Leveraging ERP Systems for End-to-End Integration in Manufacturing
By Simon Ford – Regional Director & Client Success Lead at SMC
Enterprise Resource Planning (ERP) systems have revolutionised the way businesses operate, breaking down silos and enabling seamless integration across various departments. For manufacturers, this means a unified system that connects procurement, production, sales, and customer service, creating a streamlined, efficient operation.
The Power of ERP Systems
ERP systems provide a single source of truth for businesses, consolidating data from various departments into one accessible platform. This allows for real-time visibility into operations, enabling quick decision-making and improved efficiency.
For example, when a sales order is placed, the ERP system can:
- Automatically drive fulfillment
- Trigger procurement for necessary materials
- Schedule production
- Update inventory levels.
This eliminates manual processes, reduces errors, and ensures a smooth flow of information.
Case Study: Successful Business Integration
One of our clients, a leading heavy vehicle manufacturer, provides a compelling example of successful business integration through an ERP system.
Facing challenges with inventory management and production scheduling, our client implemented an ERP system to streamline their operations. The system provided real-time visibility into their inventory, reducing overstock situations, and ensuring optimal use of resources. This led to a lower working capital ratio and supported their expansion plans.
Moreover, the ERP system enabled automatic scheduling of production based on sales orders, improving efficiency, and reducing lead times – leading to improved customer satisfaction scores and providing more leverage to our client when pricing non-standard solutions.
Despite initial resistance to change, the company overcame these challenges through comprehensive implementation, training and change management strategies provided by SMC.
Overcoming Challenges
Implementing an ERP system is not without its challenges. Resistance to change, data migration issues, and high upfront costs are common obstacles. However, these can be overcome with careful planning, stakeholder engagement, and phased implementation.
Client Case Study
In the case of another one of our clients, a specialist electronics manufacturer, initial resistance to the ERP system was overcome by demonstrating the tangible benefits it could bring to each department.
Team leads from each department participated in reviewing how the business worked, how the new ways of working could look, and what that meant for ERP system requirements.
They also participated in assessing and selecting the preferred solution, building a high level of engagement for the project.
Once the vendor was selected and planning completed, the implementation phase included extensive sessions to familiarise employees with the system, and a dedicated team was set up to handle process change and data migration, ensuring a smooth transition with carefully planned and minimal production down-time.
What our Clients Say
“SMC have provided absolutely wonderful support. We would not have achieved the level of outcomes we have without your help. You’ve been a pleasure to work with and I am very grateful for your contribution to our project…” Client CFO
How Can We Help?
ERP systems offer immense potential for manufacturers to achieve end-to-end integration across departments. While the journey may be challenging, the benefits – improved efficiency, real-time visibility, and streamlined operations – make it a worthwhile investment.
As demonstrated by our clients, with the right strategies and commitment, you can also successfully leverage ERP systems to drive business integration and growth.
If you would like to discuss how SMC and one of our ERP Consultants could assist you, please book a free discovery call with one of our experts.