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8 Main Benefits of ERP for the Manufacturing & Distribution Industry

With consumer demands and expectations constantly changing, the manufacturing and distribution industry has become highly competitive, racing to keep up with the new trends in the market.

In order to be able to adapt to a constantly changing environment and achieve their goals, manufacturing companies need to have in place highly efficient and streamlined processes and systems.

ERP systems do exactly that; they optimise the way that manufacturing companies work, increasing efficiency in day-to-day processes and driving cost savings.
What is ERP?
However, what does ERP mean? ERP stands for Enterprise Resource Planning.

At its most basic level, ERP integrates all core business processes into one logical system.

Enterprise Resource Planning is used to manage core business processes, such as Human Resources (HR), Finance, Supply Chain, Procurement, Manufacturing and Service Management.

As a business management software (a suite of integrated applications), ERP systems facilitate the collection, storage, interpretation and organisation of data.

Undoubtedly, ERP systems have been proven to increase efficiency and productivity in a variety of industries; manufacturing and distribution being one of those industries to be transformed by the automation of long, repetitive accounting and management processes.
The Benefits of ERP for Manufacturing and Distribution Industry
What are the main benefits of ERP software for the Manufacturing & Distribution industry?
  • Process Automation
  • Inventory and Supply Chain Management
  • Quality Management
  • Reduced Operating Costs
  • Quick Response to Market Conditions
  • Employee Flexible Working
  • Data Security
  • Planning, Budgeting & Forecasting
1. Process Automation
What makes this benefit important for the manufacturing industry is the automation of redundant tasks; this is what enables manufacturing processes to scale. Overall, process automation amplifies the productivity of tasks, increases the speed in which they are executed and diminishes the possibility of any potential mistakes.
2. Inventory and Supply Chain Management
An ERP system facilitates the management of the inventory for manufacturing companies and minimising the working capital; as a result the company’s revenue targets become ever-more achievable. The supply chain can be monitored and reported on in a simplified way for meeting industry and legal obligations.
3. Quality Management
It is important for every business as well as those in the manufacturing industry, to comply with the international quality standards. A number of ERP systems offer features which cannot only improve but establish a quality management process. This process will also maintain documentation and store documentation in a structured way, supporting audits and management information.
4. Reduced Costs
A suitable ERP system can ultimately reduce business’s costs post-implementation, which is why so many companies opt for either fully integrated ERP solutions or best of breed. Operational costs are key to every business and although seemingly expensive on implementation, the addition of an ERP system to a manufacturing company in particular, can quicky deliver a return on investment a short time after the system(s) are working effectively for the business. This is due to the automation of key processes, enabling staff to focus on more value-add activities and increasing employees’ productivity due to them spending less time on administrative tasks.
5. Quick Response to Market Conditions
An additional benefit of ERP systems for the Manufacturing industry is the significantly quick response to the market conditions. This is because it can provide real time data analysis, something that facilitates planning, helps with business forecasting and has the ability to adjust to market requirements.
6. Employee Flexible Working
The COVID-19 pandemic drastically changed the way businesses operate. The ability to work remotely has been a key driver for many business owners and their employees and ERP systems incorporate technology to enable and facilitate these changes to ways of working by offering access to business data from anywhere at any time.
7. Data Security 
A properly implemented ERP system helps to ensure data security. Keeping data safe and allowing access to limited users or those who need to know, is more than important than ever. ERP systems help with establishing a secure infrastructure and compliance with GDPR regulation. Storing data in a secure place plays a crucial role for companies which aim to grow and meet the demands of their customers and onward supply chain.
8. Planning, Budgeting & Forecasting
ERP solutions allow for future business planning and accurate budgeting for decision makers, supporting the development of business strategies. What may take a decision maker days to pull together from several spreadsheets and isolated systems, can take a matter of minutes and clicks in an ERP system to access management information, provided that the data inputted into the system is accurate and reliable.
How do you choose the right solution for your business?
At MOORE Insight, we have 30 years of expertise in supporting organisations with their requirements to transform these into suitable ERP system options.

Given our deep knowledge of the systems market and knowledge of what’s available, we are able to support with every step of your ERP business planning and full implementation of the solutions that can be configured and designed with your organisations in mind.

Get in touch with us, to find out how we can support you to achieve your goals.