The following are 3 reasons why the integration of automation through ERP systems is essential for the manufacturing industry, from factories to supply chains.

• Centralization

  ERP centralizes all departments of a manufacturing company from finance, inventory, and HR to distribution, sales, and customer service. This saves the manufacturer a massive amount of time and resources, as there is no need to separately monitor each sector. All departments coordinate through one system and the data they generate can be monitored at once, in real-time.

• Inventory Efficiency

  ERP systems deployed in a factory tend to drastically increase efficiency, not only because of the centralization services they offer but also due to other services, of which the most important is inventory management. Through inventory management, a factory can regulate the inventory so as to ensure there is not too much or too little product. Too much product inventory means a potential loss of profits, while too little means the risk of frustrated customers. An ERP system can automatically track and reorder inventory based on historical data and intelligent automated predictions.

• Improved Decision Making

  ERP systems allow manufacturers to gain complete data on all aspects of business operations, which in turn translates into improved decision-making. For instance, data about sales, customers, profits, losses, stocks, finances, and others, is helpful for stakeholders to come up with more accurate estimates and effective forecasts, eventually provoking quicker and smarter decisions by the management.