September 30, 2010

ERP Benefits - For Manufacturing & Distribution Industry

1) Automate & Streamline Business Processes with Greater Adaptability
  • Align key business processes in planning, design, development, procurement, inventory, manufacturing, sales & delivery
  • Match overall supply with demand and manage all resources & assets along the entire value chain
2) Respond quickly to Changing market conditions
  • Use integrated, real-time sales & operational information to accurately anticipate, plan for & respond to orders and new demand, as well as reduce forecasting errors
  • Model production capabilities, quickly share engineering information & adjust product mix for changes in demand to capitalize on new opportunities
  • Support compliance with regulatory requirements, including safety & environmental regulations, by quickly validating manufacturing processes while conforming to individual markets requirements
3) Decision Making on Strategic Business Insight
  • Rich out-of-the-box analytical performance measurement tools hone the strategic planning & monitor the overall health of the organization
  • 360-degree visibility on accurate forecasts, effective budgets, proper resource allocation & goals
  • Combine operation & financial analyses to optimize day-to-day operation
4) Enhance Customer Satisfaction
  • Delivering products on time with high quality
  • Faster time to market, higher-quality products & accurate information provided to customers
5) Improve Productivity
  • Collaborate across business functions to consolidate information, align strategies & standardize operational processes
  • Increase information worker productivity through realistic, appropriate business roles
  • Increase adaptability to process changes by enhancing existing skills & assets with real-time information
6) Fuel efficiency & Reduce risk across the entire organization
  • Standardize processes & easily share best practices
  • Support multiple manufacturing modes & a hybrid or mixed-mode environment
  • Reduce time across the Order Process Cycle (Quote-Order-Delivery) there by reducing the loss risk
7) Gain insight into Costs & Process efficiency
  • Analyze & manage production schedules with reporting tools & “what-if” scenarios, including capacity loading, shop floor activities & production costs
  • View real time client, contract & project details for an accurate accounting of profitability
8) Manage Demand Pro-actively
  • Trace expected to actual sales & forecast future sales while taking into account seasonal & promotional effects
  • Use simulations, demand models & error analysis to determine optimal stock levels for better profit & operations margins
9) Expand Sales Success
  • Monitor market demand & meet margin objectives through effective promotions
  • Increase capacity to evaluate product turnover in response to campaign & align production & inventory accordingly
10) Improve Customer Service
  • Enhance the security & reliability of deliveries with the global available-to-promise (ATP) view, which provides delivery alternatives in the event of unexpected disruptions
  • Automate sales & purchasing processes, track & locate inventory items quickly & help ensure accurate pricing & discounts to improve customer satisfaction
  • Deep visibility & control over the supply chain, increase order fill rates, reduce risk of stock out or inventory excess & enhance overall responsiveness to customers
11) Increase Revenue
  • Higher profit margins by automating & streamlining all business processes resulting in reduced operations costs through adherence to better business practices
  • Improved cash flow by more efficient & accurate billing procedures, lower inventory levels & quick turnaround
  • New opportunities identified through continuous, real-time monitoring of KPIs
  • Opening up new sales channels like e-commerce
12) Reduce Operating Costs
  • Decreased overall operating costs by converting time-consuming manual processes into automated, streamlined, real-time business process management
  • Lower transportation costs through consolidated orders & combined shipments
  • Reduced warehouse costs from optimized utilization of resources & assets
  • Reduced cost of sales from use of profitable sales interaction channels
  • Sustained cost savings for all spend categories due to a standard approach to both strategic & operational procurement
  • Reduced IT costs because administration & usability have been improved, fewer interfaces are used & IT resources have been freed up to focus on value-adding strategic projects
  • Lowered TCO (total cost of ownership) by leveraging technology for facilitated exchange & interoperability with non-ERP systems
13) Increase Visibility & Simplify across the Supply Chain Process
  • Empower users with real-time data through a user-friendly interface & Role centre that provides access to tasks & critical Business Intelligence data such as KPIs & custom reports
  • Exchange data across multiple systems & gain visibility into business processes to improve decision making & control at every level of the supply chain
  • Connect inventory, production, purchasing & sales processes to gain accurate, real-time view of the entire supply chain.
  • Improve collaboration with trading partners with support for a wide range of predefined XML business documents
14) Reduce Cost by optimizing supply chain processes
  • Improve productivity, adapt internal processes quickly to meet new demands & optimize processes across sites in the supply chain
15) Better Collaboration with all Supply Chain Partners
  • Enhance collaboration among departments, customers, suppliers, business partners for a significant improvement
  • Integrate partners of all sizes to release data throughout the chain that’s accurate, complete & available up to the minute
  • Costs reduced, processes speed up & smooth flowing operations throughout the supply chain
16) Demand Driven Supply Chain Approach can help
  • Maintain competitive edge
  • Integration of supply chain processes with other business processes e.g. Sales & Operations
  • Respond effectively with a comprehensive, cross-functional view of the company, better understanding of customer needs through downstream data analysis & effective collaboration between trading partners
17) Control & Streamline Inventory
  • Use powerful inventory management tools to improve forecasting & planning, match supply with customer demand
  • Create sales & purchasing forecasts based on specific items & time periods
18) Meet Complex Inventory requirements
  • Create multi-dimensional inventory records & track items throughout the supply chain for online & accurate inventory status
  • Enhance Material & Product Traceability
1) Implement effective recall procedures & maintain complete forward & backward traceability of any material
2) Track materials from purchase through production & sale with lot & location control

Integrate Design innovation into Manufacturing
  • Shorten time to market for product innovation by integrating design & manufacturing processes & collaborating effectively with suppliers, partners & customers
20) Support a wide range of Manufacturing processes & Business models
  • Tailor the solution to serve make-to-stock, make-to-order, assemble-to-order, configure-to-order, & engineer-to-order environments
  • Manage items from design through assembly, testing, shipping, installation & maintenance
  • Meet specific customer needs by configuring build-to-order items easily & effectively
  • Help efficiently produce & deliver products that follow custom formulas or recipes & take full advantage of manufacturing & supply chain capabilities
  • Empower to streamline, monitor & control the entire production cycle
21) Improve Project management for customized orders
  • Create estimates & quotes quickly & accurately
  • Forecast machine & resource requirements for strategic scheduling & precise delivery times by analyzing project cost & order processing time
22) Increase Productivity with a Role-Based Solution & Centralized Information
  • Provide empowering self-service & role-specific information that increase user productivity
  • Personalize portal to meet business users specific needs
  • Manage centrally the critical documents (e.g.) BOM, routing data, CAD designs, recipes, project plans & item information
23) Streamline Integration with Web services
  • Improve integration within & Outside the organization by using a flexible Web services framework
  • Maintain high production levels & on-time delivery rates by sharing portal-based, real-time information about specifications, order status & quality control testing among key departments & trading partners


  1. Respond quickly to Changing market conditions is very much important as if you fail to cope up with marketing conditions you can not succeed in business.
    sap support packs

  2. Post is very Informative and easy to understand.
    It looks like you spend a large amount of time and effort in writing the blog. I am appreciating your effort. ERP solution can significantly improve the productivity of the manufacturing sector. ERP systems for manufacturing sector are designed to address the problem of fragmentation of information in manufacturing organizations.
    Thanks for sharing such a nice blog on manufacturing erp system....

  3. ERP Inventory & Material management module provides a powerful and flexible set of features to help you manage and report your inventory information. our inventory management module facilitates processes of maintaining the appropraite level of stock in a warehouse.
    Thanks for sharing such a nice information Inventory & Material Management Module in ERP