businessBusiness CoachingERPsmall-businessHow Modern ERP Systems can Help Small and Medium Sized Manufacturers

May 13, 2021by Mikerash0


Often relying on manual spreadsheets or a consortium of software, many small and medium
sized manufacturers currently experience relentless strain dealing with low operating margins,
slow order-to-cash cycles, delayed payments from customers, increased overhead costs- and
the COVID-19 pandemic to further enhance problems.

Many of these manufacturers have been operating with minimal staff while some of them have
shut down their shop altogether.

Modern ERP systems-advancing methods of business processes and manufacturing
workflows-serve capabilities such as mobility, cloud-installation, plug-and-play integration,
advanced customization etc., to help manufacturers gain speed, agility, and build efficiency into
their operations.

Here are a few features of modern ERP systems and their associated benefits to small and
medium sized manufacturers:

1) Get up and running quickly with flexible installation options. Designed with intent of
adaptability, modern ERP systems are built with the ability to be installed on either public cloud,
private cloud or on-manufacturing premises. They can even be moved from cloud to
on-premises and vice versa, thereby providing additional operational flexibility. Cloud installation
aids manufacturers by cutting down on hardware cost, hardware space, data storage cost, IT
maintenance and a dedicated IT team. Security is not a major concern as cloud packages come
with advanced data security features.

2) All ERP features under a single centralized location. One of the main capabilities that
modern ERP systems offer is an integrated setup; allowing sales, purchasing, finance, inventory
control, warehouse management, shipping, shop floor, production planning, and scheduling
management to integrate with a single database.
This means data entered from each source is immediately updated to the centralized database
in real-time and reflected across all modules-providing clear user visibility for all levels within the

3) Real-time data access and updates utilizing mobility. The days of having to install an .exe
file of the ERP system onto each user’s computer and configure them separately are gone.
Modern ERP systems can be opened in any supported browser with ease of access from any
supported hand-held device-including smartphones and tablets. With this, your staff can access
and update data in real-time from their work centers or from anywhere within the
organization-improving response time while increasing the speed of operations and efficiency.
Additionally, management will have the ability to proactively manage department areas with
reliable real-time data.

4) Flexibility to build and add on additional tools with low-code development &
customization. Lately, more small and medium size businesses prefer ERP systems which
provide options to build custom modules, third-party applications, configure workflows and
business logic with minimal coding. With this, manufacturers can cut down on hiring developers
or outsourcing to third-party vendors-significantly reducing time, resources, cost and the effort
required to create a custom-module or tailoring existing ones.

5) Bring more substance to your ERP System by quickly integrating with third-party
applications. Today’s ERP software can be easily integrated with top-of-the-line manufacturing
applications pertaining to nesting, CAD design, barcode & RFID, shipping and logistics,
machine monitoring, document management, etc. This integration allows manufacturers to
automate critical manufacturing workflows, streamline planning, achieve real-time visibility to
operations, reduce overhead costs, and achieve maximum utilization of its machines, manpower
and materials.

6) More independence to stakeholders through self-service portals. Job
departments-ranging from procurement, shipping and receiving, even the receptionist-spend a
good chunk of their day fetching data and communicating it to customers, suppliers, and
partners. With self-service portals customized for each stakeholder, your staff can instantly
access order details, order status, shipment status, invoice, product details, quality parameters,
inventory status etc.-eliminating the unnecessary time to manually gather and convey the
required information. Additionally, it improves the communication flow and engagement between
the manufacturer and its stakeholders.

7) Utilizing advanced data analytics. Modern ERP systems have rich and advanced data
analytics features which help manufacturers gain valuable intelligence and performance data in
real-time. These beneficial features consist of reports, dashboards, analytical graphs, trends,
and charts-which can all be accessed with a click of a button. Personalized data tools can be
built for specific roles and functions across multiple departments. They can also be accessed
from mobile and tablet devices which increases response time and decision-making.
Dashboards can be displayed on monitors around the shop and within each department office.

The notion that only large manufacturers can adopt technology to automate their workflows and
streamline operations tests false. In order to run cost effective operations, small and medium
sized manufacturers can easily adopt modern ERP systems to improve their efficiency and
organization. This drastically reduces overhead costs, improves production efficiency,
accelerates order-to-cash cycles, and increases personnel efficiency and productivity-resulting
in peak material and machine utilization where the enterprise has a clear grip on their finances
and profitability.

While these systems are imperative to ensure future preservation of your organization,
implementing a successful ERP system may seem daunting-especially when you lack in experience. That’s where we come in, our experts at MCDA CCG, INC. can help streamline your operations for adaptability. We offer cost effective solutions for custom ERP additions and further guide you through the process to ensure complete confidence. Contact us today to transform your existing system from time consuming and unorganized to cost efficient and prosperous.

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