There was a time when even large-scale businesses were dependent on manual operations, especially documentation, record keeping, inventory tracking and maintaining books of accounts. Neither was there any need of a proactive sales and marketing team nor did the thought of data analysis for market trends had ever come to the mind of manufacturers; probably because the competition was not as fierce as it is now. You can still run your process manufacturing business on such primitive methods, if you do not co-relate to terms like instant innovation, fast decision-making, real-time visibility, instant traceability, etc. But, if you do, then trust me any business in today’s rat race for capturing market cannot afford to ignore an Enterprise Resource Planning (ERP) solution. Read on to know why an ERP is important for the evolution of your business:
1) Because today quality matters more than quantity
With the consumer becoming more aware, conscious, and vigilant than ever before, the quality of the product needs attention like never before. These days, it is essential to bring superior quality products to the market rather than bringing in bulk with compromised quality. Quality checks at every step help to deliver safe, uniform quality and compliant products throughout. From characterizing the tests to associating them with the items during sales, purchase, production, and packaging has become the need of the hour. Any business simply cannot withstand the market turbulence if it is not supported by ERP’s efficient quality control.
2) Because compliance is no child’s play
Gone are the days, when adhering to compliance regulations was conveniently overlooked. But if you are found not practicing the same today, it can have serious repercussions on your dream of running a successful business. Following various regulations and good manufacturing practices has become a dire necessity for every process manufacturer. As it involves a bulk of paperwork due to governmental reporting requirements, periodic compliance fulfillment is just impossible without an automated system support. ERP’s compliance management comes as a boon for all process manufacturers, as its unique design allows you to accommodate modifications to meet new regulatory issues without incorporating major changes.
3) Because you cannot ignore inventory management
Due to extremely thin working margins, avoiding waste proves to be the only source of scooping profit. The majority of waste occurs because of inventory mismanagement and loopholes in the supply chain. A process manufacturer needs to manage numerous inventory operations such as incoming/outgoing inventory, shelf life and use-by deadlines and record keeping of overstock or under stock conditions in order to maintain optimum inventory levels. So if you want to keep a check on additional costs incurred in waste and waste management, then you need to play the smart game of inventory optimization with ERP’s exceptional inventory management features.
4) Because finance & accounting is much more than excel sheets and calculators
Financial complexities are bound to grow as your business grows. Today, finance and accounting play a role larger than mere bookkeeping. In fact, finance these days is much more interconnected with all the other departments. With an ERP, the seamless and tight integration of finance with all other modules ensures that every transaction is registered and real-time plus in-depth visibility is obtained in the cash flow. Your labor, process, manufacturing, WIP, product, and other costs are evaluated and tracked efficiently. Moreover, your Accounts Payables, Receivables, Banking Transactions, Closing everything is well-handled too. Overall, without an ERP, the execution of various financial operations is certainly possible, but they become smooth, precise, accurate and seamless only with an ERP solution.
5) Because operational flow management needs an expert in today’s times
Any business demands halt-free operational flow in order to flourish and carve a niche. The smooth operational flow needs uninterrupted information flow and timely approvals from various authorities. Managing information and document approvals across departments needs a system that takes care of it while also making it real-time, offered by none other than an ERP solution. ERP’s unique set of functionalities brings more progressive, cutting-edge, and over-the-top operational flow in any organization, and can never be achieved by age-old manual execution of processes.
6) Because bringing new products to market faster and cheaper is no more a choice but a growth-plan
Changing lifestyles, growing awareness, tech-savvy consumer, growing exposure because of increased travel, demand for newer, better, eco-friendly, health-friendly products and such have put the burden on manufacturers to continually innovate new products. But, that’s just not enough. This innovative new product must reach on shelves, before the competitors, and at competitive prices. Agreed and facing the same? Then an ERP is a solution for you.
In a nutshell, an ERP solution leaves a significant impact on your productivity and business processes and helps you to climb the ladders of financial growth. An ERP software enables your core business processes to attain optimum levels of productivity and efficiency. A business might just be functional, but it certainly cannot lead to the path of evolution without an ERP. So what are you waiting for? Acquire an ERP system now and get ready to evolve, to grow and to be successful.