ERP systems have evolved a great deal in recent years, and most of the advances in one way or another give a significant boost to efficiency. That’s certainly true of improvements in the ability to pull meaningful data out of the system in real time, improving the timeliness and accuracy of decision making. Rather than settle for the canned reports produced periodically by the ERP systems manufacturers were using just a few years ago, or deal with the time consuming task of importing data into spreadsheets for analysis, managers today can set up dashboards that allow them to monitor activity as it’s happening, and respond instantly.

Manufacturing ERP

How Manufacturing ERP can boost efficiency (Part 3)

The reporting and analytics capability of ERP systems today is so flexible that users can drag and drop data fields into personalized reports created on the fly for individual use or to be shared with others. “What if” scenarios can be explored and parameters adjusted in the pursuit of optimal decisions. On the fly queries provide immediate access to information to fine tune business performance. Business Intelligence (BI) and analytics have progressed to the point that you don’t need to be a full-time IT wonk to use them. Now user-friendly interfaces make it easy to track key performance indicators in real time and respond accordingly or spot trends and respond proactively.

IT personnel also become more efficient when they are managing up-to-date ERP systems, which are so much more flexible then their precursors. ERP solutions that conform to standards-based architecture can support multiple databases, operating systems and even hardware platforms. Service oriented architecture makes it far easier to add new applications or modify existing ones. IT professionals are spending far less time adjusting their environments to conform with rigid architectures, or having to customize applications to run in existing environments.

ERP systems that support wireless devices, web-based architectures and remote access boost efficiency further by extending functionality to personnel on the go and in the field, to partners and even customers. The friction in the flow of information is removed and obstacles to rapid progress minimized.

Aberdeen research has found that companies that take best advantage of ERP’s ability to automate workflows and streamline tasks achieved an average of 26% in year-over-year operating cost reductions. Ninety-five percent (95%) of these same companies were able to achieve 100% complete and on-time delivery and complete inventory accuracy.

ERP systems are very good at documenting work steps and processes so people are guided to perform work on a consistent basis. When employees have easy access to documented processes, steps aren’t inadvertently skipped, production errors go down and quality goes up. Integrated, collaborative planning processes enable more accurate forecasts and reduced budget cycle times. With more visibility into operations, management can quickly identify problems in the business and take immediate corrective action. With more accurate data and better decision-making tools, companies can improve the quality of their decisions, boosting operational results. And finally, by reducing manual administrative tasks through automated processes and providing faster, smarter access to personalized information, companies can empower staff to focus on more strategic issues.

If you are among the diminishing 30% of manufacturing companies that haven’t yet discovered the efficiency ERP systems bring to manufacturers, this would be a good time to take the first step—an analysis of all the ways your organization might benefit.

Written by :

pamelarichards