Introduction: What is SAP ERP for Manufacturing and How Can it Help?
SAP ERP for manufacturing can handle all the processes ranging from payroll to procurement and inventory to shipment. Its robust functionality and seamless performance across all the departments make it a top choice for many manufacturers. Whether you want to streamline processes or manage supply chain operations effectively, SAP ERP solutions remain useful for your company.
In this article, we are going to discuss the role and benefits of SAP ERP for the manufacturing sector. We will also highlight some of the top features that set it apart from other ERP solutions.
Let’s start with the top five benefits of SAP ERP for the manufacturing sector.
SAP ERP for Manufacturing – 5 Benefits You Need to Know About
Manufacturing companies require more visibility and accurate insights to achieve more control over planning and order processing. Here, SAP ERP for manufacturing lends a helping hand. It gives improved data integration capabilities and flexible functionality across all the departments of the manufacturing unit.
Here are the top five benefits of SAP for the manufacturing industry.
Material Requirements Planning (MRP) compares the demand for materials and finished products with the on-hand goods or purchase orders. This automated process can satisfy the demands of any product satisfactorily. SAP ERP for manufacturing can improve MRP by keeping the purchase, procurement, and production departments on the same page.
Lot traceability is a measurement of a group of goods manufactured using the same materials and manufacturing cycle. It enables manufacturers to track their finished products along the distribution chain and thereby increasing visibility. SAP Business One manufacturing can improve lot traceability by making sure that stock levels are favorable. It also optimizes inventory and performs accurate expiration data analysis.
A supply chain plays a crucial role in sustaining and thriving the manufacturing industry. In today’s competitive scenario, enhanced supply chain visibility and inventory visibility can ensure success. SAP Business One collects all the relevant and required data to provide manufacturers with actionable insights related to supply chain and inventory levels.
Gaining access to raw materials and getting real-time data about stock levels are essential for any industry sector, and the manufacturing industry is no exception! SAP ERP can effectively improve inventory management and provide better control over warehouse operations. SAP Business One can track and document stock levels across different warehouses effectively.
SAP ERP for the manufacturing sector is designed to streamline the sales process by linking all the orders to inventory. Your staff can place the order straight away based on this interlinking. This benefit facilitates your employees to get rid of checking other systems or sections for monitoring stock levels. It also reduces the risk of repeat orders or over-ordering.
Apart from these benefits, SAP ERP for the manufacturing sector contributes to reducing waste by enabling the staff to allocate the materials properly. SAP Business One has accurate production planning, scheduling, and other useful features that can help you enhance customer satisfaction.
Manufacturers can get real-time reports on interactive dashboards. Altogether, you can gain an advantage of more productivity and efficiency over the period.
Top Features of SAP ERP for Manufacturing & Their Benefits
SAP Business One for manufacturing ERP has some important features in the form of modules. These features are beneficial for the manufacturing sector in many ways. Let’s have a look at some of these major SAP Business One features.
Project and Production Management– It includes manufacturing and logistics information, cross-functional reporting, and accounting functionality. This feature is useful for creating real-time reports across various departments of the industry and tracking information.
Supply Chain and Sales Management– It consists of sales-related functionality, order management,etc. This feature connects the sales department with the supply chain and assists the manufacturing industry to increase the supply chain visibility.
Advanced Planning and Scheduling (APS)– This unique feature enables manufacturers to view and manage material availability, bills, transaction periods, batch groups, and other inventory-related information with capacity allocations.
Warehouse Management– Manufacturing industries can manage multiple warehouses at once with the help of this feature. It establishes instant communication and reporting across all warehouses.
Such features and benefits set SAP ERP apart from all available manufacturing ERP systems.
How Does SAP ERP Help Manage the Production Environment?
Manufacturing ERPs can handle numerous processes across various departments. It can streamline the production cycle and maintain stock levels with continuous, accurate monitoring. SAP ERP acts as a centralized resource for data analysis, planning, and controlling different departments. It also increases the visibility of the supply chain for ensuring the continuous supply of materials to manage the production process.
SAP Business One manufacturing ERP has other features like scheduling and work order management for managing the maintenance process. It enables manufacturers to get rid of unwanted downtime and maintain productivity.
Talking about quality, ERP software can effectively track the performance of equipment and the overall production process. Manufacturers can also get real-time insights to make meaningful decisions with the help of SAP ERP solutions.
The equipment performance tracking feature helps the manufacturing company to remain proactive in scheduling maintenance. Finally, the ordering and purchasing modules can keep various departments on the same page for seamless production processes.
Top use cases of SAP ERP For Manufacturing
Manufacturing ERP systems enhance the value of the enterprise in many ways. Here we mention four use cases that show how a manufacturing company can leverage the benefit of implementing SAP ERP.
Migrating from Legacy to Advanced System
A mid-sized manufacturer was using an old DOS-based system that could not create work orders or manage inventory using barcodes. Also, the manufacturer faced difficulties in tracking the supply chain and handling job costing.
A SAP Business One manufacturing ERP system has addressed all these issues effectively. Now, the manufacturer can track the inventory, manage the supply chain, and even monitor the quality tests without human intervention. The entire production and sales process is now on a single database and various teams can coordinate as and when necessary.
Integrating Inventory into Production
A manufacturer of medical devices was using manual methods and some software to handle various operations. However, it was challenging for the manufacturer to get the real-time reports to send to the FDA using the software.
An integrated SAP Business One ERP system meets this challenge while eliminating redundancy and increasing efficiency. The manufacturer can get the required reports for FDA as and when necessary. Inventory management becomes more convenient after integrating it into the production process.
Streamlining Workflow with Compliance
An electronics manufacturer wanted to streamline the workflow but the software had no functionality for manufacturing processes. It was also not possible to link all the departments in the legacy software.
A robust SAP ERP manufacturing system keeps all the departments in a single place and streamlines the workflow. It also offers supply chain management functionality to manage the production and inventory processes effectively.
Enabling Project Customization with Automation
A high-end upholstery manufacturer was using spreadsheets and a legacy ERP system. However, this method brought a challenge in the form of customizing the project. It was not possible to plan effectively for changing the project.
Production and procurement modules in the SAP Business One manufacturing solution assist the manufacturer to customize the project. Managers can track productivity and make necessary changes anytime using the SAP B1. The manufacturer gets a high visibility on the entire process.
These unique yet viable use cases of SAP for the manufacturing industry can open the doors of new opportunities and business expansion.
Manufacturing ERP systems can be a game-changer for the industry. Increased traceability and visibility with better customer services are some of the key benefits of SAP for the manufacturing industry.
Here we have covered the major features and use cases of the SAP ERP. You can consult a reputed SAP Partner to know more about the role of the SAP ERP solution in the manufacturing sector.
Silver Touch Technologies Canada is your preferred SAP Business One partner. We assist SMBs to get the most suitable ERP solution with desired functionality. If you are looking for a robust and single-integrated ERP solution for streamlining operations, SAP Business One can be your choice! Drop us a line with your requirements or queries at firstname.lastname@example.org and one of our expert business consultants will help you make an informed decision.