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Industrial Products Industry

ERP for Industrial Manufacturing: ERP Solutions for Industrial Products Manufacturing

Why industrial manufacturers run better with SAP and Navigator ERP Software

The landscape of industrial manufacturing has evolved significantly from its once straightforward nature. In the past, industrial manufacturers simply produced and delivered products, with occasional "break-fix" services.

However, this is no longer the extent of their manufacturing responsibilities. Fueled by increasingly demanding customers and propelled by the widespread adoption of the Internet of Things (IoT) along with the growing influence of machine learning and AI, industrial manufacturers are now developing novel capabilities to monitor and provide services based on extensive volumes of data generated by numerous assets and equipment. These manufacturing services encompass highly personalized and digitized products, spanning from basic make-to-stock (MTS) models to light engineer-to-order (ETO) approaches, as well as the monetization of business data sets.

Creating resilient supply chain networks for your manufacturing business

In the realm of industrial manufacturing and supply chain, manufacturing networks are undergoing a transformation towards modularity and flexibility with their industry operations. This system shift enables the smooth implementation of diverse manufacturing strategies. By enhancing supply chain transparency and flexibility, you enhance your capacity to swiftly respond to unexpected disruptions, safeguarding uninterrupted business operations and continuity.




Industrial Manufacturing SAP ERP helps to build resilient supply chain networks

SAP's Industry Cloud Solutions for Industrial Manufacturing Operations

Industrial manufacturing solutions enable the delivery of scalable and service-based machinery, functionality, and components that are sustainable and equipped with smart capabilities for your company.

Benefits of ERP Software in the Industrial Manufacturing Industry

Industrial manufacturing businesses run more smoothly when they can leverage next-gen production technology to identify and respond to industry disruptions that impact warehousing and transportation at a granular level before they become a problem. From the warehouse to transportation and delivery, explore SAP software innovations that help your business run more agile, resilient, and sustainable logistics operations.


Here are some ways in which a cloud-based ERP system can be used to benefit companies in the industrial manufacturing industry:

Financial Management for Manufacturing

manage business income, expenses, and assets in an organization

Sales Order Booking & Enterprise Management

promising delivery dates, shipping, and billing

Manufacturing Material Requirement Planning

calculate material acquisition plans needed to meet production plans and customer demand

Executing Production

or integration into a third-party Manufacturing Execution System (MES)

Sourcing & Procurement of Manufacturing Materials

defining products in batches, serial numbers, inventory variants

Tracking Company Inventory

warehousing, shipping, and receiving

Strategies for Industrial Manufacturers to Run as Intelligent Enterprises

Proven success strategies show a range of approaches to creating new business outcomes based on existing products and processes as well as developing disruptive new business models.

  • Customer centricity and lot size one
  • Digital smart products and solutions
  • Resilient supply networks and smart factory
  • Servitization and outcome-based business models
  • Sustainability and circularity

Customer centricity and lot size one

Putting the end customer’s point of view at the center of every business decision has to be the norm for success in the digital age. Manufacturing companies need to provide management solutions that precisely fit the needs of one single customer in a cost-effective way. This requires the ability to capture customer manufacturing requirements effectively and enable mass customization to give customers exactly what they want.

Digital smart products and manufacturing solutions

Differentiation and specificity in products stem from digital capabilities and value-added services that are bundled with the physical products. By delivering and using digital functionality capabilities such as self-awareness of technical health and operational status, or business system connectivity, industrial manufacturers can differentiate themselves in the industry.

Resilient supply networks and smart factory functionality

Digital technology on the shop floor and in the supply chain is not new for manufacturing companies. What is new is the way production and logistics are intelligently connected to the rest of the enterprise. This helps manufacturing enterprises be more agile and able to deal with external system disruptions such as natural disasters and short-term demand and supply fluctuations or changes in the configuration of a customer order.

Servitization and outcome-based enterprise models

As traditional business products are commoditized, industrial manufacturers are shifting from selling products to providing complete solutions and charging for outcomes or even monetizing asset data. Generating more revenue from enterprise services is a goal for manufacturers who are looking for higher profit margins and increased customer intimacy.

Sustainability and manufacturing circularity

Sustainability has become top of mind for industrial manufacturers. In addition to meeting all manufacturing business regulations, they must help their customers and suppliers to be sustainable and stay competitive in a purpose-driven economy. In the future, manufacturing enterprises will have to reimagine their business using systems that save energy and natural resources and have a positive impact on all their enterprise stakeholders.

Resources

ERP for Industrial Manufacturers
How Manufacturers are balancing profitability and efficiency with sustainability
Success in the new era of manufacturing
A guide to becoming an interconnected business
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Beneficial ERP Features for Industrial Product Manufacturers

Here are some of the specific features of ERP systems that are particularly beneficial for industrial product manufacturers:

 

Production Planning and Manufacturing Scheduling

Manufacturing ERP systems can help optimize production planning and scheduling by taking into account a variety of factors, such as lead times, capacity constraints, and material availability.

SAP Production Planning and Scheduling (PP/DS) is a module within the SAP ERP system that helps manufacturers plan and schedule their production processes. The manufacturing software provides a wide range of features and benefits that can help manufacturers improve efficiency, productivity, and profitability of operations.

Company Inventory Management

ERP systems can help to track and manage inventory levels, ensuring that the right production materials are available at the right time.

SAP Inventory Management (IM) is a comprehensive software solution that helps businesses track and manage their inventory levels. Enterprise software offers a wide range of features and functionalities that can help manufacturing businesses to:

 

  • Improve inventory visibility and control: IM software provides real-time data and insights into company inventory levels, locations, and movements. This data can be used to make better decisions about inventory planning, purchasing, and allocation.
  • Reduce carrying costs: IM software helps businesses to optimize their inventory levels and reduce carrying costs. This can be achieved by implementing strategies such as just-in-time (JIT) inventory management and ABC analysis.
  • Improve customer service: By ensuring that the right products are available at the right time, IM software can help businesses to improve customer service levels.
  • Reduce stock-outs: IM software can help businesses to avoid stock-outs by providing accurate inventory forecasts and alerts.
  • Improve supply chain efficiency: IM software can help management businesses to improve the efficiency of their supply chain by integrating with other SAP modules, such as SAP Logistics Execution (LE) and SAP Supply Chain Management (SCM).

Shop Floor Control

ERP systems can help to track and manage production operations on the shop floor, ensuring that products are manufactured to the correct specifications and proper selection.

SAP Shop Floor Control (SFC) is a module within the SAP ERP system that helps manufacturers manage production activities on the shop floor. The enterprise resource planning software provides a comprehensive set of tools and functionalities to track and control the flow of manufacturing materials, labor, and equipment through the production process.

Quality Management

ERP systems can help to track and manage quality control activities, ensuring that products meet the highest quality standards in the industry.

SAP Quality Management (QM) is a comprehensive software solution that helps businesses to manage the quality of their products and processes. Manufacturing ERP software provides a wide range of features and functionalities that can help businesses to:

 

  • Improve product quality: QM software can help businesses to identify and prevent quality defects during the manufacturing process. This can be achieved by implementing a variety of quality control operations, such as inspections, testing systems, and audits.
  • Reduce costs: By improving product quality, QM software can help businesses to reduce manufacturing costs associated with scrap, rework, and warranty claims.
  • Improve customer satisfaction: By providing high-quality products, QM software can help businesses to improve customer satisfaction and loyalty.
  • Increase compliance: QM software can help businesses to comply with industry regulations and manufacturing standards.

Supply Chain Management

ERP systems can help to manage business relationships with suppliers, ensuring that production materials are delivered on time and at the right price.

SAP Supply Chain Management (SCM) is a comprehensive suite of software solutions that helps businesses manage their entire supply chain, from procurement to delivery. ERP software provides a wide range of features and functionalities that can help manufacturing companies to:

 

  • Improve supply chain visibility: SCM software can provide businesses with a real-time view of their entire supply chain, including inventory levels, supplier performance, and transportation logistics.
  • Reduce supply chain costs: SCM software can help businesses to reduce supply chain costs by optimizing inventory levels, streamlining transportation routes, and negotiating better business deals with suppliers.
  • Improve supply chain agility: SCM software can help businesses to respond quickly to changes in inventory demand, such as product launches, promotions, and unforeseen events.
  • Improve supplier collaboration: SCM software can help businesses to collaborate more effectively with their suppliers by providing them with access to real-time data and management insights.
  • Reduce risks: SCM software can help businesses to identify and mitigate risks to their supply chain, such as supplier disruptions, natural disasters, and economic downturns.

Customer Relationship Management

ERP systems can help to manage relationships with customers, providing them with real-time information about the status of their orders and providing them with a better overall experience working with the manufacturing company.

SAP Customer Relationship Management (CRM) is a comprehensive software suite designed to help businesses manage their interactions with customers throughout the entire customer lifecycle. The software offers a wide range of features and functionalities that can help manufacturing companies to:

 

  • Improve customer acquisition: SAP CRM software can help businesses to attract new customers by providing them with the data to targeted marketing campaigns and personalized offers.
  • Increase customer retention: SAP CRM software can help manufacturing companies to retain existing customers by providing them with excellent customer service and engaging experiences.
  • Drive sales growth: SAP CRM software can help businesses to increase sales by providing them with a comprehensive data of their customers and their buying behavior.
  • Improve operational efficiency: SAP CRM software can help businesses to improve their operational efficiency by automating sales, service, and marketing processes.

"42% of manufacturers report that embedding smart devices and/or intelligence into products is a significant focus of their product innovation plans."

Source: MPI Group