How ERP systems are driving change in the manufacturing industry
The manufacturing industry is experiencing a wave of new innovations and technologies that are changing the way things are made. From Industry 4.0 to artificial intelligence, the manufacturing landscape is evolving faster than ever before. To stay ahead of the competition, manufacturing companies need to take a closer look at their tech stack and determine if it can handle the challenges of the modern era. Whether it's optimising production processes, reducing costs, or improving customer satisfaction, modern manufacturing companies face a range of challenges that require cutting-edge technology solutions.
One solution that is gaining popularity among manufacturers is purpose-built ERP systems. By providing real-time visibility into every aspect of the manufacturing process, from inventory management to supply chain optimisation, ERP systems can help manufacturers make better-informed decisions that improve operational efficiency and drive business growth. Let's explore the benefits of purpose-built ERP systems for the manufacturing industry and how they can help companies meet the challenges of the modern manufacturing landscape.
Getting the basics right in manufacturing operations
The costs of not connecting the office with the shop floor
As you're probably aware, there's often a disconnect between the office and the shop floor. While those at the office level may be busy creating and refining production plans, these plans are not always communicated effectively to the shop floor, where the actual work is being done. This disconnect can have serious consequences, as plans that are not properly executed can lead to delayed or missing products. These delays can cause customers to miss their deadlines, leading to reputational damage and potentially losing those customers. Not only that, but the costs associated with late or missing products can be significant, leading to wasted time and resources, additional production costs, and even legal liabilities.
The importance of integrating activities
Integrating activities is critical for the success of any manufacturing operation. For any given job, there are a series of activities that need to be sequenced correctly to ensure that the final product is produced efficiently and to the desired quality. Integrating these activities means that each operation feeds into the next at the right rate, ensuring that the overall production process runs smoothly. This is particularly important in today's manufacturing environment, where customers are increasingly demanding high-quality products that are delivered quickly and at a competitive price.
Gaining efficiencies
This should be a key concern for manufacturers who are looking to reduce costs, improve productivity, and increase profitability. One way to achieve this is by minimising the amount of stock that needs to be held or is sitting on the shop floor. By ensuring that you have what you need, when you need it, manufacturers can avoid holding unnecessary inventory, which ties up capital and increases storage costs.
Gaining efficiencies also involves doing what you have to do when you have to do it and not doing things that are not necessary. An ERP system can help manufacturers achieve this with inventory and purchasing management, allowing them to track inventory levels, anticipate demand, and order supplies as needed.
How to interleave ERP with lean tools and systems and how they complement each other
Integrating ERP with lean tools and systems is an effective way for manufacturers to maximise efficiency and minimise waste. It's not about getting rid of what you have but rather, integrating the existing tech with an ERP system to work together. This approach allows manufacturers to streamline their operations, reduce errors and increase productivity.
By minimising waste - whether it's time, materials or other resources - manufacturers can focus on the right work processes taking place at the right time, minimising the work in progress (WIP). An integrated ERP system can complement lean tools and systems by providing real-time data that helps manufacturers identify and eliminate waste in the production process. By leveraging the strengths of both ERP and lean tools, manufacturers can create a highly efficient and productive environment.
Why a cloud-based ERP is important
The key advantage of a cloud-based ERP is the intrinsic benefits of backups and upgrades that are done for you, reducing the burden on your IT department and ensuring that your system is always up-to-date.
Another advantage is the flexibility provided by the cloud, allowing your team to access the ERP from a variety of devices, including laptops, smartphones, and tablets. This mobility means you can access your ERP system anywhere, anytime, providing you with up-to-date visibility into your operations, no matter where you are.
ERP is one piece of machinery you can’t do without
In today's fast-paced, highly demanding environment, an ERP system is no longer just a 'nice-to-have' for manufacturers; it's a must-have if companies are to remain competitive and keep up with technological advancements. In fact, investing in an ERP system is just as important as investing in machinery on the shop floor.
An ERP system designed specifically for the manufacturing industry will streamline processes, gain efficiencies, and provide both tangible and intangible benefits that contribute to a positive ROI.
With big advances in innovation and technology, it's essential to have the right ERP system to keep up with the changes in the industry. By investing in an ERP system, manufacturers can improve their operations, reduce costs, and increase profitability, making it a crucial piece of machinery that no modern manufacturing company can do without.
ERP as a productivity tool
An ERP system is a powerful productivity tool that can help manufacturers achieve significant efficiency gains by doing the right things, at the right time, with the right resources. With an ERP system in place, manufacturers can schedule their production processes to align with customer demand, ensuring that they are manufacturing components only when needed. This approach reduces unnecessary work and helps to eliminate waste, which can have a significant impact on productivity levels. By streamlining their operations with an ERP system, manufacturers can improve their delivery times, increase throughput, and ultimately enhance customer satisfaction.
MYOB Advanced – the perfect fit for NZ manufacturing companies
MYOB Advanced Manufacturing is an excellent fit for New Zealand manufacturing companies for several reasons. One of the key advantages is its scalability. Unlike larger tier 1 and tier 2 ERP systems, MYOB Advanced Manufacturing’s flexibility in scaling up and down means that it is able to meet the requirements of the majority of Kiwi manufacturing companies, including smaller Kiwi companies that may not require the complex functionality of enterprise-sized organisations.
MYOB Advanced Manufacturing provides manufacturers with all the tools they need to streamline their operations, improve productivity and efficiency, and gain better control over their costs. With this cloud-based ERP system, manufacturers can benefit from real-time insights, flexible reporting, and powerful automation features that make their day-to-day operations more manageable. Whether it's managing inventory, scheduling production, or tracking orders, MYOB Advanced Manufacturing is the perfect fit for New Zealand manufacturers looking to enhance their operations and stay competitive in today's market.
Why Endeavour
With over 30 years of experience in the industry, our team of expert consultants has the real-world expertise needed to help you optimise your operations and streamline your processes. Our consultants have worked in the manufacturing industry themselves, giving them a deep understanding of the unique challenges and pain points you may face. This means that we can quickly identify any issues you may have and provide targeted solutions that deliver results. With our in-depth knowledge of ERP products and hundreds of successful implementations under our belt, we are the ideal partner for any manufacturing company looking to improve their efficiency, productivity, and profitability.
Eager to see MYOB Advanced Manufacturing in action? Get in touch today and we’ll have a chat about your requirements and how MYOB Advanced Manufacturing can help your business succeed.
