What all businesses need ERP?
Any business, be it large-scale, small-scale or medium-sized, ranging from manufacturing to catering and whether discrete or process manufacturing, needs an ERP solution. This is because challenges of small/medium businesses are no different from large industries. They need to follow the same guidelines, abide by regulations, maintain reports & documents, meet quality parameters, manage resources, cut costs, thrive on thin profit margins et al, just like the big daddies of business. So, to standardize their processes, streamline operations, cut losses and wastage, stay audit-ready, exploit resources and improve profits, even macro, start-ups, small and medium industries are looking for an ERP partner.
The ERP systems were predominantly developed to manage discrete manufacturing processes which involved production of goods that are easily distinguishable and can be physically counted like nuts, bolts, wires, etc. Such ERPs were ideal for industries like automobiles, mobile phones, furniture, toys, etc.
However, with time, the need for software for process manufacturing was felt because process manufacturing is based on formulas/recipes and involves blending, mixing, heating, etc., which result in change of state. These different set of needs could not be fulfilled through a software built to follow production on assembly lines. Thus, dedicated ERPs for process manufacturing came into existence bringing about key capabilities like- Physical property analysis, formulation, unit of measure conversion, density calculations, batch processing, regulatory compliances, etc., among many.
Read our blog to know more about Process Vs Discrete manufacturing.