To remain competitive in the modern era of business today, streamlining processes and minimizing costs is crucial. One of the most effective tools to achieve this is Enterprise Resource Planning (ERP) systems. This paper explores how ERP can be executed across the primary business functions such as manufacturing and accounting. These will contribute to reduced operational spending and the time allocated towards undertaking different tasks.

Transforming Manufacturing Through ERP

ERP in Manufacturing and Accounting: Boosting Production and Quality Control

Efficient Planning:

The absence of an ERP system means that business planning can take up several hours. This can now be streamlined using ERP, reducing the time taken to draft a plan to just 15 minutes.

Bill of Material Preparation Simplified:

The manual preparation of a Bill of Material can sometimes be extremely tedious. ERP eliminates this by incorporating centralization of raw material particulars and linking all the stakeholders on an online forum. This streamlines preparation time from weeks to just 15 minutes.

Issue From Store:

The ERP system streamlines issuance of raw materials from the store as well. The task requires only 5 hours now.

Optimized Production:

An ERP system improves production process workflows and decreases the number of steps in the manufacturing process. Resulting in a decrease in inventory expenditure and greater control over human error. All this translates to improvement in machine speed, enhanced efficiency and a drop in total workforce spending.

Quality Control (QC):

ERP has improved the additional quality control components. Automated quality scans coupled with bar coding result in a much faster assessment of quality. QC times have been brought down by as much as 50%. These changes encapsulated together guarantee effective and efficient evaluations.

Efficient Packing:

The ERP system equals or exceeds expectations in regards to savings and efficiency. It is estimated the ERP system will reduce the time and costs incurred during packing by nearly half.

Faster Inventory Movement:

The same benefits can be seen through more efficient inventory movement. ERP decreases dispatch time by as much as 80%. This is now achievable due to more advanced online tracking and data manipulation.

Quick Dispatching:

The ERP programs can boost the discharge speed by sixty to eighty percent. This in turn leads to rapid customer order fulfillment which in the long run will drive customer satisfaction and retention.

ERP Streamlining Accounting

Purchase Order (PO) generation has become fast. Business operations are more efficient now. ERP has brought the time taken to create purchase orders down to fifteen minutes which is an immense improvement from the previous two days..

Effective Materials Receipt:

The efficiency gained from using the ERP Systems extends further by promoting a centralized reception area. This allows materials to be entered into the accounts within 15 mins. This eliminates many errors that may arise if the change was done slowly.

Available payment processing systems can change now with ERP. Payments can now be made from a central hub. Approved payments can be processed anywhere while still offering order tracking to limit bottlenecks and enhance cash flow.

Faster Billing and Payments Using ERP in Manufacturing and Accounting

Billing Faster:

When companies create bills manually, they run the risk of incurring errors, which leads to delays. Using ERP systems enables one to issue accurate and timely invoices, which increases the speed of issuing invoices by 30-50%.

Speedier Delivery Confirmation:

ERP can help businesses complete their customer deliveries more efficiently. The system can confirm the deliveries in a fraction of the time when compared with manual processes, cutting the time needed for confirmation by approximately 70%.

Faster Receipt of Payment:

The adoption of ERP speed up the speed of receiving payments by 30%. This results in increased cash flow along with fewer delays in the accounting department.

Effective Account Payables:

ERP systems are able to access accounts payable from any location. This makes it easier and faster for businesses to monitor payments, enabling a wise allocation of time and money.

Improved Receivables Management:

By adopting ERP, companies save up to 90% on their processing times. This leads to faster collection periods and improved cash flow.

ERP in Manufacturing and Accounting

Manufacturing:

• BOM generation can be accelerated by employing ERP systems in an organization.
• Barcoding technologies can help streamline the issue from store processes.
• Production processes can be improved based on real time information with ERP.
• Incorporating quality assurance tests inline with the manufacturing process will help reduce QC cycle time.
• By implementing barcoding systems, packaging and lot traceability become more efficient.

Accounting:

• Quickly issue purchase orders through the ERP system.
• Handle payments and receipts through a single payment interface connected to the ERP system.
• Dramatically reduce the time and errors spent during invoice generation through the ERP system.
• Monitor your accounts’ payables and receivables in real time using the ERP application.

Conclusion :  ERP in Manufacturing and Accounting

ERP systems have massive utility in manufacturing industry and accounts management as it offers timesaving features and improved financials. These systems can help businesses increase profits and improve their operational efficiencies and effectiveness. An ERP system involves better planning, increased level of production, prompt payment, and improvement of accounting works within the organization. With the implementation of this plan, they are likely to achieve more efficiency and smoother processes with higher returns on investment.

Categories: Enterprise Resource Planning (ERP)