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John Driver
by on May 31, 2021

The South African market is an emerging one and is driven by a substantial number of manufacturing companies in various industrial sectors. Almost all of them compete in a highly competitive market which makes it very important to get an edge over one’s peers. ERP systems are one such tool that allows manufacturing companies to gain an edge over their competitors. However, many manufacturers still wonder about the exact advantages these systems provide. This article aims to discuss five common manufacturing sector problems which are easily solved by ERP software companies in South Africa.

Inventory level management

Maintenance of correct inventory levels is essential to ensure that supply adequately meets the demand of customers. ERP systems provide managers with the transparency and inventory counts needed for improved production planning. Any shortages are flagged automatically by the system instantly.

Ensures lot traceability

Traditionally, manufacturers had to enter inventory numbers manually before the advent of ERP systems. Manual data entry brings with it inaccuracies when it comes to maintaining records involving multiple finished goods and numerous customers. With a seamlessly integrated ERP system, manufacturers can easily get forward and backward lot tracking where information is accounted for.

Laws and regulations

With globalisation, even South African manufacturers are diversifying and expanding into newer markets. With that comes complicated statutory compliance requirements with local regulations and laws. These regulatory directives and guidelines are there to protect the consumers and the environment from potential fraud, as well as hazards. ERP systems help companies avoid expenses related to compliance delays by standardising and automating best practices. It also helps maintain an audit trail, allowing companies to receive real-time compliance information. Manufacturing organisations can automate quality control through ERP systems that can ensure customer satisfaction.

Material requirement planning

To address the challenges of resource management, material requirement planning is a critical part of an integrated ERP. By utilising sales forecasting methodologies along with historical production data, ERP systems help in optimum utilisation of manufacturing components, capacity, material resources and parts. With proper material requirement planning, a company can reduce cash flow and increase profitability by calculating the optimum production schedule.

Human errors

Manual data entry usually involves the most human errors, which adversely affect the production capacity of an entire organisation. Unnecessary expenditure ramps up if resources are assigned to non-productive activities. To save both cost and resources for the organisation, an ERP system is ideal. It provides access to accurate data, including WIP, production capacity utilisation, current inventory levels, sales forecast and others. All of this data allows the organisation to plan and schedule its future operations in a way that yields the best productivity.

ERP systems help manufacturing companies to create a better supply chain with enhanced inventory visibility. In case of organisations spanning across countries, an ERP system can streamline processes across multiple locations, empowering a global workforce. So whenever there are concerns over the integrity of business data, go for ERP systems to improve the processes of collecting and analysing data.

Posted in: Business
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