Johannesburg, South Africa – March 18, 2019 – JP Van Loggerenberg, Chief Technical Officer at SYSPRO Corporate, a global provider of industry-built ERP software, speaks about turning Business Challenges into ERP success in 2019.
As the second decade of the 21st century rounds off, the world is a completely different place compared to what it was just a few years ago. Change is everywhere, happening at break-neck speed at times it seems, and adding complications to nearly every business process. This change brings about uncertainty in the economy, and on the financial challenges for organizations. Businesses need to find ways to future-proof themselves by constantly evolving to meet the changing needs of customers and partners.
Few industries are left untouched. Manufacturers, for example, have significant considerations when it comes to regulations, specialist materials and expert resources that impact their ability to deliver their projects on time and in full. Manufacturers must also keep up with changing regulations and procurement policies, that differ from region to region, to compete in the global supply chain.
Thankfully, there has also been an evolution in software, and more and more manufacturers are relying on enterprise resource planning (ERP) systems to ease the burden of these challenges. In this complicated new world, an effective ERP system offers structure and the ability to provide business executives with instant insights to make better data-driven decisions.
These informed decisions allow manufacturers to continue to get the best out of their workforce and factory investment.
Overcoming cost fluctuations
One of the biggest challenges for manufacturers, that has risen out of an unpredictable climate, is figuring out how to remain profitable with fluctuating raw materials costs and margins.
An ERP system solves this challenge by, firstly, giving businesses integrated visibility into accounting, distribution and manufacturing operations. Through this, they will be able to easily identify and track cost elements and target areas of waste for improvement.
Secondly, an ERP system allows users to automate labor-intensive and time-consuming processes, and thirdly, it enables an evaluation of detailed actual-versus-expected costs, as well as targets for cost savings and continuous improvement programs.
Today, as the world becomes more globalized, manufacturers are importing raw materials from various locations, both domestic and international, and this can become overwhelming and difficult to manage.
An ERP system offers several ways to aid the management of raw materials. A Blanket Purchase Order facility enables specified pricing for an agreed quantity of product. Tools such as Requirements Planning and Factory Scheduling allow manufacturers to achieve the required contract service levels by implementing LEAN principles.
The enterprise software also allows manufacturers to hedge against unpredictable supply of long-lead-time items using minimum and safety stock levels.
Cash flow prediction
Running an effective manufacturing business, or any business, requires accurate forecasts of cash flow. Not only to keep the lights on, but to see if it is feasible to expand operations. There are several tools in ERP software that help with this.
For example, Accounts Receivable forecasts reflect how different customers pay on different terms and include information such as the average number of days each customer takes to pay.
And then there is Accounts Payable which not only records invoiced purchases, but also flags special supplier terms, unapproved invoices, and purchase receipts not yet invoiced by suppliers.
One of the biggest challenges in this increasingly connected world is strategic positioning from better information.
ERP solves this by offering constantly updated self-service reports and highly visual access to key performance data that keeps management informed, without draining resources. Financial Ratios also provide an at-a-glance assessment of the financial health of a business allowing real-time monitoring for effective decision making.
There are also forecasting modules which provide tools to track and evaluate forecasts and can assist in producing the best possible outcome with minimum error.
Getting there faster
One way for manufacturers to set themselves apart from the competition is to improve their time to market.
An enterprise system, by its very nature, works to improve how fast products get out. Because it easily imports customer design data, such as drawings and CAD specifications, speeding up an otherwise time-consuming process.
It also has Factory Scheduling which allows for accurate quotes of lead times and delivery dates based on capacity and existing loads. And an Engineering Change Control (ECC) function enables manufacturers to apply control and uniformity over design-to-market processes.
In conclusion, an ERP system will set manufacturers apart from the increasing competition, as well as provide them with invaluable business insights that will allow them to take on any challenge that comes their way this year.
SYSPRO is a global, independent provider of industry-built ERP software designed to simplify business complexity for manufacturers and distributors. Focused on delivering optimized performance and complete business visibility, the SYSPRO solution is highly scalable, and can be deployed on-premise, in the cloud, or accessed via a mobile device. SYSPRO’s strengths lie in a simplified approach to technology, expertise in a range of industries, and a commitment to future-proofing customer and partner success.
SYSPRO has more than 15,000 licensed companies in over 60 countries across six continents.
For more information, visit www.syspro.com.
Marketing Communications Manager
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