Your manufacturing operation is doing well. The company has loyal customers who order regularly, and your sales team is finding new ones regularly. As a result, orders are up, and your operation is expanding. This is excellent news but growing a business can mean new challenges and reasons to celebrate. As the operation gets more extensive, you’ll need to consider replacing the accounting software you’ve become comfortable with. You’ll want to consider upgrading to an ERP manufacturing system.

How do you know if you need to replace accounting software or if it needs an upgrade? Consider the following:

• You are still using Excel spreadsheets, and your company relies on several manual processes
• Employees spend a lot of time working on menial accounting tasks
• Certain facets of manufacturing are unavailable to you and your team with your current systems, such as work order planning, scheduling, costing, reporting, barcode inventory, COGS, etc.
• There is no visibility into your company's finances
• Inventory management is a problem; you either need more materials or overstock your supplies, wasting cash.
• Invoicing customers takes too long, which slows your cash flow.

Replace Your Accounting Software with an ERP Manufacturing System 

If even a few of these signs seem familiar, then it’s time to seriously consider replacing your accounting software with an Enterprise Resource Planning (ERP) system. Once implemented, an ERP manufacturing system integrates and manages many key business processes in real-time. Productivity increases, and the number of redundancies drops. Upgrading to an ERP gives your manufacturing business several benefits. 

Benefits of ERP Systems to Manufacturers 

1. Visibility of Entire Operation

An ERP gives you visibility into the entire operation. A thorough understanding of your business situation can help you make better decisions.

2. Efficient Data Automation

With an ERP, manual accounting and data entry are no longer required. System information is updated in real-time and transferred throughout multiple layers of the operation. The human error factor in data entry is eliminated, saving time and money.

3. Standardized Company Processes

An ERP forces a business to operate in a standardized manner. The processes are clear and replicable, and all employees can be trained to follow them. When processes are standardized, they can be better optimized.

4. Optimize Entire Operation

ERP software is used by almost every business department. It can be used to find company inefficiencies and assist management in minimizing them.

5. Improved Control Over Supply Chain

An ERP lets you forecast demand, manage inventory levels, and improve procurement. The right raw materials or parts will arrive at the right time to fill orders. Once the supply chain is under control, the business will have improved cash flow and increased profits.

6. Makes Compliance Easier

Company data is secure and validated across your platform. An ERP has many built-in financial reports that can be generated automatically. These features can save you much time and hassle in meeting financial reporting requirements.

7. Scalability

As your business grows, operations will likely become more complex. You want to have the right software in place to support this growth.

An ERP will facilitate the expansion of your business by adding functionality—new processes, new customers, or new products, for example. It will also be flexible enough to adapt to your changing business needs. Software scales up better than people do.

Time to Implement an ERP System 

Planning appropriately is critical as you implement an ERP solution for your manufacturing business. Keep these guidelines in mind when replacing or upgrading your accounting software or system:

Company Budget: ERPs vary widely in price. Be clear on the costs associated with an ERP purchase. The most significant variable here is consulting costs.

Company Resources: Upgrading to an ERP is a major project. Appoint someone (or a group of people) to ensure the project runs smoothly.

Change Management: Don’t keep your employees in the dark about the changes. Talk to them before the ERP is implemented and address any questions or concerns they have.

In-House or Cloud Solution: Do your homework to determine whether you want an in-house ERP on your network or if a cloud architecture is a better solution.

Choose a Consultant: This is an important consideration. Ask plenty of questions to determine whether the consultant is the right choice for your company. Does the consultant have experience in your industry? What kind of service and support do they offer? This is crucial since you will need support after implementing the ERP. For this reason, a local company is often a better choice. Do not simply choose the one offering the cheapest price.

A thriving manufacturing operation is exciting. As it grows, it needs better software to support its growth. An ERP allows you to monitor multiple aspects of your business, including finances, easily. Needing an ERP is a sign of growth, which is a good thing in business.

Consult PositiveVision about ERPs for Manufacturers

PositiveVision has been serving the needs of manufacturing customers in Chicago for over three decades. PositiveVision experts will gladly guide you through your ERP decision-making to help you make an informed choice. Contact us today to speak to one of our product experts about a custom solution for your business. When you reach out, ask about our software training services for your team.

For more information, download this whitepaper: Has Your Manufacturing Business Outgrown Its Accounting Software?

Robert Baran

Robert Baran is the founder and President of PositiveVision. He has worked in a variety of positions including system analyst, computer consultant and programmer, project manager, and division manager.