5 Reasons Why Manufacturers Prefer Discrete ERP Software
As the technology becomes more advanced and affordable, manufacturers of all sizes are boosting their efforts to adopt the ERP technology. This can be seen by the growth in the overall size of the ERP market, which is expected to reach an overall valuation of US$ 85 billion in 2021, as per the report by Statista.*
Another important factor driving the growth of the global market is that numerous manufactures need to replace their current solutions as they are either running on outdated technology or they lack robust functions and features.
ERP platforms have been used by manufacturers for years; however changes in consumer behavior, new technologies, and growth of the economy are enforcing discrete manufacturers to rethink their priorities. Thus, discrete manufacturers are now adopting ERP to address new as well as traditional business challenges. Here are 5 main reasons why:
1. Single source of Information
A single source of information in ERP database permits manufacturers to efficiently manage different data types, from consumer data to production, inventory, and purchasing or sales transactions. It also streamlines searching for data on almost everything stored in the database, which thus simplifies analytics and reporting.
2. Replacing Outdated Technology
Changing old-fashioned technologies or accounting systems is principally vital when manufacturers grow over a period and such systems cannot accomplish complex functions with their basic features.
3. Enhanced Efficiency:
Enhanced productivity gives employees valuable time to concentrate on what actually matters, instead of concentrating on time-taking activities such as data entry. This is especially vital for employees concerned with manufacturing operations, where the output of production relies on the productivity of the related people. Increased productivity can also motivate employees to be more efficient.
4. Reduction in Expenses and Better Returns
Cutting down expenses and increasing revenue are two ways that an ERP system can assist manufacturers to achieve higher ROI over a period of time. As the productivity of the employees’ increases over time and the overall production costs come down, the total profitability of the company also improves. Manufacturers also use ERP to cut down back office expenses by cutting down errors and the time spend on most time-consuming tasks.
5. Helping Company to Grow
Since the selection and implementation of ERP systems are disruptive and costly processes, the manufacturers should ensure that the installed system must be utilized for minimum 5 to 10 years. This means that they must select an ERP system that will adapt to the growing needs of their company in the future.