What is an ERP system?

An ERP system is a platform that helps a company to cut down on redundancy and increase its efficiency. ERP systems utilize real-time reporting and different levels of automation to cut down on wasted labor and materials and streamline day-to-day operations.

Why would a manufacturer want an ERP system?

Manufacturers would want an ERP system to maximize their output and provide better service to their end customer. It also allows them to combine all their processes into one system, so they don’t have to navigate multiple platforms to manage inventory, supply chain, shipping/transportation, etc.

What types of ways can ERP be used in manufacturing?

1. Managing supply chain or raw materials – forecasting when materials are coming in to better communicate with customers when they can expect to receive final products
2. Production process – being able to factor in machine downtime/machine maintenance, see where inefficiencies exist in the process,
3. Employee management/HR – NetSuite does have an HR module that can decrease the need for in-house HR, can handle payroll if you want it to, and employees can have role-based access to only give them access to the parts of the system that are required to do their job
4. Accounting or purchasing – maintain adequate inventory and automatically reorder when inventory gets down to a certain level to make sure a manufacturer doesn’t have to deal with negative inventory. Reports allow for detailed monitoring of AR/AP aging
5. Sales or forecasting – NetSuite has a built-in CRM functionality to organize contacts and follow up on leads for salespeople. Reporting on historical sales to inform the need for future inventory to meet sales demand

What types of manufacturers can benefit from an ERP and why?

• Food manufacturers can benefit by speeding up production and reducing food spoilage.
• Medical device manufacturers or food manufacturers could be helped by lot tracing during potential recalls.
• Manufacturers with multiple locations can use ERP to manage inventory transfers between locations and keep real-time numbers of which goods are at a given location.
• Manufacturers who use various e-commerce marketplaces can consolidate all their orders in one place and track the building/shipping of goods from a single platform.