How to address the top 5 manufacturing challenges with ERP software?

Posted by Alen Parker on May 3rd, 2019

A manufacturing business faces comprehensive business challenges now and then owing to its extremely complex nature of doing business. However, the manufacturing industry is one of the most important industries which needs due attention to mitigate its ongoing operational and day to day challenges. To tackle all these challenges, there arises a need where we need to think strategically and digitize manufacturing operations.

In this article, we will talk about a few major manufacturing challenges a manufacturer faces.  

1. To produce the same quality in every version  

It becomes increasingly important in the manufacturing industry to manage and store the complex recipes, enable recipe modification and produce the desired products every time. Manufacturing firm like Pharma, food & beverages, cosmetics, and other face stringent regulations. This makes managing recipe all the more important. This is where ERP software comes into the foray. With ERP software like SAP Business One, it becomes incredibly easy to have the exact ratio, product, and revise every formula with a high level of precision. If the product is altered at any stage, the software locks in information on how exactly it is altered and what were the processes that were followed.

2. To comply with stringent laws

The manufacturing industry as we know is highly regulated industry replete with stringent laws. Thus fulfilling the regulatory requirements is not a mere choice of manufacturers but something unavoidable. With excel and spreadsheets, it becomes increasingly difficult to comply with all statutory things. With ERP software in place, manufacturers can keep a tab on manufacturing practices and check whether they are in accordance with the norms.

Further, a next-gen ERP helps to perform a quality check for raw materials being used, generate material safety data sheets and comply with Government regulations.

3. To manage the assortment of production lines

Manufacturers face the onset of challenges when it comes to managing the production lines and doing the assortment of complex methods such as mixing, preparing, adjusting, grinding, filling and keeping up with the quality aspect. The process involves complex methods like mixing, grinding and validating items. The entire process calls the need for automation that only a robust and smart ERP can provide.

With the production management in the module, it becomes easy to mitigate the complexities of manufacturing operations. The software also helps to track inventory in real time, prevent out of stock situations, control all the production activities and track batch lots. Additionally, with advanced software, you can accommodate last minute changes through an automatic batch sizing feature. Further, the software can easily adjust the immediate shipment of urgent orders thus speeding the overall production process.

4. To keep track of inventory at multiple locations

If you’re a manufacturer, you must be knowing the importance of inventory management. With complete visibility, it’s easy to keep track of inventory across multiple locations (different countries, states or cities). Further, you can keep a tab on inward as well as outward inventory as exactly what stock you have so as to avoid any chance of overstock or understock, thus ensuring right materials reach the shop floor at the right time

As a manufacturer, it’s vital to know the importance of inventory management.  Now, it’s easy to keep a track of batch size, track inventory across multiple locations and know precisely what stock you have to avoid any chances of overstock or understock.  

5. To adhere to stringent quality parameters

One of the biggest hurdles your manufacturing business might face is lot tracking & batch traceability. But by relying on spreadsheets and homegrown software solution, they can compromise on the quality by making glaring errors in batching, expiration dates, lot recall, etc.

This is where SAP Business One comes in with required functionalities to manage the entire process of quality. ERP solution like SAP Business One comes with the drill down capabilities where one can easily navigate through the purchase orders, specifications and other vital details that will lead to good quality products.  

The ones mentioned above are just a few of the many challenges manufacturers face on a day to day basis. A smart and intelligent ERP such as SAP Business One not only takes care of these aforementioned issues but also helps them deal with other important issues.