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The manufacturing industry is constantly evolving and modernizing, presenting new challenges for small and midsize manufacturers. Supply chains have become more global, more complex, and now with the pandemic, more restrictive. Customer demands are pushing for greater convenience, better quality, and lower costs. Employees expect modern systems, mobility, flexibility, and a connected work environment.
The current state of the industry has shown how quickly things change with materials in short supply and long wait times for deliveries. To meet these modern-day challenges and to help them grow, manufacturers are digitally transforming utilizing technologies such as the Internet of Things (IoT), Big Data, Cloud Computing, Robotic Process Automation (RPA), Machine Learning, Additive Manufacturing, and Augmented Reality.
Simply speaking, digital transformation is using modern, digital technology across an organization to improve operations, processes, and the value delivered to customers.
The world is becoming increasingly digital, so companies need to also become digital. Having a digital backbone and core digital business systems allows companies to continually evolve, adapt to their changing business needs and processes, and meet the needs of customers and employees. Employees want systems that allow them to work easily and efficiently. Customers want to have a seamless experience and interact with companies in real-time – place online orders, check their order status, etc. So organizations must invest in innovative tools that will meet both employees’ and consumers’ expectations. If they don’t, they’ll simply go to another company that does. It is about survival and competition.
Innovation leads to more innovation. As new technology helps to improve the internal workings of a business, such improvements lead to innovation across the company’s products and services, and perhaps even to continuous improvement mindset and culture. Then, as consumers get used to the latest improvements, they anticipate the next innovative change. Businesses need to be able to continually evolve and they need the technology that will help them drive change.
An ERP system is the backbone and central business system of a business. When companies implement a modern ERP system that becomes their digital backbone. Having a digital backbone that supports adaptability, agility, and innovation allows companies to grow, evolve to be more competitive in the marketplace, and better meet customers’ current and future needs – more easily and effectively.
For manufacturers, since they have unique operational processes, not only require a modern ERP system that supports their digital transformation, but also an ERP system that is suited to their particular manufacturing processes. They are best off with a solution that can automate their manufacturing processes and provide the latest technology that can utilize all of the innovation that comes along with Industry 4.0 such as IoT, machine learning, robotics, blockchain, and more. An industry-specific system has all of the modules to support manufacturing activities and it can help manufacturers increase productivity and run lean.
When you incorporate a modern industry-specific ERP system into your manufacturing business you’ll be able to take advantage of the latest technologies and increase your ability to compete. Below is a breakdown of the benefits that can be achieved by transforming your manufacturing business digitally.
With all of the advantages of digital transformation, you might think it would be easy to get a business to implement a modern ERP system. Of course, it isn’t that simple. It’s a matter of overcoming some significant hurdles first. Let’s examine some of the challenges.
Transforming your manufacturing business digitally is not easy, but things worth doing are not usually easy. The need for modern digital technology is only going to increase and so are customer demands. Here are some steps to help you get your manufacturing business ready for a digital transformation with an ERP implementation.
1. Create a digital strategy– Take a hard look at your business processes and what you need to change to create a stronger and more effective operation. You’ll need to get your executive team on board and have them understand how shifting workflow to utilize the technology will drive change. This step is the most important as it is what all the other steps will build from so take a hard look at how your business operates, what changes are needed, how the technology can make those changes, and get everyone on the same page.
2. Carefully plan out deployment– Implementing software is not simply flicking a switch. There is a lot involved, so you need to determine what is the best way to incorporate it without disrupting the entire company. A phased approach can help by only incorporating one module at a time so you can get that portion fully working and understood before moving on to the next module.
If there are multiple locations, it may make sense to implement at one location at a time. That way you can get the first site up and running which will help you learn what to avoid or what works best before you move on to the next location.
3. Update processes– This is your chance to rework processes to have them streamlined and fully utilize all of the technology that is available to you. It doesn’t make sense to just keep doing things the same way when the whole point of upgrading to new technology is to innovate.
You should standardize procedures and automate as many functions as possible. Figure out how to best use the tools at your disposal to get the biggest and most effective transformation for your organization.
4. Organize your data– Garbage in is garbage out. When implementing your ERP you want to ensure that you have data that is accurate. It’s important to have a plan in place to clean, manage, store, and archive different types of information.
Your ERP system will keep all of the data in a central location so you have a single version of the truth. However, if you have information fed into the system that isn’t correct you won’t receive accurate analytics. Take the time needed to get your data clean, organized, and consistent so you can achieve true insights.
5. Get customer-centric– Providing a positive customer experience every time should be at the core of your business strategy. With a modern ERP system, you can do so many things to improve the customer experience. Integrating departments and uniting customer data, will make it easier to better serve customers.
Take a look at all of the processes that affect customers and determine how you can utilize the technology to improve those transactions. Ensure that all of your operations are designed with the customer in mind to provide the greatest service possible.
6. Transform your staff– To fully utilize the ERP system with all of its new technology, you need to have your staff fully trained on how to use it. It’s no secret that people are resistant to change so you need to help your employees understand how this digital transformation will help them, the organization, and your customers.
Ensure they are fully acclimated with the software so they can dig in with full confidence and utilize all of its functionality. Everybody learns differently so you may need to use various formats for training. The importance of this step should not be overlooked.
Manufacturing firms are constantly getting pushed to produce faster, better, and to provide more and better services to customers. They need to stay on top of data to foresee trends, risks, and opportunities. They also need to do everything they can to keep good employees and attract new ones.
Having the right technology is essential to satisfy all of the above-mentioned requirements. A modern manufacturing ERP system allows you to utilize the advancements of Industry 4.0, improve processes, gain insight, lower costs, improve the customer experience, and achieve greater success.
The post Digital Transformation with Manufacturing ERP: Why Manufacturers Need to Modernize Now appeared first on ERP for Manufacturers | Manufacturing Software | OptiProERP.
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