202224 May

Why Manufacturing ERP Is Vital for Small and Midsized Manufacturers in 2022

Summary

The pandemic permanently changed the marketplace, with increasingly volatile supply chains, shifting routes to market, nations pulling back from global commitments and limiting exports of critical manufacturing inputs, and price instability strongly affecting company profits. According to the Boston Consulting Group (BCG) article An ERP Strategy for a Post-Pandemic World, “Companies need to collaborate digitally with existing suppliers, as in working remotely with fashion retailers, for example, to forecast demand for the next summer collection, or in codesigning new products in “design-to-order” businesses. These are the seven most valuable ERP capabilities for SMB manufacturers: A well-managed bill of materials (BOM)—called a recipe in process manufacturing—provides excellent efficiency and the ability to rapidly pursue new sales opportunities. Employees can quote jobs accurately, ensure delivery dates, and seize new and evolving opportunities left open by competitors who don’t manage their BOMs efficiently. Modern manufacturing ERP software leverages BOM information, historical order data, and algorithmic calculations to recommend highly accurate inventory requirements.

Source: Vision33

Classifications

Companies