Top 5 Reasons Small Manufacturers Should Invest In Custom ERP Solutions
ERP systems are commonly recommended to and deployed by large manufacturers owing to the scale of their operations that deems streamlining and increased efficiency necessary. However, the fact of the matter is - a well-designed custom ERP software is as much of a necessity for small manufacturers.
Why?
Because of the unique challenges small manufacturers may face in their day-to-day operations which could include limited resources, complex supply chain logistics and fluctuating demand. By getting cost-effective and flexible solutions, your small manufacturing business can reap the benefits of custom ERP that large-scale businesses enjoy such as cost reduction, enhanced efficiency and improved decision-making.
Here are top 5 reasons why you should implement a custom ERP system for your small manufacturing business.
1. Optimizing small-scale production and inventory management
One of the things that large manufacturers enjoy but small manufacturers don’t is the benefit of having a massive warehouse. As a small manufacturer, you might have a limited inventory budget to go along with the tight storage space you possess.
This makes maintaining optimal stock levels extremely important. A custom ERP can help in this regard by providing valuable features such as demand forecasting, real-time tracking, and automated restocking alerts. This can further help you prevent instances such as under-stocking or over-purchasing idle stock.
2. Affordable and scalable pricing
It’s a common misconception that ERP solutions require a high licensing fee and recurring maintenance costs. While off-the-shelf solutions might be overpriced due to extra and unnecessary features they offer, custom ERP software trims down the excess costs by offering you only those features that your small manufacturing business needs.
Moreover, this tailored approach means that your system has scalability features built in, thus allowing it to grow along with your business. This further gives you the flexibility to start with a basic system and add features such as a customer portal or supply chain tracking as you go without incurring an expensive upgrade.
3. Streamlining production planning for small orders
The odds of your small manufacturing business catering to custom orders or producing items in small batches are quite high due to the nature of your business. Since small batch production is a frequent occurrence, it makes efficient scheduling critical. Fortunately, the flexibility of a custom ERP system allows for a seamless integration with your pre-existing shop floor management tool.
This integration can help you automatically adjust production schedules based on the resources available, thus generating accurate lead time estimates so you can deliver your order on time.
To elaborate with an example, let’s say you are in the business of manufacturing custom metal parts. Imagine having an ERP system that is not only capable of tracking the work-in-progress but can also keep tabs on the amount of raw materials used as well as notify if your production delays are likely. This, in turn, can ensure faster turnaround time while boosting efficient job scheduling.
4. Seamless integration with accounting and other tools
As a small manufacturer, you may already have certain systems in place for accounting and CRM. The problem with off-the-shelf ERP solutions is that they do not integrate well with your pre-existing systems. However, custom ERP software does, thus helping you automate several cumbersome tasks such as invoicing, payroll tracking, bookkeeping etc. without requiring any expensive add-ons.
The ability of this software to integrate with your existing CRM (Customer Relationship Management) tools ensures you can boost customer satisfaction and retention rate by helping you keep track of key aspects such as customer preferences, special pricing agreements and previous orders.
5. Ensuring compliance management
Certain industries, such as food production or manufacturing of medical devices or aerospace parts, are highly regulated. If your small manufacturing business is in this type of industry, you will need a custom ERP that has been specifically designed to automate the process of compliance tracking.
For example, if your manufacturing plant produces organic food packaging, your ERP system can help you in a number of ways. Not only will it generate compliance reports to meet the requirements of regulatory authorities but it will also store supplier certifications and track material batch numbers, thus reducing the risk of regulatory fines.
Conclusion
Your custom ERP system can help you make data-driven decisions and allow local and remote access for your team, thus ensuring your business grows without disruptions. However, it makes sense to get ERP software from a reliable provider so you can reap all of its benefits.
Vestra Inet is your best bet in this regard as we have 20 years of experience in helping small businesses grow with our tailored solutions. Contact us today to equip your business for success with a custom ERP.
