Running a manufacturing business comes with its challenges. Not least of these is maintaining a clear awareness of inventory, accounts, sales and locations at the same time. That's especially frustrating when there are also production processes to oversee.
It's easy to feel overwhelmed by all this information. Whilst MRP software can be a solution, the production features are often only relevant for large manufacturers. Meanwhile, some types of ERP software are too outdated or fragmented to be useful for light manufacturing companies. However, one stands out from the crowd. OGL's cloud-based ERP software, Profit4, integrates everything from inventory control to customer relationship management, so you have a streamlined view of your business.
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Before making any decisions, it's important to understand the differences between MRP and ERP software.
MRP stands for material requirements planning. This is a type of software aimed at larger manufacturers to help them manage their business, including production, capacity planning and scheduling. Some MRPs have also branched out to include other features, such as sales management.
Meanwhile, ERP stands for enterprise resource planning. This refers to a comprehensive software that takes care of everything from stock control to customer relationship management.
To decide on the right option, you need to consider the scale of your manufacturing business. MRP software can be a very useful tool for large manufacturers, as they may require specific features to facilitate the production process. However, these bespoke systems are often costly - and for light manufacturers, many of the features aren't necessary.
If this sounds like your business, then it's better to save your money - ERP software provides an affordable, streamlined solution. For light manufacturers who also distribute, the stock control, distribution and warehouse management features associated with ERPs can help to take care of every aspect of your business.
If you're encountering complications with your business, you might be wondering if ERP software could be the right solution. Here are some key signs that it's time to upgrade your software to ERP.
Data should be the backbone of your business. When it becomes difficult to gather vital information about your profits, inventory or customer details, it's important to upgrade to an ERP software.
If you're working with separate systems for your accounting, sales and warehouses, it's inevitable that you'll eventually end up with inconsistent data. ERP software synchronises data in real-time, so all your teams are on the same page.
It's no secret that a large number of businesses still rely on manual processes (or no process at all) for their inventory management - 43%, in fact. Relying on manual processes wastes time and raises the likelihood of human error. So, if you're still using pen and paper, it's time to switch to an ERP.
When your data is stored in multiple systems, it increases the likelihood of stockouts and delayed deliveries. Customer service teams may also not have access to all the information they need. Unfortunately, that can lead to problems with customers in the long run.
If there are existing problems with your data management systems, then this will naturally make it harder for your business to grow. As your business manages more customers, and more data, it's best to upgrade to a robust ERP software.
Outdated inventory and data management systems can lead to lost data or potential breaches. Keeping up to date with a modern, Cloud-based ERP software ensures your business - and your customers' data - is kept fully secure.
With production, distribution and sales to consider, light manufacturing businesses need feature-rich software. But how can ERP software make a difference?
Say goodbye to invisible and inconsistent data - ERP software keeps you in the know with real-time updates. The entire system will be automatically updated as products sell, are moved around or between warehouses and trade stores, or as items are returned.
With all the relevant information in one place, your customer service team will easily be able to update customers about their orders without speaking to the warehouse team.
Your business processes don't stop with production - you then need to manage your inventory and make sales. A poorly managed inventory can lead to repeated stockouts. That can spell disaster for most manufacturers.
ERP software helps you to take control of inventory management. Stockouts will be a problem of the past through automated stock control. Setting minimum and maximum stock levels ensures your bestsellers never go out of stock - and you don't overstock on other products.
Data can be a mystery - but ERP software makes it simple to understand. With clear and accurate reports, you won't need to be an expert to stay up to date with your business' finances and sales. By accessing this data, your team can make informed decisions for everything from your marketing campaigns to product pricing and profitability.
Aside from accounting and sales reports, ERP software gives you the option to zoom in closer and discover insights about your customer data. As well as viewing the total yearly sales, you'll be able to see the number of units sold and your profits at a glance. You can also investigate the causes of any sales leakage, including for specific product types.
From real-time updates to accurate reports, it's clear that ERP software offers many benefits. So, what's the best ERP software for manufacturers? With access to detailed customer data and automated purchasing, it's hard to see past OGL's Profit4 software.
Here are just a few of the benefits of this software...
From stock control to customer relationship management, your team needs a clear view of your manufacturing business. That's where Profit4 comes in. Whether your team is dispatching an order or developing a purchasing strategy, they'll have all the information they need at their fingertips.
Plus, as Profit4 is fully cloud-based, you won't have to worry about losing access to your data - every order is synchronised in real-time. With many key processes taken care of automatically, your team can focus on what they do best.
Ready to make a start? Get in touch with our friendly and experienced team today to find out more about Profit4 software. Alternatively, you can watch our 3-minute demo to learn how our software can reduce manual tasks and boost your profits.
