How ERP Software Helps Manufacturers Overcome Materials Shortages

How ERP Software Helps Manufacturers Overcome Materials Shortages

It is virtually impossible to overstate just how challenging 2020 was for businesses in the manufacturing sector. During that 12-month timespan, manufacturers were faced with unprecedented supply chain disruptions, materials shortages, and other threats to business continuity.

Most manufacturers hoped that these challenges were transitory and approached 2021 with a certain level of optimism. Unfortunately, the supply chain woes of 2020 persisted well into the subsequent year and beyond. As a result, many essential raw materials are scarce, and prices are at historically high levels.

Manufacturers can do little to address the root causes of materials shortages and supply chain disruptions. However, they can take steps to improve resiliency and increase their ability to overcome these business continuity barriers. 

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Specifically, manufacturers should adopt a cloud ERP software solution designed specifically for their industry. Such software can be instrumental in navigating the hurdles associated with ongoing supply chain and materials issues.

The Role of Cloud ERP Software in Navigating Supply Chain Disruptions

Enterprise resource planning technologies, more commonly referred to as “ERP software," are powerful solutions that allow manufacturers to consolidate the data from their various applications into a centralized access point. 

This consolidation increases organizational transparency and will help business leaders better understand the challenges that they are facing.

The primary advantage of ERP software is that it eliminates data silos. A data silo is created when two or more applications are not sharing information. This lack of interoperability is quite common in the manufacturing industry, as various departments within the organization often use different software solutions.

For instance, let’s say that your accounting and procurement personnel use separate applications to fulfill their job responsibilities. If these applications are not communicating effectively, both departments will have an incomplete view of the state of the organization. 

As a result, they will often find themselves responding to pain points after they have negatively impacted business processes.

With ERP software, your manufacturing company can take a more proactive approach to combating supply chain challenges. You can accomplish this by closely monitoring and analyzing performance data. ERP software facilitates this process by providing various key performance indicator (KPI) tracking tools.  

Tracking KPIs will not only allow you to respond to business continuity threats more effectively, but it will also help you improve overall organizational efficiency. In turn, this will lead to increased customer satisfaction, improved sales volume, and higher revenue.

Not All Cloud ERP Solutions Are Created Equal: Here’s Why

By this point, you are probably pretty excited at the thought of adopting cloud-based ERP software. We can hardly blame you, as this technology can revolutionize the way you manage your enterprise resources and streamline core business processes.

With that being said, it is important that you select an ERP solution that is designed to meet the needs of manufacturers. There is no question that any ERP software solution would help you achieve short and long-term business goals. However, ERP software that is built for the needs of manufacturers will yield an optimal return on investment.

Manufacturing ERP software will include integration capabilities for various industry-specific applications, such as those used to conduct material planning, configure products, and manage production processes. 

Such a software solution will also allow you to track KPIs that are relevant to the manufacturing sector. Examples of these KPIs include customer lifetime value, schedule attainment, throughput rates, utilization, and quote-to-cash cycle.

In addition to choosing the right software, it is vital that you partner with an experienced deployment services provider. A great provider will oversee the entire implementation process and will configure your ERP software in a manner that optimizes your time to value and return on investment.

Making the Most of Your Journey to Manufacturing-First ERP

Whether you’re outgrowing your current software, finding that your legacy systems aren’t ready to handle your needs, or you’re looking for something more suited to your processes and needs, the right advice, assistance, and support can make or break your ERP journey. At Cloud 9 ERP Solutions, we understand the challenges that manufacturers face in selecting ERP software, and have supported companies just like yours throughout their journey.

As a Gold Certified Acumatica Partner, Cloud 9 ERP Solutions can show you the true power of Acumatica and can also oversee the entire implementation process. Contact us today or watch our Acumatica Manufacturing Edition demo to learn more.

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