Importance of ERP System for Distributors and Manufacturers
Enterprise resource planning (ERP) software has become an inevitable part of distribution and manufacturing businesses. In fact, 47% of ERP users are a part of the manufacturing sector.

That’s because a robust ERP like ePROMIS provides you with a more effective way to organize and manage your day-to-day business activities, enabling you to boost productivity and minimize errors.

The latest ERP system consists of all the features of an MRP (Manufacturing Resources Planning) and integrates them with other critical business functions, such as:

1. Materials and inventory
2. Production and scheduling
3. Accounting and finance
4. Customer relationship management
4. Operations and sales
6. Fixed asset monitoring

In a nutshell, ERP brings all these departments into one place for systemized business management.

Essential ERP Components for Distributors and Manufacturers

All the features of ERP are crucial for distributors and manufacturers, but here are some of them that can provide you maximum value.

1: Manufacturing or Production Module

It allows companies to manage product planning, material sourcing, production control, quality evaluation, and manufacturing forecasting. Moreover, the latest ERP systems come with integrated support for make-to-order, make-to-stock, just-in-time manufacturing, and lean operations. This helps manufacturers streamline their operations through automated planning, scheduling, and fulfillment. This, in turn, increases manufacturing speed and accuracy.

2: Supply Chain Management

Managing the supply chain has never been easier. However, with ERP, you can streamline your product flows from production to customers and vice versa (for returns). ERP also improves order fulfillment time by reminding you about the order due date. This streamlined supply chain facilitates innovations, helps decrease operational costs and provides you with a competitive edge.

3: Inventory and Material Management

Know when it’s time to place orders and record product movements automatically and effectively with a robust ERP system like ePROMIS. These insights help manufacturers and distributors optimize inventory, cut down overhead costs, minimize wastage, and reduce delivery costs.

Key Benefits of ERP System for Distributors and Manufacturers

ERP caters to the needs of highly dynamic and competitive distribution and manufacturing businesses in many ways. Here are some major advantages of the ERP system for your company:

1: Automate Repetitive Processes

A complete ERP solution like ePROMIS drives automation to your manufacturing and distribution business. For instance, you can automatically create invoices, update customer details, and respond to common customer queries. You can even automate order placement when the stock is low, update customers about their order status (packed, shipped, etc.), and update the finance department about raw materials requirements. This not only speeds up the production process but also minimizes errors and improves profits.

2: Helps Prepare for Changing Customer Demands

With manual data tracking, it gets incredibly challenging to estimate, plan, adjust, and respond to changing customer demands. However, with an ERP system, you can access real-time data and make better decisions quickly. When integrated with CRM, an ERP system helps understand customer satisfaction levels, what they’re saying about your products, how often they reach your support team and more. Combined with their financial interactions with your business, you can better understand the changing customer demands. This will help you optimize your products and marketing strategies for better results.

3: Enhance Customer Satisfaction

Better control over inventory and accurate product planning enables businesses to streamline process scheduling, coordinate distribution channels, and improve on-time deliveries. For example, if everyone in your organization has access to critical information, such as shipping instructions, bill of materials, and production deadlines, they can reduce the time it takes for products to reach the consumers. Faster delivery definitely has a positive impact on customer satisfaction levels. And since ERP provides you with real-time inventory data, you can better plan your deliveries and manufacturing process to meet customers’ demands.

4: Improve Productivity

Businesses that rely entirely on their workforce usually have a higher labor expenditure as opposed to businesses that leverage automation. An effective ERP system can aid companies in automating tedious processes so that less time and labor are required to finish the same amount of work. Since this gives your employees additional time, they can use it to do more value-added tasks. This helps improve productivity and reduce labor costs.

5: Enhances Reporting

ERPs allow you to generate reports in a single click with ready-to-use formats or pre-defined metrics. This can help you analyze different aspects of the business and better understand customers’ expectations. Depending on which aspect of the business you want to analyze, you can create custom reports and optimize your strategies accordingly. For example, if you want to analyze inventory levels, you can create an inventory report to better determine your raw material requirements and place orders accordingly. Moreover, the business intelligence feature of ERPs helps create actionable reports, such as current business situation, forecasting, and more, thereby reducing the decision-making time.

6: Adapt to Regulatory and Legal Changes

Manufacturers and distributors already have a lot on their plates. The last thing you would want is legal issues due to non-compliance. However, with ERP, you won’t have to worry about it. The latest ERP systems like ePROMIS come with built-in compliance features to help you comply with different legal requirements as per your country of operation. One of the prominent examples of compliance that ERPs help comply with is GDPR (General Data Protection Regulation) that focuses on data protection and privacy in the European Area and European Economic Area. Additionally, you can reach out to your ERP vendor to help you implement the necessary changes that are required to comply with changing regulatory frameworks.

7: Eliminates Wastage

Production or procurement of products in excess often leads to wastage and losses. Besides, intricate workflows usually result in over-processing and unnecessary delays in production and distribution. The modern ERP system helps manufacturers avoid the overproduction of goods and eliminates wastage. In fact, ERP software can be used to ensure that your production/procurement is in accordance with consumer goals and your business KPIs. Plus, advanced forecasting can further help anticipate customers’ needs, enabling you to increase/decrease your production levels. This, in turn, ensures you don’t miss on any customers and that too without wasting produced goods.

Conclusion

ERP systems help manufacturers and distributors streamline their workflows, enhance productivity, minimize errors, and improve customer satisfaction. However, to get the maximum benefits from an ERP system, you must partner with an experienced provider like ePROMIS to get a tailored solution for your business. Talk to one of our experts today to better understand how we can help you manage your business effortlessly!
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