What is Manufacturing ERP software?

By itself, an enterprise resource planning software offers tremendous help to businesses. It boosts efficiency and improves the quality and scope of analysis. It enables management to make better, sounder decisions. It makes everyone’s life easier.

Imagine thus what an industry-specific ERP software can do — for example, a manufacturing ERP software. A manufacturing ERP software is tailor fit to the needs of companies in the manufacturing sector, for which the availability of product stocks and raw materials at just the perfect time is of prime importance. Since the focus of the manufacturing company is the product itself, there is great emphasis on the quality and uniformity of the product and the management of the costs that go with the production of this product.

In order to produce a product with the exact specifications and at a pre-determined cost, a company’s various departments or business units will need to communicate with each other and exchange data on a constant basis. The sales team, for instance, will communicate to the manufacturing company the needs of existing and potential customers. There must be adequate inventory of the product to be shipped; if not, there must be enough raw materials available so that production can get going.

A Manufacturing ERP will enable the various units to exchange information seamlessly and tip each other off as to what the needs are and when.

Without a Manufacturing ERP software, a manufacturing company would encounter unmet demand, higher cost of raw materials and labor, and loss of competitiveness.

It will also incur the other negative effects of delayed payments or delayed collections, and potentially unhappy customers.

The manufacturing sector is seen as a driver of growth of the Philippine economy. While the services sector is strong, there is a need to increase the productivity, efficiency and competitiveness of local manufacturing companies so they are better able to contribute to the sustainable growth of the local and national economy.

A good way to make the industry perform better is to underscore the importance of having an ERP software for manufacturing in the Philippines. At this point, perhaps only the biggest and more financially strong manufacturing companies are able to appreciate how an ERP software for manufacturing in the Philippines can maximize an organization’s potential.

To be sure, an ERP software for manufacturing in the Philippines does not come cheap. For some business owners in the Philippines, the cost of acquiring an ERP software for manufacturing could constitute a significant outlay. After all, acquiring an ERP software for manufacturing in the Philippines, as elsewhere, will also entail additional expenses like upgrades in hardware and infrastructure, personnel training, as well as periodic updates.

The growing perception however is that these costs are very much worth every centavo. Business executives thinking for the long-term will definitely appreciate the returns not only in finances but in efficiency, employee morale and customer satisfaction that an ERP software for manufacturing can bring. Deciding to obtain this software is definitely a game changer, not only for the individual manufacturing companies but also for the manufacturing sector as a whole, and in relation to the larger economy.