Supply chains have become very complex and strategic. Modern supply chains have grown and encompass thousands of external suppliers, partners, and third parties. Delayed supplies can wreak havoc on manufacturers, resulting in slowed production, delayed shipments, and unhappy customers. Faced with these challenges, organizations must ensure supply continuity for on-time deliveries. Read more about why supply chain management is essential for your business.
Large companies have a lot of supply chain strategies at their disposal. Walmart is chartering ships, and Gap switched to airfreight. However, these strategies may not be relevant for small and midsized manufacturing companies with limited supply volumes. Instead, SMBs can embrace modern supply chains with an integrated manufacturing cloud ERP system to automate their supply chain management processes and achieve better operational efficiency. Let’s look at the business benefits of modernizing your supply chain management with cloud ERP.
How Does Cloud ERP Help Manufacturers Improve Supply Chain Management?
Greater Supply Chain Visibility – Cloud ERP provides a holistic view of the entire supply chain for manufacturers. It provides them with details about the location of inventory to make it easier to respond to customers about their orders. It allows manufacturers to make more informed business decisions as they have insight into every part of the supply chain to identify problems and address them more quickly.
Leverage Real-Time Data – Real-time data in cloud ERP allows manufacturers to understand the actual performance of the shop floor and to identify bottlenecks on the production line to sort them out quickly. This information can help you schedule production, estimate job times, provide accurate timelines to customers, and deliver on time for satisfied customers. When manufacturers use business intelligence capabilities along with the real-time data and reporting features of cloud ERP software, they can easily track and improve supply chain performance.
Greater Collaboration –As more products and distribution channels get added, you need greater coordination throughout your organization. Trying to maintain the information using emails or spreadsheets can be error prone and is not a viable option. With an integrated manufacturing cloud ERP, it is easier to collaborate with vendors and third parties. It can notify suppliers when to replenish inventory and track supplier performance with real-time analytics and dashboards.
Better Agility – With cloud ERP, business processes get streamlined and automated to reduce manual errors and costs. It increases supply chain transparency and helps manufacturers tackle delivery challenges. The system also informs the procurement team about minimum inventory levels and when additional supplies need to be ordered.
Ensure Compliance – Many companies rely on supplies from other countries. They must be mindful of each country’s government tariffs, trade agreements, and procurement rules. Cloud ERP helps ensure international compliance. It also provides greater visibility of the supply chain to monitor and manage variables such as weather, exchange rates, political/social unrest, and delayed shipments.
How Do You Choose the Right Cloud ERP Solution for Your Business?
The right cloud ERP system will handle your supply chain management needs, keep sensitive business records safe, streamline operations, improve decision-making, and help you achieve long-term business goals. So, how do you choose the best cloud ERP solution for your business? Check out these six key considerations.
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