Your manufacturing company has grown from a small business to a midmarket size, and you’re doing great. But you can cut costs and increase efficiency even more with an ERP (enterprise resource planning) solution that works for mid-market companies. Learn more about these company-building benefits.
Building Your Business
Osterwalder’s business model identifies nine key areas to consider when improving your business:
1. Value proposition
2. Customer segments
4. Customer relationships
5. Cost structure
6. Key activities
7. Key resources
8. Key partners
9. Revenue streams
Mid-market manufacturers need to constantly evaluate all of these areas in order to stay competitive, but may have difficulties affording the staff and resources to do so. That’s where an ERP solution comes in.
Integrating Business Data
The manufacturing sector compiles data from throughout the entire supply chain. Information about parts and materials, delivery schedules, fleet maintenance, vendor communications and distribution centers all play a crucial role in everyday operations. An ERP system provides a medium to access all of this information in one place, saving companies time and resources, and allowing them to cut costs. By integrating data, mid-market manufacturing companies can gain a competitive edge through managing the costs of direct materials, labor and factory overhead. Operational assessments are more concise because all the data is right on hand.
ERP solutions also provide mobility of critical information. Instead of static transfer of data, such as emails and prepared presentations, ERP is a cost-effective solution for a mid-market manufacturing company to share real-time data with members that need it. Mobile apps allow employees at all levels in the chain to access information from their smartphones and tablets. Updating an order status, placing a maintenance order, reporting material shortages and many other functions are then available for all parties to see and act on as needed, avoiding timely delays.
ERP systems used to be a convenience that only large corporations could afford. But in today’s marketplace, mid-market manufacturers can benefit from cloud-based solutions without the costly expense of premise-based software. With a lower initial cost and quick implementation, mid-market manufacturers can provide access through the cloud to remote locations or anywhere with Internet access. Cloud-based ERP is also scalable to your business size and needs. You have more control over expenses because upgrades are automatic and seamless. The greater access offered by an ERP system increases productivity across the board.
Tips for Choosing an ERP System
Depending on your company’s type of manufacturing business, choosing an ERP system that fits your needs can not only provide a competitive edge but also help your organization to grow. Multiple ERP solutions exist, and to make the best decision you should look for:
• A vendor with experience and expertise in your industry
• A system with an intuitive interface for ease of use
• Functionality that meets your industry standards
• Integrative ability with all areas of operation in your company
Competition with other manufacturers doesn’t have to be a threat to mid-market manufacturers anymore. Improving processes, controlling costs, identifying new revenue sources and maintaining quality can all be accomplished through the use of an ERP system tailored to your business. Stay in touch with every link of the supply chain and benefit from the same technology as large-scale manufacturing companies through ERP made just for you.
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