With the metal industry currently facing a variety of challenges such as volatile commodity prices, shrinking markets, offshore price-cutting and higher expectations in the terms of product quality and speed of delivery, in order to remain sustainable, your company must become increasingly tech-savvy, flexible and responsive to customer needs.
Metal manufacturers must consistently aim to innovate to keep increasing costs from negatively impacting profit margins, investment in new capacity and job creation.
Implementing correct ERP solutions can not only greatly assist your business with planning, execution and control but an ERP system can definitively improve your production efficiency.
The Aim of ERP Solutions
The main aim of an Enterprise Resource Planning or ERP system is to integrate and share information thus assisting in delivering consistency throughout the value chain.
Collaboration and instant sharing of information across stakeholders makes business technology work faster and better than it did yesterday, enabling your company to add new functionality as needed and enabling your employees to work more efficiently. Effective ERP solutions make sure that information is only captured once and all in real-time. The system also aids in ensuring compliance with data privacy and security regulations and helps to mitigate potential cyber-attacks.
By increasing manufacturing efficiency, manufacturers can optimize capacity, streamline processes to cut costs, and decrease waste. A well-implemented ERP system will help you to automate processes across the supply chain as well as execute production plans using lean principles.
ERP Solutions for the Metal Industry
As long as you’re investing in ERP software that is suited to your particular requirements, you’re going to enjoy several long-term business-driven solutions which include:
Inventory management. The key to business functions. ERP software can track management at any time, as well as assist in the logistics related to moving it when needed.
Supply chain oversight. This will track raw materials through to finished products and delivery. This way you will be able to anticipate any challenges related to inventory and lost stock.
Elements such as Bills of Material (BOM) and routings. This makes up part of the ERP features for any engineering organisation to ensure quality products are ordered and delivered on time to meet set targets.
Over and above product tracking through supply chain management, ERP software can also track information related to sales, production and productivity allowing for enhanced business oversight.
Additionally, for component and material suppliers, synchronising supply with customer demand will further prevent costly line stoppages in assembly parts.
The automation feature also allows the ERP system to automate time-consuming tasks such as entry, payroll, invoicing and reporting which not only reduces human error but also frees up employees to perform other productivity-enhancing tasks. The accounting and financial management components of ERP solutions not only make industry requirements easier but financial reports can be automated to reduce annual audit costs.
The success of metal fabrication and manufacturing depends on efficiently managing complex supply chains and collaborating with customers to design effective products while meeting quality, tolerance and material specifications. Companies that meet and even predict customers’ needs will always set a business apart from its competitors.
When shopping for an ERP vendor to handle your company’s ERP solutions, make sure to partner with one that has industry experience and is able to incorporate your future growth requirements.