How can you use ERP for medical device manufacturing success?
ERP, or Enterprise Resource Planning, is a software system that helps businesses manage their day-to-day operations, including inventory, production, and financials. It’s a powerful tool that can streamline processes, reduce costs, and improve overall efficiency.
5 Ways to Improve Your Medical Device Manufacturing Process
The manufacturing process can be complex and challenging, but by implementing these tips, you can streamline the process and improve efficiency.
For instance, as your business grows, your current ERP software may not have the capacity to scale. You may also notice that newer systems you’ve brought on over the years aren’t integrated to your old ERP.
This creates silos of information across your business, making it difficult to get an accurate view of KPIs and other data. As a result, business decisions are delayed. Add to this a lack of functionality—like accurate inventory control, account management, or sales data—and the case for replacement becomes clear.
Now, let’s get into the reasons why medical device manufacturers are turning to modern manufacturing ERP to increase their success.
1. Improved Inventory Management
The pandemic exposed new challenges related to last mile supply chain issues. Many experience common inventory management difficulties including:
· Lack of visibility into expiring devices
· Poor FIFO (first in first out) management leading to increased costs
· Manual item tracking without barcoding, RFID or other automated warehouse solutions
Medical device manufacturers need to keep track of a wide range of components and materials to ensure that they can produce their products efficiently. With manufacturing ERP, they can easily manage inventory levels, track usage, and reorder supplies when needed. This helps to reduce waste, minimize stockouts, and ensure that production runs smoothly.
2. Enhanced Quality Control
Quality management is critical in the medical device industry, where even the smallest defect can have serious consequences. The health and safety of patients depends on it.
Another reason for the need for a quality control process is the significant economic impact of poor quality on medical device companies. A McKinsey study found that remediation costs represent 0.4 to 0.7 percent of annual sales.
Manufacturing ERP can help manufacturers implement rigorous quality control processes. These include tracking and analyzing data to identify potential issues before they become major problems. A modern ERP can help improve quality control measures to limit product recalls and improve compliance tracking.
3. Increased Efficiency
An aging population and advancements in technology have increased the demand for medical devices. But as cited by medicaldevice-network.com “scaling up medical device manufacturing involves increasing production volumes while maintaining quality, consistency, and efficiency.”
Medical device manufacturing is a complex process that involves many different steps and stakeholders. Manufacturing ERP can help streamline these processes, reducing the time and effort required to complete each task in the manufacturing process. This can lead to faster production times, lower costs, and improved customer satisfaction.
4. Better Compliance
As a highly regulated industry, medical device manufacturers must comply with a wide range of compliance requirements. These include FDA regulations, ISO standards, and more. Manufacturing ERP can help ensure that manufacturers are meeting these requirements by providing tools for tracking and reporting on compliance-related activities.
One function of modern ERP for regulatory compliance is traceability. Traceability is especially useful when tracking production of devices with various parts and subassemblies. ERP can track component lots and serial numbers to establish audit trail and ensure compliance reporting.
5. Improved Financial Management
Manufacturing ERP can help medical device manufacturers manage their finances more effectively, including tracking expenses, managing budgets, and generating financial reports. This can help manufacturers make better decisions about where to invest their resources. Plus the data can add insights into how to optimize their operations for maximum profitability. An integrated system with visibility into overall financials, R&D costs, and production processes provides key insights to minimize risks.
At Ultra Consultants, our independent business technology selection process will help you make the right choice of ERP for medical device manufacturing. Our experienced consultants understand your company’s unique requirements for an unbiased recommendation. Our experience in the selection process can help your business make informed decisions that will drive your success. Contact us to schedule a free discovery call with an experienced ERP consultant for advice on justifying an ERP investment.