ERP Software: More Than Just a Backend System
November 6, 2012
Posted by on
ERP Software is usually referred to as back end management software, particularly when it is being distinguished from its counterpart CRM. ERP software lets you manage every aspect of the business from one software system. By managing the finance, production, quality, logistics and HR in one package it eliminates loss of information and data duplication which contribute to human errors and loss of profits slowing down production and delivery times.
ERP Software designed for managing the manufacturing supply chain visibility and tailored to a specific business is better equipped to implement solutions to common challenges facing the manufacturing industry. Manufactures must implement Engineering Change Orders (ECO) to amend design faults and errors that arise during production. By implementing ECO there may be changes in raw material, components, assembly lines and changes in specifications. This will also result in multiple bills of materials (BOM) being issued. If manufacturers implement ECOs and BOMs through traditional and rigid methods like excel sheets and email a massive paper trail that diverges can be created. Multiple orders that are duplicated or placed out of chronological order could end up being costly. ERP software is designed to simply this problem and prevents such problems occurring when creating new ECOs and BOMs.
ERP systems with integrated product lifecycle management (PLM) and computer aided design (CAD) and computer aided manufacturing (CAM) properties helps manage the distribution of ECOs and BOMs in one central database so that there are no diverging copies. This will help eliminate the chance of human errors causing delays and damage to the top end growth. To help improve the manufacturing process having standardised practices in place, removing paper trails and creating constant dialogue between the designers, the manufacturing floor and engineers to improve both the product and the supply chain.
Furthermore ERP capabilities extend beyond back office functions with an integrated front office customer relationship management (CRM) and supplier relationship management (SRM) making collaborating and engaging with enterprises, supply chains and customers easier; helping to mitigate risk and ensuring production run times and increasing revenue growth.
ERP software is enabling manufacturers to collaborate more efficiently with small enterprises and supply chains to improve production and help increase the bottom line. Combined with CRM and SRM ERP software can provide valuable insights for product demand and feedback, helping the manufacturer view gaps and trends in the market.
Manufacturing supply chain ERP system that is robust and integrated within every aspect of the manufacturing company will help improve production times, product quality, growth and most importantly the bottom line.