Strategies for achieving optimal manufacturing ERP efficiency

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Businesses typically pursue enterprise resource planning and system implementation to streamline their backend processes and ultimately achieve optimal efficiency. In fact, more than half of the organizations that embarked on the ERP adoption journey in 2018 did so in anticipation of major efficiency improvements, according to research from Panorama Consulting Solutions. While many adopters achieve these results — approximately 85% of those that sought out efficiency gains in 2018 achieved them — a fair number end up putting into place solutions that do not trim the operational fat, so to speak. Some even contribute to internal disorder. 

Manufacturing businesses literally cannot afford to maintain ERP systems that do not promote operational efficiency. The lean manufacturing methodology is king and those in the space that cannot keep their production processes and back-office functions under control risk losing ground to competitors that can. But what can manufacturers with existing ERP platforms do to ensure their software promotes efficiency? Luckily, there are some tried-and-true methodologies for achieving this important goal, some ranging from quick tweaks to more forceful, transformative changes. Here are three such strategies and some information about what manufacturing firms that embrace them can expect.

1. Business process redefinition

As mentioned above, businesses across virtually all sectors, including manufacturing, see ERP technology as the ultimate driver of operational efficiency. This is true to some extent — when effectively implemented and managed, ERP platforms can streamline all back-office and shop floor functions. However, these solutions cannot catalyze efficiency gains in isolation. Organizations must pair them with compatible processes. Unfortunately, it is not uncommon for ERP adopters to put these tools into place thinking they can do all the work. The reality is, companies must evolve functionally as they install these information technology assets, per Panorama. 

Manufacturing firms that find themselves lacking sufficient operational efficiency despite the introduction of ERP technology should take a look at the businesses processes accompanying their systems and determine whether they mesh with their new IT assets. If not, chances are significant workflow adjustments are necessary. What exactly does this mean? For instance, if sourcing teams are leveraging old paper-based strategies for bill of material assembly and review as opposed to managing such functions through the ERP, system efficiency suffers as personnel either input the necessary information late after multiple rounds of review or simply forget to enter it in at all. Here, business process change is necessary, as the ERP solution itself cannot function unless sourcing staff input the required BOM data.

2. End user re-engagement

The theoretical case study covered in the previous section is a good illustration of one essential ERP truth: The technology is nothing without the user. Why? Human workers generate the information that flows through ERP solutions and ultimately make them valuable. Without accurate, up-to-the-minute data, ERP platforms have little purpose. For this reason, organizations navigating ERP implementation typically devote considerable resources to making sure end users embrace the technology, which is a challenge. Analysts for Deloitte learned that more than 80% of adopters consider mass resistance to change — the end ultimate result of lacking user engagement — the biggest roadblock to ERP adoption success.

Manufacturers, even those that effectively get employees onboard initially, can experience user attrition over time and see ERP efficiency decline as a consequence. There are, of course, strategies that firms in the space can use to re-engage their workers and regain system functionality, starting with training. Most businesses understand that ERP solutions and the workflows in which they exist change with time. Reconnecting with users and communicating these adjustments, however small, encourages them to log back in with more consistency and use the technology to its potential. Targeted system problem-solving can have the same effect. When manufacturers address the widespread platform issues that cause employees to employ workarounds, end users return to ERP systems with renewed vigor. And with data flowing freely, ERP platforms that once showed major declines in efficiency come back to life. 

3. ERP replacement

The reality is that ERP technology does not last forever. Most offerings on the market, even the highest-performing solutions, come with definitive lifespans. At some point, the essential functions and features that once drove efficiency fade due to computational decay or sun-setting customer support agreements. This leaves only one option: replacement. An estimated 42% of the businesses that launched and closed out ERP implementation initiatives did so out of the need for system replacement, according to Panorama.

Now, the idea of swapping existing ERP software for something new can seem daunting to manufacturers, particularly those with legacy systems that have been around for a decade or more. In actuality, executing a switch of this kind is easier than most might expect, so long as the IT stakeholders involved stick to established ERP selection best practices and find solution providers that can perform the technical work involved. 

Is your manufacturing organization ready to embark on ERP replacement and in need of a reliable solution partner with experience in the space? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the ability to implement impactful ERP solutions that can maximize operational efficiency and lay the groundwork for sustainable stability and growth in the era of lean manufacturing.

Contact us today to learn more about our proven products and services.

3 data management dilemmas manufacturing ERP technology can solve

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Data is fast becoming the lifeblood of the modern manufacturing marketplace. An estimated 86% of manufacturers worldwide have implemented formalized production insight collection programs, intent on bolstering productivity and quality through deep information analysis, per research from The Economist Intelligence Unit. However, this widespread embrace of industrial data gathering tools has not been without issue. The Economist report also revealed that 86% of the manufacturing firms that have shop floor analytics systems in place struggle with data management. This particular problem weighs on productivity and drags down the bottom line, Industry Week reported. 

That said, there is an effective solution to defective data management: the enterprise resource planning platform. This software allows manufacturers to take control of their information and use it to catalyze sustained organizational growth. Here are three common data management dilemmas ERP technology can address:

1. Too much data

Automated data collection tools generate massive amounts of information. One piece of shop floor machinery might contain dozens of sensors, each gathering second-by-second mechanical insights that quickly congest internal caches and make effective analysis and data-based improvement almost impossible. ERP solutions make it possible for manufacturers to handle large amounts of information and use it to boost their operations via sophisticated integration and dashboard modules.

2. Siloed data

Information silos are as problematic as the operational ones modern production specialists decry. Isolated data sources — sometimes called data islands — muck up internal communication and decision-making and inhibit shop floor flexibility, an essential production capability in today's mercurial marketplace. ERP platforms eliminate data islands by connecting with all applicable endpoints and sensors, and cultivating centralized sources of analytical truth ideal for production planning.

3. Inaccessible data

To benefit from shop floor insights, manufacturing firms must facilitate data access. Executives and on-the-ground production stakeholders cannot make bottom line-building adjustments without the right information, presented the right way at the right time. Unfortunately, a good number of manufacturers fail to support this functionality and instead store information across disparate, difficult-to-navigate systems. ERP technology makes it possible for manufacturing firms to abandon this ineffective strategy and lend essential personnel seamless information access through easy-to-use dashboards with just-in-time data.

Is your manufacturing company looking to solve these and other data management issues? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the opportunity to adopt an impactful ERP solution that allows them to take full advantage of their data.

Contact us today to learn more about our proven products and services. 

  

Embracing lean manufacturing? An ERP solution might help

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The lean manufacturing methodology ranks among the most effective production approaches. Toyota Motor Corporation, which introduced and formalized lean manufacturing, used the strategy to ascend the industrial ranks in the decades following World War II. An estimated 66% of manufacturers worldwide adhere to this shop-floor style today, per analysis from LNS Research, maintaining sophisticated yet responsive workflows that minimize waste and boost productivity. A good number of the firms that have yet to embrace lean manufacturing surely desire to do so but cannot support the requisite continuous improvement functionalities, The New York Times reported. However, manufacturers looking on the outside in as competitors chase Toyota-level success are not doomed to die out. There is a resource that can ease lean manufacturing implementation: the enterprise resource planning platform.

This software allows production teams harness their production processes and facilitate continuous improvement, and thereby lay the foundation for lean manufacturing success. Here is how:

Waste reduction

Toyota founder Kiichiro Toyoda and his colleague Taiichi Ohno created the Toyota Production System, the first lean manufacturing workflow, with the expressed purpose of reducing waste in all forms. Inventory waste, transport waste, kinesiological waste — these are the main production impediments Kiichiro and Taiichi sought to address when they developed the lean manufacturing methodology. ERP software is designed to do the same, lending manufacturers the monitoring tools they need to pinpoint and reduce waste of all kinds, from unused inventory or inefficient machinery.

Defect reduction

Product quality and marketplace prosperity typically go hand-in-hand — Toyoda  and Ohno understood this and made periodic process review and enhancement an essential component of the TPS and the larger lean manufacturing approach. This continuous reassessment and improvement is achieved through Kaizen, which encompasses an exhaustive set of tools and techniques that empower stakeholders at every level, from the corner office to the equipment maintenance shop, to make positive shop floor change and bolster product quality. ERP platforms facilitate Kaizen via the collection and distribution of definitive product quality metrics.

Supplier collaboration

Strong supplier-manufacturer relationships are key to lean manufacturing success. Without willing external collaborators that offer quality components and responsive services, the methodology simply does not work. This is why Toyoda and Ohno emphasized the supplier-manufacturer partnership model, wherein the two parties work together using a shared source of truth rather than engaging in deal-making brinksmanship. ERP software supports this approach by giving manufacturing firms and external vendors the data and communication channels they need to cultivate and maintain sustainable partnerships that are mutually beneficial.

Is your manufacturing organization looking to implement an ERP platform capable of supporting lean functionalities? Think about connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the opportunity to adopt an impactful ERP solution that can facilitate continuous improvement through numerous cutting-edge platform features.

Contact us today to learn more about our proven products and services.    

Future-proofing: The key to manufacturing ERP sustainability

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Enterprise resource planning implementation is an immense investment. In fact, the average ERP adopter devoted more than a million dollars to system installation in 2018, according to researchers from Panorama Consulting Solutions. With this much money on the line, manufacturers pursuing implementation must collaborate with vendors to develop and deploy sustainable solutions that remain relevant for years, no matter the marketplace conditions. Platform future-proofing through architecture design and feature selection is the ideal methodology for achieving long-term ERP viability. Here are some of the system components manufacturing firms should focus on when embarking on this kind of longevity-centered ERP planning:

Cloud computing architecture
Enterprise cloud computing services are essentially industry standard nowadays — Flexera estimated that 94% of businesses worldwide leverage the technology. While adoption rates are generally lower among organizations pursuing ERP implementation — cloud-based or Software-as-a-Service platforms accounted for 64% of all the ERPs implemented in 2018, per Panorama — the cloud is usurping the on-premises server as the system building block of choice. The reasoning here is easy to understand: cloud-based ERP solutions are far more scalable and easier to manage than traditional systems made for on-premises deployment. These characteristics make cloud computing architecture the ideal base for the sustainable ERP, making it possible for manufacturers to right-size their installations on the fly to account for new external or internal variables.

Enterprise mobile support
Mobile technology propels the modern marketplace. From front-of-house business-to-consumer processes to backend production workflows, smartphones, tablets and other on-the-go assets associated with the internet of things are embedded within numerous revenue-driving operational functions. This is particularly true within the manufacturing space, where an estimated 82% of firms currently oversee IoT initiatives, according to analysts from Tech Pro Research. Enterprise mobile reliance here and in other sectors is bound to increase as time progresses, as IoT technology grows more sophisticated and ubiquitous. This state of affairs makes mobile functionality an essential component of the future-proof ERP. Platforms that are capable of facilitating IoT deployment at scale are primed to generate returns as mobile functionality becomes more important.

Advanced business intelligence
Businesses cannot compete without accurate and easy-to-access data. Whether it is internal production insights collected through shop floor IoT sensors or customer information collected through online interaction monitoring software, data is essential to organizational sustainability and growth. This is why enterprises across the globe are expected to spend more than $100 billion on business intelligence hardware, software and services in 2019, per the International Data Corporation. These expenditures could top $200 billion by 2022. With data clearly here to stay, manufacturers intent on implementing ERP technology with an extended shelf life must pinpoint systems that simplify business intelligence collection and access. Reporting and bulk information management features are among the key items to consider in this case, as these tools make it easier to handle large amounts of information, no matter its source.

Is your manufacturing firm interested in implementing a future-proof ERP platform that is meant to last? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the opportunity to adopt a quality ERP solution designed to facilitate operational growth via cutting-edge platform features.

Contact us today to learn more about our proven products and services.

3 strategies for moving manufacturing ERPs to the cloud

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Commercial cloud computing services have transformed from enterprise information technology oddities into operational essentials. Approximately 94% of organizations worldwide leverage these tools, per research from Flexera. This widespread embrace of the cloud has translated into the enterprise resource planning arena, as well, according to analysts for Panorama Consulting Solutions, who revealed that 45% of the businesses that adopted new ERP platforms in 2018 opted for cloud-based iterations. This ERP implementation approach offers obvious benefits, but transitioning from an on-premise solution to something hosted in the cloud can be a daunting task, particularly for manufacturing organizations that relish the comfort that comes with having mission-critical hardware, software and information kept in a server room. However, there are some tried-and-true best practices for simplifying this process.

Here are three of those strategies:

1. Prepare employees for success
Cloud ERP implementation is not something that unfolds within only the IT department — this change affects everyone within the organization, from executives to shop floor stakeholders. For this reason, it is essential that manufacturers set themselves up for adoption success by greasing the skids, so to speak, through internal outreach and communication, according to InformationWeek. This approach can prepare on-the-ground users for the process change to come, reassure middle managers nervous over large-scale change and comfort C-suite leaders concerned with big-picture issues like data security.

2. Plan ahead for roadblocks
Seasoned IT professionals understand that ERP implementation projects often take longer than expected. In fact, 58% of the companies that implemented ERP solutions in 2018 experienced time overruns, Panorama found. However, these slowdowns are far more likely during cloud ERP implementation, where virtually everyone involved is grappling with totally new technology. Manufacturing firms should therefore focus on developing realistic timelines that take into account at least one or two process delays. Building these issues into the original implementation plan is far superior to flying past deadlines.

3. Carefully evaluate all ERP options
There are numerous cloud-based ERP solutions on the marketplace. While this means manufacturers have a larger selection from which to choose, it also makes platform selection missteps more likely. This is a surprisingly common issue, as 8% of the businesses that adopted ERPs in 2018 attested to being dissatisfied or very dissatisfied with their vendors, while another quarter were neutral about their ERP partners. To avoid this kind of situation and select cloud providers that deliver returns on investment and meet expectations, manufacturers must take their time when developing their selection criteria and assessing potential vendors.

Is your manufacturing firm ready to embrace cloud ERP technology? Consider connecting with Accent Software today. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the opportunity to adopt a quality cloud-based ERP solution designed to facilitate operational growth via cutting-edge platform features.

Contact us today to learn more about our proven products and services.

4 things executives should know about manufacturing ERP software

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Modern manufacturing executives function within an immensely unstable environment where challenges are numerous and wins are transient. For this reason, many balk at the notion of enterprise resource planning adoption or enhancement. Why invest in expensive, new or updated software when the shop floor continues to evolve? In reality, high-quality, effectively implemented ERP technology can grow with the business and underpin mission-critical production processes, no matter the general state of the marketplace. This is perhaps why manufacturers oversaw approximately 43% of all the ERP adoption initiatives undertaken in 2018, per research from Panorama Consulting Solutions. Business leaders within the industry who want to break out of their moderate ways and follow in the footsteps of these and other adopters — an estimated 95% of which saw process improvement immediately following go-live, according to Panorama — should assess the state of the ERP before taking action.

Here are three things these forward-thinking executives should know about manufacturing ERP technology:

ERP solutions are changing
The ERP marketplace moves with technological innovation and user demand, meaning most vendors are constantly iterating to remain relevant. This is good news for adopters, as they have numerous products to choose from, including ERP solutions from both emerging providers and established software powerhouses, TechTarget reported. Additionally, interplatform integration is more common than ever before, leading manufacturers pursuing implementation to customize their instances with external modules.

ERP solutions are moving to the cloud
Businesses across every sector have embraced enterprise cloud computing. Even so, many have been reluctant to move forward with cloud-based ERP technology for fear of losing control over their data caches and abandoning investments in legacy hardware and software. However, this is starting to change, as most information technology leaders see the cloud as the "gateway to modernization," analysts for Accenture found. An estimated 85% of the companies that implemented ERP solutions in 2018 opted for cloud or Software-as-a-Service products, per Panorama. This is likely to become the norm.

ERP solutions are the future of decision support
Manufacturing leaders depend on shop floor insights, leveraging this actionable information to develop overarching business strategies that lead to revenue. ERP solutions already support this key function but some emerging features are poised to pull this technology into the center of the decision-making process, ERP Focus reported. Internet of things integration and expansive real-time data collection components further enhance ERP systems and thereby empower the executives who depend on them.

Are you among the manufacturing executives considering ERP implementation? Consider connecting with Accent Software. As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturing organizations of all sizes the opportunity to adopt a quality ERP solution designed to facilitate operational growth via cutting-edge platform features.

Contact us today to learn more about our proven products and services. 

ERP technology in 2019: Unpacking the ROI

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Enterprise resource planning technology remains immensely popular among manufacturers. In fact, these businesses accounted for 43% of all ERP implementations completed in 2018, according to research from Panorama Consulting Solutions. Despite this reality, some within the sector are questioning the relevance of ERP technology, wondering whether sticking to familiar manual processes rather than pursuing sweeping technology-driven progress is the ideal tactic for surviving or even thriving in these turbulent marketplace conditions, per Industry Week. The reality is, ERP platforms generate real return on investment in 2019 through these transformative improvements:

Operational data transparency
Modern ERP systems integrate with multiple shop-floor information conduits, from internet of things sensors installed on mission-critical production machinery to barcode scanners leveraged in shipping and receiving operations. This brand of whole-operation connectivity allows operational stakeholders to gather real-time information, which can be used for shaping optimization efforts, according to ERP Focus. When executives and production leaders have access to the rich, cross-departmental insights ERP technology provides, they can make informed business decisions that facilitate real improvement and lay the groundwork for sustainable revenue gain.

Optimal backend efficiency
A good number of the manual workflows ERP solutions are designed to replace are incredibly inefficient and weigh heavy on the bottom line. For instance, American businesses lose around $47 million per year as a consequence of institutional knowledge loss alone, analysts for Panopto discovered. ERP solutions reduce the likelihood of these financial failings by allowing operational teams to use automated tools that reduce the need for manual work while logging the essential platform activities that lead to seamless production workflows that unfold as required, no matter the personnel involved, CIO reported. These solutions also add efficiency to the decision-making process, as manufacturing leaders can easily tap into the data they need to move forward with changes big and small.

Agility and scalability
The modern marketplace moves with great fluidity, propelled by ever-changing customer expectations and desires. Manufacturers must meet consumers' needs lest they risk relinquishing their footing in the industry. ERP technology is among the most effective tools for achieving this objective. Such solutions generate actionable operational insights that allow production stakeholders to predict emerging shifts and put into place refreshed processes designed to make products that are right for the moment. ERP platforms also enable manufacturers to scale up or down depending on market activity.

Together, these and other advantages that come with ERP implementation have an immense impact on revenue, making this technology key for modern manufacturers.

Is your manufacturing firm prepared to embark on ERP implementation and in need of a solution that can generate ROI? Consider connecting with Accent Software.

As a certified Microsoft Business Solutions partner, we provide vendor-vetted Microsoft Dynamics NAV implementation services, giving manufacturers of all sizes the opportunity to implement an effective ERP solution designed to facilitate operational growth through cutting-edge platform features. Contact us today to learn more about our proven products and services.