When's the best time to implement a manufacturing ERP?
As your industrial business begins to scale, there comes a time when the methods, systems and processes that once worked well for your organisation can begin to hold you back.
It’s a scenario we see time and time again, and the reason why many manufacturing companies who reach this tipping point come to us for help.
Here’s a situation that may sound all too familiar:
Demand for your product has grown, your customer base has expanded and even though the number of people involved in your business has also increased, you are struggling to keep your manufacturing operations on track and running smoothly. Instead of driving efficiency, manual processes, spreadsheets and existing software systems are causing bottlenecks, delaying orders and generally hampering your ability to grow.
If you are experiencing similar pains in your organisation, then it’s time for your business to modernise and embrace a more efficient way of operating. Here are four signs you are ready to implement a manufacturing ERP.
Your data is scattered and unreliable
When your key business data is spread across different spreadsheets, systems and departments, it’s difficult to get a clear and accurate picture of your manufacturing operations. If accessing your data is also time consuming, it becomes much more difficult to make timely and informed decisions.
A manufacturing ERP solution centralises your data, giving you instant access to costs, sales information, supplier performance, inventory and manufacturing data in real-time. This visibility facilitates faster and more accurate decision making, helping you control and manage costs as you grow.
You’ve outgrown the functionality provided in other software
Whilst accounting systems such as Sage 50/200 are great for financial management, they often lack the depth of features required for production, stores and other departments. Take inventory management, for example. The basic features for stock control offered in accounting systems may be perfectly adequate when your company is small, but as you grow and your operations become more complex, you begin to face limitations in the functionality. As a result, many companies end up using spreadsheets alongside their accounting software to fill the gaps.
This was the case for customer IM Kelly that supplies products for the rail industry. Before implementing 123Insight, they managed their manufacturing using Sage alongside multiple spreadsheets. This worked when their production was driven by individual customer orders, but growth brought new challenges, and as deliveries became more scheduled-based and components were shared across multiple customers, tracking became increasingly difficult as Keith Griffiths, Director explains:
“Although we had stock control within Sage it couldn’t really cope with manufacturing. We were tracking the long-term contracts on spreadsheets. Sage was fine for the one-off orders but as we started to increase the product range, we recognised that we needed manufacturing control.”
After the implementation of 123Insight, IM Kelly saw significant improvements in their stock control, reducing their stockholding by 40%.
“The stock reduction was a huge benefit to us as it also helped with the accuracy as well. For many customers we operate a ‘just in time’ delivery. We kit parts to meet train build requirements – if we don’t deliver, that stops the train being finished. 123Insight helps us to meet these demands. Accuracy in general is better as data is not duplicated. Overall control is better – previously we had to book goods in from one location. Now we can book goods in from various terminals within the company.”
Integrating a manufacturing ERP solution with your accounts software allows you to take advantage of features such as bill of materials (BOM) management, production scheduling and traceability. To maximise efficiency, IM Kelly connected 123Insight with their Sage accounting system, enabling them to leverage the full benefits of both best-in-class solutions.
You're struggling to meet customer deadlines
Effective production planning is essential for long-term success. Relying on manual and inefficient processes can have a negative impact on customer lead times, put strain on relationships with suppliers and result in challenges with cash flow. The last thing you need when trying to scale your business is complaints from customers about delayed deliveries or production setbacks.
A manufacturing ERP solution automates and optimises your production processes to make them more efficient and cost effective, whilst ensuring you meet customer orders on time. With accurate forecasting, capacity planning and inventory management, ERP helps streamline production, minimise delays and reduce waste. Consistently meeting delivery requirements reassures customers that they can continue to depend on your business in the future.
Achieving or maintaining compliance is a headache
Compliance audits require you to demonstrate accurate and up-to-date records, and this is difficult to track with manual and disparate systems. As well as adding to the complexity, they also increase the risk of errors and inconsistencies in the data. Both factors are important because in the event of a product recall, the ability to quickly trace affected batches, suppliers or production runs is essential.
A manufacturing ERP solution allows you to link sales orders, purchase orders and despatch notes to part numbers within the system, so that all necessary documentation for compliance audits or product recalls is quickly available on-demand. This enables you to achieve and maintain quality accreditations with ease, helping to secure new business, build customer trust and drive long-term growth.
Manufacturing ERP software
Don’t let outdated systems or manual processes continue to slow you down. A manufacturing ERP solution can be a game-changer for business efficiency, unlocking your growth potential and future-proofing your ability to scale. If any (or all) of these signs above apply to your organisation, now is the time to implement a manufacturing ERP.
Discuss how 123Insight can support the next phase of your business, follow the link below.