WHY IMPLEMENT AN ERP IN A SMALL MANUFACTURING BUSINESS?

Numerous small- (and medium-) sized manufacturers are complacent with using a combination of a simple accounting system, spreadsheets, and manual tracking processes to manage daily operations.

The most common misconceptions are, ‘were too small for an ERP system’, ‘ERP systems are too expensive’, ‘only large companies can use an ERP system’. And this couldn’t be any farther from the truth.

Enterprise resource planning (ERP) systems have developed into being a practical solution and can provide considerable benefits to manufacturers (given they are selected and implemented properly). ERPs effortlessly integrate daily business processes, so manufacturers can become more efficient and flexible. These solutions automate various manual and routine duties, which allows manufacturers to create smarter workflows and dedicate resources to higher-value tasks.

Let’s dig in deeper… What are the main reasons manufacturers use ERP systems?

– To enhance productivity.

While small manufacturers may feel as though they have ‘things under control’, it’s actually quite the opposite. Trying to manually manage a manufacturing facility leads to a lack of visibility and overall efficiency.

There are many reasons for this, though one of the big ones is not having the material you need when you need it. Which is where ERP systems come to the rescue. ERPs can help manufacturers schedule production and projects more effectively with a clear view and understanding operations. Thus, improving business efficiency.

– For superior decision making with a better view.

So many operations run into this same scenario. Sometimes it just holds up an order for a few days. Other times, it could result in the order sitting for months waiting for the material to come in that should’ve been ordered much sooner.

ERP systems are designed to help businesses make better decisions. With a single, comprehensive view of your business, end-users are easily able to understand operations and highlight material deficiencies (while there’s still time to do something about it). A birds eye view allows those end-users make faster decisions and reduce lease times

– To improve customer service.

An ERP system provides a single, comprehensive view of all data from across the organization. This allows end-users to better understand customer buying habits, needs, and preferences. Which, in turn, can help deliver better customer service and increase customer relationship management abilities.

– To comply with regulations.

Government regulations are becoming increasingly more complex, and it can be difficult for businesses to keep track of all the requirements. An ERP system can help you manage your compliance efforts more effectively, which can save you time and money. ERP systems provide a single source of truth for all your data, so you can quickly and easily identify any areas that require improvement or changes.

– To increase profitability.

You’ve probably already started to make the connection here. By increasing efficiency, potentially reducing lead times, and making better use of production resources, you should be able to improve your profitability as a small manufacturer.

Add to that the ability to better estimate and track costs on products, and you have just set yourself up to compete with much larger competitors in your marketplace, and you’ve set yourself up to handle short, and long-term growth.

The major goal of small-sized manufacturers is to produce maximum quality goods with minimal investment. With ERP solutions, manufacturers can overcome business challenges, produce quality products, reduce costs, and ensure better employee collaboration.

Your Next Steps

Are you ready to explore the possibilities of ERP? 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 committed ACC Software Solutions for over 25 years to execute their software projects—contact ACC Software Solutions today!