In this post we will cover how ERP helps supply chain management department, As we all know and have earlier discussed that ERP system also known as Enterprise resource planning software or business software helps organization and businesses in many ways. Implementing ERP software for business helps to enhance the operational efficiency in all the departments, and for manufacturing industry ERP software has become an important business component.
There are various ways ERP software offers advantages to companies which involved in production of good, taking an example ERP systems helps the decision maker to monitor different departments including employees working on shop floors in real time. The data generated by ERP software helps the managers to understand the needs and requirements in the business and similarly improvise their daily task by increasing company output with more efficiency.
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One of the most important business departments in manufacturing process is to manage your supply chain, Organizations that produces finished goods and products needs to have certain components ready which is also called as Bill of Materials to assemble the final product and related task. Although if these bill of materials or manufacturing components are not available in hand when needed may cause delays and have a negative impact on the business. With the help of an ERP system in place the problems of shortage in Raw materials or bill of materials can be reduced.
Read our article – HOW TO MANAGE YOUR RESOURCE IN BETTER WAY WITH ERP SOFTWARE
How ERP systems help supply chain problems.
One of the most important issues with supply chain management is the materials management. With an ERP system in place, decision maker or managers can handle current inventory levels including the new purchases and accounts payable activities with suppliers. Implementing an ERP system allow organization department to keep every single piece of information handy which ultimately increase the efficiency.
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Apart from the inventory ERP software also helps manufacturing business to plan their production activities. ERP system helps to ascertain the crucial materials which are not in stock or stocks which can replenish soon. With this information in hand business can schedule buying of materials with quick decision making.
ERP system increases the intra company collaboration and helps businesses to be more innovative in their manufacturing activities. ERP helps to create a transparency that improvise the internal as well as external compliance.
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One of our client example who have implemented ERP software for small manufacturing business and increased the on time delivery to around 95% including lowering the excess raw material cost by 65%. Further the lead time was reduced by 5 days from 25 days.
The list of benefits for implementing and ERP software is numerous. Although improved supply chain management department cannot be overlooked as the effective supply chain department is the efficient production activities are done which further enhances the customer satisfaction.
Globalteckz Experience :
At Globalteckz we are official Odoo partners which is one of the leading open source ERP software available for small to big organizations. We have sucessfully implemented Odoo software specifically for manufacturing businesses replacing the old legacy system with improvising their business processes. For more information you can contact us on email@example.com
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