Both MRP and ERP are designed to boost manufacturing efficiency but they are proposed for different audiences. Quite similar to MRP, ERP solution helps manufacturers manage their operations, including inventory, scheduling, production, and planning. However, it goes beyond manufacturing processes and that’s why it makes more sense to implement a manufacturing ERP system in Malaysia or elsewhere to run your business more efficiently and effectively.
To be accurate and precise, the MRP system mainly emphasis on three functions, namely:
- It ensures the timely availability of materials, resource utilisation, inventory levels, and planning.
- Wastage is reduced to a minimum by maintaining proper inventory levels.
- It ensures no inventory is out-of-stock for product manufacturing.
But at present, MRP is a subset of ERP functionality and plays a significant role in the supply chain. Since the MRP module is incorporated within ERP solutions like the Acumatica Cloud ERP system, you don’t need to be worried about managing business processes, either simple or complex, across the entire company.
Limitations of standalone MRP System
MRP is a subcomponent that brings more value to the ERP system. Using a standalone material requirements planning system is restricted to specific business functions such as production, planning, inventory control, scheduling, and procurement. Here are some common challenges faced with a standalone MRP:
- It doesn’t support other related applications such as inventory control, customer service, purchasing, and more.
- Planning is what exactly MRP does and it is bounded to this only.
- MRP is intended to meet the needs of the manufacturing business.
- It is antiquated and outdated.
You shouldn’t depend on a standalone MRP system when you can have an all-in-one solution for all business operations to seamlessly track the workflow and manage the business processes such as sales, accounts, inventory, manufacturing, supply chain, job costing, CRM, finance, etc.
Source: OptiProERP Manufacturing
Especially after the adverse impact of COVID-19, the adoption of Industry 4.0 has become highly imperative in the manufacturing companies to accept the new normal and drive better opportunities for today and in the future.
How MRP System has evolved into ERP Software?
The success of a manufacturing firm relies on more functions than the basic operations, and thus, bringing each key component within a centralised system seems a viable approach. That’s why further developments lead to the advent of the Enterprise Resource Planning (ERP) system for manufacturing firms, a scalable and modern solution helping businesses to achieve their digital transformational goals and reduce upfront costs with integrated organisational elements.
Cloud technology is extensively leveraging artificial intelligence, machine learning, and BI tools in the modern era. If you implement a cloud-based ERP solution, it will streamline and automate all business functions such as data collection, reporting, and more. A standalone MRP doesn’t support a multitude of functionalities as ERP; hence it is feasible to opt for an ERP solution.
The scenario of manufacturing is consistently shifting towards business models that embrace new technology and processes to improve visibility, collaboration, and efficiency. With fierce competition in the market, it is highly imperative for companies to position themselves as stronger and better as possible. It is good to work with a reliable digital partner to determine key opportunities for your enterprise and adopt a solution that grows with your business as needed.
With such a mindset, the Acumatica cloud ERP system is a complete, multi-site solution that incorporates a range of modules and functionalities that boost workforce capabilities and productivity. It provides a real-time view of business activities that allow companies to access information and insights, from anywhere at any time.
What do you mean by Manufacturing ERP Software?
Manufacturing Enterprise Resource Planning (ERP) software is an advanced business management application that can help streamline all processes across sales, finance, procurement, HR, orders processing, production, planning, and inventory. It is a fully integrated solution that allows manufacturing companies to gain efficiency and profitability within a shorter period of time.
Source: Info-Tech Research Group
Be it a small, single plant manufacturer or a large multi-plant, it is good to have manufacturing-specific ERP softwarerather than Sage X3 or others to meet your unique business needs.
Why Move to Fully Integrated Manufacturing ERP Software?
ERP is basically a framework for planning all resources in a business, from strategic planning to execution. It addresses concerns of a range of industries across the world and is strongly recommend for every business.
Let’s take a closer look at a wide spectrum of benefits of ERP solution to gain a clear understanding:
- Automate Business Processes
Traditional methods of managing manufacturing processes may often lead to difficulties in business functions, data entry, and navigating information. This happens mainly when the system is operating through manual processes and scattered spreadsheets. A flexible ERP system eliminates this issue by combining the necessary tools together, saving time and increasing productivity.
- Centralise Data Management
To have an accurate view of business, it is vital to have access to real-time information whenever and wherever you need it. ERP system allows tracking of processes from quote to order, scheduling, manufacturing, delivery of the product, and invoicing. It is also certain to highlight crucial matters to team members within a single database, creating dynamic team communication and greater collaboration.
- Enhance Customer Experience
It is important to keep up with the ever-changing needs and expectations of customers. The various modules in the ERP system give the ability to create organised schedules, accurate timescales, and timely product delivery. By tracking orders and other parts of the process with one accessible database, you can fulfil customer promises to obtain a high level of satisfaction and strengthen your company’s goodwill.
- Manage Business Growth
As your business scales, the main focus should be to tackle the growth and functions as easily as possible. ERP is one such solution that allows businesses to proactively manage their growth with enhanced analysis, real-time information access, and increased productivity. This prevents delays and data duplication which increases the chances of business success.
Why is Manufacturing ERP Software such a Hot Topic?
2020 has been a stressful year for nearly all companies in the industry. Businesses have realisedthat they need a software solution to streamline their daily processes, reduce costs, and enhance the decision-making process. The emergence of artificial intelligence and cloud deployment are two major reasons behind the rapid growth in demand for ERP software implementation.
Source: Robotics & Automation News
Below we’ve covered top ERP trends that will help you determine if ERP is the right road to success for you:
- A Multitude of Features
There are plenty of tools available in the market, with competitive pricing but most of the tools lack specific features that businesses often need. If you’re someone who is planning to incorporate ERP software in 2021, then it’s ideal to look closely at its range of features and functionality to make the best selection.
- Expanding Human Capabilities
As business intelligence tools are becoming very crucial, ERP systems integrated with intelligent solutions tend to provide real-time data and deep analysis. The purpose is to support organisations throughout the journey of improving sales, operational efficiencies, and productivity.
- Increased Deployment Capabilities
Gone are the days when businesses have to bear the pain of extensive implementation procedures that involves high project costs, IT exhaustion, and business disruption. Future-forward ERP solution providers like Acumatica ensures to deliver a less complex and more adaptive system that allows users to save money, time, and efforts with cost-effective rates and flexible licensing.
- ERP Streamlines Technology Adoption in Manufacturing Firms
Innovation and technology adoption are two important elements to keep in mind in an era of rapid disruption. Taking the highlights from Forbes 2018 article, Scott D. Anthony says that for leaders to thrive in today’s disruptive way of living, they must be transforming today’s and tomorrow’s business. This phase is possibly applied to the constant introduction of new technologies and ERP system to simplify processes in the manufacturing industry.
Why Choose Acumatica Cloud Manufacturing ERP System?
Acumatica Manufacturing Edition is scalable and modern software designed for control and planning in the manufacturing companies, supporting various methodologies, including make to order (MTO), make to stock (MTS), engineer to order (ETO), configure to order (CTO), job shop, and more. It can be integrated across sales orders, customer management, purchasing, accounting, inventory, and financial reporting, which results in greater collaboration of workflows within the organisation.
Manufacturing managers and supervisors can gain approvals, timely reports, track production orders, schedules, and raw material required, from any location at any time. It better suits the needs of almost every manufacturing industry such as food and beverages, automotive, electronics, industrial equipment, precious metals, and many more.
Analysts at Nuclear Research set Acumatica as the highest in usability in their ERP and CRM technology value matrix. They clearly said “Excelling in several industries including manufacturing, wholesale distribution, retail, food and beverage, nonprofits, and services, part of Acumatica’s strength comes from the ability of its platform to address the needs of almost any customer.”
Great Commission Publications (GCO), one of the trusted non-profit organisations have reviewed various ERP solutions and ultimately opted for Acumatica ERP so they could manage their financial and operational data more efficiently.
Key benefits of Manufacturing ERP software for your business:
- One-Stop Solution for Your Business Needs
Acumatica Manufacturing Edition outpaced the capabilities of other software products like Oracle Netsuite by offering real-time coordination and a comprehensive view of business activities from one centralised location. The cross-application integration allows users to gain better visibility into insights across the entire organisation, no matter wherever you are.
- Meet Your Schedules
Manufacturing ERP software allows companies to optimise resources, plan to control costs, and forecast demand with a complete suite of modules. You can use MRP and APS to maintain a proper balance and fulfil material requirements with production schedules.
- Monitor Your Costs
Companies can manage materials and labour costs while closely aligning them to their product management. They can easily compare standard and estimated production costs to actual costs of production.
- Scale as You Grow
The best-in-class and robust functionality consistently adapts to your business needs as your business scale and evolve. Companies can have full control over engineering change requests, change orders, and change notices with timely approvals at every stage of the process.
What’s New in Acumatica Manufacturing ERP 2020 R2?
Acumatica has announced new functionality and impressive features being incorporated in the second release of the 2020 – Acumatica R2 2020 update. The release brings a wide spectrum of enhancements to make users’ lives easier than ever before and shove the market forward. The Acumatica Manufacturing and Distribution Edition mainly revolve around three factors:
- Monitor production outputs and take products to market quickly through an embedded third-party quality module
- Mitigate bad debt and streamline collections with payment and credit card processing
- Avoid overpayment by evaluating bills against purchase orders
The Acumatica 2020 R2 has left no stone unturned to harness the power of Artificial Intelligence (AI) and Machine Learning (ML) to ease AP automation. It offers an advanced and flexible workflow engine that allows users to alter workflows visually. With detailed security standards and additional capabilities, finally, users can depend on mobile devices to respond to standard business queries, from anywhere at any time.
- Leverage artificial intelligence and machine learning to create AP documents automatically
- Unite notification workflows through solid business events engine
- Monitor real-time data changes with integratednotifications using business events
- Alter workflows visually with a visual state automation engine
- Use OData 4.0 to securely access data without developing generic inquiries
- Respond quickly and simply to standard dialog questions from any smart mobile device through mobile dialog box support
With Acumatica Manufacturing Edition, you will receive a complete suite of products, including:
- Bill of Material and Routing
- Material Requirements Planning (MRP)
- Product Management
- Material Requirements Planning (MRP)
- Engineering Change Control (ECC)
- Manufacturing Data Collection (MDC)
- Planning and Scheduling
- Inventory Management
- Order Management
- Purchase Order Management
- Warehouse Management System (WMS)
- Project Accounting
- Finance Reporting
- Service Management
Source: Predictive Analytics Today
As you can see, significant improvements have been made across the Acumatica cloud ERP system and further capabilities have been added to the existing platform to turn it into a more industry-specific ERP solution. The platform is designed on a future-proof platform with an open architecture for better integrations, ease of use, and delivering unmatched value to small and mid-sized enterprises.
It’s Time to Think beyond Manufacturing Processes
It is perplexing and misleading to convey MRP as a standalone system when it is inherently incorporated in an ERP system that offers all functionalities you need to simplify business functions. Enterprises can work smarter and unlock their full potential by implementing manufacturing ERP software in or other locations.
- By 2022, Gartner predicts that artificial intelligence (AI) will be integrated inti ERP systems by 65% of CIOs.
- 53% of UK CIO’s are looking for more intelligent ERP systems that include technology like machine lerning, AI and automation.
- CIO’s listed predictive analytics and deep learning as the most critical ERP technologies to gain a competitive advantage.
- Fifteen percent of organizations plan to increase their Internet of Things (IOT) budget.
- A broader move to more personalization accross ERP systems leads 82% of UK CIO’s to choose ERP systems with some customization or use UI overlays.
Acumatica cloud-based ERP system is intuitive and simple software that provides functionality across business operations, enhancing productivity and efficacy to help businesses survive and thrive in the future economy.It provides comprehensive access to business information through multiple modules and functionality, including shop floor data collection, invoicing, scheduling, purchase orders, inventory control, and more
Every company requires a different design, solution, and production resources to gain a competitive advantage. That’s why, at Netsense Business Solutions, we work collaboratively with each client to address their unique business processes and requirements to deliver them powerful ERP solutions.
Hopefully, this comprehensive guide has helped you to obtain a clear understanding of ERP software solutions and we know how much you’d be thrilled with the list of improvements and additional functionality. Feel free to Contact us to set a demonstration of Acumatica ERP and see its capabilities in more detail.