5 Questions to Help You Decide Whether It’s Worth Investing in ERP

  • 20 December 2017
  • CTND
Categories: ERP

ERP digital concept in the foreground of a photo of a man using his tablet.

You’ve probably come across enterprise resource planning, or ERP, when investigating options for improving your operations. ERP is a solution that lets manufacturers both large and small take advantage of the modern technologies that are reshaping the industry.

If you’re still not sure whether ERP is a good fit for your operation, see if you’ve asked yourself any of these questions recently.

1. Do I Have the Real-Time Information I Need to Make Quick Decisions?

Decisions need to be made faster than ever, and there is no time to scramble for information found in handwritten logs or various software platforms. A stunning 46% of CFOs are still making important business decisions based solely on instinct — and while their expertise isn’t in question, all the experience in the world cannot compare to a data-driven decision.

ERP will help your team make more intelligent decisions, more quickly. The right solution will coordinate data across departments, meaning you can access the information you need with the click of a mouse. Why make important decisions through guesswork when you can have access to real-time data on material sourcing, supply stock, assembly timelines, and more?

2. Has a Lack of Supply Chain Visibility Caused Problems?

ERP provides a bird’s eye view of supply chain management. That is especially important for manufacturers dealing with numerous suppliers in various locations. It allows companies to better connect real-time demand with supply needs, creating a more efficient and cost-effective operation. ERP also oversees material, information, and financial flows, optimizing order tracking, inventory, and productivity, all while reducing errors.

While almost exclusively used by larger companies in the past, ERP is now a solution utilized by manufacturers of all sizes.

3. Do I Have the Right Technology to Complement the Skills of My Employees?

ERP makes your operations more lean, but not by replacing existing staff. Rather, an ERP solution works in tandem with your employees, providing them the data they need to do their jobs best. This way, they can spend their time interpreting real-time information, rather than searching for it. Not only that, but maintaining business-to-business and business-to-customer relationships has never been easier, thanks to the collaboration tools available in ERP solutions. This again leaves more time for employees to do work that is productive and revenue-generating rather than unnecessary and tedious.

An ERP platform that has the option to be cloud-based. Accessing ERP data on various devices will mean your company is more prepared for the workplace of the future — decentralized and flexible.

4. Is My Company Prepared for a Retiring Workforce?

The manufacturing sector is teetering on the edge of a crisis, and ERP will help. The 2017 data from the Bureau of Labor found the average manufacturing worker is 44.5 years of age, compared to the average median age across all sectors: 42.2. This median is even higher in specialized areas such as aerospace product and parts manufacturing (49.7 years of age) and aircraft manufacturing (48.2 years). With half of all manufacturers in the final decade of their career, companies need to give succession planning a serious thought. Investing in ERP today leaves valuable time for older workers to hardwire in their best practices, leaving their experience and knowledge to be passed on to the next generation of manufacturing worker.

5. Is Compliance a Logistical Nightmare?

ERP systems are built with industry-specific compliance in mind. ERP will standardize best practices and ensure compliance with the regulatory burdens you may need to meet to get the contracts you seek. When it’s time to hand over information to a third-party — like for an AS9100 audit, for example — your team can pass off the keys to an orderly and well-documented system.

An ERP solution will bring countless benefits for almost every manufacturer. If you’re asking yourself any of the questions above, get in touch with Cre8tive Technology & Design today.

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