Enterprise resource planning (ERP) is the real-time management of core business processes, integrated with software and technology. The business processes typically integrated into an ERP strategy are product planning/procurement, manufacturing, marketing and sales and inventory management.
There are many reasons to invest in an ERP system, but here are the reasons why an ERP strategy can be beneficial to your business:
- Flexibility. Today’s ERP software systems are not as rigid as they were in the past, they can be customized to meet the unique needs of any business and can adapt as a business grows.
- Streamline Processes. As a business grows, its operations and other processes become more complex. Similar to outsourcing supply chain management, ERP software can automate all business operations, providing real-time, accurate information. It will help increase efficiency and improve production, and order fulfillment.
- Cost Reductions. Having only one information source allows for a reduction in administrative and operations costs. Manufacturers can proactively manage operations, prevent disruptions and delays, and help users make decisions more quickly.
- Competition. Although there are costs associated with ERP systems, doing nothing can bring on even higher costs. Manufacturers can’t afford to delay implementing an ERP strategy while their competition invests in it and gains momentum by reaping its benefits.
An ERP strategy offers business owners an integrated view of core business processes. It will track business resources—cash, raw materials, production capacity—and can also manage orders, purchase orders, and even payroll.
These advanced ERP systems come with automation methods for all the steps of any manufacturing process. Standardizing those processes and using a single, integrated computer system can save time, increase productivity and reduce head count. When building an ERP strategy, the first priority is to have a clear vision and attainable goals. Spend time defining and documenting requirements that will result in a competitive advantage. An even better way to amplify the success of your business is to hire a third party who can step in and make your ERP process run efficiently.
AECI leads the industry with procurement strategy and sourcing service provider for the electronics industry. AECI’s team will build a strategy to enhance your existing processes and help to optimize your bottom line. We will custom-build a procurement strategy for cost reduction and operational efficiency. Our team will help you improve the performance of your business. Contact us today for more information on our procurement services.