In manufacturing, the speed of turning over a quote can be a decisive factor in winning or losing a client. Manufacturing ERP software significantly improves the quoting process in manufacturing by integrating real-time data across various departments. This integration provides immediate access to crucial information such as inventory levels, material costs, and production capacity, enabling faster and more accurate cost estimations.
“When I put in a customer order, I can confidently give the customer a date when the order will be ready while instantly knowing what materials I need to fulfill the order,” says Kent Holdeman, Founder of Covenant Millwork, a custom woodworking company from Louisville, Georgia.
Minimized stockouts
Manufacturing ERP software plays a vital role in preventing stockouts by providing precise inventory management and forecasting tools. It continuously monitors current stock levels and provides you with the historical data that enables you to predict future material requirements accurately. By automating reorder point notifications and assisting in purchase order generation, ERP software ensures that materials are replenished just in time, minimizing the risk of overstocking and understocking.
“We’ve never had a material shortage after adopting MRPeasy,” says Colin Hart, Managing Director.
End-to-end traceability
Manufacturing ERP software ensures traceability in manufacturing through functionalities like lot and serial number tracking, which assigns and monitors identifiers for all materials and products throughout the production process. It also tracks shop floor activities, providing real-time insights into material usage, work order progress, and personnel involvement, crucial for pinpointing issues and evaluating productivity. Additionally, manufacturing ERP systems facilitate comprehensive report generation, essential for audits and compliance checks, thereby ensuring that every aspect of the production cycle is documented and traceable.
“Everything we sell now matches up with specific ingredient lots, so we know what our products cost, where the inputs came from, and which customers purchased the products. We get complete visibility,” says Yoni Schwartz, President at Fresh Fizz Sodas, a beverage brand from Long Island.
Increased efficiency
ERP software boosts efficiency by integrating and automating core business processes. It optimizes production planning and inventory management, ensuring that resources are available when needed without overstocking, thus reducing holding costs and minimizing waste. Scheduling tools within these systems help allocate machinery and manpower effectively, avoiding bottlenecks and streamlining the flow of operations.
In addition, ERP software automates many routine administrative tasks, freeing up staff to focus on more value-added activities. This comprehensive approach not only speeds up production cycles but also improves the overall accuracy and responsiveness of the business, enabling manufacturers to handle more orders with greater precision and less effort.
According to Jan-Marc Pickhan, Director of Operations at UK’s Allied Global Engineering, implementing MRPeasy helped the company reduce administrative load by 70%. “It used to take at least 2 hours to launch something into production just because of all the data that had to be transferred in Excel. Because we didn’t have a sophisticated system, it was a lot of manual data moving, and that’s just asking for trouble,” he says.
Improved cost control
ERP software plays a pivotal role in improving cost control within manufacturing businesses by providing detailed and real-time visibility into all cost-related aspects of the production process. It tracks the costs of labor, raw materials, work-in-progress, and finished goods, ensuring that budget overruns are quickly identified and addressed. By accurately forecasting demand, ERP systems help manage procurement efficiently, avoiding both excess stock and urgent, costly purchasing scenarios.
David Altemir, Founder of Texas-based manufacturing consultancy Altemir Consulting, emphasizes the benefits of MRPeasy’s cost tracking features: “Actual costing is particularly important for smaller companies that are ramping up production as they need to have a good understanding of their unit costs. Few people realize this, but actual costing gives a terrific advantage to many businesses.”
Additionally, the software improves resource utilization by scheduling production runs that minimize downtime and optimize the use of machinery and labor. With comprehensive reporting features, ERP software enables ongoing analysis and refinement of cost control measures, allowing manufacturers to continuously improve their cost efficiency and operational decisions.
Read more: MRPeasy customer success stories