The demand of today’s modern economy has placed a great deal of stress on manufacturers to keep-up with operations. Just as any other industry, manufacturers operate on tight margins in order to remain profitable. However, embracing a modern enterprise resource planning (ERP) software can solve many of the obstacles manufacturers face.

A modern ERP solution integrates all business processes in a single, united platform – from handling inventory and order management, to accounting, human resources, and customer relationships.

With an effective ERP system, end-users have the structure and ability to make better data-driven decisions with immediate insights. Informed decisions allow manufacturers to extract maximum value from both their factory investment and their workforce.


Here’s how a modern ERP can solve the following 5 manufacturing obstacles…

  1. Cost Fluctuations

Due to the uncertainty of todays unpredictable market, manufacturers are having a tough time figuring out how to remain profitable with fluctuation in raw material costs and margins.

Luckily, an ERP system solves this problem by, firstly, giving businesses integrated visibility into accounting, distribution, and manufacturing operations. Through this, they will be able to easily identify and track cost elements and target areas of waste for improvement. Secondly, users can automate labor-intensive and time-consuming processes. And lastly, ERP enables an evaluation of detailed actual-versus-expected costs, as well as targets for cost savings and continuous improvement programs.

  1. Cash Flow Predictions

Running an effective manufacturing business, requires an accurate forecasts of cash flow. Not only to keep the lights on, but to see if and when it is practicable to expand operations. There are several tools in ERP software that can help with this.

For instance, here are two tools… Accounts Receivable forecasts reflect how different customers pay on different terms and includes information, such as the average number of days each customer takes to pay. Accounts Payable provides crucial information – not only records invoiced purchases, but also flags special supplier terms, unapproved invoices, and purchase receipts not yet invoiced by suppliers.

  1. Managing Imports

As competition increases and the world becomes more globalized, manufacturers are importing raw materials from a variety of locations, both local and international. Even though this expands the range of readily available resources, it can grow to be overwhelming and difficult to manage.

Fortunately, an ERP system offers various ways to assist in the management of raw materials. For instance, a Blanket Purchase Order facility enables specified pricing for an agreed quantity of product. Tools such as Requirements Planning, and Factory Scheduling allow manufacturers to achieve the required service levels by implementing LEAN principles.

Additionally, the software also allows manufacturers to be cautious against unpredictable supply of long=lead-time items using minimum and safety stock levels.

  1. Time to Market

Improving time to market is an obvious way for manufacturers to gain a competitive advantage against competitors.

ERP works to improve how fast products are produced and delivered to customers. For example, customer design data, such as drawings and CAD specifications, may be easily imported to speed up an otherwise time-consuming process. Additionally, features such as Factory Scheduling allows for accurate quotes of lead times and delivery dates based on capacity and existing loads. And, an Engineering Change Control (ECC) function enables manufacturers to apply control and uniformity over design-to-market processes.

  1. Staying Informed

In today’s increasingly connected world, strategic positioning based on real-time data is essential.

Real-time data provided by a modern ERP solution, delivers access to self-service reports and key performance data to keep management informed, without draining resources. For example, Financial Ratios provide an at-a-glance assessment of the financial health of the business, allowing for real-time monitoring to enable effective decision making. There are also forecasting modules that provide tools to track and evaluate forecasts and can assist in producing the best possible outcome with minimum error.


Overall, the presence of an ERP system can set manufacturers apart in an increasingly competitive environment and provide vital business insights to meet the ever-changing needs of today’s market.


Your Next Steps

When you team up with ACC Software Solution’s premier team of consultants, you’ll receive a team of experts committed to following ERP best practices, from selection to end user training.

Find out why distribution and manufacturing facilities across the United States have come to us for over 25 years to execute their software projects—contact ACC Software Solutions today!

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