How Cloud ERP and ERP Systems Support The Manufacturing Industry?
The manufacturing industry has always been highly dynamic and competitive. However, the COVID-19 pandemic and the extension of lockdown restrictions weigh down on manufacturing companies across the globe, causing many to lose momentum. At the same time, customers who are always on-marketplace are expecting high-quality, individualized products delivered within shorter timeframes. To meet these requirements, manufacturers must synchronize their demand chain with the supply chain. The appeal of ERP systems (enterprise resource planning systems) for manufacturing in this scenario is evident. Here’s everything you need to know about ERP systems for manufacturing.
What is the importance of ERP systems for manufacturing?
ERP systems for manufacturing enable manufacturers to compile and maintain their business in an easy-to-scale model. According to G2 (a leading tech marketplace), 47% of ERP users belong to the manufacturing sector, and nearly 50% of companies are keen on acquiring or upgrading their ERP systems.
Fortune Business Insights reports that the global ERP software market size is estimated to reach USD 71.63 billion by 2026, at a CAGR of 8.5% during the forecast period (2019-2026). ERP systems for manufacturing encompass every function and streamline every business operation.
Though automation is not a new concept, the convergence of the digital world with the physical world has transformed the supply chain. In manufacturing, AI can be used to increase uptime and ensure consistent quality. AI and analytics aid in better forecasting, which in turn means better business and better returns.
Here are six reasons that emphasize the importance of ERP systems for manufacturing.
1. Reduces forecast anxiety
Most businesses worry about the next quarter. ERP systems for manufacturing help generate forecasts and sales reports based on historical transactions. This increases the accuracy and dependability of production and keeps stock levels in line with the increase and decrease in demand.
ERP systems can combine data, statistical algorithms, and predictive analytics to help businesses identify future outcomes based on the past. Predictive analytics can help you determine customer responses, forecast inventory, and even detect fraud. Improved supply chain visibility will help you set the level of preparedness required on the supply side to match demand. It can help you anticipate customer demand and stock goods to fulfill the orders.
2. Increased mobility and employee efficiency
With the lockdown measures tightening, working from home can be challenging for businesses. When the pandemic threw a curveball at companies, ERP systems for manufacturing have handed them a new strategy by enabling employees to work remotely and access all the relevant information they need from a single portal. They can access data through their laptops and computers and even from their phones and tablets, no matter where they are.
As each wave of the pandemic takes the world by surprise, manufacturing industries must ensure they are flexible to respond quickly to changing market trends. Such flexibility enables a business to be collaborative in meeting demands and promoting increased revenue and efficiency.
4. Increased profitability
Are you focusing on increased revenue in the next few months? As you are already aware, getting more work done at a lower cost automatically improves profits and encourages growth. ERP enables manufacturers to be alert to changes and react quickly to variations in raw material costs and delivery timeframes.
Cloud-based databases enable business leaders to process information quickly and equip them to make high-quality decisions rapidly. ERP systems for manufacturing increase organizational efficiency, eliminate unprofitable areas and cut down on waste. Moreover, ERP software dramatically reduces control and inventory management expenses.
5. Enhanced security
Advancement in technology has made data available at our fingertips. Unfortunately, it has also made it readily available for hackers and criminals. The significance of data privacy and confidentiality has prompted most countries to have data protection laws in place, and compliance with those laws is non-negotiable. ERP systems for manufacturing have various features that enable your business to protect personal information. ERP system allows you to code your data and secure it by restricting the data through identity and access management.
6. Customer service
Every business must be concerned about customer acquisition and retention. ERP systems for manufacturing allow you to centralize and streamline your client information. This will help your sales team focus on building and maintaining customer relationships. End-to-end tracking and insights offered by ERP will help you provide better customer interaction. Since ERP supports e-commerce integration, businesses can handle web-based order processing and client interactions.
Cloud ERP for manufacturing
Fear of misstep may prevent businesses from moving to the cloud, but outcomes prove that cloud-driven ERP is far more beneficial when compared to manual methods. Here are some benefits of cloud ERP:
- As each department has its own requirement, a customized ERP solution caters to operational and departmental needs.
- Cloud ERP allows your employees to access their data on the go. This aspect has been very crucial given the unprecedented circumstances brought in by the pandemic.
- Real-time data and reporting help in determining the future of your business and accelerates your decision-making process.
Tried and tested ERP systems for manufacturing in 2021
Functionalities of ERP systems for manufacturing help organizations minimize production lead times and increase automation. Here are three tried and tested top ERP systems for 2021:
1. Odoo ERP system
Odoo manufacturing ERP software allows you to handle complex production workflows, product planning, order and inventory management, schedule management, warehouse management, bills of materials, purchase, PLM, maintenance, and quality.
Odoo ERP for manufacturing allows you to:
- Create a manufacturing order
- Configure work center
- Configure routing
- Configure bill of material
- Create scrap
- Product life cycle management
- Preventive and corrective maintenance management
As an Official Partner of Odoo, Fingent is primed to provide the best Odoo ERP consulting, implementation, and maintenance services for your business.
Read more: Why Choose Fingent as Your Odoo ERP Partner
2. SAP ERP system
SAP manufacturing software and Industrial Internet of Things (IIoT) solutions enable manufacturing companies to accelerate time to market, gain new production efficiencies and lower costs.
SAP offers a wide range of software solutions for manufacturing companies, such as SAP S/4HANA Manufacturing solutions, SAP Manufacturing Execution, SAP Manufacturing Integration and Intelligence, SAP Digital Manufacturing Cloud, SAP Environment, Health and Safety Management, and so on.
SAP ERP system helps in two specific categories:
Manage inventory and bills of material:
- Handle bills of material and multi-level bills of materials
- Record, track and produce serial numbers for incoming and outgoing products
- Manage multiple units of measure
Manage the production process:
- Generate both assembly and disassembly work order
- Maintain records
- Generate finished goods.
Read more: https://testingweb.fingent.net/sap-erp-central-component-sap-ecc/
SAP ERP software offers digital manufacturing solutions to meet the demands in a challenging market. SAP’s solutions for the manufacturing industry include Digital Manufacturing Cloud solutions, Manufacturing Execution System (MES), Production planning & scheduling, and IIoT. Being an SAP Silver Partner, we help businesses leverage the full potential of their SAP ERP software.
3. MS Dynamics ERP system
Microsoft Dynamics 365 ERP system offers a holistic package of solutions for manufacturing companies that include ERP, CRM, BI, Analytics, and a horde of top-notch applications. You can easily manage your assets, supply chain operations, production and purchase orders, supply chain planning, bills of materials, and a wide variety of applications that enhance your business performance from the shop floor to the last-mile delivery.
Tools of MS dynamics can help you:
- Control financial management
- Deliver better customer service
- Collaborate across your virtual organization
Over to you
Manufacturing is the economy’s backbone. ERP is an excellent tool that gathers all information from every corner of the business and translates it into financial data and other valuable insights that help companies make strategic decisions in 2021. The potential of totally streamlined business functions makes the benefits of implementing ERP systems for manufacturing a worthwhile investment.
Over the past 17 years, we have been helping businesses solve challenges through technology. Unlock your business value with custom ERP solutions or ERP implementation, migration, upgrade and support. Give us a call!
Stay up to date
on whats new
Get a free
Talk to our experts today
about your business
Digital core ERP can help bring about innovations across the value chain. Companies have to get ready to compete by leveraging the digital core or be left behind.
Take your business to the next level using digital core ERP!
Organizations commonly use Enterprise Resource Planning or ERP software to streamline their back-office functions, logistics, customer service operations, and inventory management. However, it is not agile enough to match the ever-changing requirements of a digital customer.
To establish agility within the foundation of ERP, providers worldwide are repositioning themselves to adapt to the new shift of digital core. Digital core ERPs such as SAP S/4HANA can help companies to stay relevant in today’s digital economy. Odoo ERP and SAP are two of the leading core ERP vendors that help automate back-office functions and accelerate your journey to the intelligent enterprise.
What is meant by digital core?
Simply put, the digital core includes technology platforms and applications that enable organizations to transform into digital businesses and meet the changing customer needs. Digital core ERP allows companies to overcome complexity in enterprise and resource management and drive business innovation.
It includes emerging technologies such as IoT, AI, machine learning, and advanced analytics that require businesses to adopt flexible, scalable, and cloud-based platforms. Digital core prepares data for machine learning systems, text to speech, neural networks, decision making, and other advanced applications and creates algorithms for business and IT.
The digital core will allow organizations to improve their existing business processes or develop new business models using digital transformation initiatives.
This new integrated system allows business leaders to predict, simulate, plan, and predict future business outcomes in the digital economy.
Why is digital core significant for your business?
Businesses that fail to address the changing enterprise and consumer demands due to their rigid core systems face the risk of losing the competition to their more agile counterparts.
To prevent losing business and reputation, enterprises must leverage digital core in the right way and integrate it seamlessly with their internal and external partners. In other words, enterprises must look beyond digitizing peripheral processes and align their core to meet the changing demands. It will not just eliminate manual steps and deliver agility but also provide a seamless user experience.
Examples of digital core
Finance professionals can leverage the digital core to obtain a single source of truth for finance. Finance departments have to handle reconciliations between internal and external reporting and multiple sources of truth stored in different ledgers. While traditional applications can help optimize and control functions, they cannot create a single source of truth, resulting in data accumulation by reconciling ledgers and valuations. With the digital core, businesses can eliminate reconciliation and execute seamless closing from unified data models. It also improves the allocation and closure of processes by ten times. The digital core’s main advantage is that it helps simulate financials in real-time with many ‘what-if’ possibilities.
The digital core can provide a digital experience along the automotive manufacturing value chain. The digital core can power a connected car to offer a personalized driving experience to drivers, including services like parking and fuelling options based on real-time information. The connected vehicle captures data that can be used for predictive analysis to gain insights into driver behavior and preferences. The digital core also helps enhance manufacturing by moving from batch orders to real-time manufacturing resource planning to meet the growing demand.
What are the benefits of the digital core?
Digital core allows enterprises to integrate business process and transactional data from back-office ERP systems with a large amount of data (structured and unstructured) from different sources. Advanced analytics can be embedded in the digital core data to produce new insights, such as proposing further actions and predicting outcomes. Interestingly, many of these processes can operate automatically in near real-time.
How to prepare for digital core transformation?
Firstly, it is essential to have an all-inclusive digital strategy along with effective executive leadership. Additionally, enterprises can focus on three critical tasks:
- Restructuring the organization
- Transforming the organization’s culture
- Re-platforming their technologies
As digital core transformation will have an impact on both the core and the peripheral assets as well as technologies, the new strategy must allow them to:
1. Push tailor-made solutions
Companies that use SAP products can move to SAP HANA products such as SAP S/4HANA and opt for the right cloud-based products to allow better agility during deployment.
2. Establish strong collaboration with partners
Collaboration with partners will help you achieve faster time-to-market for innovations. Also, you can leverage partner innovations along with data integration to deliver value to your customers continually.
3. Enhance the business
Use business process management tools to optimize your business processes and meet customer expectations. Technologies like cognitive analytics allow businesses to identify strategies that lower their value.
Advanced skill sets and enterprise-wide scale are required for digital core transformation, which may be challenging for most businesses. Therefore, it becomes imperative that you find an experienced and trusted partner who can support your digital core journey.
Here are a few tips for choosing the right implementation partner:
- Evaluate their investments
- Understand their willingness to collaborate
- Gauge their implementation expertise
- Look for SAP or Odoo ERP partners
- Gauge their desire to embrace new products and platforms
Why choose Fingent as your digital core ERP implementation partner?
Fingent offers ERP implementation and consulting services to businesses worldwide. We are an Official Partner of Odoo. Our Odoo ERP implementation and customization projects are tailored for easy adaptability. Fingent is also an SAP Silver Partner. With our expertise in cloud computing and custom ERP development and implementation, we can support you through this critical time and help stabilize your business operations and strategize for the future. Get in touch with our expert to discuss your requirements.
Stay up to date
on whats new
Get a free
Talk to our experts today
about your business
How does Odoo ERP Customization Help Businesses?
In the current age of empowered consumerism, businesses should never underestimate the importance of customization in their strategy. Each company has its specific requirements, so customization has become increasingly significant to business growth in the past few years. As businesses wade through unprecedented times, customization emerges highly relevant in 2021. Enterprise systems like custom Odoo ERP solutions, in particular, witness an increasing market adoption.
Undeniably, customized ERP software can unlock tremendous opportunities for businesses to grow and expand. However, do you feel that committing to a software vendor could mean you are relinquishing control of your business or that it might not be financially viable? If yes, we invite you to read this article and put your fears to rest as you discover the importance of Odoo ERP, especially as we approach 2021.
Does Your Business Need Odoo ERP Customization?
Every business has its requirements, and just because one methodology worked for a particular company, it cannot be a yardstick for all enterprises. Hence, it’s crucial to customize your business software to address your specific needs. The foremost reason for having customized Odoo ERP software is that it can address your specific business requirements. It is essential for businesses to wisely use this capability and customize their Odoo ERP software for an organized workforce and a highly streamlined workflow.
Consider a few reasons:
1. Process Extension
The productivity of any business depends on its work process and business forms. Each association has an alternative work process that may require customization to be more effective. To that end, business leaders may have to stretch out procedures to build new functionalities. In such situations, customizing Odoo ERP can improve collaborations within the work process.
2. Increase application lifespan
Applications are building blocks of any business process because they provide vital features and functionality while simplifying the business process. Given that, businesses cannot afford to lose applications at a critical moment. Companies thus need customized ERP solutions to increase the lifespan of business applications.
3. Establish Unique Identity
Every business has specific objectives to accomplish, which sets them apart in the market. Online marketing activities and data reports of a business mirror its unique identity. Customization of Odoo ERP software can empower businesses to establish their unique identity despite challenging situations.
With the changes brought about by the pandemic, the need for mobile ERP solutions has taken precedence. Odoo ERP customization can help organizations achieve the desired mobility.
5. Additional features
COVID-19 has redefined the way businesses function that necessitates improvements and upgrades in the business process for 2021. However, it would help if you streamlined each upgrade with the existing process. You can achieve this by incorporating additional features to improve the performance of the whole organization. Odoo ERP customization will help you include other features tailored for your specific business needs.
6. Increased adaptation
The pandemic has made it evident that an unprecedented event can take you completely by surprise and change the face of your business. Quick adaptation is necessary for businesses if they are to survive and thrive. However, it can be challenging to find new ways that align with your existing business process. Business systems that are not flexible to adaption can collapse, bringing a thriving business to a grinding halt. Odoo ERP customization enables companies to achieve flexibility, empowering them to adapt quickly as the need arises.
Benefits of Odoo ERP Customization
Odoo ERP customization offers businesses increased flexibility and better control resulting in increased sales and improved customer relations. Here are four main benefits of customized Odoo ERP software:
Flexibility and better control over mission-critical business functions are two of the main benefits of Odoo ERP customization. The extent of that flexibility depends on the type of customization done by the ERP development company. Since Fingent is an official partner of Odoo, our team is fully trained in Odoo ERP development. Our projects are tailored for easy adaptability.
Odoo ERP covers a wide range of business needs, such as financial management, warehouse management, CRM, and human resource management. It can integrate almost all aspects of a business to improve overall efficiency.
3. Offers support and allows upgrades
Customized ERP applications give you complete control over their features. It also allows you to upgrade the applications when required. At Fingent, we offer user-friendly applications that help businesses achieve their daily organization and management goals.
4. Development time
Development time might concern enterprises that need to deploy a customized ERP solution within a given time frame. The development timeline varies from project to project, depending on the requirements and expectations of an organization. However, it is a profitable investment considering the long-term benefits.
There is a misunderstanding that customization of the Odoo ERP system costs a fortune or might complicate the software system’s entire delivery. This has held back some businesses from investing in it. While it is true that customized ERP solutions require to be developed from scratch and tend to be more expensive than off-the-shelf systems, you must consider that the benefits and long-term savings far outweigh the cost.
The development cost of customization depends on various factors such as the type of application, the number of features, and the time required for the development. However, Odoo offers a basic ERP system with a low-cost license fee. Hence, developing a simple enterprise application with basic features can be cost-effective in the long run. Organizations can maximize the budget on the customization of the platform.
Odoo ERP is known to be secure by design. Being an open-source platform, Odoo is under constant scrutiny by its users. This ensures that it continually improves on bugs as soon as users report them.
Easy Adaptability with Complete Control – Grab It Now
Customization of the Odoo ERP system provides you with the functionality that your business requires. It eliminates any unnecessary features that could confuse a customer and allows you to customize the source code to suit your business needs and features. Customization can also reduce entry duplication and removes redundant fields, which enhances the efficiency of your employees. It can address your current business requirements while providing you with the opportunity to continually improve and refine your business processes as 2021 approaches with new challenges.
If you are worried that the implementation might be difficult, we want to assure you that it isn’t. Fingent’s Odoo implementation projects are tailored for easy adaptability and user-friendliness while ensuring that you have complete control over your processes. Give us a call, and let’s get talking.
Stay up to date
on whats new
Get a free
Talk to our experts today
about your business
What To Watch Out For In 2019 On ERP Market Trends
It’s true that we can never bid adieu to last year’s trend-setting technologies like blockchain, AI, IoT, and multi-cloud. But, neither can we not talk about the progress where technology is likely to echo around the ERP space.
According to a study by MarketWatch, “The ERP software market is expected to rise globally to $47B by 2022”. Let us find out what are the possible market trends in ERP for 2019.
Drastic Rise Of The IoT Market
According to Statista’s latest research, “the global IoT market will rise exponentially from $2.9 trillion in 2014 to over $7 trillion in 2020”. This leads to a situation where ERP systems will need a new level of intelligence and automation to make platforms collect data and insights.
Earlier, only a small percentage of data were created and processed outside a traditional data center. But in the future, there will be a situation where nearly all data will be generated from outside of the data center.
IoT is expected to drive the design and deployment of many operational analytics solutions. Industries such as retail, banking, and telecommunications will also adopt operational analytics to enhance customer experience and quality.
Related Reading: Get answers to where and why should you invest in IoT.
Accelerating Transition To Cloud Computing
According to Statista Reports, “the global market revenue of public cloud services will surpass 278.3 U.S. Dollars in 2021”.
The benefits of this would be greater data security, minimal dependency on hardware, speedy results, and high customer satisfaction. As per the research report by IDC, spending on cloud computing is anticipated to rise at a rate of six times the rate of the current IT spending through 2020 which upsurges at 4.5 times the IT spending rate since 2019.
Cloud concepts, Content Delivery Network (CDN), DevOps, Big Data and Artificial Intelligence, are going to be the key players in the future of Cloud Computing.
Contribution Of AI And Emerging Disruptive Technologies
The three main trends behind the huge adoption of ERP services are the integration of artificial intelligence (AI), deployment in the cloud, and improved IoT technology.
Big data analytics and the various kinds of AI, including predictive analytics, machine learning, and deep learning, form the catalysts for industries to improve customer experience.
The third wave of technology evolution is based on systems of intelligence (Cloud, IoT, AI, VR, AR). For instance, Chatbots and messaging apps are examples for a rapid expansion in the implementation and adoption of AI.
By implementing advanced solutions such as AI-based chat-bots, IoT sensors and more, businesses will streamline and thereby accelerate their functions. This can tackle productivity issues and also it is an opportunity for businesses to realize the value and utility of new disruptive technologies.
Related Reading: Watch out for the top AI trends in 2019.
ERP and SaaS – Differences In Overheads
The traditional applications based on ERP were stored on servers. This meant overheads as a result of increased hardware costs as well as costs associated with backup, recovery, and maintenance. The difference between traditional and SaaS applications is that SaaS applications are stored on cloud-based servers.
The benefits of SaaS are that these applications do not demand high maintenance costs, or rather are they expensive. The additional overhead costs that are reduced when it comes to SaaS are that they differ in terms of per-seat licensing costs as well as the total cost of ownership etc.
So, since Saas is a cloud-based model, SaaS-based applications are neither costly, neither are they difficult to maintain.
ERP transition has taken place rapidly. The new SaaS model for ERP is very flexible and useful.
Inclusion Of Social Media Channels
ERP systems in 2019 will need to be able to include direct marketing and data links across multiple social media channels to make their presence felt in the market.
HR managers frequently use social media to search for and hire new employees and also as a background check and even as performance management indicators. These changing trends in business operations are reflected in any competitive ERP platform.
The modules that address are becoming social-media savvy in 2019. This is mainly due to the high use of customer base that accounts for 2.77 billion customers (according to eMarketer research).
The other engaging trends in ERP adoption are as follows:
Focus on Business Intelligence
Organizations are trying to make forecasts with ERP software for business intelligence.
Good Integration architecture
An increasing need for ERP software system has resulted in the act of ERP consultants being shifted towards a better integration architecture for ERP software.
Two-tiered ERP is very useful for enterprises since they run in different processes at different places. These tend to match the needs of all locations with a better cost structure. It best suits when the enterprise is large.
The Personalization Advantages
Today’s ERP systems are built for personalization. Some systems offer tools to help make it easy and fast in customizing the application to their needs.
Large Organizations Acquiring Small Startups
Large organizations try acquiring smaller startups in that regards. This increases ERP implementation.
Partnering With Firms That Break The Traditional Rules
With the onset of the cloud, the traditional role of technology partners will no longer be enough. Finding an ERP partner that utilizes the latest technology and analyzing how they deliver service with your needs is required for a successful business.
More focus on profit from ERP
As ERP becomes more and more successful in the market, firms blindly implement them now. They are sensitive to the return of investment.
These above trends in ERP to be witnessed in 2019 are beneficial for an organization as well as provide to business growth. ERP software is used in various fields for work and that is the reason why the demand for an ERP software system is increasing every day.
Watch out for more market trends and highlights showcased for 2019 in our latest blogs!!
Also, empower your business with trending technologies. Contact our tech-experts today!