Did you know that the ERP software market will be valued at a whopping $41.69 billion by 2020? This massive growth is a consequence of cloud-based ERP software which is transforming processes and outcomes across different departments.
One of the areas where ERP software can really improve efficiency and save costs is in supply chain. Using material management ERP software can simplify processes and improve profitability to a large extent. Here are some of the most important ways in which advanced cloud-based systems transform supply chain management.
Efficiency in Supply Chain Management
Using stock management ERP software means logistics tracking gets incorporated into your system. You can now track the transfer of materials from the manufacturer to the consumer. The software also maintains all details of purchase orders and product information. This means that you can control the purchase, delivery, and tracking of materials with optimal efficiency.
Better Analytics and Decision Making
The master database of materials in material management ERP software contains all the data that users input. Modern ERP software can use this data to extract real-time reports that provide significant business intelligence. Reports that would ordinarily take days to compile can be seen in real-time. Employees can simply log into the portal and see daily reports that are relevant. This allows them to take informed decisions much faster.
A key aspect of material management software is the centralized database. Since all the data from different teams is input into the same database, every department has access to all the information they need. There is no question of data having to flow from one department to another. This does away with the ambiguity and duplicity in the quality of data. As a result, different teams can collaborate more seamlessly and execute faster.
Higher Productivity and Cost Saving
While supply chain software may seem like a major investment, the ROI is actually great. The primary reason for this is that the ERP software brings all the information together on a centralized database. Since employees don’t have to waste time looking for data on different systems, they automatically become more productive. The second aspect of this is that there is just one centralized software as opposed to several different software. This means that lesser time and money need to be invested in training employees on how to use the software.
Better Production Planning
ERP software also provides insight into all manufacturing operations. This gives decision-makers quality data on the basis of which they can optimise equipment, production schedules, and labour. This maximizes manufacturing capacity and improves the bottom line. Also, with inventory management software, users can easily create and edit the bill of materials and keep track of all the changes made earlier.
The benefits of implementing inventory management ERP software far outweigh the initial investment of time and resources. Of course, you need to make sure the software you choose is based on advanced, cloud-based technologies and can be customised to suit your specific needs.