ERP Software is in Reach and Indispensable for Small Manufacturers

As a small manufacturer, you may think certain software, technologies and capabilities are either out of your reach or unnecessary.

In the past, Enterprise Resource Planning (ERP) software, Internet of Things (IoT) technology, automation and Artificial Intelligence (AI) might have seemed too expensive, complex and superfluous for the size of your operations.

However, ERP systems are more affordable and beneficial to small-to-midsize businesses (SMB) than they’ve ever been. And smaller manufacturers stand to see some of the greatest returns–particularly as the industry embraces change.

An ERP system can solve some of manufacturers’ most significant challenges. Implementation doesn’t have to be an all-encompassing project, arresting your operations and absorbing your budget. Small manufacturers can choose to integrate in phases, customizing their solution to fit their budgets and goals.

Without an ERP Solution, Small Manufacturers Risk Falling Behind Their Competitors 

It’s become imperative for SMBs to consider adopting an ERP solution. Beginning with the pandemic in 2020 and continuing through political instability and natural disasters, manufacturers and supply chain experts see many gaps in their operations and technological capabilities. A lack of unified systems and real-time visibility set many companies back, leaving them scrambling to connect dots and make adjustments.

Those that have already invested in their systems to address these concerns have raised the stakes for the entire industry. Here’s what’s at risk if you don’t invest:

• Being outpaced by the competition. If your peers are pursuing ERP software and realizing the benefits, they will quickly surpass your capabilities –particularly in terms of customer service.
• Perpetuating inefficiency. With systems that don’t talk to each other, it’s hard to identify and tackle inefficiencies, such as operational workflows that waste money each day and administrative processes that could be streamlined and even automated.
• Taking the long road. It takes multiple steps to get a complete view of your business and sync information for better decision-making when you rely on disparate systems and outdated data-entry processes.
• Being left behind. You can’t take swift action to solve problems and avoid unnecessary or unplanned costs when you don’t have a real-time view of your operations, supply chain and business.
• Increased errors. Slower, manual or outdated processes such as poor inventory management may likely lead to mistakes, delays in production and unsatisfied customers.

With ERP, Small Manufacturers Can Take Giant Leaps

ERP systems enable smaller manufacturers to boost efficiency and production, which can mean greater profitability. Implementation itself is now more affordable and accessible for SMBs. As such, you’re likely to realize returns quickly, especially if you take advantage of the benefits and opportunities ERPs afford.

A few opportunities that help manufacturers reduce costs and inefficiencies:

• Automate and streamline administrative workflows and data input to free your employees to focus on higher-level tasks instead of being bogged down in manual processes.
• Implement a Cloud ERP in lieu of an on-premises system to save money and labor. Your IT team can apply their knowledge to more strategic efforts instead of system maintenance.
• Improve workflows and processes by automating redundant tasks. Ease the difficulty and expense of finding skilled labor by using training modules available with your ERP to build your employees’ skills.
• Tailor your ERP to fit your small manufacturing needs; integrate solutions with the highest impact first and save others for another budget cycle.
• Use a monthly subscription model to reduce your upfront capital cost and enjoy maintenance, upgrades and compliance assistance spread out over time.
• Identify opportunities to improve processes, remove bottlenecks and reduce wasted time and expense with relevant operational and business data.
• Avoid unnecessary downtime and production delays with modern inventory and production management that enables real-time tracking and alerts when paired with the appropriate technology.
• Leverage integrated AI to save time assessing your customer data and to more effectively anticipate and respond to changes in your supply chain.

If you’re considering SMB software for manufacturing, an ERP can help you make meaningful improvements and set your business up for continual success and growth. It provides a holistic perspective over your operations and gives you real-time visibility into your essential processes.

If you’d like to learn more about how to modernize your manufacturing processes, talk to one of our ERP and Cloud experts and we’ll help you map out your technology journey.

This article was originally published April 21, 2021. It has been updated for relevancy and accuracy.