ERP for Manufacturing for 2024
Manufacturing ERP software integrates key business operations into one unified system to effectively plan, execute and analyze production. At its core, it connects raw material supply, shop floor execution, inventory control, quality assurance, logistics, maintenance and business analytics. This provides end-to-end visibility and drives data-driven decisions across interconnected departments such as engineering,
production, procurement, inventory, supply chain, sales, human resources and finance.
New Rules of ERP
Download this guide to discover a new set of rules to consider when evaluating today's ERP systems.
When selecting an ERP system for your manufacturing company, consider the following features of a modern ERP to maximize the benefits and align with your specific needs:
1. Cloud Capabilities
Cloud-based ERP systems have become the dominant model in recent years, offering your business more flexibility, scalability and mobile accessibility. As companies prepare ERP upgrade plans for 2024, evaluating the scope of cloud functionality should be a priority.
Cloud ERP provides anytime, anywhere access to real-time data and supports remote work arrangements that have become more common. It also simplifies software updates and maintenance without large upfront investments in on-premise infrastructure.
2. Artificial Intelligence and Machine Learning
Artificial intelligence (AI) and machine learning have become pivotal technologies across industries, and these advanced capabilities are being incorporated into modern ERP platforms. As manufacturers assess ERP solutions for an upgrade in 2024, AI with machine learning integration should be a key consideration. ERP with embedded AI can automate repetitive tasks, optimize supply chain decisions, predict equipment failures and recommend process improvements.
It provides insights for forecasting, quality control, inventory optimization and efficient production scheduling and planning. For example, machine learning algorithms have the capability to analyze vast amounts of IoT sensor data from production equipment to anticipate maintenance needs and avoid downtime.
3. Process Automation
ERP systems for manufacturing enable process automation across departments, from order intake to fulfillment and accounting. As manufacturers plan 2024 ERP upgrades, they should look for options that allow easy integration of advanced automation to reduce manual work and improve efficiency.
Robotic process automation (RPA) capabilities enable repetitive administrative tasks such as data entry to be automated within ERP workflows. ERP with built-in RPA can automatically trigger next steps after receiving an order, then update inventory data, issue purchase orders and process invoices. Intelligent process automation also streamlines the sharing of data between ERP and other systems.
4. Internet of Things (IoT) Integration
The proliferation of sensors and smart devices in manufacturing facilities is enabling the internet of things (IoT) ecosystem. Assessing IoT capabilities should be a key part of any ERP evaluation and upgrade planning for 2024. ERP solutions integrated with IoT allow your manufacturing company to collect and analyze real-time data from equipment, materials and machines.
IoT-enabled ERP provides actionable insights from sensor data for quality control, predictive maintenance, inventory management and overall equipment effectiveness (OEE). You can track assets, monitor product conditions, adjust processes and make data-driven decisions with real-time data captured from IoT capabilities.
5. Material Requirements Planning (MRP)
Material Requirements Planning (MRP) functionality allows your company to accurately forecast demand and optimize inventory levels. By analyzing order history, forecasts and lead times, MRP can calculate future material needs and generate purchase proposals. This ensures that your company always has the right materials at the right time, preventing stockouts and minimizing excess inventory.
A robust MRP module within an ERP system also helps your business maintain optimal inventory levels by providing real-time visibility into stock levels, tracking material usage and generating alerts when inventory falls below a certain threshold. This feature is essential for preventing production delays and improving overall supply chain efficiency.
6. Shop Floor Automation
Integrating manufacturing control systems with ERP software enables real-time visibility into production processes, allowing you to monitor and analyze performance. Shop floor automation is a powerful feature that provides your business with the ability to identify bottlenecks, track work orders and make informed decisions to improve efficiency.
By leveraging shop floor automation, your company can capture real-time data on machine utilization, production rates and downtime. This data can be analyzed within the ERP to identify areas for improvement, optimize production schedules and minimize waste. With the right ERP system, your
business can achieve higher productivity levels, while reducing costs and enhancing your overall operational efficiency.
7. Supply Chain Management (SCM)
An ERP system with a robust Supply Chain Management (SCM) module provides your manufacturing company with the tools you need to effectively manage vendors, evaluate performance and facilitate collaboration through online portals. With SCM functionality, your business can streamline procurement processes, automate purchase orders and track supplier performance. This ensures that the right
materials are delivered on time, at the right price and from reliable sources. By having a smooth flow of incoming products, your business avoids production delays, reduces costs and improves customer satisfaction.
8. Service Management
Expanding post-sales service offerings can be a lucrative revenue stream for your manufacturing company. When selecting an ERP system, consider service management functionalities that support field service or
depot repair operations.
By integrating service management with the core ERP system, your company can effectively manage service requests, schedule technicians and track service contracts. This enables your business to provide timely and efficient service to customers, improving customer satisfaction and loyalty. Additionally, service management functionality within an ERP system allows you to track service-related costs, analyze
profitability and identify areas for improvement.
9. Serial & Lot/Batch Tracking
For industries that require serialization, lot tracking or batch tracking, it is crucial to choose an ERP system that supports these features. Serialization and lot tracking capabilities ensure product traceability throughout the supply chain, maintaining compliance with industry regulations and standards.
With serial and lot tracking functionality, you can track and trace individual units or batches of products from the point of origin to the end customer. This enables your company to quickly identify and address quality issues, minimize the impact of recalls and maintain the integrity of your products. By having complete visibility into the movement of products, your business can build trust with customers and ensure the highest level of product safety.
10. Business Intelligence
Real-time visibility into data is crucial for making informed decisions. When selecting an ERP system for manufacturing, it is important to look for robust business intelligence tools that offer insights into profitability, costs and expenses as they occur.
With integrated business intelligence functionality, you can analyze key performance indicators (KPIs), generate real-time reports and visualize data to identify trends and patterns. This reduces guess-work, empowering your company’s executives to make data-driven decisions, optimize processes and drive strategic initiatives. By leveraging business intelligence insights, your business can improve operational efficiency, reduce costs and increase innovation.
Conclusion
As the manufacturing landscape evolves, the importance of a tailored ERP solution becomes paramount. By exploring key features and critical considerations in ERP selection, including cost, features, reputation, security and scalability, your business can make informed decisions to propel operations toward efficiency, growth and sustained success.
Ultra Consultants is an independent enterprise software consulting firm serving the manufacturing and distribution industries in North America. With extensive experience in a wide variety of manufacturing ERP systems and current best practices across various industries, we understand the unique challenges and
opportunities in the manufacturing sector. To get started with your ERP selection project, request your free discovery call today.
