Priority voor Productiebedrijven

ERP for manufacturing provides improved control over components inventory, more accurate demand-planning, streamlined production scheduling, and more effective coordination of distribution channels. This, in turn, enables companies to improve product quality, meet delivery schedules, and save on time, resources, and costs, as businesses will spend less time on individual resources and workforce. In the manufacturing sector, an ERP system takes the role of a middle man. It can be the defining factor in detecting what doesn’t work for a business, and what does. ERP operations manage all aspects of the manufacturing business - from automation of daily processes to on-ground inventory management, fewer overall costs, and more effective production planning.

ERP software works by decreasing the number of resources required to run the business optimally, however, still ensuring profitability, and overall business improvement. An ERP system is different from a single application because it allows other enterprise modules of your company to work from a single, shared database. For the most part, ERP software depends on the kind of business it has been designed for.
However, all types of ERP software have an integrated data structure, whereby any changes within the manufacturing and/or supply chain will notify other departments, and individual users. This helps keep businesses in check, and in line, with real-time data insights to make more informed business decisions. Moreover, any collected data keeps the workflow going, and things running. ERP software also manages regular updates, where the goal is to have an automated flow of information, easily accessible by everyone in the company, and to power operational business processes without interruptions or delays.

Read our blog on What's an ERP to learn more.

There are several types of ERP software solutions for manufacturing businesses, as follows:
 

• On-premises ERP. This type of ERP software runs on in-house servers located somewhere within the manufacturing facility, or at other locations managed by your company. An on-premise ERP solution offers the security and control of using your own IT infrastructure to connect your employees, processes, and systems, and require physical implementation to make system changes or upgrades. The risks of using an on-premise ERP include extensive IT budgets and system upkeep costs, difficulties in maintaining compliance, and disengaging your workforce, many of whom are or will continue to work remotely. See here the main differences
• Cloud-based ERP. This type of software runs exclusively online. Cloud ERP provides users with continuous support, updates, customization, and additional training. Moreover, the option tends to be less expensive, and less prone to system bottlenecks and downtime. However, cloud ERP is at risk of malware exposure.
• Hybrid ERP. A combination of on-premise and cloud-based ERP software systems, and entirely customizable. Depending on the business, these can include multiple hosting and physical hardware sites.

Yes and no. The great thing about using an ERP system is its customizability. Some features are only intended for different-size corporations, and all vary in cost.

• Small businesses. Small manufacturing businesses don’t have the need for mogul company ERP packages. The ability to scale, integrate, and transfer information is simpler on a smaller scale. Having one base system through a cloud-based ERP will generally work best.
• Medium businesses. For manufacturing companies growing in size, integrating specialized workflow and scaling modules, is necessary. Medium-sized businesses with more capital are advised to invest in on-premise ERP software. This is due to both regulatory and legal policies. Depending on the policy, these can often prohibit extensive data storage on a single device.
• Corporations. For large businesses and corporations, ERP software is a must. It’s best integrated within the company and then upgraded, as and when needed. Hybrid and on-premise ERP offer far better business management and control. If ERP software has not yet been implemented, a hybrid system is recommended, as it ensures continuous scaling, seamless data transfer, and a steady workflow.

Most manufacturing companies require the assistance of an ERP system. This is due to the nature of the business. Manual operation management, unfortunately, delivers inefficient results. The ideal ERP candidates include manufacturing businesses facing various pain points, such as a halt in production, slow or inefficient processes, lack of growth, and little or no security checks. For a seamless experience, aim at promoting growth first. This will prevent you from having to overhaul a broken or fragmented system later on.