Manufacturing plays a vital role in bringing products to markets, and with thousands of manufacturers all over the UK, the industry has become highly competitive, with many of them looking for ways to reduce their costs while improving productivity.
Many manufacturers are turning towards ERP systems to transform their businesses and gain a competitive edge; in fact, research by SelectHub found that manufacturers represented the most significant portion of companies (47%) looking to buy an ERP system.
So what are ERP systems, and why are manufacturers keen to implement them?
The Role of ERP Systems In The Manufacturing Industry
ERP systems are a type of software that businesses use to manage their day-to-day operations. According to a blog by NetSuite, manufacturers represent the most extensive user base of ERP systems, so an ERP system is necessary if you want to stay competitive in the manufacturing industry.
ERP systems like SAP Business One can be used to manage projects, finances, sales, and more, but many manufacturers use them to comply with regulations and to ensure their products are produced to a high standard.
Common Manufacturing Problems ERP Systems Solve
Supply Chain: Most Manufacturers have global supply chains with multiple partners and suppliers, making the entire process quite complex. ERP systems provide you with all the tools you need to streamline the process and enhance collaboration.
Inventory Management: Manufacturers need optimal inventory amounts to keep production going and guarantee no disruptions. ERP systems can help with this by automating stock management and ensuring you always have real-time figures showing your inventory.
Data Collection & Analysis: Numerous manufacturers need help with reporting and analysis, resulting in them making costly decisions. ERP systems can provide a centralised platform where you can access all your business data in real time, helping you make informed decisions.
Quality Control: Ensuring your products are of high quality is a crucial concern for many manufacturers, as a drop in quality can result in product recall and refunds and damage your brand's reputation. ERP systems can help you enforce quality control throughout the production cycle, ensuring your products are kept to your standards.
How SAP Business One Can Help
SAP Business One is a market-leading ERP system that has helped many manufacturers improve profits and reduce costs by automating essential business functions.
Besides solving all the challenges above, SAP Business One can be tailored to resolve your business's problems and help you overcome any hurdles. It can scale with your growth and give your business the backbone to succeed.
We have successfully implemented SAP Business One for many manufacturing businesses in the past, such as PULSAR, a company that manufactures high-visibility waterproof and protective clothing; the system contributed to an increase in revenue of 900%. You can read this full case study here.
We've also worked with The Tofoo Co., which produces tofu and supplies many supermarket chains in the UK. SAP Business One helped contribute to revenue growth from £500,000 to over £18,000,000. You can read this full case study here.
ERP Systems have positively affected the manufacturing industry and are now something many businesses rely on.
If you'd like to learn more about the SAP Business One ERP system, you can sign up for one of our free discovery calls, where we'll show you how the software can help your business overcome its challenges and grow.