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5 Ways ERP is Beneficial for Manufacturing Industry

In the age of digitalization, every business uses computers and technology for executing their work. Enterprise Resource Planning (ERP) is a business management software which allows organizations to manage their businesses. There are a number of reasons a company would use an ERP or Cloud Manufacturing Software. It connects the processes which are disjointed in the system and increases automation.

Manufacturing industry is highly competitive which makes it necessary to have solutions to enhance efficiency, profitability, increase sales and decrease costs. ERP for manufacturing enables the company to make accurate and strategic decisions. Workflow of supply chain and warehouse are just a button press away through ERP software.


The biggest benefit of ERP is that it brings automation in the workflow. As the business grows, it becomes difficult to handle it. Manufacturing process automation makes the process of production quick and reduces the probability of errors. Moving towards automation means reducing human power and relying on machines for work. This frees up time and reduces human error. The productivity is improved as well.

Increased Security Levels:

External security features are covered with the ERP software. Applications and web service calls are secured providing you an end-to-end protection. Your computer is saved from data loss, power failure and natural disasters. Any threat that can cause harm to your business and its integrity is secured using ERP. As information centers are apart from the production and supply chain centers so your data will be secured.

Improved Productivity:

ERP manages everything in a timely and systematic manner. It helps the management to utilize every resource to improve the rate of productivity. ERP provides real time analysis which helps to examine business strategy, planning and execution. They are able to respond to changing market trends in an effective way. Manufacturers refer to system generated reports to understand the market trends and demands of public. This give them a 360 view of the market reality so that they are able to capitalize new opportunities.

Reduced Costs:

Integrating ERP software in manufacturing industry means you can save overall cost as manual, time-consuming processes are replaced with automated processes. Expenses of inventory, manufacturing process and administration are reduced all together. By entailing ERP solutions labor expenses, error rates are reduced and precision is increased. It causes reduction in the overall expenses of manufacturing and lowers losses as well. Excessive inventory and warehouse costs are also reduced with the ability to track inventory accurately.

Enhance Customer Satisfaction:

With the benefits mentioned above such as increased production rate, enhanced inventory system, streamlined scheduling, distribution channels and reduced costs create customer satisfaction. It enables manufacturers to improve on-time delivery of products and their overall performance. Delivery of products on time is mandatory to ensure customer satisfaction. Decision makers are able to have a better idea of the market to meet customer’s demands.

While Enterprise Resource Planning has several benefits for the manufacturing industry, manufacturers should execute it properly to benefit the most from it. Partner with good ERP software providers to achieve right choice for your business.