Let’s first understand the ERP market statistics all over the world?
- In 2020, the ERP market was at $94.71 bln all over the world. It was a little high of 0.69% from $94.05 bln in 2019.
- In 2021, the market is poised to touch $95.37 bln a little up from $94.71 billion in 2020.
- From the year 2022 to 2024, the global ERP system market values are estimated to go up to $96.04 billion, $96.71 billion, and 97.15 billion respectively.
ERP software for the manufacturing industry
No other industry creates as much economic value as the manufacturing sector does.
It is the most competitive and dynamic industry that needs one such software, which can help curtail costs, augment efficiency, boost sales and profitability.
Besides, the tool also helps you make informed, accurate and strategic decisions.
The software for the manufacturing industry is none other than the ERP software.
Want to know how and why this software benefits your manufacturing industry?
Read this article to know the 5 great benefits of ERP for the manufacturing industry.
Why should the manufacturing industry opt for ERP software?
Manufacturers are the #1 users of the ERP systems. For decades, they have been using the ancestors of today’s ERP software, viz., manufacturing resource planning system.
Let’s face it, the manufacturing industry depends upon complicated and time-sensitive technical processes that require cross-functional automation. Hence, for a success-oriented approach, you need to simplify your business operations and management.
Automation can help you achieve the best production results created by quick turnaround, best quality, smooth process execution, cost-efficiency, and customer satisfaction.
So, with the systematic and thoughtful implementation and integration of ERP software in your manufacturing business, automation can also help your business grow.
ERP helps your manufacturing business with a process-specific, integrated, real-time, and data-based view of its crucial manufacturing activities such as production, inventory management, order processing, quality assurance and Engineering.
An ERP software has the capabilities to integrate all factors of your business including resources, operations, monitoring, reporting, sales, accounting and finance, etc.
It helps you to operate your business efficiently by maintaining a single database.
Over the years, the adoption of ERP has increased unprecedentedly among many businesses.
An ERP Software Market Report says that the global market will reap over $41.69 bln by 2020.
Listed below are 5 benefits of ERP software for the manufacturing industry.
- Automating and streamlining your business operations with higher adaptability
When you have installed a complete ERP software solution in your manufacturing organization, it reorganizes and automates all its business operations.
By reorganizing all your business processes, it centralizes all available data in a location, which is completely visible in all functionalities – designing, development, inventory, production, procurement, sales, finance, delivery and so on.
It can track production status in real-time, without the need for any team or individual.
It helps the system work efficiently, and grow productivity and maintain your customer commitments.
By automating the entire process of your business. It, thus, eliminates the need for any manual processes. As a result, not only does it increase the production process but also reduces errors and increases profitability considerably.
- It allows you to quickly respond to market conditions
A manufacturing industry ERP is quick enough to respond to real-time data analysis.
By doing so, it helps you plan, adjust, estimate, and react to the changing market demands.
Based on the system-driven reports, not only can you understand the varied market requirements, but also consider capitalizing on the customers purchasing trends.
With deep insights in your hands, you can have a precise 360-degree view and minimize the forecasting errors and invest in the new prospects if available.
- Strategic decision making
With the ERP in your company, you can make spot-on, informed, and fast decisions for your business because it allows you to have the complete visibility and thorough insights into your every business process and department.
Plus,, you can access the major performance metrics like overall sales, sales margin etc.
So, not only does it fully align you to your goals but also take crucial internal decisions if needed.
- Reduce overall operational costs costs
When you have a robust ERP tool in your manufacturing organization, it minimizes the overall operational cost because streamlined and automated processes with real-time business data replace the manual, time – consuming processes.
Besides, boosting your workforce productivity, it helps reduce the labour costs, thus, the lower error rates and augmented precision brings down the losses.
That apart, it also curtails excess warehousing and inventory costs by accurately reviewing inventory and efficiently integrating it with production planning.
Finally, with improved organization visibility, you can make savings wherever possible.
- Enhance your customer satisfaction
The ERP system also helps enhance your customer satisfaction by improving on-time delivery of the manufactured products and a critical performance metric, thanks to the precise production planning, restructured process scheduling, greater control over inventory, and coordination of distribution channels.
With real-time data, it lets you get a perfect view of inventory levels whenever you like.
So, an ERP system benefits your manufacturing business in several ways, but you cannot deploy any software if you truly want to achieve your goals. You need an ideal ERP consultancy service so you get the perfect software for your business.
As one of the leading ERP/CRM consultancy companies, Spire can suggest and recommend to you the best ERP solution, exactly the way you want it for your business.
So, scale new heights of success with our ERP/CRM consultancy services and solutions.