ERP Trends for Metal Fabricators for 2024
Enterprise Resource Planning (ERP) software has evolved over the past few decades from a helpful tool into an essential component of operations. By embracing innovations such as ERP systems, metal manufacturing companies can thrive amidst intensifying market conditions.
Let’s take an overview of some of the latest ERP trends for metal fabricators for 2024 that you need to know as you look to upgrade your systems.
ERP Vendor Update: Metal Fabrication
Download this guide to discover 8 top ERP solutions with detailed, up-to-date information on 52 key capabilities and a comparison table that puts the solutions side-by-side.
1. A Shift Towards Cloud-based ERP Systems
Cloud-based ERP systems are quickly becoming the top manufacturing solution for every manufacturing sector, from process manufacturing to complex manufacturing. Instead of investing in expensive on-premise servers and infrastructure, metal fabricators can now access ERP functionalities online through cloud computing.
The ERP implementation of a cloud-based ERP system allows your business to enjoy the following benefits:
- Cost savings from eliminating the need to maintain and update on-site hardware
- Scalability to easily add users and locations as the business grows
- Improved collaboration as all stakeholders can access real-time data
- Enhanced data security with regular backups and disaster recovery
- Automatic software updates to stay on the latest version
With managed services, your business no longer has the need for dedicated IT staff to maintain infrastructure and handle upgrades. The subscription-based payments also convert hefty one-time licensing fees into smaller monthly operational expenses. For small and mid-sized businesses (SMB manufacturing companies), this improved cash flow and cost efficiency makes cloud ERP very appealing.
2. Integration with Artificial intelligence (AI) and Machine Learning (ML)
Artificial intelligence (AI) and machine learning (ML) are disrupting manufacturing in major ways. ERP platforms are now integrating advanced AI/ML algorithms to help metal fabricators work smarter, not just harder.
Key applications of integrating AI and machine learning with ERP systems include:
- Predictive maintenance to substantially reduce machine downtime
- Production schedule optimization based on real-time supply and demand data
- Automated inventory tracking and reordering recommendations
- Detecting defects early and adjusting processes to improve quality
- Learning from historical data to guide better operational decisions
When your business utilizes manufacturing data collection, analyzing vast amounts of data, AI and ML can accurately forecast equipment failures before they occur. Through smart data management, predictive maintenance can minimize your shop floor operations downtime and costs associated with unplanned outages.
Intelligent scheduling algorithms can optimize production sequences and staff assignments on the fly based on current shop conditions. In-line sensors with machine learning capabilities can spot defects, adjust parameters and prevent quality issues in real time.
Instead of relying on tribal knowledge, your company can leverage AI and ML to extract actionable insights from Big Data. This enhances efficiency, consistency and overall equipment effectiveness across the plant floor, allowing you to achieve new levels of productivity and quality.
According to Mordor Intelligence, AI in the manufacturing market is expected to reach $16 billion by 2027 at a Compound Annual Growth Rate (CAGR) of 31.22%.1 AI and ML will emerge as key enabling technologies for all leading ERP platforms in 2024.
3. Focus on Mobile Optimization
The shop floor is going mobile, and ERP vendors are optimizing systems for maximum accessibility on smartphones and tablets. Mobile ERP apps allow managers and workers to monitor operations, track progress and manage tasks from anywhere in the facility.
Supervisors can get real-time visibility into production schedules, quality issues and inventory levels right on their mobile devices. This allows them to make quick data-driven decisions on the fly. Furthermore, workers can update job progress, report problems and access instructions without leaving their workstations.
With user-friendly mobile interfaces, your business can gain greater control and insight. Managing shop floor execution becomes more flexible and responsive. Mobile ERP improves real-time decision making, drives faster issue resolution and empowers a mobile workforce.
4. Advanced Inventory Management
ERP systems have always handled inventory tracking. However, new capabilities such as demand forecasting and optimization are now emerging. What this means for your business is that you can leverage advanced inventory management features to gain real-time visibility into stock levels, costs and waste.
By using historical data and predictive analytics, ERP systems can forecast upcoming material requirements and reorder points more accurately. Optimization algorithms help determine ideal inventory buffers and warehouse layouts to minimize costs. ERP software can also detect abnormal consumption patterns to reduce waste and write-offs.
With these insights, your business can achieve leaner supply chains, better production planning, lower carrying costs and avoidance of stockouts. In this way, procurement and inventory management moves from a reactive to a strategic function, enjoying a level of efficiency and optimization that was not possible in legacy ERP systems.
5. Enhanced Supply Chain Visibility
ERP systems now extend beyond the four walls of a fabrication facility by integrating with supplier and logistics networks. This provides metal fabricators with real-time visibility into orders, inventories, production schedules and deliveries across the entire supply chain.
With a collaborative platform, your business can identify and resolve bottlenecks, quality concerns, shipping delays and any other issues proactively. An ERP system improves coordination with partners, reduces supply disruption risks and enables demand-driven supply chains.
Enhanced visibility through improved supply chain management allows your business to optimize logistics, transportation and warehousing spend across the supply network. ERP systems deliver end-to-end transparency and integration for greater efficiency, cost control and risk mitigation.
According to MarketsandMarkets, the ERP software market with supply chain management capabilities will reach $14 billion globally by 2025.3 Supply chain enablement is becoming a key feature and selling point for ERP systems to metal manufacturers.
6. Data-driven Decision Making
Metal fabrication software consolidates data from across various departments and business functions into a single platform. This provides metal fabricators an integrated view of their business and enables data-driven decision making.
In 2024, fabricators will increasingly rely on data analytics and business intelligence tools in their ERP systems. ERP systems will be able to support data-driven decisions regarding pricing, profitability and investment planning by generating insightful reports and identifying crucial metrics.
Thus, your company can leverage hard data to optimize operations rather than relying on gut feeling and assumptions. With the rise of AI in ERP systems, the software can now spot trends, predict outcomes and prescribe recommendations through advanced analytics. This enables your business to gain a competitive edge.
7. Integration with IoT Devices
The Internet of Things (IoT) is driving the next industrial revolution, and ERP systems are poised to leverage the explosion of data from connected devices. In 2024, fabricators will increasingly integrate IoT sensors, meters, monitors and other devices throughout their shop floors.
Through the IoT and connected devices, manufacturers can now monitor a range of operational metrics in real-time as they bridge their industrial equipment and processes to networked sensors and data analytics platforms. Optimizing workflows and production processes, the efficient utilization and monitoring of assets, plus quality control and environmental sustainability can all be enhanced through this increased data visibility and data-powered decision making.
As manufacturers increasingly embrace the fourth industrial revolution, IoT-enabled enhancements will become instrumental in maximizing productivity, flexibility and competitiveness. Integrating IoT with existing ERP infrastructure can provide unified views of factory and front office activities, empowering your business to respond and adapt faster to changing demands.
8. Subscription-Based Pricing
Traditionally, metal fabricators had to make large upfront investments in on-premise ERP software and infrastructure. However, with the rise of cloud-based ERP solutions, subscription-based pricing models are now prevalent. This new pay-as-you-go approach provides greater financial flexibility.
For small and midsize metal fabricators, subscription-based ERP implementations are predicted to overtake on-premise ERP systems this year. The adaptability and affordability of subscription-based ERP solutions allows expanding fabricators to start small and cost-effectively build up as their needs evolve.
Without painful upfront costs, metal fabricators can conveniently access ERP capabilities and quickly enjoy the benefits. Vendors also frequently update cloud-based ERPs to provide users the latest features at no added cost. Subscription-based ERPs make robust fabricating solutions accessible to all.
Conclusion
Manufacturing ERP systems offer metal fabricators far-reaching enhancements—from streamlining workflows and boosting inventory oversight to driving manufacturing efficiency and furnishing critical financial insights.
By getting ahead of 2024’s ERP innovations, your company can utilize cutting-edge technologies to gain a strategic edge and spur growth. Carefully selecting and deploying the right ERP system can revolutionize operations and establish your company as a dominant player in this rapidly developing field.
As your trusted digital transformation advisor, Ultra Consultants sees ERP systems as more than just tools—they are the anvils on which success is forged. We understand the unique obstacles and opportunities companies in the forming and fabrication industry face.
Ultra Consultants’ experienced team can help you find the right ERP to overcome your business challenges, guiding the selection process with your unique needs in mind. Let us help chart your course toward a successful new year. Get started by requesting your free discovery call today.
