SAP ERP For Manufacturing Industry
Technology is advancing rapidly, and forward-thinking manufacturers are embracing the digital revolution. SAP ERP For Manufacturing Industry They are adopting new technologies in order to stay relevant, innovative and competitive. One of these important technologies is the use of SAP erps for the manufacturing industry.
All manufacturers strive to optimize their operational processes by reducing costs, improving efficiency and increasing profits. Advancements in technology have aided many manufacturers in achieving these goals.
Failure to adopt new technologies in your manufacturing business will make it significantly harder for it to thrive and grow in today’s fast-paced, digital business environment.
SAP ERP
SAP was founded in 1972 by five former IBM engineers, and is one of the largest global vendors of Enterprise Resource Planning (ERP) software.
It offers industry-specific ERP solutions that support business processes across procurement, manufacturing, service, sales, finance and human resources.
SAP ERP solutions support the following manufacturing types:
- Discrete Manufacturing: A manufacturing process whereby finished products are distinct items capable of being easily counted, touched or seen. Discrete manufacturing involves parts like nuts and bolts, brackets, wires and individual products. Examples of products made by discrete manufacturing include furniture, toys and smartphones.
- Process Manufacturing: A process whereby a product is created by using a formula or recipe to refine the raw ingredients. The final product cannot be broken down into its basic components. Examples of products made by process manufacturing include pharmaceuticals, paint, food and beverages.
- Repetitive Manufacturing: In this process, goods are manufactured by following the same production sequences. This type of manufacturing process often goes hand-in-hand with automated assembly processes. Examples of products made by repetitive manufacturing include small electronic goods and car components.
SAP ERP Integrations
SAP ERP solutions integrate with the following systems:
- Salesforce
- Microsoft Dynamics
- Zoho CRM
- Oracle
- Sage
- NetSuite
SAP ERP’s for the Manufacturing Industry
SAP Business One
Designed for small and mid-size businesses, SAP Business One is an ERP solution that automates and streamlines key business functions in financials, operations and human resources. With SAP Business One, you will gain greater insight into your business, streamline key processes and make strategic decisions based on real-time information. SAP Business One can be deployed on cloud or on-premise and is integrated with business intelligence and the SAP HANA platform.
Key Features of SAP Business One
- Financial management
- Sales and customer management
- Purchasing and inventory control
- Manufacturing management
- Inventory management
- Industry-specific manufacturing capabilities
Manufacturing sectors involved in the production of new products from seized raw materials are in need of software to leverage theirs in and out operations. SAP software solution adopted by manufacturing industries automates the complete process to attain successful production. It provides a single scalable approach to attain a profitable position.
Varied functionalities like production process, inventory management, financial module, the requirement of raw materials etc are covered under integrated platform scrutinizing production process to give out effective outcomes. An automated system gives a complete solution in order to avail fast growth.
How Does ERP Help in Manufacturing?
ERP helps in manufacturing to automate the business processes from sales order to finished goods. It manages inventory, controls production, provides orders and demand, and gives end-to-end visibility into the production process.
At Seidor, we have over 7000 customers running SAP solutions worldwide. When talking with executive managers from manufacturing companies, we consistently hear the same business needs they expect from manufacturing ERP software:
Manage Inventory and Bills of Material for Manufacturing
- Handle all types of bills of materials, and multi-level bills of materials
- Incorporate landed costs for material coming from overseas
- Record, track and produce serial and/or batch numbers for incoming and outgoing products
- Manage multiple units of measure
- Conduct materials planning, purchasing and inventory forecasting projections within MRP
Manage the Production Process
- Manage production orders electronically
- Generate either an assembly or disassembly work order
- Record the usage of raw materials, resources and labor
- Generate finished goods
As a manufacturer grows, the business expands and drives additional needs or requirements. To speed warehouse operations they look for wireless, handheld devices that are integrated into inventory systems for use in the warehouse. To facilitate vendor orders and payments, they look for integration with EDI tools. To expedite outbound shipping they look for integration with major shipping service providers like UPS, FedEx and USPS. We have also seen requirements for advanced production scheduling, shop floor control, batch/lot management, WIP management and job costing.
The process to help you compare SAP ERP manufacturing solutions starts with understanding your place in the market now, and your vision for the future. We ask questions to understand your business size, your manufacturing process, your place within your industry, and where you want your business to be. Then we match your requirements, functions, users and investment goals to the SAP solution set to select an appropriate platform.
We apply your business principles with those we have encountered across our customer base. Seidor has experience with providing ERP solutions within a number of manufacturing verticals, including automotive, chemicals, electronics, fabricated metals, food, furniture, lighting, machinery and equipment, and consumer goods just to name a few.
- SAP is considered to be a soulful software package covering all business entities within a single software package.
- Data about the utilization of resources are recorded inducing to analyze the demand for raw materials with ease.
- Accounts payable and receivable are maintained effortlessly by a valid financial management system since it gathers reports from every module.
- Daily production details are recorded enabling effective planning on a diversified process inconsistent manner.
- Efficient maintenance of inventories tracks the supply chain of furnished products allowing to generate demand-based production.
- The integrated solution promotes delivering quality products to customers. Pre-checking functionality exists before a product is being delivered to an ordered person.
- Documents on overall processing are retained under a separate cloud database. The information available can be viewed by concerned organizational authorities whenever in need of it.
- Customer relationship greatly enhanced through the SAP software package. Queries and ordering of consumers are responded quickly by sales representatives provoke to engage in long term business deals.
- SAP software takes care of end to end processing in an automated approach avoiding disruptions from production to sales of finished products.
- It reduces time and amount spent in doing the manufacturing of varied products by skilful planning since it gets linked with every module.
- Software system supports for efficient implementation of resources and labour based on which firm process done in the regulatory process.
- Feedback collected from customers helps manufacturers to upgrade areas of improvement. By doing so, the meeting of target people gets enriched.
- Records on entire functionalities maintained in a secured mechanism do not allow for third-party intruders to access information.