In modern times, an Enterprise Resource Planning (ERP) software has become a lifeline of sorts for the manufacturing businesses. As the market dynamics and technology continue to evolve, manufacturers strive to reduce costs, manage growth, streamline processes and gain a competitive advantage over other players in the market. An ERP software provides a crucial help to the manufacturing businesses in this quest with its invaluable benefits to the manufacturers. It integrates all areas of business such as materials and inventory, production, operations and sales, accounting and finance, etc. so that every business function relies on a single database and delivers accurate, real-time information crucial to the manufacturing industry.
This holds true for manufacturing companies of all sizes – large, small-scale or medium-sized. As a matter of fact, an ERP is equally necessary for a startup manufacturing company as well. Startups require as much help as they can upfront to become successful and flourish. And this is virtually impossible without the help of technology, i.e. an IT tool such as a manufacturing ERP. The startups face a multitude of challenges like setting up processes, investing in company growth, minimizing expenses, etc. In absence of an ERP software, they depend on manual data entry, which eats up major chunk of their time. They fail to get accurate reports in real-time and end up wasting a lot of time validating reports from multiple platforms. Then there are quality and traceability issues, inaccuracies in scheduling, lack of planning, etc., that mar their business.
An ERP can definitely fix these as well as all of their other problems. Take a look at this blog which tells you why an ERP software is strongly recommended for manufacturing-based start-ups:
- A complete package: Many a time it happens that the manufacturing-based startups use different independent software for different business functions. However, this only complicates the process and makes things messier. An ERP software, on the other hand, is a complete package as it has all the modules that startups require to run a business. Right from accounts, inventory, bank transactions, sales orders, customers, employees, payrolls, to taxes and much more, an ERP manages it all, eliminating the need for multiple software.
- Increases efficiency: Manufacturing-based startups are usually faced with lack of resources on all fronts. With lesser manpower at disposal, usually, one guy takes multiple responsibilities, such as handling sales, finances, inventory etc., simultaneously. But it gets difficult as the business blooms. A manufacturing ERP solves this issue by integrating all the departments, tracking daily business records and making all the data accessible at the same place, which reduces the headache of the guy handling multiple things. Now he doesn’t need to waste time in maintaining records and data manually, and can access all the vital data just at a single click. This ensures better management, smooth functioning & enhanced efficiency.
- Solves taxation & regulatory compliance concerns: Majority of startup manufacturing companies find it difficult to deal with the intricacies of taxation and GST regulations as well as the complexities of regulatory compliance. To deal with these issues, they need an expert IT solution like ERP software, whose robust modules help reduce the complexities of taxation as well as meet the regulatory compliance requirements. A potent manufacturing ERP enables deducting and managing different taxes automatically, storing of all invoices and related documents in one place, and furnishing statutory reports, thus making the lives of startup employees easier.
- Manages data & analytics: For most startup manufacturing companies, planning & forecasting, predicting the demand and supply position, decision making etc., are nightmarish experiences. The reason is simple; in absence of an ERP software and with limited resources, they are just not equipped enough to manage their data properly and as a result, execute those business functions efficiently. However, a perfect-fit manufacturing ERP not just allows them to keep track of the daily tasks and transactions, but also provides critical data through its database and allows its analysis, thus facilitating effective planning & forecasting, predicting the demand and supply position, and sound decision making.
- Provides cost efficiency: As mentioned above, many startup manufacturing companies are stuck in time-consuming manual processes, which hurt them severely on the costing front. They are often intimidated by the prospect of investing in an ERP as they have limited budgets. But it is important for them to see an ERP software as an investment and not a cost. An ERP establishes automated, streamlined processes with real-time business information, thus helping the startup manufacturing companies reduce overall operational cost, including labor expenses, inventory, and warehousing costs etc., and make savings wherever possible.
- Enhances customer service: For a startup manufacturing company, delivering high-quality products & services as well as customer service are of paramount importance. Using a manufacturing ERP, they can interact with customers better and improve relationships with them through faster and accurate access to their information, history and buying patterns.
- Ensure seamless business expansion: Business expansion is the ultimate objective of any business, and startups are no different. But this objective cannot be achieved by having a software that only runs your business function but doesn’t help it improve and grow. A scalable ERP software helps give better client service, make better decisions, keep a close watch over the expenses, track every action, reduces costs, increase profits and in a nutshell, achieve business expansion. Besides, it enables adding new business functionalities to the current ERP arrangement to complement present business needs, thus ensuring the expansion is seamless and smooth.
Conclusion: An ERP software has proved over the years how it brings immense value to the table for a company of any size – large, small or medium-scale. A startup manufacturing company is no exception, as we saw above how it too gets benefitted by ERP. Considering a startup’s financial limitations, a Cloud-based ERP software fits the bill perfectly for it. It comes with benefits such as predictable monthly fees, remote access and reduced IT and hardware costs.
Investing in ERP software – on-premise or Cloud – is important as it is a decision that helps save costs and improve efficiencies for faster company growth. BatchMaster caters to the needs of startup manufacturing companies with its wide range of ERP products. For more information about our products, log on to https://www.batchmaster.co.in/ or write to us at firstname.lastname@example.org.