What is Manufacturing ERP ?

If you’re in the manufacturing industry, it’s important to understand the terms, acronyms and processes associated with running an efficient operation. This article will help to fast track your understanding of manufacturing ERP and help you to see how it can add value to your business and help you to be successful.

What Exactly is Manufacturing ERP?

If you’ve never heard of ERP, you may be wondering what it even is. ERP stands for Enterprise Resource Planning. More specifically, ERP is a type of software that can help bring all of the core business processes used in manufacturing into one single database that can then be accessed by many. This allows you to have a connected business running off of a single system.  Using a single system, companies are able to better coordinate projects, processes and activities across the entire organization, as well as create accurate reporting so that costs, efficiency and activities are detailed correctly. It was created when IBM partnered with J.I. Case (a tractor manufacturer) to create a software that would work best for them, which became the prototype for today’s MRP software.

How Does ERP Work?

ERP works in the following ways. First, the software is made up of many different core features that serve different purposes. Think of some of your major business functions. You may have thought of things like Supply Chain, Marketing and Sales, Accounting, HR, Services, Manufacturing and CRM. Each of these things coordinate with each other but ultimately have their own business functions. An ERP includes features for each of these business departments in the form of applications or modules. The ERP then integrates all of these modules into a single system so the departments can coordinate and executives have visibility into every aspect of the business.

What are the Benefits of ERP?

There are LOTS of benefits that come along with utilizing an ERP system. For one, you can plan on simplified IT processes. Instead of needing experts for multiple software and systems, you just need IT that can help with one single system that has multiple applications. Next, you also have much better visibility into your business. Being able to track and monitor key performance indicators for each function in your business allows you to ask better questions and ultimately come to better solutions. Lastly, ERP also can help improve productivity. When things are automated across business departments and processes are the same, you can streamline the way your business operates and increase your bottom line.

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