bird's-eye view of your operations, letting you know how every aspect of your
operations is going.
And with an ERP, what once took meticulous hours of
data collection and reporting can be done automatically giving you a complete
overview of your operations through real-time dashboards. You can use this
information to know where you stand, to optimize production schedules, to maximize
capacity and increase your production throughput.
5. You have poor customer service
Let's face it, your customers are everything. Without
satisfied and happy customers, your business cannot exist. You have to keep
your customers happy and keep them coming back to you to stay in business. Poor
customer experience and poor customer service can be major obstacles to the
success of your business.
How exactly can an ERP system help you deliver a
better customer experience?
On the one hand, an ERP can help you provide your
customers with more accurate quotes and timelines, and allow you to deliver
more work on time, making them happier and more likely to use you again for
another job. Accurate production planning, tighter inventory control,
streamlined process planning, and distribution channel coordination enable
manufacturers to improve on-time delivery, which is critical to maintaining
customer satisfaction.
A good ERP will also include a customer relationship
management feature, which will allow you to keep all your records and
interactions with a customer in one place. You will be able to be better
organized and easily know the status of each job you have for a client. You
will also be able to deal with customer questions and requests faster and
easier, and provide your customers with faster and better answers, improving
your customer service and your relationship with your customers.
Conclusion
An ERP is an essential tool for your manufacturing
business. If you don't have one, you need to get one as soon as possible. Want
to see an ERP in action? Get a free demo of Genius ERP to see what it can do
for you.