Tag Archives: Manufacturing ERP

What Digital Transformation Means for Small and Midsize Manufacturers

#1 – Cloud Computing

According to an Oxford Economics study, 59-60% of small and midsize manufacturers plan on leveraging the cloud to host more forward-looking technologies, such as robotics and on-demand 3D printing. The companies need these technologies to stay relevant at all times.

For example, cloud-based Enterprise Resource Planning solutions are helping manufacturers automate specific back-office functions to increase their operational efficiency. ERP software integrates every aspect of manufacturing workflows such that all business functions rely on a centralized database.

The system provides a real-time, 360-degree-view of materials and supplies, human resources, scheduling, sales, customer relations, finance, and accounting. With timely access to accurate information, manufacturers can streamline production processes, improve customer service, and reduce costs.

Digitizing the supply chain enables manufacturing companies to automate mission-critical workflows. It’s helping decision-makers in the industry to identify resources that need deployment or adjustment to meet production objectives in time. Also, automating approval processes and reporting increases speed to market, giving manufacturers a competitive edge.

#2 – On-Demand Additive Manufacturing

On-demand 3D printing is the future of manufacturing. Indeed, additive manufacturing (AM) wouldn’t materialize without digital technology. It involves building physical, 3D products by adding successive layers of raw material. Typical applications include prototyping, industrial tooling, and the development of market-ready products like footwear and prosthetics.

Potential benefits of on-demand AM include:

Custom products: Through AM technology, manufacturers offer their customers a way to build highly personalized products.
On-demand availability: Products are available on-demand via 3D printers, enabling manufacturers to differentiate themselves by responding quickly to customer demand.
Lower shipping costs: Strategically-located 3D printers mean shorter delivery times and shipping distances. With cloud-based, on-demand AM technology, small and midsize manufacturers can reduce or eliminate the cost of sourcing parts overseas.

#3 – Big Data and Analytics

SMEs in the manufacturing industry are leveraging big data to extract in-depth insights into raw material usage and movement of finished parts through their system. Machine learning (ML) algorithms are helping these companies produce actionable business intelligence by analyzing data from disparate structured and unstructured sources. The resultant analytics may inform the development of high-quality products to drive revenue. It also helps streamline manufacturing processes to cut costs.

#4 – Internet of Things (IoT)

Manufacturers are using IoT technology to digitize key assets and workflows to streamline operations, grow business, and surpass customer expectations. They’re attaching digital sensors to physical production systems or assembly lines. These interconnected devices provide better visibility into the whole value chain, enabling manufacturers to extract system performance data, spot potential bottlenecks, and drive operational efficiency.

#5 – Mobile Technology

Mobile technology allows small and midsize manufacturers to grow and expand to new locations and markets without incurring extra infrastructure costs. Their employees can access company networks and cloud-based computing resources via the internet to work and collaborate from remote locations. As such, technology increases employees’ productivity.

Digital transformation enables small and midsize manufacturers to streamline and automate mission-critical processes, resulting in operational efficiency. It provides in-depth business intelligence to inform product development, hiring decisions, customer engagement, and supply chain strategies. These companies are leveraging an array of technologies, including the cloud, IoT, ML, robotics, and mobile solutions, to drive business growth and beat their competition.

Do you desire to adopt forward-looking digital technologies to achieve your business goals and keep pace with your manufacturing competitors? Contact us today for an expert evaluation of viable ERP and technology options!

Accurate inventory is not a myth: Enabling accurate inventory forecasting through ERP

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In today’s post, we are going to explore how Enterprise Resource Planning (ERP) empowers wholesale distribution and manufacturing businesses with advanced inventory forecasting functionalities to resolve internal conflicts between warehouse, sales and finance.

The debate between your Sales, Finance and Inventory/Logistics Managers may sound something like this:

Logistics Manager; “If sales forecast more accurately and sell to a plan we will be able to hold the right inventory levels…”

Sales Manager; “If purchasing and the warehouse team held the correct stock levels and kept us informed we would be able to sell more…”

Finance Manager; “We need more accurate stock holdings and we must reduce inventory levels to reduce the burden these stock levels place on cash flow…”

These are the three “most seen” competing points of view from most small to medium-sized businesses in the wholesale/distribution and manufacturing sector. The good news is, accurate inventory forecasting is not a myth!

So, how can an ERP solution help you manage these conflicting points of view and forecast inventory demand at any given point in time?

Accurate inventory forecasting is not a myth

ERP solutions give you the functionality to provide faster, better access to information for better decision making. This is particularly true with regards to inventory management for wholesale distribution and manufacturing.

Here is how an ERP solution can help resolve your internal conflict and give you accurate inventory forecasting functionalities.

Planning

The essence of an ERP solution goes well beyond invoicing, customers, financials and suppliers. Planning is at the heart of a good distribution and manufacturing ERP solution.

Planning tools for purchasing and production planning will help balance the supply and demand equation to consider thousands of transactions and recommend a plan. Think of the elements of any plan for a wholesale distribution or manufacturing business:

Lead times;
Economic order quantities;
Container and shipping management;
managing multiple suppliers;
forecasts and min/max stock levels.

It is impossible to manage all of these “moving parts” without the automation that an ERP solution provides.

A good planning solution will map out all relevant components to recommend purchase orders for raw materials and works orders for production planning. A good planning solution balances thousands of transactions to make the right recommendations.

Information

Decision making requires information; timely, relevant information. A good ERP solution provides relevant information such as lead times, current stock levels, historical sales, supplier on-time/in full reporting and expected delivery dates with detailed available to promise.

When your various business departments get access to all the information in real-time from your supply chain, your staff is empowered with the accurate data they need to make informed decisions.

Analytics

As mentioned, data empowers our staff with accurate information to make informed decisions. In today’s world, we have access to “big data” from multiple sources.

Let’s put this data to good use through analytics to help us with decision making. Decision making is about timely, accurate information. A well-implemented ERP analytics toolset will give you the information that you need when you need it to help you with the planning and forecasting.

Forecasting

Tough to get right in any business. Not to worry, ERP gives you access to automated forecasting tools and relevant data for forecasting historical sales, market trends and product updates.

Mobility

We live in a mobile world. All of the functionality that we require from our ERP solution should be available from a mobility device. Once again, the emphasis is on timely, accurate information.

Decision making can’t wait, and neither should you!

Access to information where and when you need it means that mobility remains important.

Conclusion

The debate between sales, warehouse management and finance can be solved by implementing an ERP solution to empower your business with advanced inventory forecasting functionalities.

Implement an ERP solution to provide your business with the information, analytics and planning tools to close the gap between planning, scheduling, sales, inventory management and finance.

At Leverage Technologies, we have been helping Australian businesses choose and implement the right ERP software to grow smart. For more information feel free to call us on 1300 045 046 or email [email protected].

How To Choose The Best ERP Solution: A Guide For Small To Medium Sized Business

When it comes to ERP, every business is different

The first thing to understand is that when it comes to ERP software solutions, every business is slightly different. Even if your functional requirements are similar to another business, there are other influencing factors when it comes to choosing an ERP solution:

Internal resource skill set and availability;
Current systems;
Processes and structures within your business;
Budget;
Timelines;

Each of these factors and a number of other elements can influence which ERP solution is best for your business.

How functional requirements influence your ERP choice

Choosing an ERP solution that is well suited to your functional requirements is what the decision is all about. Aim for a solution that has the standard, out of the box functionalities that you are looking for.

List your core functional requirements and short-list ERP solutions that have a close functional fit to those requirements. Start at a high level then drill down to more detail as your investigation into ERP continues.

As an example, you might list your major requirements as follows:

Multi-company, multi-country with consolidation;
Inventory control across multiple warehouses;
- Bar-code scanning / paperless warehouse;
Simple manufacturing;
- Works order;
- Bill of materials;
- Basic MRP / planning;
Service and repairs;
- Management of the repairs and returns process;

Start with a high-level list of requirements (usually a one-page document). Align this to the vendors that believe that they are well suited to your functional requirements and budget. The ERP vendor will need to align the budget with expectations.

Keep it simple

Don’t over-complicate things. If your business does not require complex manufacturing or complicated supply chain management then, don’t buy it or try and implement it. Take baby steps, grow into your ERP solution and keep it simple – automated, but not over-complicated.

Cloud vs on-premise

Choose Cloud vs on-premise based on your company’s specific situation and requirements.

It is true that in 2018, about 90% of enquiries that the team at Leverage Technologies received are for Cloud-based ERP solutions. But, this does not mean that Cloud is the only way to go. Assess your company’s requirements and infrastructure before making a decision:

Internet reliability and speed;
Five-year cost structure review;
Remote access;
Growth plans;
Standard ERP vs bespoke (how “standard” are your requirements?).

Technology is becoming increasingly important

In an ever-changing world where technology is moving at a more rapid pace than ever before do not ignore the benefits that you might be missing out on.

Think about some of the advantages of a technically advanced, modern ERP application:

Cloud – More computing power available than ever before for a simple monthly fee. Pay as you go and add more computing power as you need it;
Mobility – We can’t be competitive in today’s world unless you offer true mobility apps, web client access and the ability to get the information that we want, when and where we want it;
E-commerce – Easy, integrated and available 24 x 7;
EDI – Integration for order taking and a whole lot more. Integrated into the Australian major retailers and extended (in some form) through your supply chain. Make it easy to manage orders and the delivery process;
AP Automation – Automate your AP process and approvals using OCR technology;
Internet of Things (IoT) – The connectivity of multiple devices across the internet to share data. Think of the multiple internet connected devices that we use daily and now, consider all of that data being shared. How can this data help us to make better-informed decisions with regards to customers, marketing, suppliers and team members to help us run a better business?
Artificial Intelligence (AI) – It’s coming to ERP. With massive data volumes being collected from multiple different sources, Artificial Intelligence will help us sort through data to pick trends and help make better decisions from machine learning.

Partnership matters

Choose your ERP software and Cloud solution carefully but choose your ERP implementation partner even more carefully! Your ERP implementation partner will take responsibility for transforming an off the shelf ERP solution into a tightly integrated solution for your business. Choose a partner that has previous experience in your industry and is a good cultural fit for your business.

Specifically look at your ERP providers:

Previous experience in similar industries with similar size organisations;
Support options;
Implementation methodology and process;
Team size, experience and how long team members have been with the organisation;

Take a medium to long-term view

This is surprisingly difficult to manage. If you take a view which is too “short-term” you risk having to re-implement a new ERP solution again in 3-5 years to cater for your growing business and the associated requirements.

Take a view which is too “long-term” and you risk over-complicating your implementation and choice of ERP as you try an implement functionality that you don’t yet need.

Balance these requirements for the best chance at success.

Conclusion

“Which is the best ERP software solution for my business?” Follow the steps in this article to narrow down your research and make sure that you focus on the right success factors.

There are a number of outstanding ERP providers and resellers in the Australian market and there is an ever-growing amount of competition for Cloud-based ERP. The winner is you, the customer!

As technology continues to advance at a more rapid rate than ever before and as the world of ERP solutions demands more value for money you will be able to choose from several competing solutions to choose the best ERP offering for your SME business.

Production On Autopilot With Sage X3 – Automated Manufacturing and Scheduling

Is it possible to juggle manufacturing and purchase planning to optimise inventory levels without using an ERP?

Most manufacturing companies that we talk to have a very similar view of the challenges that surround an optimal production.

“Sales tells manufacturing that if manufacturing made more products on time then sales would find it easier to sell those available quantities.”
Manufacturing counters this with “If the sales team could accurately forecast sales then the manufacturing team would be able to plan more accurately and would be delivering ahead of schedule”.

These debates have been around forever!

The truth is, there are a lot of moving parts when trying to juggle manufacturing and purchase planning. For those of you who don’t use an ERP software or are still managing the whole process on spreadsheets, you know the complexities:

Customer orders;
Supplier delivery schedules;
Lead times;
Manufacturing delays;
Alternative shifts;
Outsource work;
Shipping times for raw materials;
Forecast sales.

Trying to work through thousands or even tens of thousands of transactions to detect trends and to plan the schedule accordingly takes computing power and robust systems designed specifically for manufacturing companies.

Enter the age of Cloud-Based ERP Solutions and automated planning and purchasing software such as Sage X3, your business gets access to:

Forecast planning
Purchase planning
Material Requirements Planning
Graphic scheduling
Advance planning and scheduling
Many other integrated functionalities that are part of the platform

Manufacturing and scheduling on autopilot with Sage X3

Sage X3 offers the complete suite of advanced manufacturing and inventory control tools to help businesses balance the demands of operating and scheduling a manufacturing plant.

Visibility across the organisation – Using Sage X3 you get a view of the entire organisation. No more “islands of information”. Finance, inventory, purchasing, manufacturing, CRM and reporting are all integrated. A single view of customers, suppliers, inventory and manufacturing – from anywhere, anytime.
Data that makes sense – Sage X3 allows you to sort through thousands and thousands of transactions to make sense of the real data and the real picture. If an order is delayed, Sage X3 will give you an immediate picture of the delay and the new delivery dates so that you can immediately update your sales team and customer – in fact, even this part of the process can be automated.
Drive efficiency at every level – Due to the tightly integrated nature of Sage X3 you will be able to drive efficiency at every level – sales, cash flow, purchasing, manufacturing and management. Ultimately leading to quicker quote to cash timeframes, better cash flow and improved customer service. Driving efficiency comes from multiple technological improvements in ERP solutions – think about AP automation (scanning AP invoices and automatically producing approval workflow), expense management automation, automated forecast planning, purchase order recommendations from MRP (Material Requirements Planning) and mobility (access to relevant information where and when you want it).
Balance limited resources – All manufacturing companies struggle with balancing limited resources to make the best decisions. In the new age of technology, data is being received from thousands of different platforms – social media, e-commerce, EDI, ERP, planning systems, customer portals, news feeds and more. A modern ERP solution like Sage X3 captures this data, make sense of the data and presents the data in a format that allows you, the user, to use that data to make informed decisions about resource allocation – labour, machinery and raw materials. This might include Business Intelligence (BI) reporting from Sage X3 (for example SDMA) to help you understand your business data which in turn will help you make the correct decisions in balancing these limited resources.

Conclusion

Most companies considering an ERP solution like Sage X3 because they have outgrown their current software.

Most often the pain that is being felt with the existing systems is associated with operational struggles:

Islands of information are preventing the business from getting a single, consolidated view of operations;
Inability to correctly forecast, plan and schedule manufacturing;
Hard to access meaningful data, when and where we need it.

Sage X3 brings operational efficiencies to businesses looking to progress from a basic system to a sophisticated manufacturing software.

This is because Sage X3’s capabilities associated with planning, scheduling and operational control give you the ability to manage your entire manufacturing progress, from quote to cash, from a single system and in real-time.

Want to learn more about Sage X3? Call us on 1300 045 046 or email [email protected].